fund

How to start an SIP in a debt mutual fund?


I am a 26-year-old graduate, venturing into my first job. I want to start an SIP in debt mutual funds. I have been trying to study them. I wanted to find out where I can actually see and compare these schemes and make an informed decision. Fairly new to mutual funds. I have been investing in equity lately, but I want to know more about mutual funds.
–Suyash Shailesh

We always tell our readers to choose mutual funds based on their goals, investment horizon, and risk profile. The strategy applies to both equity and debt mutual funds. You have not shared why you want to invest in debt mutual funds. Since we do not know your goal, horizon, and risk profile, we wont be able to suggest any schemes or categories to you. For example, if you are investing for a few weeks or months, you can invest in liquid funds. If you are looking for park money for a year, you can invest in ultra short term fund or money market fund. If you are investing for three years, you can choose corporate bond fund, banking & PSU bond fund, etc.

If you don’t understand anything about mutual funds, seek the help of a mutual fund advisor. The market is entering into a risky territory. Interest rates are rising and it’s a big negative for debt mutual funds. So it is very important to choose the right mutual funds. You should also remember that debt funds have the potential to offer superior returns than bank deposits. However, the difference won’t be significant if you are investing a small amount of money.

You can check out mutual fund data here:

https://economictimes.indiatimes.com/mutual-fund-screener



READ SOURCE

Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.