#Macaulay duration

[trading-attitude]

🎯 La Duration de Macaulay en 5 Minutes : Apprenez et Maîtrisez-la !

[digitalworldmarketview]

📢 Introducing Franklin India Long Duration Fund 🌟

Looking for long-term capital appreciation and income? Franklin Templeton Mutual Fund’s latest offering, the Franklin India Long Duration Fund, is here to help you achieve your financial goals!

💼 Key Features:

✔️ Investment Objective: Focused on generating returns by investing in debt and money market instruments with a Macaulay Duration >7 years.

✔️ Actively Managed: Balances yield, safety, and liquidity for optimal performance.

✔️ Plans & Options: Choose between Growth and IDCW (Income Distribution cum Capital Withdrawal) options.

📊 NFO Details:

Open: Subscription open now!

Close: Ends on December 4, 2024.

Minimum Investment: ₹5,000 (in multiples of ₹1 thereafter).

Exit Load: Zero.

Benchmark: CRISIL Long Duration Debt A-III Index.

🔑 Who Should Invest?

Ideal for investors seeking income generation and capital appreciation over the long term with moderate risk.

📲 Take the first step toward your financial growth today!

[sigfynfinancialservices]

Types of Debt Mutual Funds

Debt mutual funds primarily invest in debt instruments like treasury bills, certificate of deposits, government bonds, corporate bonds, money market instruments, etc. These funds can be categorized based on the securities they invest in and the maturity period of the underlying securities.

Overnight Funds

Investment mandate: Invest in debt securities with a maturity of one day. Risk: Low risk Suitability: To park idle cash Duration: 0 to 7 days

Liquid Funds

Investment mandate: Invest in money market instruments and high-grade debt securities with 91 days maturity period. Risk: Low risk Suitability: An alternative to a savings bank account Duration: 7 days to 3 months

Ultra Short Duration Funds

Investment mandate: Invest in money market instruments or debt securities with Macaulay Duration of the portfolio between 3 to 6 months. Risk: Low risk Suitability: To park surplus funds/create an emergency fund Duration: 3 to 6 months

Low Duration Funds

Investment mandate: Invest in money market instruments or debt securities with Macaulay Duration of the portfolio between 6 to 12 months. Risk: Low risk Suitability: To park short-term funds Duration: 6 to 12 months

Money Market Funds

Investment mandate: Invest in money market instruments with a maturity period of upto one year Risk: Low risk Suitability: An alternative to fixed deposit Duration: up to 1 year

Short Duration Funds

Investment mandate: Invest in money market instruments or debt securities with Macaulay Duration of the portfolio is between 1 to 3 years Risk: Low risk Suitability: To plan for short-term goals Duration: 1 to 3 years

Medium Duration Funds

Investment mandate: Invest in money market instruments or debt securities with Macaulay Duration of the portfolio is between 3 to 4 years. Risk: Low risk Suitability: To plan for medium-term goals Duration: 3 to 4 years

Medium to Long Duration Funds

Investment mandate: Invest in money market instruments or debt securities with Macaulay Duration of the portfolio is between 4 to 7 years. Risk: Moderate risk Suitability: To plan for medium-term goals Duration: 4 to 7 years

Long Duration Funds

Investment mandate: Invest in money market instruments or debt securities with Macaulay Duration of the portfolio of more than 7 years. Risk: Moderate risk Suitability: To plan for long-term goals Duration: More than 7 years

Dynamic Bond Funds

Investment mandate: Invest in debt securities with varying maturities based on interest rate scenarios. Risk: Moderate risk Suitability: Investors finding it difficult to understand interest movement Duration: 3 to 5 years

Corporate Bond Funds

Investment mandate: Invest a minimum of 80% of portfolio assets in high-rated corporate bonds (rated AA+ or higher) Risk: Low risk Suitability: Looking for regular income and capital protection Duration: 3 to 5 years

Credit Risk Funds

Investment mandate: Invest a minimum of 65% of portfolio assets in corporate bonds (rated AA or below) Risk: Low risk Suitability: Investors willing to take higher default risk Duration: 3 to 5 years

