A balance can be achieved through proper asset allocation and investing some part of your
portfolio in debt funds that primarily invest in instruments such as bonds, commercial papers and the likes.
If you are in a lower tax bracket (10 % or 20 %), you can choose the growth
option in debt funds even for shorter periods.
A systematic investment
plan in a debt fund which boasts of proper records and good returns is one that you should opt for.
If you are a low - risk player you can invest
in debt funds if you are an avid investor who doesn't mind taking risks than you can invest in equity funds.
If you are willing to go off beat and explore new avenues, you can consider
investing in debt funds, which are considered a safer bet in times of market volatility.
Since after retirement if you want a flow of income which full fills your needs post your retirement than you can opt for dividend
option in debt funds.
Traditional plans are biased towards investments
in debt funds as they assure a guaranteed sum assured at the end of the policy tenure.
If you invest
in a debt fund for more than 3 years, Long Term Capital Gains (LTCG) taxation applies.
It is suggested to shift from the funds that are more concentrated on equities and invest more
in debt funds because as they are less risky and returns are more or less assured unlike equity funds.
Invest these premiums in mutual funds (you can invest
in debt funds too) and let the money work for you
One can start moving towards debt when your retirement is 5 years away by investing say 20 % corpus each
year in debt funds, which invest in government and corporate bonds.
Hence, the debt portion of your portfolio must be invested
in debt funds rather than Fixed Deposits.
If you want to park some part of your
money in debt funds (say for your emergency needs) on a regular basis, then SIP is a good method to go for.
than again, I have not invested
in debt funds yet so chances of me getting wrong on this might be high, very high Cheers
If I invest in FD problem is less return post tax deduction Also if I invest
in Debt fund issue is there also I need to pay tax if I withdraw it before 3 yrs.
You may suggest her to invest in these two schemes up to maximum limit and then consider investing in mutual funds (
SWP in debt funds).
when it comes to less than 3 years, debt fund face a very tough competition with FD bcz FD gives you zero volatility return where as
in debt funds little bit of volatility will be there.
Starting an SIP in Franklin India Low Duration Fund is a good alternative to starting a recurring deposit (RD) as the rate
earned in a debt fund is higher than the interest given in RD.
I have almost 8 lakhs of money in te RD which I want to liquidate now and
park in a debt fund because I now fall in the 20 — 30 tax bracket.
Expense ratio plays a decisive
role in debt funds, because they do not generate returns as high as equity funds.
If you would like to invest a portion of your investible
surplus in Debt funds then you may keep it simple and short by investing in Liquid and / or Ultra Short Term Debt funds (for short and medium term goals).
Invest some
portion in debt funds and some in large - cap equity and once you gain some experience, use it to build your portfolio.
So, if you invested
in Debt Fund A for Rs. 50,000 and sold it for Rs. 70,000 after 28 months, Rs. 20,000 is considered to be an additional source of income.
Fixed deposits usually earn interest of 6.00 % p.a, as compared to 7.00 - 9.00 %
p.a in debt funds.
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Now in debt funds, there are 2 things that determine their function — interest rate and credit quality of the investments.
This investment strategy aims to protect their fund from any risks by raising the fund
allocation in debt funds as policy nears maturity.
You can opt for tax - saving mutual funds with exposure to equities or stock market and also invest
in debt funds with endowment plans, PPF, etc..
HDFC Life Capital shield is an investment cum protection plan which offers you potential returns by investing portion of your investment into equity and
rest in debt fund.
As we've previously reported, Spotify raised $ 1 billion
in debt funding early last year from TPG, Dragoneer and clients of Goldman Sachs.
Analysts at London - based research firm Preqin expect that in 2016, private equity real estate debt funds will outpace the $ 15 billion
in debt funds raisede in 2015.