Navigating Debt Mutual Funds: What You Need to Know Before Investing

Navigating Debt Mutual Funds: What You Need to Know Before Investing

Are you considering investing in debt mutual funds to diversify your investment portfolio and potentially earn steady returns? Or looking to invest for your short- or medium-term goals? Before you take the plunge into the world of debt funds, it’s essential to arm yourself with knowledge about how these funds operate and the risks involved. Debt funds offer a plethora of options (16 categories to be exact) catering to various needs, but understanding their intricacies is paramount to making informed decisions. From the dynamics of the NAV movement to the risks like credit and interest rate fluctuations, we’ll learn everything …

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Should you continue your debt mutual funds after the change in taxation?

When investors adopt a narrow mindset focused solely on one aspect of the investment process, such as taxation or recent return trends, they inadvertently restrict their ability to see the bigger picture and achieve their ultimate financial goals, which often include wealth creation and meeting specific objectives. By fixating on taxation, you may prioritize minimizing your tax liabilities without fully considering the long-term growth potential of your investments or the suitability of the product itself. Similar is the case of this recent ruckus in the mutual fund space due to the changes in the taxation of debt mutual funds. In …

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