SEBI’s Mutual Fund Scheme Categorization requires fund houses to use a term known as Macaulay Duration to differentiate among debt mutual funds. Here is a simple explanation of what is Macaulay Duration and the more important modified duration and why you need to understand their significance if your mutual fund invests in bonds (debt mutual […]
Category: Debt Mutual Funds
Reducing Tax With Partial Mutual Fund Withdrawals: Examples + Calculator
There are times in life when you require money for a need in stages. The most common example is monthly income. Those who do not have much money to play with, cannot take risks and must rely on interest income which is always taxable as per slab. On the other hand, those who have some […]
The Trouble With Debt Mutual Funds
Debt mutual funds are not easy products to understand. The moment a bond can be traded in the middle of a tenure, the risk associated with it are often not obvious. Regular readers would be aware that I have discussed this at length. To compound matters further, it is very hard to spot mutual fund […]
Reader Analysis: How I Selected My first Debt Mutual Fund
Anirban Ghosh had posted his analysis of a debt mutual fund at Facebook Group, Asan Ideas for Wealth (AIFW). When I requested him to write an account of how he selected his first debt mutual fund, he readily agreed. Anirban’s data crunching has unearthed an interesting mutual fund with a curious strategy and is the […]
Franklin India Savings Plus Fund – A Debt Fund For First-time Investors?
Franklin India Savings Plus Fund can be classified as an ultra-short term debt mutual fund that invests predominantly in floating rate bonds (to minimise interest rate sensitivity) of reasonably good credit quality, making it a reasonable candidate for first-time debt mutual fund investors to consider. In this post, I look at the main characteristics of […]
Why are Long Term Gilt Funds Falling?
Many Investors, especially senior citizens, who purchased long term gilts funds (or their cousins, dynamic bond funds) after seeing recent double-digit returns, are puzzled and even worried about why these funds are falling since the last three months. In this post, I discuss the reasons behind this and how to make sense of debt fund […]
Free E-book: A Beginner’s Guide To Investing in Debt Mutual Funds
Dear Reader, This is a pdf collection of 26 posts on debt mutual funds written over the past 4 years. I enjoyed learning and writing about every bit of this fascinating space in finance – tradable fixed income. Debt mutual funds are not exactly easy to understand, but I believe they are not hard to […]
