Debt Mutual Funds

Debt funds can offer stability, but they are not risk-free — understanding the pitfalls and strategies to manage them is key for investors.

Are falling interest rates turning debt mutual funds a smarter choice?

With lending rates going down, debt mutual funds are back in the spotlight. But choosing the right class depends on risk-return experience.

Are debt mutual funds a smart bet during an interest rate cut cycle?

Falling rates can boost returns from debt funds—but timing and risk profile matter.

With rate cuts on the horizon, is it too late to invest in debt mutual funds?

Experts believe there has been a significant rally in long bond yields, and incremental gains are expected with rate cuts. Given the outlook for a shallow rate-cut cycle, investors can consider focusing on funds with durations of 3 to 5 years.

MC30 Fund pick: This debt fund will help you benefit from likely interest rate cuts

Sundaram Corporate Bond Fund is a moderate duration debt fund that invests only in AAA rated papers. With an average maturity of six years, it’s set to capitalise when rates start to fall.

Why is a SIP in debt funds beneficial to you?

Approximately 90 percent of SIP money flows into equity. While equity creates wealth over the long term, debt helps stabilise and diversify, while also growing your corpus, albeit at a slower rate than equity.

Budget Snapshot: Do tax resets make Indians change investments?

Tax changes may affect the choice of instruments for investment but are unlikely to move flows in a big way immediately. Flows are more affected by changes in interest rates or bond yields that directly influence the return an investor gets.

In 2024, interest rates will fall. Here’s how to position debt mutual funds

Debt funds offer great return possibilities at this point. This would be a wonderful window of opportunity for those who want better-than-average returns from fixed income investments.

One year of interest rate hikes: Debt funds emerge a winner despite headwinds

The Reserve Bank of India started raining interest rates (repo rate) in May 2022. Since then, it has hiked the repo rate 250 basis points. Accrual funds benefitted from the rate hike cycle while, duration funds have been a mixed bag. Here, we analyse how debt funds responded to the rate hikes

In 7 charts: How long-term holding mitigates interest-rate risk and ensures higher returns in debt funds

Debt funds go through volatile phases when interest rates oscillate. Consequently, returns also fluctuate. Investments held for the long term help manage rate risk and ensure consistent higher returns

SIPs work for debt funds, too. And, they beat bank FDs. Here’s the proof

A Moneycontrol analysis shows that 5-year SIP return calculated for MC30 debt schemes outperformed the FD rates for the respective period 60 percent of the time

Endowment plans looking attractive post-debt funds tax mess? Think again

Maturity proceeds of endowment plans with aggregate annual premiums of less than Rs 5 lakh are tax-free, but returns of 4-6 percent per annum, a long lock-in period and recurring premium commitments blunt the tax edge over debt mutual funds

Debt funds’ exposure to NBFCs falls 11.6% YoY to Rs 1.49 lakh cr in January: CareEdge report

On the other hand, bank outstanding credit to non-banking finance companies (NBFC) increased by 31 percent on-year in January to Rs 12.9 lakh crore, report said.

7 changes in financial landscape you need to know this April

From income-tax rules coming into effect after Budget 2023 to big bonanza for senior citizens to new rules for NPS withdrawal, a lot is happening. Here’s what to watch out for

Will NBFCs bond more with public issues?

The change in the tax regime for debt MFs could see NBFCs hit the public bond market to raise long-term money at attractive yields

Debt mutual fund tax tweak a setback, but AMC profit driven by equity schemes: Vikas Khemani

Most people may not abandon debt funds and that could turn into a long-term asset base, but creating new assets in the debt segment may be a challenge, says Vikas Khemani, founder of Carnelian Asset Advisors

Change in debt fund taxation rules may force NBFCs to rely more on bank funding

NBFCs raised Rs 1.75 lakh crore and housing financiers Rs 1.34 lakh crore through corporate bond sales so far this financial year.

How will the withdrawal of long-term tax benefit on debt schemes impact bank & AMC stocks?

The amendment to Finance Bill 2023 will not only alter the course of financial savings but will also impact the fortunes of stocks in the finance space

Finance Bill amendments: A story in memes

The Finance Bill, which contains proposals related to taxation and government spending, was passed with several amendments on March 24.

Not just debt funds, gold and international funds to also lose from the Finance Bill tweak

Balanced advantage funds stand to gain as experts predict that conservative investors might shift to them to get the equity tax advantage

Moneycontrol Selects: Top stories this afternoon

Take a look at our specially curated package of the most interesting articles to help you stay at the top of your game.

Proposed Finance Bill tweak: Here's how fund managers, corporates, market voices are reacting

Wealth experts largely expressed disappointment for the MF industry after the Finance Bill proposed that debt funds will now be deemed to be short-term capital gains.

Debt mutual funds may lose long-term capital gains taxation benefit

Capital gains from debt funds, international funds and gold funds bought from April 1, 2023, onwards will be taxed as short-term capital gains.