INSUBCONTINENT EXCLUSIVE:
Mumbai: The markdown in papers of Vodafone Idea by Franklin Templeton, which has led to markto-market losses of 4-6 per cent for investors
in schemes that held the paper, has revived worries about the safety of debt mutual fund products
In the last two years, there have been mark to market losses in various debt schemes due to schemes holding paper of IL-FS, DHFL and some
This has perturbed debt mutual fund investors who are increasingly wary of putting money into these schemes.
Small investors, who do not
have the skills to research mutual funds themselves or find it unviable to hire financial advisors, would be better off sticking to
traditional fixed income products such as bank deposits, PPF and post office deposits
should invest more of their fixed income corpus in debt mutual funds, said advisors
Debt funds have a portfolio of securities which lowers risk compared to holding a single company security
planner, Plan Ahead Wealth Managers.If investors hold debt mutual fund schemes for three years, they get the benefit of long-term capital
gains with indexation benefits, lowering the tax outgo significantly
ET has compiled debt mutual fund plans for conservative, moderate and high risk investors based on inputs from financial advisor.
