If you are looking to invest in Debt Mutual funds then it is the right investing option for those who want predictable income and less risk.
firstly , if you want to deal with so called debt mutual funds then you should compare the various debt mutual funds. But unlike equity funds, investing in interest bearing securities like bonds and treasury bills. They are the behind-the-scenes workhorses, the vessels by which stability and consistent returns gleam from your investment portfolio.
Now, onto the million-dollar question: how will I pick the best mutual fund investment in India?
In this case, much depends on what you hope to achieve with your finances, your tolerance of risk, and the time you have in mind for investment.
If you are looking for steadiness and liquidity, then you may consider short-term debt funds. They are a good place to park your emergency money or for a short time with minimal risk.
For those investors who prefer to stay in the game for a longer time frame and are ready to accept a relatively high risk, dynamic bond funds could be the perfect compromise. They lengthen their portfolio duration when the yield curve is steep, seeking a return while minimizing their risk exposure.
Certainly, the quality of the credits is also an important factor! Go with high-caliber funds to make sure you are not exposed to credit risk granting you a sweet snooze.
Thus, we have our question answered. With a dispensed knowledge about your goals and the financial returns you aim to accomplish locate a Mutual fund suitable for you and be your own investor.