DEBT MUTUAL FUND
Top 10 mutual funds to invest in August 2024
We have chosen two schemes from five different equity mutual fund categories - aggressive hybrid, large cap, mid cap, small cap and flexi cap schemes – which we believe should be enough for regular mutual fund investors. There are caveats: read till the end to ensure you are picking up the best scheme for you.
Best dynamic bond funds to invest in August 2024
Dynamic bond funds have the freedom to invest across securities and maturities depending on the outlook of the fund manager. So, when the rates go up, the fund manager might bet on short term securities as a rate hike will marginally impact them. When rates start falling, he will invest in long-term instruments to make money.
Quant Mutual Fund tops list of laggard schemes with negative returns in one month
The first eight funds in the list of losers were from Quant Mutual Fund. Quant ELSS Tax Saver Fund lost 1.08% in the last one month period. Quant Value Fund lost around 1.03% in the said period. Quant Large Cap Fund and Quant Mid Cap Fund lost 0.97% and 0.91% respectively.
Kotak Mutual Fund launches Crisil-IBX AAA Financial Services Index – SEP 2027 Fund
Kotak Mutual Fund has launched the Kotak Crisil-IBX AAA Financial Services Index – SEP 2027 Fund, an open-ended Target Maturity Debt Index Fund. It invests in CRISIL-IBX AAA Financial Services Index constituents, with a high interest rate and low credit risk.
Best short duration mutual funds to invest in August 2024
According to the Sebi mandate, short duration funds can invest in debt instruments which have maturity between one and three years. That means these schemes are meant for short-term investments of up to three years or more.
SME IPO frenzy stuns Radhika Gupta, calls it sin of bull market
Investment excitement around SME IPOs has startled many, including Radhika Gupta of Edelweiss Mutual Fund. Highlighting a recent IPO by Resourceful Automobile, which was subscribed nearly 400 times, Gupta warned investors to exercise caution. Resourceful Automobile plans to use the capital to expand operations and repay debt.
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Best medium to long duration funds to invest in August 2024
According to Sebi norms, medium to long term funds have a mandate to invest in debt and money market instruments in such a way that the Macaulay's duration of the portfolio is four to seven years. Since these schemes invest in long-term debt instruments, they are considered risky.
This gilt fund turns Rs 10,000 monthly SIP into almost Rs 1 crore in 25 years
A lump sum investment of Rs 1 lakh in this fund since its inception would have grown to Rs 9.58 lakh, reflecting a CAGR of 9.45%. Over the last 20 years, the same investment would have increased to Rs 4.87 lakh with a CAGR of 8.23%. In the past five years, the investment would have reached Rs 1.41 lakh, with a CAGR of 7.14%. A monthly SIP of Rs 10,000 in the scheme over 25 years would have accumulated to Rs 99 lakh, achieving an XIRR of 8.52%
Best medium duration mutual funds to invest in August 2024
As per Sebi mandate, medium duration funds must invest in debt and money market instruments with Macaulay duration of three to four years. As you can see, these schemes are suitable for investors looking to invest for three to four years or more. However, you should check the portfolio duration of the scheme to ensure that the scheme is in line with your investment horizon.
Best gilt mutual funds to invest in August 2024
Gilt funds are not recommended to regular debt investors because they are risky and volatile. Gilt funds suffer the most when the rates go up. The bond prices and yields move in opposite directions. When the rates go up, bond prices come down. This drags down the NAVs of schemes.
Explained: What is the difference between a fixed deposit and a fixed maturity plan mutual fund?
Whether you choose Fixed Deposits (FDs) or Fixed Maturity Plans (FMPs) hinges on your risk tolerance, tax situation, and investment timeframe. FDs are ideal if you prioritize safety and assured returns. If you're comfortable with some risk for potentially higher returns after taxes, particularly over the long haul, FMPs could be a more suitable choice.
Best corporate bond mutual funds to invest in August 2024
These schemes invest at least 80% of their corpus in the papers of the highest-rated companies. This makes them relatively safer than other debt schemes such as credit risk funds. They are also safer than gilt funds and long term debt funds that are highly sensitive to interest rate changes in the economy.
No indexation benefit even for LTCG on debt mutual fund investments made before April 1, 2023
These debt mutual funds taxation rules changed: The government has rationalised the capital gains taxation rules. The new tax rules will impact debt mutual fund investments made on or before March 31, 2024, to avail of the indexation benefit. Redemptions and transfers made on or after July 23, 2024, will be taxed at the new LTCG tax rate of 12.5% without indexation benefit, provided debt mutual funds were held for more than 24 months.
