Need Expert Advice?Our Gurus Can Help

Hemant Bokil |77 Answers |Ask -Follow

Financial Planner - Answered on Jan 06, 2023

Hemant Bokil is the founder of Sanay Investments. He has over 15 years of experience in the field of mutual funds and insurance.Besides working as a financial planner, he also hosts workshops to create financial awareness. He holds an MCom from Mumbai University.... more

Question by Prasanna on Jan 06, 2023Hindi

Good afternoon, Hemant. Could you tell me if investing in debt mutual fund will be a good option now as interest rates are likely to move up? Or, should one not invest in debt funds when interest rates are expected to go up? Regards

Ans: Good noon Prasanna, it's the dilemma like to be or not to be faced by Prince Hamlet. Well I will share a nice quote with you, while Investing always think 10 years rather than 10 minutes, so it depends as to what purpose or goal you are choosing a debt fund. As per thumb rule I believe in riding interest rates scenario, it makes sense in choosing short term debt funds rather than long term, that too now.I really use debt as a vehicle to park money for short term only

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.

MoneyReply

You may like to see similar questions and answers below

Omkeshwar Singh | Answer |Ask -Follow

Head, Rank MF - Answered on Jun 10, 2022

Question by Pahuljot - Jun 10, 2022Hindi

I want to invest in debt funds for stable return of 6- 8% for time period of 4-5 years. Will investment in corporate bond funds/ dynamic bond fund be good idea in this rising interest rate era? Please suggest.

Ans: In rising interest era short duration fund is advisable

(more)

Money

Omkeshwar Singh | Answer |Ask -Follow

Head, Rank MF - Answered on Jun 10, 2022

Question by Uday - Jun 10, 2022Hindi

As per my asset allocation, I have invested in debt funds. Now I understand that it will give me a meagre return due to rate hikes. My investment is in: ABSL Short duration fund HDFC Short duration fund ICICI Corporate Bond Fund ABSL Liquid Fund What is the way out for me? Should I exit?

Ans: Short duration is suitable for rising interest rate environment, so no need to exit.

Though I want to invest for the long term, I have my quota in equity MF. Hence do not want to invest more in equity MFs.

a) No issues

Also is it advisable to lock money in Bajaj Finance or HDFC FD now or one should wait for further rate increase?

b) Should wait for some time before taking any decision.

(more)

Money

Omkeshwar Singh | Answer |Ask -Follow

Head, Rank MF - Answered on Sep 04, 2020

Question by Sanjay - Sep 04, 2020Hindi

I have invested Rs.200000/- each in following debt funds during June 2020. Please guide whether I should continue investing in these funds. Or you have suggestions to switch to any other funds. 1. HDFC Corporate Bond Fund- Regular - Growth2. HDFC Short Term Debt Fund- Regular - Growth3. ICICI Prudential Saving Fund- Growth4. Kotak Dynamic Bond Fund- Regular-Growth5. L&T Trple Ace Bond Fund -Regular -Growth I am also doing SIP in Axis ESG Equity Fund- Growth for Rs. 10000/- pm. Moreover I have invested one time Rs. 100000/- in Tata Quant Fund-Growth whose value reduced below 80000/- now. Please give your valuable advice for the above all.

Ans:

Name of the Fund	Category	Recommendations
Sanjay Acharya
1. HDFC Corporate Bond Fund- Regular - Growth	Debt - Corporate Bond Fund	SmartSwitch to ICICI Prudential Corporate Bond fund
2. HDFC Short Term Debt Fund- Regular - Growth	Debt - Short Duration Fund	Continue
3. ICICI Prudential Saving Fund- Growth	Debt - Low Duration Fund	SmartSwitch to Kotak Low Duration Fund Growth
4. Kotak Dynamic Bond Fund- Regular-Growth	Debt - Dynamic Bond	Continue
5. L&T Trple Ace Bond Fund -Regular -Growth	Debt - Corporate Bond Fund	SmartSwitch to ICICI Prudential Corporate Bond fund
Axis ESG Equity Fund- Growth	Equity - Thematic Fund - Other	Continue
Tata Quant Fund-Growth	Equity - Thematic Fund - Other	SmartSwitch to DSP Quant Fund - Growth