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
select a debt mutual fund
Debt mutual funds are not without risk. When a default or a rating downgrade of an underlying security, NAV of the fund takes a hit. Not just that, it poses an additional problem. In such cases, some of the more knowledgeable investors can benefit at the expense of less aware investors. SEBI has come out with a circular to address the issue. What is the issue if there is a … [Read more...] about What is Side Pocketing in Debt Mutual Funds? How it helps?
In an earlier post, I looked at how you can select a liquid fund. In this post, let’s look at how you can extend the same argument to selecting debt mutual funds for your portfolio. The pointers used in liquid funds can be extended to any debt fund. However, since we are looking at a much wider choice, there are a few additional aspects that must be considered. In the case of … [Read more...] about How to select a Debt Mutual Fund for your portfolio?