Banking and PSU Funds

Investment mandate: Invest a minimum of 80% of portfolio assets in debt securities issued by banks, PSUs and public financial institutions. Risk: Moderate risk Suitability: Investors seeking to balance yield, safety and liquidity Duration: 1 to 3 years

Gilt Funds

Investment mandate: Invest a minimum of 80% of portfolio assets in government securities with varying maturities (medium to long term) Risk: No risk Suitability: Investors seeking a safer investment option Duration: 3 to 20 years

Floater Funds

Investment mandate: Invest a minimum of 65% of portfolio assets in floating rate instruments Risk: Moderate risk Suitability: Investors willing to take advantage of interest rate movements Duration: 3 to 5 years

Fixed Maturity Plans

Investment mandate: Passively managed closed-ended fund where securities are held till maturity. Risk: Low risk Suitability: Alternative to fixed deposit investment for a fixed duration Duration: Varies depending on each FMP

[amginvest]

5 Best Types Of Low Risk Mutual Funds in 2023

Let's have a better understanding of the characteristic of low-risk mutual fund investment

Overnight Funds - These really are open-ended debt funds that make investments in short-term securities with a one-day maturity. You might think about using an instant fund as an alternative for keeping funds in a savings account if you need to store money for a very short period of time, like a day to a week or so.

Open-ended debt funds or "liquid funds" invest in debt and money market securities having maturities of just 91 days or less. The majority of their investments are made in liquid assets including T-Bills, Repos on G-secs, call money, and other money markets products like Certificates of Deposits (CDs) and Commercial Papers (CPs).

Ultra-Short Duration Funds - Such open-ended debt funds invest in comparatively increased debt documents and money market instruments, placing them beside the liquid funds in the risk-return potential. According to regulatory requirements, the Macaulay Duration (MD) of the portfolios for Ultra-Short Duration Funds must be between 3 and 6 months. This is determined by investing in debt and money market securities.

Banking and PSU Funds -It is a requirement for these open-ended funds to invest at least 80% of their resources in debt securities issued by PSUs, banks, and public financial institutions. With just some commitment to longer-term maturity papers, these funds typically invest in debt instruments with short- to medium-term maturities. These funds are appropriate if you have a 2-3 year investment horizon and are willing to take on a little bit extra risk because of the interest risk involved.

Corporate Bond Funds-According to regulatory requirements, open-ended debt funds must devote at least 80% of their assets to buying only the greatest corporate bonds. There is no clear definition of the type of period the fund will hold. However, the majority of Corporate Bond Funds have an average maturity profile that runs from 1 to 3 years.

[pioneersacademy]

Everything About B.Sc. from Mohanlal Sukhadia University

Bachelor of Science (B.Sc.) or B.S. is one of the most popular academic degree courses among the science students after class 12th. The duration of B.Sc. degree course ranges from 3 years to 5 years, depending upon the country in which you are studying for eg. In India the course is generally of 3 years whereas in Argentina the course duration is 5 years.

The B.Sc. degree course is a graduate degree course in Science; this can be a part-time or full-time course. This course forms the basis of science and comprises of the subjects like physics, chemistry, biology, zoology and mathematics.

OBJECTIVES OF THE COURSE

The objectives of theory course prescribed for the B.Sc. B.Ed. course are as follows:

To develop competence to teach subjects of their specialization on the basis of an adequate theory of learning and a sound knowledge of the subjects.

To develop interest, attitude and knowledge which will enable them (i) to foster the all-round growth and development of children under their care and (ii) to provide guidance to individual pupils?

To develop an understanding of the aims and objectives of education in the Indian background and to promote an awareness of the role of the school and the teacher in realizing these aims and ideals.

To develop an understanding of the close relationship between societies and the school, between life and school work.

To become self-regulated learners; develop professional commitment and work as responsible professionals.

To make them comfortable with content and pedagogical effective use and utilization of ICT.

To enable them to critically analyse the various evaluation tools to serve CCE.

To reflect on teacher practices and interface with societal resources

To build up professional consciousness.

