I don’t have a finance background, so debt funds feel complicated and choosing one is even tougher. From what I’ve learned, short-term debt funds and corporate bond funds suit me since they match my hotizon. But now I’m stuck at picking the right AMC. Is it fine to just choose the one with the largest AUM, or is there a simpler way to select a scheme?
Let’S Talk Mutual Funds By Monika Halan can help.
Pick any large bank funds from 2 AMCs for each category enough for diversification.
I personally have threshold of 10 lakhs, I will not invest more than that in any single debt fund. I may be naive but it suits me.
PS: Not an advisor.
1 Like
To select a debt fund, first match it with your goal and time horizon liquid/overnight funds for less than 3 months, short-duration funds for 1–3 years, and corporate bond/gilt funds for 3+ years. You can prefer funds with high credit quality AAA or govt securities if safety is key, and avoid long-duration funds when interest rates are rising. Also you can refer to the table for mutual fund selection i found that easy for making my investment choice.
3 Likes
What about government bonds, sorry i am new to fixed asset market.
The chart shows the type of funds under this funds there can be investment in T-bills, gsecs,Treps… But if you want to invest in bonds directly it can be done from primary & secondary market.
1 Like