Which Debt fund is suitable for me?


I have invested in equity around 70 % and want to invest 30 % in debt and will keep rebalancing when the market goes down. so which debt fund is good for this type of situation?


Any Debt fund which has invested in long term govt sec/bonds should be good choice for you. say gilt funds.
Needless to say, check AUM, Expense ratio etc.

of course, there can opinion that one can take small risk and choose Mutual fund which invests in good quality corporate bondsā€¦ The possibilities are endless, its just that my preference is govt bonds only.

Regarding rebalanceā€¦ in addition to keep rebalancing when market goes down (which is subject to interpretation as we do not know this week that next week will market go down further or go up) you should consider periodic rebalance. Either quarterly or yearly irrespective of market is up and down.

One of the reasons why NPS giving (comparatively to no re-balance) good returns is that they rebalance portfolio on your birthday. So one can consider implementing similar strategy of periodic re-balance.


Learnt something new today. Thanks. Did not know that the rebalancing happens on NPS on birthdays.