DEBT FUND RECOMMENDATIONS – OCTOBER 2017

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LIQUID FUNDS :

  • Average Maturity is less than 90 days.
  • Ideal for parking idle funds for very short period.
  • Least risk of volatility since there is no comparing of the rates with the market.

ULTRA SHORT TERM FUNDS:

  • Average Maturity is 3 to 6 months.
  • Suitable for short term fund parking.
  • Minor volatility in returns due to marking fund rates to market.

SHORT TERM FUNDS:

  • Average maturity is 1 to 4 years.
  • Provides accrual returns plus capital appreciation.
  • Suitable for short term investment of around 3 years. Returns subject to volatility in market rates.

INCOME FUNDS:

  • Average Maturity is 5 to 10 years.
  • Maturity varies from short to long term to benefit from yield curve movements.
  • Dynamically managed portfolio suited for tactical allocation.

DYNAMIC FUNDS:

  • Average Maturity 1 to 10 years.
  • Similar to Income funds, with greater flexibility to choose papers of different maturities ,lower Average Maturity in a bear market and vice versa.

MONTHLY INCOME PLANS:

  • Generally 80% of the portfolio is allocated into debt and 20% into equity.
  • Preferred by conservative investors who want some allocation in equities.

The schemes are listed in the above tables according to the position they hold in the quartile ranking for the month of September 2017

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