Comments on: The Debt funds (Part 1)

By: Karthik Rangappa

Karthik Rangappa — Tue, 07 Jan 2025 02:27:13 +0000

In reply to Dixon. Thanks so much for pointing that out, will fix that :)

By: Dixon

Dixon — Mon, 06 Jan 2025 20:57:39 +0000

Under the sub heading “11.3 – Why liquid fund?” in the last line;
However, the liquid funds consist of several CPs, which are suspectable to credit risk.
In that line the word “suspectable” is wrong as there’s no word like that, the right word is “susceptible”. I know it might be a spelling mistake but just pointing out so that you can correct it. Thanks for the easy to understand content with explanations and definitions.

By: Karthik Rangappa

Karthik Rangappa — Wed, 25 Dec 2024 04:07:38 +0000

In reply to Ashlin Thekkan. Yeah, but please do call the support desk once.

By: Ashlin Thekkan

Ashlin Thekkan — Mon, 23 Dec 2024 08:24:08 +0000

Can we park funds in debt funds and pledge them to buy stock in delivery in the cash market?

By: Karthik Rangappa

Karthik Rangappa — Fri, 20 Dec 2024 23:18:22 +0000

In reply to Shyamal. Ah, I've not thought through this. But that said, there is nothing like 'trade safely in option', :)

By: Shyamal

Shyamal — Fri, 20 Dec 2024 14:02:58 +0000

MARGIN TRADING FACILITY FOR LIQUIDCASE. Is there any working model that can be thought about for Zerodha users.

Users like me would be happy to take this facility(MTF) to buy Liquidcase, Pledge and trade safely in option.

6.5-7% return from Liquidcase.
8% return from Option will get us to Breakeven ( to pay 15% for MTF)

Anything more than 8% from Option Trading would go to user’s kitty.

Can you pls throw some of your thought on this.

Regards.

By: Karthik Rangappa

Karthik Rangappa — Fri, 27 Sep 2024 06:05:44 +0000

In reply to Gaurav. If you have clarity that its a free falling market that will go on for several months, then you should probably exit the earliest you have this realization. The sooner the better. Move all the funds to safer assets. But the tricky bit is - how do you even figure this? Things like 2009 sub prime crisis also lasted just 1 year. So it is very hard to figure this in the first place.

By: Gaurav

Gaurav — Thu, 26 Sep 2024 20:00:37 +0000

Thanks Karthik, super happy that you responded to my last question. I have another question. I have gone through all the great content that you have created but I miss content on exit strategy. I understand long-term and goal based investing approach. But how one should react to free falling market in case of major financial crisis lasting several years. When one should pull emergency break in free falling situations or one should not? Another related question to above described situation: If I see market wont be recovering any time soon, does it make sense pull out my investments to collect good returns I have made so far and then may be reinvestment principal amount back may be after few months or year in case of falling market. Does this make any sense at all?

By: Karthik Rangappa

Karthik Rangappa — Thu, 26 Sep 2024 04:22:33 +0000

In reply to Gaurav.

Gaurav, for this I’d suggest you speak to a qualified RIA to check if this is indeed the best alternative, don’t think I can advice you on this 🙂

But that said, 7.5% tax free is a great return for a debt product.

By: Gaurav

Gaurav — Wed, 25 Sep 2024 20:55:53 +0000

Hi Karthik, I am an NRI so I have an option to invest in NRI FD which gives me tax free and risk free returns of 7-7.5%. So am I better of investing my debt portion (for diversification purpose) in NRI FD instead of Debt Mutual Fund? So far, debt MF doesnt make too much sense to me in my case even though I eventually plan to return to India. Am I missing something here? Am I diversified enough by investing my Debt portion in NRI FD as long as I have this option?

By: Karthik Rangappa

Karthik Rangappa — Tue, 24 Oct 2023 04:26:04 +0000

In reply to Ram. Yeah, but it is not a Zerodha platform, it is an independent company.

By: Ram

Ram — Mon, 23 Oct 2023 10:45:53 +0000

Hi Karthick Sir,
Golden Pi is the platform by Zerodha we can Invest directly into Debt instruments without the help of Mutual Funds

By: Karthik Rangappa

Karthik Rangappa — Tue, 10 Oct 2023 04:10:39 +0000

In reply to Ram.

Here you go – https://mf.nipponindiaim.com/mutual-fund-articles/esg-(environmental-social-governance)-funds

By: Ram

Ram — Mon, 09 Oct 2023 16:37:38 +0000

can you explain bit about ESG Funds and How it is different from Nomral funds

By: Karthik Rangappa

Karthik Rangappa — Wed, 04 Oct 2023 02:27:23 +0000

In reply to Ram. No, there is no ticket size as such, but there is a minimum investment in each fund. Something like 500 or 1000 based on each fund.