SEBI, in June 2019, made a few changes to investment guidelines and valuation of securities in debt mutual funds. These changes enhance credit and liquidity profile of the liquid funds. At the same time, these changes can make liquid funds a bit volatile. Let’s try to understand the new SEBI rules. #1 Liquid funds are now required to hold 20% in liquid … [Read more...] about Liquid Funds to have exit load and will now be a bit volatile
Over the past few years, we have seen debt mutual funds being promoted as a replacement for fixed deposits. I do not deny that there are a few clear benefits and debt mutual funds may provide better tax-efficient returns as compared to bank FDs. However, the return of principal is more important than return on principal. And the events of the past few years (ILFS default … [Read more...] about How to select a Liquid Fund?
SBI cut interest rate of saving bank account from 4% p.a. to 3.5% p.a. in July 2017. After SBI, a few other banks have followed suit and cuts savings bank interest rate to 3.5% p.a. What should you do? Relax. There is nothing you can do. Learn to live with it. Frankly, resisting this change may not be worth your time. In the informal discussions, I was part of, people … [Read more...] about Savings Account interest cut to 3.5% p.a. What should you do?