{"id":22723,"date":"2023-04-07T14:24:56","date_gmt":"2023-04-07T08:54:56","guid":{"rendered":"https:\/\/kuvera.in\/blog\/?p=22723"},"modified":"2023-04-07T14:24:56","modified_gmt":"2023-04-07T08:54:56","slug":"why-your-portfolio-should-have-debt-mutual-fund","status":"publish","type":"post","link":"https:\/\/kuvera.in\/blog\/why-your-portfolio-should-have-debt-mutual-fund\/","title":{"rendered":"Why your portfolio should have debt mutual fund?"},"content":{"rendered":"<p>&nbsp;<\/p>\n<div class=\"embed-container\">\n<div class=\"embed-container\">\n<div class=\"embed-container\">\n<div class=\"embed-container\">\n<div class=\"embed-container\">\n<div class=\"embed-container\">\n<div class=\"embed-container\"><iframe src=\"https:\/\/www.youtube.com\/embed\/Bpvg6_1y-WY\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"embed-container\">\n<div class=\"embed-container\">\n<div class=\"embed-container\">\n<p>&nbsp;<\/p>\n<p>Debt funds are mutual funds that invest in fixed-income securities like bonds and treasury bills. Monthly income plans (MIPs), Gilt funds, short-term plans (STPs), liquid funds, and fixed maturity plans (FMPs) are some of the investment options in debt mutual funds. Apart from these categories, debt mutual funds include several funds investing in short-term, medium-term, and long-term bonds. <a href=\"https:\/\/kuvera.in\/mutual-funds\/all\">Debt Mutual Funds<\/a> in India are professionally managed fund which invests in highly rated fixed-income earning investments like Government Bonds, RBI Bonds, Money Market Instruments, Corporate Deposits, etc.<\/p>\n<p>&nbsp;<\/p>\n<p>The pool of investment is collected from the public and this investment is in-turn invested by this professionally managed in highly rated fixed income earning investments with low risk.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<p>&nbsp;<\/p>\n<div class=\"embed-container\">\n<div class=\"embed-container\">\n<div class=\"embed-container\">\n<p><a href=\"https:\/\/kuvera.in\/fixed-deposit\/all\"><img loading=\"lazy\" class=\"aligncenter wp-image-22082\" src=\"https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2023\/03\/FD-Banner-01-03-300x76.jpg\" alt=\"\" width=\"600\" height=\"151\" srcset=\"https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2023\/03\/FD-Banner-01-03-300x76.jpg 300w, https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2023\/03\/FD-Banner-01-03-150x38.jpg 150w, https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2023\/03\/FD-Banner-01-03.jpg 600w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<div class=\"flex-1 overflow-hidden\">\n<div class=\"react-scroll-to-bottom--css-urzjj-79elbk h-full dark:bg-gray-800\">\n<div class=\"react-scroll-to-bottom--css-urzjj-1n7m0yu\">\n<div class=\"flex flex-col items-center text-sm dark:bg-gray-800\">\n<div class=\"group w-full text-gray-800 dark:text-gray-100 border-b border-black\/10 dark:border-gray-900\/50 bg-gray-50 dark:bg-[#444654]\">\n<div class=\"text-base gap-4 md:gap-6 md:max-w-2xl lg:max-w-xl xl:max-w-3xl p-4 md:py-6 flex lg:px-0 m-auto\">\n<div class=\"relative flex w-[calc(100%-50px)] flex-col gap-1 md:gap-3 lg:w-[calc(100%-115px)]\">\n<div class=\"flex flex-grow flex-col gap-3\">\n<div class=\"min-h-[20px] flex flex-col items-start gap-4 whitespace-pre-wrap\">\n<div class=\"markdown prose w-full break-words dark:prose-invert light\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"flex-1 overflow-hidden\">\n<div class=\"react-scroll-to-bottom--css-urzjj-79elbk h-full dark:bg-gray-800\">\n<div class=\"react-scroll-to-bottom--css-urzjj-1n7m0yu\">\n<div class=\"flex flex-col items-center text-sm dark:bg-gray-800\">\n<div class=\"group w-full text-gray-800 dark:text-gray-100 border-b border-black\/10 dark:border-gray-900\/50 bg-gray-50 dark:bg-[#444654]\">\n<div class=\"text-base gap-4 md:gap-6 md:max-w-2xl lg:max-w-xl xl:max-w-3xl p-4 md:py-6 flex lg:px-0 m-auto\">\n<div class=\"relative flex w-[calc(100%-50px)] flex-col gap-1 md:gap-3 lg:w-[calc(100%-115px)]\">\n<div class=\"flex flex-grow flex-col gap-3\">\n<div class=\"min-h-[20px] flex flex-col items-start gap-4 whitespace-pre-wrap\">\n<div class=\"markdown prose w-full break-words dark:prose-invert light\">\n<p>Here are some key points to consider when investing in debt mutual funds:<\/p>\n<p>&nbsp;<\/p>\n<p>1. Types of debt mutual funds: Debt mutual funds are categorized based on the duration of the underlying securities they invest in. There are three types of debt mutual funds &#8211; short-term debt funds, medium-term debt funds, and long-term debt funds.