Best banking & PSU mutual funds to invest in August 2024
Mutual fund advisors say banking & PSU debt schemes are ‘relatively’ safe because these schemes invest only in bonds and papers of banks and public sector companies. Since most of these entities are government-backed, they don’t have the credit risk.
Best conservative hybrid mutual funds to invest in August 2024
Conservative hybrid mutual funds are the entry to the world of hybrid funds. These schemes invest mostly in debt and a small percent in equity. As per the Sebi norms, conservative hybrid schemes must invest 75-90% in debt instruments and 10-25% in stocks. These schemes are ideal for investors looking to invest a small part of their corpus in equity to earn some extra returns.
Who should consider aggressive hybrid funds?
Financial planners recommended aggressive hybrid funds for first-time investors because they combine equity and debt, offering reduced volatility. The category manages ₹2.19 lakh crore of assets in 31 schemes and has favorable tax treatment. These funds are ideal for conservative investors seeking automatic asset allocation and moderate risk, with a minimum five-year investment horizon.
2 hybrid mutual fund categories offer 16% return in 3 years. Time for a portfolio rejig?
Aggressive hybrid and multi-asset allocation funds delivered an average annual return of 16% over the past three years. Their performance was fueled by positive movements in equity markets, strategic stock picks, and effective debt management. Investors should consider their financial goals when selecting between these funds, with tax considerations as secondary factors.
Best balanced advantage funds to invest in August 2024
Mutual fund advisors have recommended balanced advantage funds for August 2024 to manage market conditions with dynamic portfolios. These funds, which blend stocks, debt, and arbitrage, adjust equity exposure based on specific market ratios. They are suggested for investors who can handle stock-related risks and have a horizon of at least five years.
Best arbitrage mutual funds to invest in August 2024
There is no change in the list this month as all schemes have retained their place in the list. Watch out for our monthly updates to ensure your schemes are faring well.
Equity MF inflows ease 9% to Rs 37,000 cr in July, debt funds fetch Rs 1.19 lakh cr
Equity mutual fund inflows dropped by 9% in July, totaling Rs 37,113 crore, down from Rs 40,608 crore in June. Sectoral/thematic fund inflows also declined by 18%, reaching Rs 18,386 crore. Conversely, debt mutual funds saw a reversal, with inflows of Rs 1.19 lakh crore in July compared to an outflow of Rs 1.07 lakh crore in June.
MF Query: Insights on equity & debt funds to manage a Rs 60 lakh-portfolio after Budget 2024
Venkat, a 56-year-old investor, now faces higher taxes on his Equity Savings Fund due to the 2024 budget changes. Expert Aditya Agarwala suggests considering the higher returns of equity funds, which average 12%-15%, before switching to hybrid debt funds that offer lower returns. New tax rates are 12.5%, up from 10%.
Sebi fines JM Financial MF, ex-CEO, others for violations
Sebi fined JM Financial Asset Management, its trustee company, former CEO Bhanu Katoch, and four others ₹2 crores for mutual fund rule breaches. An unusual NAV increase occurred in JM Low Duration Fund due to the sale of DHFL's defaulted securities. They bought into the schemes during this period, engaging in unfair trade practices.
Best short duration mutual funds to invest in July 2024
According to the Sebi mandate, short duration funds can invest in debt instruments which have maturity between one and three years. That means these schemes are meant for short-term investments of up to three years or more.
Best medium to long duration funds to invest in July 2024
According to Sebi norms, medium to long term funds have a mandate to invest in debt and money market instruments in such a way that the Macaulay's duration of the portfolio is four to seven years. Since these schemes invest in long-term debt instruments, they are considered risky.
Best medium duration mutual funds to invest in July 2024
As per Sebi mandate, medium duration funds must invest in debt and money market instruments with Macaulay duration of three to four years. As you can see, these schemes are suitable for investors looking to invest for three to four years or more. However, you should check the portfolio duration of the scheme to ensure that the scheme is in line with your investment horizon.
Changes in taxation for mutual funds
The Union Budget 2024-25 updated capital gains taxes for financial assets. Equity-oriented mutual funds now have an LTCG tax exemption up to ₹1.25 lakh, with 12.5% tax on gains above. STCG tax increased to 20%. No indexation benefits for any mutual fund scheme, and changes for international funds and gold/silver funds. Debt MFs remain unchanged.
Best banking & PSU mutual funds to invest in July 2024
Mutual fund advisors say banking & PSU debt schemes are ‘relatively’ safe because these schemes invest only in bonds and papers of banks and public sector companies. Since most of these entities are government-backed, they don’t have the credit risk.
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