Are Banking & PSU Debt Funds a safe alternative for investors who wish to get higher returns than liquid funds and overnight funds? With so many credit defaults events in the debt mutual fund space, this a natural question to ask. Let us find out. The first step is to ask, “what is a safe…
Continue reading →On June 27th 2019, the SEBI board approved several proposals to manage risk and liquidity in liquid mutual funds. Over a period of time, it will lower risk and therefore returns in this space. Here is a simple explanation of what these rules mean to the investor. The proposals were made by the Mutual Fund…
Continue reading →After the series of credit problems in debt mutual funds, many investors would like to know more about buying bonds directly instead of debt mutual funds. To do this, knowledge of basics and familiarity with bond terminology is essential. Therefore I have requested an expert to discuss the basics of how to go about buying…
Continue reading →As you know by now, DHFL has failed to pay interest on its bonds in time and the NAV of several debt funds fell sharply (and that is an understatement for some!) on Tuesday night. If you are affected, here is what you should do. If you are not affected, here is how you can…
Continue reading →This is a user guide on gilt mutual funds (a debt fund that invests in govt bonds). When to use them & how to use them for maximum benefits. Let us start with the basics, but before we do, do check out these two free e-books: MF FAQ for beginners and if you are new…
Continue reading →Bond defaults and downgrades are becoming daily occurrences and these would only increase if we do not see corporate earnings driven stock market movement. The latest is Reliance Home Fin & Reliance Commercial Fin. Each time there is a change in the credit rating of a bond, the NAV of the debt funds that hold…
Continue reading →The one big difference between a mutual fund and other conventional investment products is their so-called market-linked nature. We take this for granted when it comes to equity mutual funds but must be reminded with respect to debt mutual funds. With the ongoing FMP crisis, it appears as if the AMCs need to be reminded…
Continue reading →Gilt mutual funds are those that predominantly invest in government bonds (gilts).For a citizen, such bonds carry no credit risk, that is the risk of perceived or actual delay or default in interest payment*. However, this brings to the table a new of problems that investors need to know of. If you cannot stomach the possibility…
Continue reading →Imagine that you are a risk-averse investor and wanted to “park” some money for a few days, and desired to earn a bit more than a savings bank account, an overnight mutual fund is a reasonable choice. If you wanted to extend the investment duration to a few months, a liquid mutual fund is not bad…
Continue reading →Here is how one can choose a liquid fund in 2019 by minimizing credit risk. The recipe is simple: stop chasing returns; stop using star ratings and understand investment strategies. In the past couple of years, we have seen huge losses in liquid funds – something that was considered to be impossible. So we would…
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