Blog about Financial Education, Advisory & Planning
Debt mutual funds, broadly, follow one of the two strategies. One type of fund aims to make money out of predicting interest rate movements. Accordingly, it will buy and sell securities to have a particular maturity date of the portfolio. This strategy is called duration strategy. The second type of fund aims to invest in …
For most investors & corporates, saving & current bank account becomes the preferred destination to park their short term surplus funds. Further, even when they need to build a contingency fund, they cannot think of better havens. The reason for such a decision might be lack of awareness or a time crunch. However, leaving your …
A debt mutual fund holds debt instruments, and these instruments pay a particular coupon (interest). An accrual strategy is holding a bond, earning the interest due, collect the principal at maturity and reinvest it in fresh bonds. Liquid funds, ultra-short term funds, short-term debt funds, income funds and credit opportunity funds primarily follow an accrual …
Debt Mutual Fund: Duration Funds vs Accrual Funds Read More »
The current rally in Indian market is fuelled by strong liquidity from domestic investors. With low bank fixed deposit rates, subdued real estate market (with high transaction cost) and stagnating gold prices, equities seems to be the most viable domestic investment avenue for investors. Thus in spite of the markets reaching all-time highs & rich …
There is no harm in maximizing returns, keeping safety and liquidity intact. The idea of keeping one’s emergency fund somewhere other than a savings account may not strike many, but it is an option worth exploring. A portion of our surplus money is often kept in a savings account to meet emergency expenses. While building an emergency …