How to include debt funds in your long-term investment portfolio?
Live MintThe popularity of equity funds and stocks dwindled as the market continued to slide down in red. Many investors adopted a risk-averse attitude towards investments and opted to park in debt funds that invest in fixed-income generating securities including commercial papers, corporate bonds, government securities, treasury bills, and money market instruments. Debt fund categories for long-term goals Many people rely on tax-free fixed interest instruments like Employee Provident Fund, Public Provident Fund, National Savings Certificates, sovereign gold bonds, and long-term fixed deposits. If you are currently looking at how to make use of certain debt fund categories to stay invested for a long period, you may start with putting away a part of your money in Short duration funds : These are essentially investments in bonds or papers maturing within one to three years. Dynamic bond funds : Available in any duration ranging between a few months and several years, these funds allow you to invest for both the short and long-term depending on your anticipation of good returns.
History of this topic
Debt mutual funds without indexation are still a great investment bet for medium to long duration
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Short duration or long duration debt funds : Where should you invest?
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It’s advisable to include a few debt funds even if you are investing for long term
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