DEBT MUTUAL FUNDS MADE EASY
The Franklin Templeton fiasco has brought into limelight the inherent risk of debt mutual funds which were otherwise perceived to offer a safe haven with better returns.
Turns out they are not so simple.
The debt market in India is less transparent compared to the equity market. The technical jargon associated with debt markets also serves to increase the perceived complexity of debt instruments.
There are a huge variety of debt mutual funds in India, and often times it is difficult for the lay person to understand and choose which one is best suited for their needs.
So what exactly are overnight funds, liquid funds, money market funds, low duration funds, corporate bond funds, gilt funds, dynamic bond funds, credit risk funds, and so on…
Check out my blog post to get an idea of what all these mean and how appropriate they are for your investments.