Investment in a good debt fund

[indermeet]

Hi All,

I would like to make a investment of 50k in a debt mutual fund. Time horizon is 12 months .
Expected returns - 10-12%

I have shortlisted Birla Sunlife Dynamic Bond retail fund.

Are there any FMPs in the offing. I have not chosen any Income/Gilt funds as i believe interest rates have bottomed out and they are expected to go up may start of next year.

Is this a correct choice of fund or there any other fund that I have missed.

Presently I have investment in only liquid Mfs.

Also please advise of any floating rate MF which i might consider once interest rate starts to go up again.

Thanks

 

[milind]

Hi All,

I would like to make a investment of 50k in a debt mutual fund. Time horizon is 12 months .
Expected returns - 10-12%

I have shortlisted Birla Sunlife Dynamic Bond retail fund.

Are there any FMPs in the offing. I have not chosen any Income/Gilt funds as i believe interest rates have bottomed out and they are expected to go up may start of next year.

Is this a correct choice of fund or there any other fund that I have missed.

Presently I have investment in only liquid Mfs.

Also please advise of any floating rate MF which i might consider once interest rate starts to go up again.

Thanks

Yes, the opinion from experts is that interest rates have bottomed out. But is that really a good news for debt funds? When interest rates rise, the bond prices fall. As a result NAVs of debt funds will fall. I would stay away from funds which have longer average maturity (value research provides info on interest rate sensitivity). It is better to hold shorter term debt which is less sensitive to interest rate changes e.g. reliance and hdfc short term. Even shorter term than that will category of liquid/liquid plus - but returns are not as great. I have invested in reliance floating rate and kotak flexi debt, and happy with the returns compared to their peers.

-- Milind

 

[amit_dangi]

Yes, the opinion from experts is that interest rates have bottomed out. But is that really a good news for debt funds? When interest rates rise, the bond prices fall. As a result NAVs of debt funds will fall. I would stay away from funds which have longer average maturity (value research provides info on interest rate sensitivity). It is better to hold shorter term debt which is less sensitive to interest rate changes e.g. reliance and hdfc short term. Even shorter term than that will category of liquid/liquid plus - but returns are not as great. I have invested in reliance floating rate and kotak flexi debt, and happy with the returns compared to their peers.

-- Milind

Return In debt fund when the opinion from experts is that interest rates have bottomed out & some FII'S also given the signal at (UTVI /Dt./ 29/09/09) for indian market's interset rates & its risen in 2010

see the return In birla sun life dynamic bond fund retail growth

http://www.birlasunlife.com/BirlaSunLife/Mutual_Fund/BSLAMC_MP/BSLAMC_InvestOption/Performance.aspx?schcode=321G

Calculate the result for 1 year to 5 years returns and less over all charges

with respects to their return

When Interest rates will be increased then you can select so many

cooperative banks FD'S those have good b/L Sheets & having good

profitability where you can find 11.50 to 13 % gain without paying charges on

FD'S If you wanna go for monthly investment then you can go for post office

rd' when you will find that interest rates are reached to 10 % to 11.5 % then

you can go for 5 years to 20 years rds and wont need to give any charges ,

No tension & Sure maximum returns

if any body will be having bit sense of secure & tension free investing then

who can convert above mention FD'S & RDS in so many products of

investment insurance (none income tax payers) , mutul funds etc.

and able to save all the applicable charges to pay any security firm or oth.

because money is same & charges depend upon structure if you dont need

the structure , dont pay the charges & make your own common sense

It's my thinking if any body likes then have it or just forget

Cheers....................happy investing

 

[Fritzenbergerfx]

Today Is My Birthday
hope you can help!

Hey

I'm new here on this discussion board I've been a long time lurker and now have got a appropriate concern that i hope some of you people can help with.

I had been on the look to find a few reliable and honest offshore company incorporation professional, since I live in Southern spain and don't want to pay the excessive tax here then I went with Costa Rica Corporation, will not posting a link avoiding to be deemed junk, now these people told me that for my needs Could not use them nonetheless instead may need to look at certain incorporation within another offshore jurisdiction for example Cyprus, at this point I noticed the website <a href=http://www.offshore-company.eu>Offshore Company E-Book</a> of which is actually a fascinating site has loads of information about this specific theme, just what interest me is actually, if some of you are able to figure out just how I can help to eliminate my tax not having going the offshore way or if Malta definitely is just about the place I should seek out ?

My requirements are generally to pay the lowest taxes feasible, will need bank account with internet banking including a offshore merchant account to simply accept credit card payments for my Shoe shop.

Many thanks in advance.

 

[yodlee99]

RBI is bound to raise the interest rates a few times this year again, to ward off the ill-effects of inflation. This would be bad for investors in debt funds which will show negative or very small returns, whenever interests increase. Instead, go for balanced fund.

 

[milind]

RBI is bound to raise the interest rates a few times this year again, to ward off the ill-effects of inflation. This would be bad for investors in debt funds which will show negative or very small returns, whenever interests increase. Instead, go for balanced fund.

Rising interest rate environment is bad for both debt as well as equities. I don't see why Balanced is preferable than pure debt.

 

[xxdiesel]

Stick with a Floating rate Fund like Birla Floating Rate Short Term/Long Term Retail for your Debt allocation.

 

[vishal412]

How about going with a long term Equity fund, or a Fund of Fund like Quantum, which include a balance portfolio of debt, equity and balanced fund?

 

[asterix24]

How about going with a long term Equity fund, or a Fund of Fund like Quantum, which include a balance portfolio of debt, equity and balanced fund?

The performance of this particular FoF hasn't been spectacular. Compared to it's peers in Multi-cap category, its behind considering that it started operations in 2009. I have 2 basic apprehensions about this fund:

- Started in Bull phase (2009), but returns aren't on par with peers
- Hasn't been tested in a bear phase. I would love to see how the fund manager churns the portfolio during a bear phase.

Having said that, in Multicap category, there is Quantum Long term equity fund which is pretty good. If having a really diverse portfolio is necessary, then you can consider 3 funds in each of the categories.

Happy Investing !!

 

[vishal412]

The performance of this particular FoF hasn't been spectacular. Compared to it's peers in Multi-cap category, its behind considering that it started operations in 2009. I have 2 basic apprehensions about this fund:

Avg. return by Avg Return by the Top 10 popular Diversified Equity Funds, during last 1 year is 23%, whereas QEFOF, has delivered a return of Avg. 26%, so performance wise its better than the Diversified Equity Funds. Yeah it needs to be tested in bear phase, but seems it will perform better, as compared to other Equity funds.