debt funds Archives - Page 2 of 5

Debt fund strategies for the current rate scenario

Bhavana Acharya / Strategies, Categories, Mutual funds & ETFs, Premium, Research Reports / December 8, 2022

The Reserve Bank’s monetary policy on Wednesday served up another repo rate hike of 35 basis points, adding to the 190 basis points through this year. That takes the repo rate to 6.25% from the Covid low of 4%. The key driving factor behind the rapid rate hikes – that of inflation – still remains. The RBI has clearly spelt its commitment to bringing inflation within the target range, even in its latest monetary policy.
In this light, debt fund strategies you have now, to make the most of the current scenario, can be decided based on what you want:

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Have short term money to park? Here’s a cast iron option

Aarati Krishnan / Bonds & Deposits, Categories, Commentary, Markets, Mutual funds & ETFs, Premium / October 6, 2022

Lately, it is not just India’s stock market that has been hopping all over the place like an impatient child. The bond market has been doing it too! India’s 10-year government bond yield, which sets the benchmark for all other debt instruments, climbed vertically from 5.8% in July 2020 to 7.61% in June 2022. But after that, it has been unable to make up its mind on whether to climb higher or pause for breath.

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Corporate bond funds, gilt funds and credit risk funds – which to own and when?

Vidya Bala / Strategies, Categories, Mutual funds & ETFs, Premium, Research Reports / September 20, 2022

When it comes to building long-term portfolios with debt, many of you are confused about which funds to use. Should it be corporate bond funds or gilt funds or credit risk funds? To choose these or a combination of these, you need to first know the difference in the characteristics of these fund categories.

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How are deposits, bonds and debt funds taxed?

Pavithra Jaivant / Taxes, Bonds & Deposits, Categories, Investment basics / September 8, 2022

Deposits, bonds and debt funds are great ways to diversify one’s portfolio. But the taxation on these instruments can decide whether an option is attractive or unattractive on a post-tax basis. Taxation, though varies across instruments and can be quite complex. The fact that not all debt instruments are taxed in the same way compounds the decision making dilemma on which option to choose. This write-up will break down the taxation aspect of popular debt instruments for resident individuals.

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All your debt fund doubts, answered

Vidya Bala / Commentary, Bonds & Deposits, Categories, Mutual funds & ETFs, Premium, Research Reports / July 19, 2022

It is true that debt funds have been a washout in the past 3 years. For an investment of 1-2 years, FDs would have marginally (although not significantly enough) returned higher than liquid and ultra short duration funds.

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Debt fund opportunities – the category that’s at a low

Bhavana Acharya / Recommendations, Categories, Mutual funds & ETFs, Premium, Research Reports / May 29, 2022

The headlines now are devoted to sliding equity markets and stock opportunities to ‘buy the dip’. But that’s not the only window of opportunity to make the most of a correction. With the hike in repo rates earlier this month and a clear path now for higher rates, debt markets too offer scope for timely investments.

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Four passive debt funds to invest right now

Aarati Krishnan / Premium, Categories, Mutual funds & ETFs, Recommendations, Research Reports / May 12, 2022

Not so long ago, if debt investors in India wanted to get a 7% plus return, they had to go to post office schemes with (poor service and) a long lock-in period like the PPF or GOI Floating Rate Savings Bonds with a 7-year lock-in period. These options, apart from the difficulty of accessing them, required investors to sacrifice liquidity for returns.

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How to ride the interest rate upcycle

Aarati Krishnan / Bonds & Deposits, Categories, Markets, Premium, Research Reports / April 21, 2022

Indian debt investors have been handed a raw deal in the last three years. Though inflation has been rising and market interest rates edging up, the Reserve Bank of India (RBI) and the Monetary Policy Committee (MPC) were doing their level-best to keep a lid on interest rates, to protect borrowers in a Covid-hit economy.

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Prime NCD review – Should you invest in Muthoot Fincorp NCD?

N V Chandrachoodamani / Categories, Bonds & Deposits, Premium / January 5, 2022

Muthoot Fincorp, a non-deposit taking NBFC, registered with RBI, has come up with a public offering of secured non-convertible debentures (NCDs). The issue opens on January 5 and closes on January 28, 2022. Should you invest?

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Prime Debt outlook 2022 – Interesting times ahead for debt investors

Aarati Krishnan / Bonds & Deposits, Categories, Commentary, Mutual funds & ETFs, Premium / January 4, 2022

So what’s ahead for the prime debt outlook 2022? Do we expect rates to now sidle sideways or to continue their climb? Though the onset of Omicron may see the MPC continue to make dovish noises and delay repo rate hikes as much as it can, we think that market interest rates will continue to climb in 2022 irrespective of whether or not MPC acts.

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Prime Funds performance in 2021

PrimeInvestor Research Team / Categories, Commentary, Mutual funds & ETFs, Premium, Research Reports / December 23, 2021

Prime Funds performance in 2021
Stock markets did not disappoint you in 2021. The various market cap segments delivered textbook-like bull market returns with small caps outperforming midcaps and midcaps outperforming large caps.

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Potential Risk Class matrix for debt funds – what should you do?

Vidya Bala / Categories, Commentary, General, Mutual funds & ETFs / December 7, 2021

On December 1, you would have received text messages from various AMCs on the ‘Potential Risk Class Matrix’ (PRC) of the debt schemes you hold. If you’re worried about any change in risk profile of your fund based on this, you should read this article.

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