Skip to main content

Featured Post

A Comprehensive Guide What Are the Best Stocks to Buy on the NSE?

  Introduction   India’s National Stock Exchange (NSE) is one of the world’s most dynamic value markets, advertising speculators introduction to a wide cluster of sectors—from data innovation and pharmaceuticals to buyer merchandise and budgetary administrations. As the Indian economy proceeds to develop, numerous retail and organization financial specialists ponder which stocks merit a put in their portfolios. Whereas there is no one ‑ size ‑ fits ‑ all reply, a taught approach that centres on essentials, valuation, and macro ‑ economic patterns can offer assistance you recognize high ‑ quality companies with solid development prospects.   Understanding the NSE Scene Metric What It Means for Investors Market Capitalization Large ‑ cap stocks (₹10,000 crore +) tend to be more liquid and less volatile, while mid ‑ caps and small ‑ caps can offer higher growth but come with greater risk. Liquidity (Average Dail...
Post a Comment

Types of debt funds based on their maturity period category

Types of debt funds based on their maturity period category

 


It is easier to classify debt funds than equity funds. A debt fund investment is like investing in a bond; it is defined by two characteristics, first, its maturity and seconds its credit rating. Maturity is a simple concept that will help you learn how debt funds work. The maturity date of a bond is the date on which the original value of a bond is determined to be fully returned to the investor.

 

Debt funds are classified into the following categories, based on their maturity.

 

Overnight Fund: It invests in overnight securities with a maturity of 1 day.

 

Liquid Fund: Liquid debt funds invest in debt and money market securities with a maturity period of only 91 days.

 

Ultra Short Duration Fund: Ultra short term debt mutual funds invests in debt and money market instruments, and the portfolio's maturity period is between 3 months to 6 months.

 

Low Duration Fund: It invests in debt and money market instruments and the portfolio period is between 6 months to 12 months. It is also called short duration debt funds.

 

Money Market Fund: It invests in money market instruments with maturities up to 1 year.

 

Short Term Fund: It is invested in debt and money market instruments, and the maturity period of the portfolio is between 1 year to 3 years.

 

Medium Duration Fund: It invests in debt and money market instruments, and has a portfolio maturity period of 3 years to 4 years.

 

Medium to Long Duration Fund: It invests in debt and money market instruments, and the portfolio's maturity a period is between 4 to 7 years.

 

Long Duration Fund: It invests in debt and money market instruments, and the portfolio has a maturity period of over 7 years.

 

Dynamic Fund: It is invested over a period of time.

 

Apart from this maturity-based classification, there are some other types of debt funds.

 

Gilt Fund: Gilt funds invest in 80% of the total assets in government securities. These securities, also known as gilts, are bonds issued by the Government of India. Unlike bonds issued by companies, the government is unlikely to default on its debt obligation so gilt fund risk is very low. It is also called bond based mutual funds.

 

10-Year Continuous Term Gilt Fund

 

Corporate Bond Mutual Funds: In this, at least 80% is invested in corporate bonds.

 

Credit Risk Fund: In this, a minimum of 65% is invested in corporate bonds.

 

Banking and PSU funds: It consists of minimum 80% investment in debt instruments of banks, public sector undertakings and financial institutions.

 

Floating rate bond funds: In this floater fund, a minimum 65% of the total assets are invested in floating rate instruments.


Infrastructure Debt Fund (IDF)

 

The IDF is an emerging investment instrument, which can be created as a mutual fund or NBFC to invest in the infrastructure sector. In the infrastructure debt format is regulated by the IDF SEBI (Mutual Funds) Regulations, 1996, investors invest in rupee-denominated units of an infrastructure debt scheme. The Asset Management Company (AMC) of infrastructure debt manages the funds of various IDF schemes. It provides long-term investment opportunities by infrastructure debt, pension funds, insurance cos, sovereign wealth funds and other investors.



Labels:

Comments

Post a Comment

Popular posts from this blog

Know All About Sovereign Gold Bond Scheme (SGB)

    The first time Sovereign Gold Bond Scheme was first introduced by the Government of India in the Union Budget of 2015-16. It was introduced by the Government of India to reduce the demand for the physical gold form and a part of this physical gold is bought every year in the form of gold bands for the purpose of invest in SGB.   Latest on Sovereign Gold Bond Scheme    A tenth tranche of the buy SGB Series – The Sovereign Gold Bond Scheme 2021-22 - Series X in which the Reserve Bank of India (RBI) sell gold bonds linked to the market price of gold on behalf of the government made available for investment will be open for buy SGB for the period from February 28th to March 4th.   What is Sovereign Gold Bond?   The Sovereign Gold Bond is an initiative taken by the Government of India to reduce the demand for physical gold as per the Reserve Bank of India as the increasing import of gold is affecting the growth and investment of India. Large quantities ...
Post a Comment
Read more

Know that senior citizens get many special concessions in income tax

  People above 60 years of age, i.e., senior citizens, not only get the benefit of income tax exemption but also receive special relief from income tax on investments and returns. Elderly citizens do not have to pay any income tax on income up to Rs 3 lakh.   Exemption in tax limit under 80C limit: The tax exemption limit for old citizens in a financial year is Rs 3 lakh, while a common man gets tax exemption only up to Rs 2.5 lakh. For very senior citizens who are above 80 years of age, it is Rs 5 lakh. That is, if the annual income of a senior citizen is up to Rs 3 lakh and TDS has not been deducted, then he need not file an income tax return. Similarly, very senior citizens need not file income tax returns if they do not have an annual income up to Rs 5 lakh.   If the age is more than 75 years then no return is required: Those above 75 years of age are not required to file tax returns. There is no any need to file ITR for people above 75 years of age who are ...
Post a Comment
Read more

What is the Orange Economy? Top Sectors to Invest in 2026.

  In a time when mechanization and machine learning are changing conventional businesses, a flourishing portion of the worldwide economy is illustrating that human resourcefulness is still a important asset. The "Orange Economy"—also known as the imaginative economy or social industries—has played a major part in protecting culture, making occupations, and developing the economy. But what is this energetic thought, and why is it picking up conspicuousness in discussions almost worldwide development?   What is the Orange Economy?   The express "Orange Economy" was at first utilized by previous Colombian President Iván Duque Márquez and previous Culture Serve Felipe Buitrago. Concurring to the Inter-American Improvement Bank, it is "the organize of interconnected forms through which thoughts are turned into social merchandise and administrations whose esteem is decided by mental property."   Orange was particularly picked since it has been related with devel...
Post a Comment
Read more