If you want to complete your B.Sc. studies from Mohanlal Sukhadia University and want to get complete curse details, you must look below and for more details visit Mohanlal Sukhadia B.Sc. Course Details 

COURSE CONTENT

UNIT- I Indian Society & Education

1. Meaning, Nature & purpose of Education:

According to different thinkers i.e,Gandhi, Tagore, Aurobindo, J.krishnamurti, Rousseau and Dewey.

According to important National documents on Education i.e Education commission (1966) NPE (1986) its revision 1992, NCF (2005),

2. Concept of Social diversity, inequity and Marginalisation and role of Education to cope up with these issues.

3. Universalization of Education/RTE(2009) & its Challenges

4. Globalization, Liberalization, and Privatization and their implications in Education.

UNIT- II Education in India

1. Education in Pre Independence Period/ Macaulay's Minutes/ and major educational polices during preInde pendence British Period.

2. Education in Post Independence period-

Policies regarding Education in post Independence Period [Specially NPE (1986), RTE (2009)

Important national documents on Education – Education commissions (1966), NCF (2005),

Learning without burden (Yashpal committee report), NCFTE (2009)

Dellors commission report – relevance to Indian Conditions

UNIT- III – Challenges in Education

1. Language policy

2. Enhancement of quality in Education and role of SSA and RAMSA in this.

3. Increasing enrollment at different stages

UNIT- IV Gender, School and Society

1. (a) Gender Sensitivity and its importance for society

(b) Gender discrimination in Family

(c) Gender discrimination in society

(d) Gender discrimination in Schools

2. Role of Education, family, media and legislation in developing gender parity.

UNIT – V - Values in Education –

1. Values: concept and classification, unity of all life and being); tolerance; Values in modern Indian context with the reference to the Indian Constitution. Rights and Duties of a citizen as stated in constitution.

2. Value Education and role of school. Human rights & danger to Social Security, Role of Education in safe guarding human rights. Activities helpful in Inculcation of values.

3. Environmental Education- Role of teacher in Promoting Conservation of Environment.

4. Education for peaceful and cooperative living.

Practicum/Sessional work

Attempt any two-(One each from following sections)

Section A 1. Term paper on any one Topic/issues related to Education 2. Two abstract of any Two articles related to Education

Section B 1. Prepare a report on Co-curricular Activities of a school supporting Environment protection. 2. Case study of any one institution with reference to gender sensitivity. 3. Prepare a report of a group discussion conducted on language Policy/ Constitutional values/ Globalization/ Liberalization/ Privatization.

REFERNCES

1. Agnihotri, R.K (1995), Multillgualism as a classroom resource. In K.Heugh.A.Siegruhn,&P.Pluddemann (Eds) Multilingual education for south Africa ( pp.3-7) Heinemann Educational Books. 2. Batra,P. (2005), Voice and Agency of teachers: Missing link in national curriculum framework 2005. Economic and Political Weekly, 4347-4356. 3. Chakravarti, U.(1998). Rewriting history: The life and times of Pandita Ramabai Zubaan. 4. De,A.Khera, R.Samson, M.& Shiva kumar, A.K. (2011) PROBE revisited: A report on elementary education in India. New Delhi: Oxford University Press. 5. Dewey. J (2004), Democracy and Education Courier Dover Publications 6. Freire, P (2000) Pedagogy of the oppressed Continuum 7. Ghosh,S.C (2007) History of Education in India. Rawat Publications. 8. GOI,(1966) Report of the Education Commission:Education and national development New

If you want to start B.Sc. coachings and confused about the decision of choosing the best coaching classes for the same, you must select Pioneers Academy for opting the complete study material and doubt solvings. Pioneers Academy provides you the best faculty for more efficient study. You can also study from your home also using the video lectures on the pioneers app at very affordable prices.

[sarvhara]

The Politicisation of Education in India

“In a global economy, where the most valuable skill you can sell is your knowledge, a good education is no longer just a pathway to opportunity- it is a prerequisite.” This statement by Barack Obama undeniably strikes true. Education is an essential tool in the arsenal of the empowered that can destroy oppression, elevate economies and change lives. According to a UN Statistic, with each year of schooling, an individual’s income potential increases by 10%. Yet, in India, especially in modern times, the scourge of political powerplay and corruption has plagued the education system.

