This is the archive of all our articles related to debt mutual funds
If you read the scheme information document of a typical debt fund, say PPFAS liquid fund, you would fund interest rate swaps mentioned in many places. An interest swap is a derivative product used to hedge interest rate risk by mutual funds. In this article, we explain with simple examples, how swaps work. About the author:…
Continue reading →In the past week, gilt mutual funds fell between 1-2%. Dynamic bond funds fell 0.8% to 1%, Banking and PSU funds, corporate bond funds and all categories of debt funds holding medium to long term bonds fell by varying extents. Why did this happen? Will it impact the stock? What it means to your investments.
Continue reading →Franklin Templeton AMC has received 1252.44 crores from Vodafone Idea towards full principal and interest dues for the period June 12 to July 9, 2020. The AMC will now close the segregated portfolios (side-pocket) and payout investors. Here how this payout will be taxed. Thanks to an amendment in budget 2020, the taxation of segregated…
Continue reading →According to the income tax rules, the gain from each unit of a non-equity mutual fund that is older than three years is subject to 20% taxation with indexation benefit using the cost inflation index. With the Cost inflation index for FY 2020-21 just announced, let us see how tax is lowered on all debt funds,…
Continue reading →Gilt mutual funds can be tricky to understand. Those who assume they have invested in “safe” govt bonds would be shocked to see how much their prices (NAV) fluctuates daily and can even lead to negative or low returns over a few years. In this article, we find out if a market timing method can…
Continue reading →The titular question was posed by a reader a few days ago. Naturally, the AMC would allow a SIP from any MF, but does it make sense to start one in a gilt mutual fund that invests in long-term govt bonds? We look the SIP returns of I-BEX a composite sov bond index to understand…
Continue reading →In the last year (as on 29th May), two gilts ETFs returned 13% and all direct plan gilt funds moved up between 10% to 17%. Is this then a good time to buy gilt mutual funds?
Continue reading →While corporate investors withdrew from several Franklin debt funds forcing the closure of six funds (a first in India), the AMC lost 28,664 Crores of debt fund AUM from 31st Dec 2019 to April 30th 2020. Amusingly, one of their debt funds grew 520% in AUM! A look at the change in their debt AUM.
Continue reading →The mutual fund industry lost 16% equity AUM bet Jan 31st 2020 to April 31st 2020. It also lost 14% debt AUM! While a good part of the equity AUM fall was due to the crash, the debt AUM fall was primarily due to redemptions triggered by the crash and associated fear. This is how…
Continue reading →These are some essential differences between liquid funds and other debt funds that investors need to know about
Continue reading →Gilt mutual funds may not have credit risks but they are also volatile and can lead to losses! What investors need to know before choosing them
Continue reading →Though Franklin AMC had no option but to close down six debt funds, they should have handled it a lot quicker and a lot better
Continue reading →In an extraordinary development, Franklin AMC has decided to wind up six debt funds due to continuous redemptions and their inability to sell adequate matching bonds. These are the next steps for affected investors.
Continue reading →The risk of loss in an overnight mutual fund is the lowest among all mutual funds. However, that is only one type of risk! What investors should know before parking cash in these funds!
Continue reading →Here is why liquid funds and money market funds also fell in the last few days
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