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Omkeshwar

Omkeshwar Singh  | Answer  |Ask -

Head, Rank MF - Answered on May 30, 2022

Mutual Fund Expert... more
LSVK Question by LSVK on May 30, 2022Hindi
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Can you please let us know 1-2 good debt funds which can beat FD / inflation rate (8+ per cent) for 3-4 years? Less risky

Ans: You may consider these debt funds:

  • Uti Short Term Income Fund-Growth
  • Aditya Birla Sun Life Short Term Fund - Growth
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Ramalingam

Ramalingam Kalirajan  |8092 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 29, 2024

Asked by Anonymous - Mar 23, 2023Hindi
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Which is best debt fund at present for investment upto 3 years
Ans: Assessment of Best Debt Fund for Short-Term Investment:

Analyzing the Current Scenario:

Investing for a period of up to 3 years necessitates a focus on capital preservation and generating stable returns.
Given the prevailing economic conditions, factors such as interest rate movements and credit quality are crucial considerations for selecting an appropriate debt fund.
Understanding your risk tolerance and investment horizon is essential to align your choice with your financial goals and preferences.
Assessment of Debt Fund Categories:

Liquid Funds:
Ideal for ultra-short-term investments, offering high liquidity and minimal interest rate risk.
Suitable for parking funds temporarily or meeting short-term financial obligations.
However, returns may be relatively lower compared to other debt fund categories.
Short Duration Funds:
Offer a slightly higher yield potential than liquid funds with a marginally longer investment horizon.
Invest primarily in debt securities with maturities ranging from 1 to 3 years, providing a balance between stability and yield.
Suitable for investors seeking slightly higher returns while maintaining liquidity and stability.
Corporate Bond Funds:
Invest in higher-rated corporate bonds, offering relatively higher yields compared to government securities.
Moderate credit risk associated with investments in corporate debt instruments.
Suitable for investors willing to accept slightly higher risk for potentially higher returns within the 3-year investment horizon.
Banking and PSU Funds:
Invest in debt instruments issued by banks and public sector undertakings (PSUs), typically offering higher credit quality.
Relatively lower risk compared to corporate bond funds, making them suitable for conservative investors seeking stability and income generation.
May offer slightly lower returns compared to corporate bond funds due to the higher credit quality of underlying securities.
Recommendation:

Given the investment horizon of up to 3 years, short duration funds appear to be the most suitable option.
These funds strike a balance between liquidity, stability, and yield, making them well-suited for short-term investment objectives.
While specific scheme names are not provided, it's essential to assess the track record, credit quality, and expense ratios of short duration funds before making a decision.
In conclusion, for investors seeking to invest for up to 3 years, short duration funds offer an optimal combination of liquidity, stability, and potential returns, aligning with your investment horizon and risk profile.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8092 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 02, 2025

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I have FD for Rs, 12 lakhs with HDFC Bank, can I change this into debt mutual funds, pl. advise the best debt mutual funds for a horizon of 2-3 years
Ans: A fixed deposit (FD) provides safety but may not give inflation-beating returns. Debt mutual funds are better for short-term goals. They offer higher potential returns and tax benefits over FDs.

Why Consider Debt Mutual Funds
Debt mutual funds are suitable for a 2-3 year horizon.

They offer better post-tax returns compared to FDs.
They invest in government securities, bonds, and other low-risk instruments.
Professional fund managers ensure diversification and risk management.
Tax Advantages of Debt Mutual Funds
Taxation on debt funds depends on the holding period.

Gains are taxed as per your income slab for less than 3 years.
After 3 years, the gains are taxed as long-term and adjusted for inflation.
FDs, on the other hand, are taxed fully at your income slab.
Benefits of Actively Managed Funds
Actively managed debt funds can outperform passive options.

Fund managers adjust the portfolio based on market conditions.
This enhances returns and minimises risks.
Avoid Direct Funds
Direct funds may seem cost-effective but lack advisory support.

Monitoring and managing them yourself is challenging.
Regular funds through a certified financial planner offer better results.
Suitable Debt Fund Categories
Choose funds based on your time horizon and risk tolerance:

Short-term funds: Ideal for a 2-3 year horizon. They provide stable returns.
Corporate bond funds: Invest in high-rated companies for better safety and returns.
Dynamic bond funds: Adjust duration based on interest rate movements.
These options balance safety and returns effectively.

Keep a Portion Liquid
Always maintain a portion of your investment in liquid funds.

This ensures you have immediate access to funds.
Liquid funds are safer and provide quick liquidity.
Monitoring and Reviews
Regularly review your portfolio with a certified financial planner.

