Why Choose Long Duration Debt Mutual Funds?
In today's market boom, Try to understand why you should consider long-term debt mutual funds despite rising fixed deposit rates. Also why these funds are crucial for spreading out your investments, even after tax changes.
So many financial advisors suggest adjusting your investments during times of market growth. By reducing risky assets and putting money into debt funds, you can also maintain a balanced mix of stocks and bonds.
Long duration debt funds, as per Sebi's (Securities and Exchange Board of India) rules, invest in debts with a duration of over seven years. Though they have less money under management compared to short and medium-term funds, they still offer stable returns.
When you invest in debt mutual funds it helps balance your portfolio, including both debt and equity. These funds invest in various instruments like government bonds, corporate bonds, and treasury bills, catering to different risk levels and market situations.
Key Learning From the Article:
Today, we learned why long duration debt mutual funds are essential for diversifying your investment portfolio, especially in a growing market. They provide stability and spread out your risk, which is crucial for maximizing your returns.
Disclaimer: InvestNagar offers stock market news solely for informational purposes and should not be interpreted as investment advice. We recommend readers to seek guidance from a certified financial advisor prior to making any investment decisions.