Debt

Arbitrage Funds: Why Post-tax Yields are Superior to Debt Funds?
DebtPost the change in taxation on debt funds from 1-Apr-23 (returns will now be taxed at your income tax slab, as compared to more favourable capital gains tax earlier), we have been recommending that in … Read more

Comparison & Review of Top High-Yielding Debt Options for Investors
Debt, PMS AIF, RecommendationsUnderstanding High-Yield Debt Investment Options Fixed Deposits & low-risk Debt Mutual Funds, offer safety to investors but only provide a relatively low yield/interest-rate. Traditionally, equity … Read more
Are state-government bonds risk-free?
DebtInvestors often view state government bonds, to be very low-risk, given the fact that they are backed by the government. Out here, it is important to understand the difference between a central govern … Read more
Why am I seeing a negative return in my safe debt funds in the very short-term after investing?
DebtBond prices fall when interest rates move up (this is true even in very low duration funds with low interest rate sensitivity). Now, if the fund has an yield of 4.5% (it will earn 4.5% through the yea … Read more

The Risks of Investing in High-Yielding Debt
Debt, Financial AdviceHigh-yield bonds (popularly known as “junk bonds”) are corporate debt securities that pay higher interest rates because of the low credit rating of the issuer (indicating a higher default risk). Cred … Read more

What Determines the Returns of a Debt MF?
DebtThere are 2 main factors the determine the returns earned by a Debt MF Yield The yield (interest rate/coupon) of the securities held are the key determinant of the return potential of the debt fund. T … Read more

What is a Debt Mutual Fund?
DebtDebt Mutual Funds are funds that invest in fixed income securities such as bonds, government securities, treasury bills and other money market securities. To understand a debt mutual fund, it is impor … Read more