The interplay of political parties over dominance plays out in the educative sphere of India too as parties try as hard as they can to whitewash them and their allies via education during their tenure. This issue is not modern as Macaulayism, the practice of destroying native heritage and forcibly imposing rigid and alien practices via political policies on education, dates to the 19th century. According to Pr. Kapil Kapoor of JNU the imposition of the English mode of education has destroyed the traditional Indian mode of thought and introspection and created a sense of self-denigration in the minds of Indian populous.

Similar to how Macaulay preached the benevolence of the British instead of the truth, the political right has distorted facts and blended them with myth in an attempt to glorify Hinduism. It is to note that albeit “glorification” of Hinduism may create an apparent sense of “nationalism”, it jades the truth by propagating fabricated falsehoods and leads to disintegration of Indian secularism. The NCERT in recent times has updated various books on the political sciences in an attempt to stir public support for the ruling party from an impressionable age, for example, NCERT’s book on the political sciences for 12th standard experienced changes such as the “Anti-Muslim Riots of Gujarat” in 2002 were simply changed to the “Gujrat Riots” and in an attempt to slander the opposition, the 1984 riots were described to be Anti-Sikh.

Saffronisation, the predilection of Hindu right-wing parties to promote Hindu-centrism in education, has resurfaced in the past years. In a groundbreaking report by the international news organization Aljazeera, children in Gujrat, a right-wing stronghold, are made to believe in pseudo-scientific Hindutva notions for example, that airplanes are an ancient Indian invention from the “Dvapara Yuga”. This creates a covert religious bias and hurts one of India’s defining traits, its vibrant diversity, be it in cultures or religions. Furthermore, Rashtriya Swayamsevak Sangh or the RSS, an alt-right group in India responsible for Mahatma Gandhi’s assassination, has had education boards in its state Uttar Pradesh frequently change textbooks to glorify Hinduism discrediting other religions.

Reservations in educational institutions, a historical policy in India which first came into effect in 1954 guarantee reservations for the SCs, STs, OBCs, Muslims, Sikhs, Buddhists, Jains, and economically weaker sections of the society for opportunities in schools, colleges, teaching posts etc. These came into effect in 1954 however, after 65 years, many in India ask the question – are they relevant in the 21st century? Article 334 which laid the foundation for Indian reservations has been repeatedly amended by political parties to increase its duration of effect every term to influence minority vote-banks. Admittedly, casteism is still prevalent in India in modern times, however, it is mainly concentrated in rural settlements and poverty-stricken ghettos, that issue demands a whole another set of solutions.

Merit based scholarships in India only account for about 0.7% of student aid in India, furthermore, continual politicization of education regarding reservations creates not an atmosphere in which quality education, rather, one in which caste-based divides widen. Labelling someone an SC or ST does in no manner whatsoever invoke egalitarian sentiments rather it divides society on communal lines further.

In addition to hurting the chances of deserving candidates, reservations hurt the public image of SCs and STs too, as many an allegation is launched on an SC/ST candidate after competitive exams, doubting his/her ability and crediting his/her success solely to reservations. The spread of education too gets hindered as the appointment of teachers via reservations does not always ensure the quality of education for the future of the nation, i.e. the students.

There are numerous solutions the government can implement to curb these problems. India is divided into Tier-1 and Tier-2 cities, Tier-3 towns and Tier-4 rural settlements. Reservation can be divided on this basis. The reservations in Tier-1 and Tier-2 cities should be decreased or completely removed on the basis of caste and increased on the basis of financial condition. In Tier-3 towns, caste based reservation should be moderately decreased and reservations for the economicly weaker should be promoted. While in Tier-4 rural settlements, reservations on the basis of caste and for the economic leak should be promoted heavily.

Furthermore to check the clarity of fact and the propagation of truth, an autonomous body should be created that audits educational literature and textbooks to ensure that impartiality and veracity is maintained in order to educate the youth with the plane objective truth and not a mythical blend of fact and fabrication.

