While all investors should have some allocation to shorter-duration debt funds for portfolio stability, the exact proportion should depend on their risk appetite
Overall, 14 out of 16 debt mutual fund categories recorded net inflows in October, while medium-duration and credit risk funds continued their pattern of consistent outflows.
The latest debt funding will strengthen Udaan's balance sheet, offering flexibility to invest and maintain its leadership
The sharp decline in inflows highlights growing caution among investors. They are prioritising shorter-term, safer options while awaiting clearer signals on interest rate movements.
In the past three years, the fund has maintained a predominant allocation to non-convertible debentures (NCDs) and bonds of financial institutions
Easing G-sec yields put long-duration, gilt funds on winning track
Passive funds attract Rs 37,200 crore inflows in 2024
With no Fed rate cut in sight, gilt schemes garner Rs 5,200 cr in April, most in at least 5 yrs
Debt funds invest in various fixed-income instruments including bonds, treasury bills, and commercial paper
Those with a medium-term horizon run the risk of getting caught in a rising rate cycle
The NFO (New Fund Offering) is an open-ended Category III Alternative Investment Fund, aiming to raise Rs 3000 crore with approx. Rs 1,000 crore over the next 6 months.
Debt funds continue to see most of the action in the short end of the yield curve and markets are, perhaps, waiting for clarity on the direction of interest rates.
Gilt and dynamic fund investors reap nearly Rs 330 crore in gains, reveals estimates
Franklin Templeton believes the short end of the curve continues to offer the best risk-reward to the investors.
Staged strong comeback last year, stole march over debt funds to post best performance in 8 years
But avoid going overboard with exposure as unforeseen events could prevent inflation from softening
This week we write about how to plan profit booking and getting the best look in blazers
Even when investing solely for capital gains, stay flexible and extend investment horizon if required
We believe US rates have peaked, and the US Federal Reserve can start easing in the second half of 2024. However, the same cannot be said for Indian policy responses
Take moderate exposure to these funds, given the potential for defaults and downgrades in their lower-rated portfolios