These funds invest in papers having very long maturity, which tend to be most sensitive to rate changes
Losing investments is if companies default on their debt obligations
Liquidity improved, despite a challenging scenario, due to better portfolio quality. Barring few pockets where recovery was impacted due to debt waivers, overall delinquencies came down: Experts
While recent events have dented confidence, investors should not avoid debt funds altogether
Even if a fund is hit due to a default, investors still stand a chance to make better returns than in a bank fixed deposit over the long term
Remember there is an element of risk in almost every investment option. Take a call, depending on your risk appetite
Their annual returns are slightly over 8% and can be a good choice for risk-averse investors
Investors will need to exercise caution and be mindful of both interest rate and credit risks which could impact their portfolios
Short-term tactical considerations also suggest long trades in the financial sector
Yields of 10-year government papers have surged 115 basis points to 7.91% , from 6.76% a year ago
Experts say that those with the appropriate risk appetite and a horizon of at least two years may take a contrarian exposure
With RBI holding on to rates, investors should avoid longer duration funds for the near future
IDFs are investment vehicles for channelising investment to the sector
Investors need to look at the portfolio before investing
Experts recommend credit opportunities funds for the medium- to long-term investor
Medium and long-term funds always face credit risk. If you can't stomach volatility, stick to FDs
Debt-fund managers have drastically cut allocation to G-secs over the past six months
As the rate cut cycle over for now, investors bet largely on funds for duration not exceed 3-4 yrs
The funds delivered high returns from 7.5% to as high as 18% last year
While their returns will continue to be better than fixed deposits, don't go overboard