Debt MF

POSTED BY Dharmesh Gangani ON October 21, 2010 10:15 pm COMMENTS (3)


I have been reading a lot now-a-days regarding investing in Debt MF & how one can get better returns with Debt MFs compared to FDs. This is especially when the interest rates are expected to rise in near future. Which category of MFs should be considered for investing – FMP, MIP, Income funds, Short term or long term debt funds? Please suggest.

Also, should we consider NFO or invest in an ongoing Fund.

Dharmesh G.

3 replies on this article “Debt MF”

  1. Dharmesh

    Want to make say that dont ignore the side effect , If interest rates go wrong or the fund defaults , you might not get your money on time, also exit loads might be higher , Debt funds might offer more , but not in every situation


  2. Dharmesh Gangani says:

    Thanks Rakesh.

    But what is the typical investment horizon one should look for while investing in Debt funds. OR should we keep invested till we need money?

  3. rakesh says:

    MIP’s are very good. You can expect around 10 to 12% returns. HDFC MIP, Reliance MIP and Birla Savings MIP 5 are some good funds. Depending on your risk you can invest in these funds. Birla Savings MIP 5 only invest 5% in equity markets and the rest in Bonds and other Governments avenues.
    Always invest in an ongoing Fund, never look at the NAV and invest, instead look at the past performance of the funds. In case of NFO your money will be blocked for one-two months before the fund starts investing in the markets.


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