Can you please suggest me 1 or 2 long term debt mutual funds for SIP?
I am looking at 15year duration.
Thanks in advance.
Rag-In my view your major portion should be towards short term debt fund and a small portion towards long term debt funds or income funds. Because if this requirement is for debt portfolio to match your in proportion to equity, then I don’t think RISK is required. You already taken enough risk by investing in equity. Hence, to keep peace of mind, I suggest short term debt funds.
And this amtek auto crisis is an eye opener… Liquid and gilt funds and diversified debt funds (to some extent) is enough for debt allocation over and above PPF. Debt mutual fund is just to get advantage of probable falling interest rate in rhe future…
Drpupai-True and we always need to look for underlying papers of debt funds. The two JP Morgan Funds are not long term (one is short term and another is ultra short term). Investors who invested in such funds due to safety may feel get cheated. We don’t know if the same trend continue fund managers may include low rated papers in their LIQUID FUNDS to beat both it’s peers or Index. Hence, we must be watchful.
Also I feel SEBI is being negligent here… They have some role to look into this…
Drpupai-Yes, now one more risk is added and that is REGULATOR RISK 🙂