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43 comments
Very very old explanation. Many things have changed.But over all,it is very simple for new comers.
🎯 Key points for quick navigation:
00:00 📈 Introduction to Debt Mutual Funds
– Debt mutual funds provide a safe way to grow your money over time, distinct from traditional Fixed Deposits (FDs).
– They differ from equity mutual funds, focusing on fixed income assets instead of stock market investments.
– Various types of fixed income assets exist, including government and corporate bonds, each with different risk and return profiles.
02:30 💵 Understanding Fixed Income Assets
– Fixed income assets, such as fixed deposits and bonds, can offer returns that outpace inflation, unlike traditional FDs.
– Different fixed deposits yield varying rates depending on the issuer's reputation, with generally higher returns coming from riskier corporate bonds.
– The management of these assets is the primary role of debt mutual funds, aimed at generating consistent returns.
04:40 🎯 Investment Strategy Recommendations
– The allocation of assets between debt mutual funds and stock markets should depend on individual financial needs and age.
– Younger investors might allocate more to equities for growth, while older investors should prioritize capital protection through fixed income investments.
– A suggested breakdown could be 20-30% in debt for younger individuals, transitioning to a more conservative 50% as one ages, focusing on large-cap stocks for safety.
05:10 📊 Introduction to Mutual Fund Categories
– This section introduces different categories of mutual funds, including equity, debt, and hybrid funds, and focuses on debt funds.
– Equity funds invest in the stock market.
– Debt funds are simpler, focusing on fixed-income securities.
05:39 💧 Understanding Liquid Funds
– This section explains what liquid funds are and their purpose, emphasizing their suitability for short-term investments.
– Liquid funds are ideal for uncertain timelines, providing instantaneous access to cash.
– They offer daily interest, outperforming traditional fixed deposits (FDs).
08:37 ⏳ Ultra Short Duration Funds Explained
– Here, ultra short duration funds are discussed, highlighting their similarities to liquid funds but with slightly longer investment spans.
– They can provide higher returns than liquid funds due to interest rate fluctuations.
– The section underscores that expenses rise with potential returns.
09:59 📈 Short Duration Funds Overview
– The final block covers short duration funds, showcasing their variability and potential returns.
– Returns can outperform fixed deposits, and patterns may resemble stock market trends.
– The conversation reinforces the importance of evaluating funds over longer periods for better comparisons.
10:27 📉 Introduction to Debt Mutual Funds
– Understanding how debt mutual funds operate within specific return ranges.
– The expense ratio affects overall returns, averaging around 0.45%.
– Short-duration funds might fluctuate due to interest rate movements, unlike liquid funds.
– Emphasis on not timing the market to avoid immediate downturns in required funds.
12:00 📊 Medium Duration Funds Overview
– Discussion on medium-duration funds, highlighting their stability and expected returns.
– Medium-duration funds typically require a 3-month waiting period for withdrawals.
– Composition includes a mix of fixed-rate debt instruments providing around 9.78-10% returns.
– Investors are advised to consider risk profiles and consistency in returns over time.
14:00 🏦 Corporate Bond Funds Insights
– Corporate bond funds offer a balance of stability and higher returns compared to fixed deposits.
– HDFC corporate bond fund noted for consistent returns and low expense ratios.
– Portfolio typically includes bonds from reputable companies to minimize credit risk.
– Investors can expect a blend of risk profiles within corporate bonds, affecting overall returns.
15:20 💵 Money Market Funds Introduction
– Overview of money market funds as a low-risk investment option within debt mutual funds.
– Generally provides returns around 8.45% with very low expense ratios.
– Money market funds considered slightly complex but beneficial for conservative investors.
– Reassurance on the reliability of debt mutual funds, with concern for potential drops in returns.
16:05 📊 Debt Mutual Fund Portfolio Allocation
– Guidance on how to build a debt mutual fund portfolio based on age and risk appetite.
– Different types of debt funds such as liquid, short duration, medium duration, long duration, and corporate bonds.
– Suggested allocations for various age groups to optimize return and minimize risk.
– Expected average returns range between 8% and 9.5%, with low risk compared to the stock market.
19:37 📈 Tax Implications of Debt Mutual Funds
– Overview of the tax structure for returns from debt mutual funds and recent changes.