This issue is grave and if not solve quickly can effectively hinder the growth of the nation and decrease opportunities for the youth, however, India is a nation which has suffered at the hands of many yet it rose to the occasion and outdid its oppressors. In the words of the former Prime Minister of India, Atal Bihari Vajpayee "सरकारें आएंगी, जाएंगी; पार्टियां बनेंगी, बिखरेंगी, पर यह देश अमर रहना चाहिए|"

[makinvestment]

SBI Magnum Ultra Short Duration Fund

SBI Magnum Ultra Short Duration Fund

We profile debt mutual funds from time to time in our fund profile section. This time we consider SBI Magnum Ultra Short Duration Fund.  Launched in May 1999, the fund currently has an AUM of Rs. 12,513 Crores. What is an ultra-short duration fund? Ultra-short duration funds are defined as “investment in Debt & Money Market instruments such that the Macaulay duration of the portfolio is between 3…

[debt-trader]

What Kinds of Debt Funds Are There: A Complete Guide

Mutual funds that invest in debt securities include corporate bonds, government securities, commercial paper (CP), CDs, T-bills, and other similar debt and money market products. Because the issuers borrow money from lenders in exchange for these instruments, they are referred to as "debt." Before you Google "How to buy debt," you should know what you are investing for.

1-Liquid funds

You want to find Companies that buy your debt. Liquid funds offer high liquidity since they invest primarily in liquid assets and debt securities with maturities under 91 days. Treasury bills, commercial papers, certificates of deposits, and collateralized lending and borrowing obligations are some examples of these instruments.

2-Ultra-short-term funds

These are funds with a short duration that often invest in debt securities with short maturities, resulting in a portfolio with a duration of three and six months. These funds are best suited for you and the Companies that buy your debt.

3-Low-duration investments

Low duration funds make investments in debt and money market instruments, so the portfolio's Macaulay Duration is between six and twelve months. So when you inquire about "how to purchase bad debt," consider this thing.

4-Money market investments

Money market funds are investments in financial securities with a maximum maturity of one year. Again this pointer is too important when you are wondering "how to purchase bad debt."

5-Short-term investments

Investments made by short-term funds are made in corporate and governmental bonds with maturities between one and three years. These funds cater to customers who choose low to medium-duration risk.

Wrapping Up

Now that you are all set to search on the internet about "How to buy debt." For further questions about debt management and everything else, you may book a quote with EverChain.

For more details about Companies That Buy Your Debt Please visit our website: everchain.net

[neutralsblog]

Kotak Short Term Fund Direct-Growth

Kotak Short Term Fund Direct-Growth

What are Short Term Funds? Short Term or limited-duration Funds are fixed-interest mutual fund plans that operate so that the plan’s Macaulay Period is between one and three years. The Macaulay period is the cumulative total of the time an investor (you) needs to hold the security following the current value of the bond’s cash flows (interests and principal repayments) to equal the amount of…

[quantummf]

How to Select the Correct Debt Fund

Debt funds in mutual funds are a type of mutual fund that invests in debt securities such as corporate bonds, money market instruments, commercial paper, certificate of deposit, treasury bills and government securities. 

Types of Debt Funds in India

·         Dynamic Bond Funds

Dynamic bond funds are a type of debt fund that invest across duration and have different average maturity periods as these funds take investment decisions based on interest rates and invest in instruments of longer as well as shorter maturities.

·         Short Duration  Funds

These type of debt funds make investments in Debt & Money Market instruments such that the Macaulay duration of the portfolio is between 1 year – 3 years.

·         Liquid Funds

Liquid funds are a type of debt funds that invest in debt instruments with a maturity of not more than 91 days. This makes them relatively less risky. They are better alternatives to savings bank accounts as they provide similar liquidity with higher returns.

·         Gilt Funds

These type of debt funds make minimum investment in Gsecs- 80% of total assets (across maturity). Gilt funds are perfect for risk-averse fixed-income investors. 

·         Fixed Maturity Plans

These funds also make investments in fixed income securities like corporate bonds and government securities. All FMPs have a fixed period for which your money will be locked-in. However, one can invest only during the initial offer period thereafter can be purchased or sold through stock exchange platform.

