Debt Mutual fund V/s. Balanced Advantage Fund
This query is : Resolved
17 November 2022
Dear Sir,
I have invested a lumpsum amount of Rs. 10 lacs in Debt Mutual fund a year back and I have got a return of 4% on that investment.
Is it advisable to stay invested in Debt Mutual fund or should I switch to some other alternative fund like Balanced Advantage Fund. I am using these funds as an alternative to Fixed deposits as interest rates are quite low in fixed deposits.
Please help me in this matter.
Regards,
Divyesh Jain
I have invested a lumpsum amount of Rs. 10 lacs in Debt Mutual fund a year back and I have got a return of 4% on that investment.
Is it advisable to stay invested in Debt Mutual fund or should I switch to some other alternative fund like Balanced Advantage Fund. I am using these funds as an alternative to Fixed deposits as interest rates are quite low in fixed deposits.
Please help me in this matter.
Regards,
Divyesh Jain
17 November 2022
As such return in debt funds were lowest in last few quarters. It is expected to give slightly better return in next few quarters, specifically money market funds or short term debt funds.
Balance advantage funds give about 8% or more due to about 65% equity portion in it. It is having more risk factor, and hence averaging is must.
Balance advantage funds give about 8% or more due to about 65% equity portion in it. It is having more risk factor, and hence averaging is must.
17 November 2022
That means I should divide the investment in 2 parts. Half in Debt and half in Balanced Fund.
17 November 2022
That depends upon the choice of investor with his/her risk appetite, along with time duration of investment. Looking at your need it can be suggested to invest about 33% in debt (for emergency need) and 66% in BAFs (with about 3 years horizon).
18 November 2022
Thanks for your advice Sir. Will decide accordingly.
18 November 2022
Best of luck....
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