The second main strategy that debt funds follow is duration. In this article, we’ll cover what a duration strategy in debt funds is, which categories follow duration, and whether you should invest in such funds.
When you choose funds, knowing risks alone may not be sufficient. You need to understand debt fund strategies. You will broadly know the following in this article
– What is accrual strategy
– Which categories follow accrual or a hybrid model
– How you can use accrual funds
This is the question we’ve received from many of you. The straight answer to this is: gilt yields rose sharply in the past 1 month causing a drop in prices.
Last week, we looked at the equity fund categories there are and how you can use them in your portfolio. This week, we will take up each debt fund category and the hybrid categories. As with equity funds, in both debt and hybrid categories, you don’t need to follow SEBI categories exactly. As always, go …
You will soon be receiving money on some of the segregated Vodafone Idea debt units of Franklin India.
The NFO of the latest tranche of the Bharat Bond ETF – a portfolio of high-quality PSU bonds from the Edelweiss AMC – will be open from July 14-17, 2020.
A systematic withdrawal plan (SWP) is pretty straightforward. You hold an amount in a fund, fix the amount you want to withdraw periodically from this
At the end March 2020, we recommended 3 MF debt options that you can invest in over the next 2 to 3 years to capitalize
Now, with Franklin India AMC facing multiple lawsuits on the manner of winding up its six debt funds – the saga has taken a new turn.
• Lawsuits by unitholders against Franklin bring to light the fact that the rights of unitholders under SEBI regulations are ambiguous. It cannot simply be assumed that unitholders rights are limited to simply voting for liquidating a fund’s assets.
• In communicating with unitholders, Franklin’s line of argument also comes across as somewhat high-handed.
If the recent events in the debt space brought to light the liquidity risk arising from lower rated papers, you probably haven’t seen the unfolding of various kinds of risk since September 2018. In 2013, when duration became a risk on the back of rate hikes, money flowed copiously to credit risk over the next 5 years. Now, the cycle has turned. Money is moving to duration from credit risk.
The Securities Exchange Bord of India (SEBI) recently came up with a circular that requires AMCs to list schemes that are being wound up. This