From an investor’s point of view, debt funds in India are regarded as relatively less volatile than equity funds. However, there are different types of risks associated with debt funds. 

The following factors should be considered before investing in debt funds.

·         Types of Risk in Debt Funds

Debt funds run the risk of credit risk and interest rate risk. In case of credit risk, the fund manager may invest in securities with a poor or risky credit rating with a high probability of default on payment. In case of interest rate risk, the bond prices may fall due to an increase in the interest rates.

·         Cost

Debt fund managers levy a certain fee to manage the money called an expense ratio.

·         Investment horizon

If you have a short-term investment period of three months to one year, then investing in liquid funds is ideal. The Macaulay duration of underlying investments for short-term bond funds can be one year to three years. In case of investment across duration, dynamic bond funds would be appropriate. The longer the time plan, the better the returns.

·         Investment objective

Depending on your financial goals, different types of debt funds could serve your purpose. Investors can park a certain amount of funds in debt funds for liquidity.

·         Tax implications

Capital gains - both long term and short term from debt funds are taxable under the Income Tax Act 1961.

 Disclaimer: The views expressed here in this Article / Video are for general information and reading purpose only and do not constitute any guidelines and recommendations on any course of action to be followed by the reader. Quantum AMC / Quantum Mutual Fund is not guaranteeing / offering / communicating any indicative yield on investments made in the scheme(s). The views are not meant to serve as a professional guide / investment advice / intended to be an offer or solicitation for the purchase or sale of any financial product or instrument or mutual fund units for the reader. The Article / Video has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst no action has been solicited based upon the information provided herein, due care has been taken to ensure that the facts are accurate and views given are fair and reasonable as on date. Readers of the Article / Video should rely on information/data arising out of their own investigations and advised to seek independent professional advice and arrive at an informed decision before making any investments. None of the Quantum Advisors, Quantum AMC, Quantum Trustee or Quantum Mutual Fund, their Affiliates or Representative shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary losses or damages including lost profits arising in any way on account of any action taken basis the data / information / views provided in the Article / video.

Mutual fund investments are subject to market risks read all scheme related documents carefully.

[marvel-daily-mantra]

SEVEN IMPORTANT MONEY RULES THAT WILL CHANGE THIS MONTH

In December, there are several money matters for which the rules will change. Here are some key regulatory and operational changes that are likely to affect your financial life.

December 31 is the last date to file your income tax returns

The deadline to file your income-tax returns for the assessment year 2021-22 (financial year 2020-21) is December 31, 2021. But, it is better to start now if you haven't filed the income tax returns till now. If you have missed reading Moneycontrol's income-tax filing guide, we've put together the five most pertinent aspects of tax filing. We have also answered five frequently asked questions while filing income tax returns.Term insurance premiums likely to rise from December

Pure protection term insurance premiums are likely to see a spike yet again in December. This time, the jump is likely to be between 25-45 percent on the back of rising reinsurance rates in the global market, say industry watchers. The absolute rate rise could be stark given the low term insurance rates that the country has enjoyed for the last 10 years. This time round, too, the pandemic-driven higher death rate is the culprit. If you need additional term insurance cover, you should not delay the purchase any further.

EMI purchases via SBI credit cards will become expensive

Effective from December 1, 2021 SBI Cards & Payment Services Private Limited (SBICPSL) will charge a flat processing fee of Rs 99 plus taxes on all equated monthly instalment (EMI) transactions. The company will charge the processing fees for all EMI transactions done at retail outlets and e-commerce websites such as Amazon and Flipkart. These charges are over and above the interest charges for converting the purchase into EMIs. The company informed its customers about the new charge by email. Any transaction done before December 1, with the EMI booking occurring after December 1, will be exempted from this processing fee.

SEBI introduces Potential Risk Class Matrix for debt fund investors

To further empower debt fund investors, the Securities Exchange Board of India (SEBI) has come out with a mechanism that defines the maximum quantum of risk a scheme can take. Effective from December 1, all existing and new debt schemes will be classified in terms of a Potential Risk Class Matrix (PRCM), comprising parameters based on maximum interest rate risk (measured by the Macaulay Duration (MD) of the scheme) and maximum credit risk (measured by Credit Risk Value (CRV) of the scheme).