Monitor performance and align it with your goals.
Rebalance the portfolio if market conditions change.
Emergency Fund Setup
Do not invest your entire FD amount in debt funds.

Keep at least 6 months’ expenses in a separate emergency fund.
Use liquid funds or high-interest savings accounts for this purpose.
Avoid Risky Investments
Do not compromise on safety for higher returns.

Avoid high-risk debt funds like credit risk funds.
Focus on funds with high credit quality and stability.
Final Insights
Debt mutual funds can optimise your returns compared to FDs. Choose the right category for your 2-3 year horizon. Work with a certified financial planner for tailored advice and portfolio management. Regular reviews will ensure you stay on track with your goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

..Read more

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Nayagam P

Nayagam P P  |4311 Answers  |Ask -

Career Counsellor - Answered on Mar 10, 2025

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Can My Son Get NIT Or CSE With 88.87percentile in JEE Mains (GM)? Obc Ncl category
Ans: Pramod Sir, Here is, How to Predict Your Chances of Admission into NIT or IIIT or GFTI After JEE Main Results – A Step-by-Step Guide

Once the January JEE Main session results was declared, many students and JEE applicants started asking common questions about eligibility for specific institutes (NITs, IIITs, GFTIs, etc.) based on their percentile, category, preferred branch, and home state.

Providing precise admission chances for each student can be challenging. Some reputed educational websites offer ‘College Predictor’ tools where you can check possible college options based on your percentile, category, and preferences. However, for a more accurate understanding, here’s a simple yet effective 9-step method using JoSAA’s past-year opening and closing ranks. This approach gives you a fair estimate (though not 100% exact) of your admission chances based on the previous year’s data.

Step-by-Step Guide to Check Your Admission Chances Using JoSAA Data
Step 1: Collect Your Key Details
Before starting, note down the following details:

Your JEE Main percentile (Convert percentile into Rank withe help of a formula available in Google).
Your category (General-Open, SC, ST, OBC-NCL, EWS, PwD categories)
Preferred institute types (NIT, IIIT, GFTI)
Preferred locations (or if you're open to any location in India)
List of at least 3 preferred academic programs (branches) as backups (instead of relying on just one option)
Step 2: Access JoSAA’s Official Opening & Closing Ranks
Go to Google and type: JoSAA Opening & Closing Ranks 2024
Click on the first search result (official JoSAA website).
You will land directly on JoSAA’s portal, where you can enter your details to check past-year cutoffs.
Step 3: Select the Round Number
JoSAA conducts five rounds of counseling.
For a safer estimate, choose Round 4, as most admissions are settled by this round.
Step 4: Choose the Institute Type
Select NIT, IIIT, or GFTI, depending on your preference.
If you are open to all types of institutes, check them one by one instead of selecting all at once.
Step 5: Select the Institute Name (Based on Location)
It is recommended to check institutes one by one, based on your preferred locations.
Avoid selecting ‘ALL’ at once, as it may create confusion.
Step 6: Select Your Preferred Academic Program (Branch)
Enter the branches you are interested in, one at a time, in your preferred order.
Step 7: Submit and Analyze Results
After selecting the relevant details, click the ‘SUBMIT’ button.
The system will display Opening & Closing Ranks of the selected institute and branch for different categories.
Step 8: Note Down the Opening & Closing Ranks
Maintain a notebook or diary to record the Opening & Closing Ranks for each institute and branch you are interested in.
This will serve as a quick reference during JoSAA counseling.
Step 9: Adjust Your Expectations on a Safer Side
Since Opening & Closing Ranks fluctuate slightly each year, always adjust the numbers for safety.
Example Calculation:
If the Opening & Closing Ranks for NIT Delhi | Mechanical Engineering | OPEN Category show 8622 & 26186 (for Home State), consider adjusting them to 8300 & 23000 (on a safer side).
If the Female Category rank is 34334 & 36212, adjust it to 31000 & 33000.
Follow this approach for Other State candidates Option also and different categories.
Pro Tip: Adjust your expected rank slightly lower than the previous year's cutoffs for realistic expectations during JoSAA counseling.

Can This Method Be Used for JEE April & JEE Advanced?
Yes! You can repeat the same steps after your April JEE Main results to refine your admission possibilities.
You can also follow a similar process for JEE Advanced cutoffs when applying for IITs.

Want to Learn More About JoSAA Counseling?
If you want detailed insights on JoSAA counseling, engineering entrance exams, and preparation strategies, check out EduJob360’s 180+ YouTube videos on this topic!

Hope this guide helps! All the best for your Son's admissions!

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Aamish

Aamish Dhingra  |13 Answers  |Ask -

Life Coach - Answered on Mar 10, 2025

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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