Can NPS Tier 2 be used as a replacement for debt mutual funds?

After the debt mutual fund taxation change from 1st April 2023, many readers have asked us if they can use NPS Tier 2 as an alternative‚ÄĒa discussion. We had previously discussed a related idea:¬†Can I use NPS Tier II as a low-cost index fund? All NPS pension fund managers provide portfolio details under “statutory disclosures”…

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An introduction to debt mutual funds for new investors

In this article, SEBI registered fee-only advisor Swapnil Kendhe explains all the things related to debt mutual funds that retail investors should understand if they want to make informed decisions appropriate for their financial goals. About the author: Swapnil Kendhe is a SEBI Registered Investment Advisor and part of my list of¬†fee-only financial planners. You…

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Is there a place for high-interest rate fixed income products in a portfolio?

It is quite easy to see extreme reactions to many aspects of personal money management. Yield-chasing or seeking to invest in high-interest rate fixed income products is no different. Many investors vehemently believe that there is no place for risk in a portfolio. “We have enough risk from equity, so why take on more risk…

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Can I use ultra short duration funds instead for short-term goals?

A reader asks, “You usually recommend money market funds for short-term goals. Can we also consider Ultra Short Duration Funds for this purpose?’ The definition of money market funds is simple: “Investment in Money Market instruments having maturity up to 1 year”.Ultra-short duration funds are defined as “investment in Debt & Money Market instruments such…

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UTI Gilt Fund with 10 year Constant Duration: Is this a right time to invest?

UTI Gilt Fund with 10-year Constant Duration is an open-ended debt scheme that invests predominantly in government securities issued by central and state governments. The weighted average portfolio maturity will be maintained at around ten years. A reader wants to know if this is the right time to buy such a product. Also, The fund…

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