The existing risk-o-meter captures the actual risk in the portfolio of the bond scheme. However, the portfolio may change over a period and the fund manager may choose to take more risk to increase returns. The new system of PRCM will show how much risk the fund manager can take. This will tell investors how much risk exists in the portfolio and how much risk the fund manager can take. This should help investors take more informed decisions. Like the risk-o-meter of the scheme, the maximum potential risk of the scheme (PRCM cell positioning) will be mentioned in all scheme related communications to the investors.

Guidelines for investing in silver exchange traded funds (ETFs)

SEBI norms laid down for the silver ETFs will be effective from December 9, 2021. The regulator prescribed that silver ETFs should allocate at least 95 percent of their assets to silver and silver-related exchange traded commodity derivatives (ETCD). Further, fund houses have been told to limit the tracking error to 2 percent and buy physical silver standard 30 kg bars with 99.9 percent purity, confirming to the London Bullion Market Association (LBMA). Fund houses shall benchmark silver ETFs against the price of silver (based on LBMA Silver daily spot fixing price). Expense ratio cannot exceed one percent of the scheme AUM. The silver ETF units will be listed on the stock exchanges. Fund house is told to appoint market makers to ensure ample liquidity on the stock exchanges.New guidelines for mutual fund employees when directly investing in securities

SEBI had come out with a new framework for investment and trading in securities for employees of Asset Management Companies (AMCs) and trustees of mutual funds. The employees, board members of AMCs and board members of trustees, including access persons, cannot take undue advantage of any sensitive information that they may have about any company or its securities or about AMCs' schemes or their units. The new framework will apply from December 1, 2021. All employees will refrain from profiting from the purchase and sale of any security within 30 calendar days in a personal trading account.

SEBI allows investing unclaimed amounts in overnight schemes

Effective from December 1, SEBI allows the unclaimed redemption and dividend amounts, which are currently allowed to be deployed only in call money market or money market instruments, to be invested in a separate plan of only overnight / liquid/ money market mutual fund scheme floated by mutual funds specifically for deployment of the unclaimed amounts.

[gravyt]

Should you invest through SIP for Short Term???

Generally, when we see an advertisement or read any article/ information on Mutual Funds, one recommendation and opinion is common everywhere and that is to invest for the long term.

Undoubtedly, it is very important to invest for the long term with consistency and discipline to get the most out of it. However, one should not ignore the fact that Mutual Funds are available for every time frame.

Short Term (up to 3 years) - Expected interest rate is 7%-9% interest p.a.

Medium Term (up to 5 years) - Expected interest rate is 9%-11% interest p.a.

Long Term (Above 5 years) - Expected interest rate is 11%-12% interest p.a.

Mainly there are two types of Mutual Funds. Equity Mutual Funds & Debt Mutual Funds. Equity Mutual Funds are specifically beneficial in the long term. However, you can select the Debt Mutual Fund category for every time frame. Investment can be Lump sum investment or SIP (Systematic Investment Plan) as per your need and convenience. (Link for previous blog - SIP vs Lump sum)

The Fund Manager of a debt mutual fund invests a significant portion of the investor's money into fixed-income securities like government securities, debentures, corporate bonds, and other money-market instruments. Some of the main objectives of a Debt Mutual Funds are listed below

The Fund Manager of a debt mutual fund invests a significant portion of the investor's money into fixed-income securities like government securities, debentures, corporate bonds, and other money-market instruments.

