According to Sharekhan, the overall sentiment for debt market is likely to remain bearish as fresh supply will hit markets in the new financial year.
Common parameters of selecting a fixed income investment are potential risk, expected returns and tax efficiency. Unaware of debt funds as a fixed income product, many investors opt Banks or small savings deposits. But, Debt funds if used properly and selected wisely can be a good alternative to other fixed income investments.
Sharekhan in its latest report has identified the best debt-oriented schemes available in the market today based on the following 5 parameters: Avg. rolling returns for one and two years, Sharpe ratio, Fama (net selectivity), Credit quality and Average Maturity.
There are lot of mutual fund investors who are not yet familiar with growth option and dividend option. From investment point of view, it becomes very imperative to understand the implication of which option you are choosing. Selecting the right option is as important as selecting the mutual itself, reckons Kripananda Chidambaram
When investing in debt mutual funds, there are some parameters to be considered and compared before you finalize which debt mutual fund to invest in, based on your risk appetite, tax bracket, time horizon and liquidity requirements/investment time horizon. Read this space to how debt mutual funds work and how you can benefit from investing in it.
Debt mutual funds are neglected by investors often due to lack of understanding of these products. However, this category of schemes provides ample opportunities to earn handsome returns in the fixed income space. Read this space to understand the various categories of debt mutual fund and know the benefits from investing in them.
Sharekhan has identified the best debt-oriented schemes available in the market today.
The country's most cash-rich IT firm Infosys has doubled its investments in liquid debt mutual funds to Rs 4,986 crore -- the highest in nearly three years.
Rising gold prices and continuing investment flow in yellow metal has pushed the size of assets held through gold exchange traded funds to an all-time high of Rs 11,198 crore.
As market ended with marginal gains, Equity and Balanced funds delivered flat performance. Meanwhile debt funds were slightly better off registering very few decline.
Many AMCs take large exposure to debt instruments from a selected few sectors, thereby exposing its investors to high risks. Hence it is advisable that the investors should look into the portfolio characteristics, returns delivered and track record apart from investment time horizon while investing in a debt schemes.
Despite exhaustion in the market, gains were seen in some of the diversified equity funds category, especially those following mid & small cap bias, and opportunities / flexi style of investing.
While debt mutual funds offer varied advantages, very few are aware of the taxes levied by it. Debt Mutual Funds have a differential tax treatment as compared to equity. Financial advisor Jitendra Solanki analyses the tax treatment on debt mutual funds for the FY 2012-2013 to enable investors take sound investment decision.
While building a portfolio a lot of focus is given to the equity part while a fixed income space relatively receives less attention. This often leaves some gaps in the portfolio. Financial advisor Arnav Pandya lists out various factors that needs to be considered while investing in fixed income instruments.
New to Mutual Funds…uncertain which scheme is best for you? Read this space to know all that you should know about MF.