Debt

Arbitrage Funds: Why Post-tax Yields are Superior to Debt Funds?

Post 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

Understanding 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

The Different Categories of Debt Mutual Funds

What Determines the Returns Earned by Debt MFs?

The Risks of Investing in High-Yielding Debt

High-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?

There 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 f … Read more

What is a Debt Mutual Fund?

Debt 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