Tax changes slow new MF scheme launches; demand for debt funds declines: Report

As per the report, the industry launched 253 new schemes in 2022-23 (FY23), with a majority of offerings being on the fixed-income side. So far this financial year, the total number of launches has stood at 24, with just three of them being on the debt side.

Debt fund yields come off after year-long rally due to rate pause, says report

Fund managers told BS that YTMs of most short-to-medium horizon schemes had started to come off their highs in March itself and went on to decline further in April.

Debt Mutual Funds Taxation Rules Amended: How Will It Affect Your Investments?

Starting April 1, 2023, the Budget Bill, 2023 passed in the Lok Sabha today removes the indexation benefit and long-term capital gains tax break from debt mutual funds, exchange-traded funds (ETFs), gold funds, and international funds. This means that any gains (regardless of holding time) from these funds will be taxed at the individual's tax bracket. Debt funds still offer the advantage of deferring tax due, but investors need to be aware of the new tax rate which will apply to their gains. Individuals still have time to take advantage of the indexation benefit before it is removed on April 1, 2023, but the tax rate on the gains will still remain the same. Investors should also be on the lookout for debt funds with a 35% equity allocation to maintain the same tax benefits.

Fixed deposits vs money market funds: What should investors opt for?

Fixed deposit (FD) interest rates have become quite attractive for conservative investors, who can choose them over debt funds.

Returns from debt funds are likely to be much better in 2023, says Avnish Jain of Canara Robeco AMC

<ul><li>In an interview with MintGenie, Jain discussed fixed income strategies investors are interested in, as well as shared his opinion on whether or not the Reserve Bank of India (RBI), and other central banks will take a pause from raising interest rates anytime soon.</li></ul>

Private credit funds emerge as investment theme among high net worth individuals: Motilal Oswal Private Wealth

<ul><li>Basically, private credit funds are collectives of actively managed money that invest largely in loans to private businesses with the aim of making a profit.</li></ul>

Yield-to-maturity of debt funds now similar across durations: Report

As per the report, in December, the YTM of overnight funds rose by 77 basis points (bps), while medium-to-longer-horizon funds like corporate bonds and gilt saw YTMs rise by just 5-10 bps.

Following a multi-asset strategy makes sense at this point. Here's why

Every asset class offers its unique advantage but overexposure to one asset class can be very risky. When different asset classes come together in a portfolio, the risk factor reduces and the portfolio becomes stronger.

Debt fund investments: What role does yield to maturity play in choosing one?

A debt fund's YTM does more than just show you an estimate of the possible returns on your investment. Therefore, having a thorough grasp of YTM can help you decide if a certain debt fund is a wise investment for you.

NFO Alert: Kotak Mutual Fund launches Kotak FMP Series 305. Here's all about it

The new fund offer opened on January 5 and will close on January 11, 2023. This is a scheme with relatively high interest rate risk and relatively low credit risk.

Top Debt Funds News

personal finance

Tax changes slow new MF scheme launches; demand for debt funds declines: Report

personal finance

Debt fund yields come off after year-long rally due to rate pause, says report

personal finance

Debt Mutual Funds Taxation Rules Amended: How Will It Affect Your Investments?

personal finance

Fixed deposits vs money market funds: What should investors opt for?