– Capital gains taxes have shifted to being part of income tax slabs post-April 2023.
– Importance of understanding the income tax implications based on personal tax regimes.
– Encouragement to explore debt mutual funds as a superior alternative to fixed deposits for consistent growth.
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Super ❤
Please make video on all types of debt fund and there details
Liquid fund
Overnight fund
Ultra short term debt fund
Short term debt fund
Money Market fund
Corporate bond fund
Dynamic bond fund
Why you have not considered Post Office Savings Certificates for long term savings giving much higher interest than banks?
Idea 3 – Investing for 90 days – 3 years: The high interest savings accounts are rightly slabed as you said (> 5L) and so are the interests. Meaning if I deposit 6L, 5L sum is going to fetch lower interest.
How calculate the returns for short-term if we have lumpsum of say 3 lakhs ?
Is it not safe to invest in liquid funds for less than 90 days? What is the tax position for liquid funds?
Nicely explained
This is by far the best video on this topic.Thanks Udayan.
What about bonds in platforms like Wint Wealth or Stable Money!
1. Equity Savings Mutual Fund
2. Conservative Hybrid Fund
3. FD, RD
4. Arbitrage Mutual Funds
5. Short Teem Debt Funds
6. High Interest Savings Account
7. Savings Account
Udayan, thank you for this video from today. I started investing for a home through an equity savings fund.
Explained in a very smooth way Udayan . Appreciate u bro
Do your FD in Shriram finance they provide 9 % pa ..far better than HDFC and Axis Bank .
Great Video!
Also, we need to consider the expense ratio and exit load of these mutual funds, which can slightly reduce your overall profit
Listening to you explain, I almost cried that I could finally understand things I've been trying so hard to comprehend for so long. Grateful
Great advice, I'm thinking about investing 100k in my first stock. I'm in my 40s… And just starting to invest, I feel so behind!
Please sir, video m hindi bhi thora use kro … Hme samajhne m assani hogi …
Buddy just check your facts on taxation it has been increased edit it out
What will be the tax implications if the investor is unemployed or within the "zero tax bracket" . I have been trying to find this especially with the 12L no tax change ( 4L zero tax bracket) please explain.
Please don’t invest in Equity Savings Fund. It does not have downside protection as he is saying. I personally experienced it in Covid Time. I will say go for gold funds with FOF taxation is also is in your favour.
What about nps tier 2
How about liquid funds?
Conservation Hybrid Funds are taxed similar to debt fund with no indexation now.
Informative! But the exit and expense ratio is little on the higher side in arbitrage and short term considering this is short term expected returns. Any suggestions on this or is there no other better way to keep that low?
Hi Udayan, Very informative and well presented. Thank you for adding taxes that really helps in taking informed decision. Looking forward to more videos.
Which app to use for investment in mutual funds.Please help
Kindly let us explain how select the good Liquid/ short term mutual funds
Hw about investing in gold for 1-3 yrs?
@udayan adhye
Could you let me know the website calculator which you have used to show the tax implications
Hello Udayan
A great video.
Can you please analyse ICICI PRUDENTIAL ALL SEASONS BOND FUND DIRECT GROWTH?
pls make a detailed video
This video was very helpful. Please also provide guidance on how to choose these mutual funds🌻🌻
Summary in the end would be better
I see many of the top level arbitrage funds have had down capture ratio of more than 150. Then how have they not given any negative returns? Do they recover that quickly.
For example if I had a SIP of ₹30,000 from 2020 till 2024 then the value I will withdraw at the end of 2024 is less then what I had invested.
Also let me know if it was the right way to calculate.
1. Equity Savings Mutual Fund
2. Conservative Hybrid Fund
3. FD, RD
4. Arbitrage Mutual Funds
5. Short Term Debt Fund
Hi can I invest in arbitrage for 20 yrs, bcoz I don't want 3% return from savings account.
I want to store the money incase I need money any day I can redeem.
I already investing 20% of income in equity mutual funds. So need your suggestion.
Eureka 👍🏼
How to choose debt funds?
Please make a video for these funds with new tax rules
Considering all the factors like taxation + exit load + expense ratio. etc.
Where to park lumpsum in short-term debt funds and to what type of funds an STP has to be done. Please.