Comments on: The Debt Funds (Part 4)

By: Karthik Rangappa

Karthik Rangappa — Sun, 29 Dec 2024 06:04:51 +0000

In reply to Prashant. You can, there is nothing wrong with it, especially if you are starting fresh.

By: Prashant

Prashant — Sat, 28 Dec 2024 19:16:27 +0000

Going through all the risks and returns associated with the debt funds, I am wondering isn’t it just better to invest in FDs which offer 7% ish returns and not much of risk? Plus any layperson can invest easily in FDs. Am I missing something here?

By: Karthik Rangappa

Karthik Rangappa — Thu, 19 Dec 2024 00:20:01 +0000

In reply to Anshul Mishrra. But the price of the bond fluctuates during the period you hold the bond, and from time to time, the fund manager has to report its value (mark to market), which is why they get worried :)

By: Anshul Mishrra

Anshul Mishrra — Wed, 18 Dec 2024 14:05:38 +0000

Hey Karthik,

I’m bit confused between bond price and interest yield??

As a fund manager I invest/lend to certain company for higher yield.

After maturity I will be getting back principle+ interest.

So what is the co-relation, why should the fund manager be worried abt the bond prices going up/down??

By: Karthik Rangappa

Karthik Rangappa — Wed, 10 Jul 2024 03:54:09 +0000

In reply to Pravin. Well, your guess is as good as mine :)

By: Pravin

Pravin — Tue, 09 Jul 2024 05:40:30 +0000

In the current context where interest rates are about to go down, is gilt fund good option to park money in next couple of years?

By: Karthik Rangappa

Karthik Rangappa — Fri, 14 Jun 2024 05:13:35 +0000

In reply to Hari.

Broadly speaking – a large portion of equity within which you can consider a largecap, and a mid cap fund. These two funds will give you the full market exposure. Next you can consider a hybrid fund for debt exposure. This should do I guess 🙂

However, I cant really give you a fund specific advice.

By: Hari

Hari — Thu, 13 Jun 2024 13:17:50 +0000

I would like to reframe the third question actually. Its incomplete. Sorry for that. What am trying to ask is can you recommend any other funds that I can make use of for diversification of my investment.
And yea, I am in my early age (20s) of investment.

Lets say i have 25k to investment how would I diversify it? Just a idea.

Thanks & Regards.

By: Karthik Rangappa

Karthik Rangappa — Wed, 12 Jun 2024 04:05:31 +0000

In reply to Hari.

The answers really depends on your age and risk appetite. Assuming, you are young and have the appetite to take on risk –

1) A large part, like at least 60-65% should be towards EQ. But remember, your EQ investments should be given enough time to unfold.
2) I’d suggest GILTS if you are looking at long term.
3) You will have to figure this, maybe talk to a financial advisor?
4) I’m biased, I prefer NPS 🙂

By: Hari

Hari — Tue, 11 Jun 2024 12:07:46 +0000

Hi, I understand that for growth over long time, its better to invest in equity and debt only for parking excess funds. But we also have to diversify the funds. So I have some questions:

1. How much percentage of my monthly investment must go towards equity & debt?

2. In debt funds, which particular fund is better for long term investment because am a bit confused with long term or medium duration fund because of higher risk or is it that over long time, the risk normalizes?

3. Other there any other funds we may invest in?

4. I also saw a comment on initial investment where you have mentioned about a NPS. Which will be better NPS or PPF? [Taking into consideration both risk & returns]

Thanks & regards.

By: Karthik Rangappa

Karthik Rangappa — Thu, 04 Apr 2024 04:03:24 +0000

In reply to AISHWARYA.

I’m happy you are thinking of retirement at a young age. Keep at it 🙂

I’d suggest you take a look at GILTs or long tenure G Secs bond funds.

By: AISHWARYA

AISHWARYA — Wed, 03 Apr 2024 07:13:48 +0000

HI Sir, I would like to ask a major doubt i could’nt get the answer anywhere. I am 28 years old planning to invest for my retirement. In order to have a good asset diversification i have allocated 15% to debt for 25 years . Then slowly increasing to 100% for my retirement . My question here is in which debt fund should i invest at my starting stage(for that 15%) for long term debt investment.Do you have any suggestions?

By: Karthik Rangappa

Karthik Rangappa — Sun, 11 Feb 2024 00:03:34 +0000

In reply to amal. Happy learning :)

By: amal

amal — Sat, 10 Feb 2024 09:04:14 +0000

karthik rangappa is a GEM

By: Karthik Rangappa

Karthik Rangappa — Fri, 25 Aug 2023 05:34:11 +0000

In reply to Vikram. Its a bit tricky, the portfolio is ever-evolving with all the changes the fund manager would do.. MD is one aspect that will impact the NAV, the actual demand-supply of the bonds within the portfolio also has an impact on the bonds.