Which debt funds for a collateral-ed investment portfolio

Personal finance
1

Hi everyone,

I am using Debt funds as a part of my collateral portfolio which I pledge for margin and trade in index derivatives. The portfolio is something like this:

Cash, SGB, Equity MF and Debt MF - 25% each

I buy MFs in lump sums of 1 L each and do not have a time horizon on redeeming them, i.e. as my account size grows I’d like to keep adding more funds to my portfolio. I am a bit confused as to which debt funds would meet my needs best. Any suggestions?

2

I think that liquid funds should be the best option for the debt component. You can also try money market funds and ultra-short funds for this.

1 Like
3

Thanks for your suggestion. Can you also explain the reasoning/advantages behind choosing liquid/UST funds vs medium/long/GILT funds for my debt component?