Key Points
Mumbai: Investors looking for a low-cost passive debt option that can generate a higher return than fixed deposits while assuring robust safety in an investment time horizon of 15-33 months can consider the series of target maturity funds that are on offer from Aditya Birla Sun Life Mutual Fund...
The fund house will issue a series of seven such target maturity funds, with tenures ranging from 15-33 months as it believes yields are still lucrative at the lower end of the yield curve..
Investors in such schemes could earn a spread of 50-80 basis points over sovereign government securities or fixed deposits...
Financial planners believe these target maturity funds offer investors a chance to earn more than bank deposits with high liquidity..
Unlike other open-ended mutual fund schemes, target maturity debt funds have specific maturity dates, and investors holding units of target maturity funds eventually get the principal amount back...
You might be interested in
Mutual Funds hardsell debt funds as tax benefits end on March 31
29, Mar, 23India Business News: Mutual fund firms are wooing retail investors who seek to avail of long-term tax benefits in debt funds in the last few days of the fiscal ending Marc
Are debt mutual funds still attractive post the tax changes?
07, May, 23The purpose of investing in fixed income is to reduce the burden of risk. While they may appear attractive tactically, investors may experience significant volatility.
Sebi wants heat shield for mutual fund investors
29, Feb, 24The regulator has, in a communication sent to Association of Mutual Funds in India (AMFI) on Tuesday evening, asked fund houses to list the steps they are taking to protect investors in such schemes in next 21 days, said two people in the know.
Looking for mutual fund schemes to manage liquidity? Here is a pool of options for investors
24, May, 23Debt schemes are currently an attractive option for investors with a short-term outlook or looking for effective liquidity management, according to market expert Jayesh Faria. Short-term investors can consider ultra short-term funds with a minimum horizon of six months, liquid funds with a horizon of one to three months and overnight funds with a view of less than a month.
Interview| Debt funds still offer advantage of real-time liquidity: Kalpen Parekh, MD and CEO of DSP Mutual Fund
05, Apr, 23Investors should look at debt funds as instruments that offer instant liquidity and not solely from the tax efficiency angle, believes Kalpen Parekh, MD and CEO of DSP Mutual Fund.
How do I build a corpus of ₹2 cr in 12 years for son’s education?
15, Feb, 24You can park six months of your mandatory expenses in fixed deposits and invest the rest in better avenues like equity mutual funds.
Why debt funds may work better for you than FDs
17, Mar, 23India Business News: The rate hikes by the Reserve Bank of India (RBI) have pushed up lending and deposit rates of banks.
New Debt MF Norms: AMCs open subscription for international schemes
27, Mar, 23The existing Systematic Investment Plan (SIP) and Systematic Transfer Plan (STP) will reopen from March 29 onwards. However, fresh SIP and STP will not be allowed.
What are balanced mutual funds?
16, Mar, 23Balanced funds are a new category of hybrid funds that came into existence after the recategorisation of mutual fund schemes by Sebi in 2017. A balanced fund has the option of investing 40-60% of its corpus in equity, and 40-60% in debt.
Franklin MF to extinguish units in 5 out of 6 schemes; latest instalment will result in total payout of Rs 27,109 cr
12, Jun, 23Unitholders who are not eligible for electronic payment will receive a cheque or demand draft at their registered address.