<\/p>\n<p>&nbsp;<\/p>\n<p>2. Risks involved: Debt mutual funds are relatively low-risk investment options compared to equity mutual funds. However, they are still subject to certain risks, such as interest rate risk, credit risk, liquidity risk, and reinvestment risk.<\/p>\n<p>&nbsp;<\/p>\n<p>3. Returns on investment: The returns on debt mutual funds are typically higher than traditional fixed deposits. However, the returns are not guaranteed and can vary depending on market conditions and the performance of the underlying securities.<\/p>\n<p>&nbsp;<\/p>\n<p>4. Tax implications: Debt mutual funds held for more than three years are taxed at the long-term capital gains tax rate of 20% with indexation benefits. Short-term capital gains on debt mutual funds held for less than three years are taxed at the investor&#8217;s applicable income tax rate.<\/p>\n<p>&nbsp;<\/p>\n<p>5. Expense ratio: Debt mutual funds charge an expense ratio, which is the fee charged by the fund house for managing the fund. The expense ratio can vary depending on the fund and can impact the returns on investment.<\/p>\n<p>&nbsp;<\/p>\n<p>6. Investment horizon: Debt mutual funds are suitable for investors with a medium to long-term investment horizon. It is advisable to stay invested in debt mutual funds for at least three to five years to earn better returns.<\/p>\n<p>&nbsp;<\/p>\n<p>In conclusion, debt mutual funds are a low-risk investment option that can provide higher returns than traditional fixed deposits. However, investors should consider the risks involved, tax implications, expense ratio, and investment horizon before investing in debt mutual funds. It is advisable to consult a financial advisor before making any investment decisions.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<p>&nbsp;<\/p>\n<div class=\"flex justify-between lg:block\">\n<div class=\"text-gray-400 flex self-end lg:self-center justify-center mt-2 gap-2 md:gap-3 lg:gap-1 lg:absolute lg:top-0 lg:translate-x-full lg:right-0 lg:mt-0 lg:pl-2 visible\">Start investing in <a href=\"https:\/\/kuvera.in\/mutual-funds\/all\">debt mutual funds<\/a> today with Kuvera.<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"w-full h-32 md:h-48 flex-shrink-0\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p><em>Interested in how we think about the markets?<\/em><\/p>\n<p><strong>Read more: <a href=\"https:\/\/kuvera.in\/blog\/category\/zen-and-the-art-of-investing\/\">Zen And The Art Of Investing<\/a><\/strong><\/p>\n<p>&nbsp;<\/p>\n<p><strong>Watch here:<\/strong> How to invest during a bear market?<\/p>\n<div class=\"embed-container\">\n<div class=\"embed-container\">\n<div class=\"embed-container\"><iframe src=\"https:\/\/www.youtube.com\/embed\/PTJ_lQXIAQ4\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\" data-mce-fragment=\"1\"><\/iframe><\/div>\n<\/div>\n<\/div>\n<div><\/div>\n<p>Start investing through a platform that brings goal planning and investing to your fingertips. Visit <a href=\"https:\/\/www.youtube.com\/watch?v=R7g03UwJAT8&amp;utm_source=Blog&amp;utm_medium=Weekly+wrap+22nd+July\" target=\"_blank\" rel=\"noopener\">kuvera.in<\/a> to discover Direct Plans and <a href=\"https:\/\/kuvera.in\/explore\/fixed-deposit\/c\/all\">Fixed Deposits<\/a> and start investing today. #MutualFundSahiHai #KuveraSabseSahiHai<\/p>\n","protected":false},"excerpt":{"rendered":"<p>&nbsp; &nbsp; Debt funds are mutual funds that invest in fixed-income securities like bonds and treasury bills. Monthly income plans (MIPs), Gilt funds, short-term plans (STPs), liquid funds, and fixed maturity plans (FMPs) are some of the investment options in debt mutual funds. Apart from these categories, debt mutual funds include several funds investing in [&#8230;]<\/p>\n<p><a class=\"btn btn-secondary understrap-read-more-link\" href=\"https:\/\/kuvera.in\/blog\/why-your-portfolio-should-have-debt-mutual-fund\/\">Read More&#8230;<\/a><\/p>\n","protected":false},"author":11,"featured_media":22724,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false},"categories":[99],"tags":[1137,210,2217],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Why your portfolio should have debt mutual fund? | Kuvera<\/title>\n<meta name=\"description\" content=\"Debt mutual fund can be a valuable addition to your portfolio, they offer higher returns than FD while being less risky than other investment\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/kuvera.in\/blog\/why-your-portfolio-should-have-debt-mutual-fund\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why your portfolio should have debt mutual fund? 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