Some of the main objectives of a Debt Mutual Funds are listed below,

To provide capital protection

To take lower risk

To provide high liquidity

To offer stability in a portfolio

Potential to offer capital appreciation along with Tax efficiency

Types of Debt of Mutual Funds:1. For Short Term:Overnight Mutual Funds:Invests in debt securities having a maturity of 1 day.Liquid Mutual Funds:Invests in money market instruments having a maturity of a maximum of 91 days.Ultra Short Term Mutual Funds:Invests in money market instruments and debt securities in a manner that the Macaulay duration of the scheme is between 3 and 6 months.Short Term Mutual Funds:Invests in money market instruments and debt securities in a manner that the Macaulay duration of the scheme is between 6 and 12 months.Money Market Funds:Invests in money market instruments with a maximum maturity of 1 year.Low Duration Short Term Mutual Funds:Invests in money market instruments and debt securities in a manner that the Macaulay duration of the scheme is between 1 to 3 years.2. For Medium Term:Medium Duration Short Term Mutual Funds:Invests in money market instruments and debt securities in a manner that the Macaulay duration of the scheme is between 3 to 4 years.Corporate Bond Mutual Funds:Invests a minimum of 80% of its total assets in corporate bonds having the highest ratings. Suitable for an investment period of 3 to 4 years.Floater Mutual Funds:Invests a minimum of 65% of its investible corpus in floating rate instruments. Suitable for an investment period of 3 to 4 years.Banking & PSU Mutual Funds:Invests at least 80% of its total assets in debt securities of PSUs (public sector undertakings) and banks. Suitable for an investment period of 3 to 5 years.Gilt Mutual Funds:Invests a minimum of 80% of its investible corpus in government securities across varying maturities. Suitable for an investment period of 3 to 5 years.Credit Risk Mutual Funds:Invests a minimum of 65% of its investible corpus in corporate bonds having ratings below the highest quality corporate bonds. Suitable for an investment period of 3 to 5 years.Dynamic Bond Mutual Funds:Invests in debt instruments of varying maturities based on the interest rate regime. Suitable for an investment period of 3 to 5 years.3. For Long Term:Medium to Long Term Short Term Mutual Funds:Invests in money market instruments and debt securities in a manner that the Macaulay duration of the scheme is between 4 to 7 yearsLong Duration Short Term Mutual Funds:Invests in money market instruments and debt securities in a manner that the Macaulay duration of the scheme is more than 7 years

By now, you must have understood the suitable time frame for every type of Debt Mutual Fund. Here you should note that as the time frame increases, potential risk, and returns are also on a higher side.

The Risk involved in Debt Mutual Funds:

Credit Risk: It is a default risk of the issuer not repaying the principal or/and interest.

Interest Rate Risk: It is an effect of changing interest rates on the value of the scheme's portfolio.

Liquidity Risk: It is the risk carried by the fund house (Asset Management Company) of not having adequate liquidity/ Cash.

Conclusion:

You can invest through SIP in Mutual Funds for short-term purposes as these are available from 1 day to more than 5 years. If you want stability in your portfolio, relatively lower risk as compared to equities then debt mutual funds are for you.

Some investors opt for debt mutual funds thinking that the debt mutual funds offer regular income and guaranteed returns. However, it is a misconception.

Though risk in Debt Mutual Funds is on a lower side as compared to Equity Mutual Funds, the returns are not guaranteed in nature and subject to market risks.

You must select the category of Debt Mutual Fund wisely according to your objective and risk-taking ability.

[globalbetaetfs]

Income etf funds are a type of debt funds. Invest in debt instruments like debentures, corporate bonds, government securities, etc. for a longer duration. The Securities and Exchange Board of India (SEBI) classifies Income Funds as those debt funds whose Macaulay Duration is 4 years and more.

[wealthzi]

Invesco MF has launched Invesco India Medium Duration Fund, an open ended medium term debt scheme investing in instruments such that the Macaulay duration of the portfolio is between 3 years and 4 years. Medium duration funds are suitable for investments with a horizon of more than 3 years. They can be a replacement for long-term bank fixed deposits, though mutual funds offer no guaranteed income or principal protection. The medium duration fund category has 15 existing schemes which put together manage Rs 30,000 crore.  

[moneycafe]

Invesco Mutual Fund unveils Invesco India Medium Duration Fund

Invesco Mutual Fund unveils Invesco India Medium Duration Fund

Invesco Mutual Fund announced the launch of its new fund Invesco India Medium Duration Fund – an open-ended medium term debt scheme investing in instruments such that the Macaulay duration of the portfolio is between 3 to 4 years. The new fund offer (NFO) will close for subscription on July 13. The fund will be benchmarked to CRISIL Medium Term Debt Index and will be managed by Vikas Garg and…