'The problem is that the bubble may not only be in valuations, but also in investors' minds.'
To minimise risk, invest in a debt fund whose duration matches your investment timeframe.
While the minimum holding period for LTCG taxation has now been lowered, the tax outgo could be a bit higher under the new structure.
Only investors with a higher risk appetite should enter these funds.
While debt funds have emerged as the flavour of the season, not all investors understand debt funds. So the best they can do is put trust in the fund manager and the fund house.
'Any normalisation exercise will bring its share of volatility.'
In 2021, there is the risk of interest rates spiking. Investors should tackle duration risk with a longer investment horizon, suggests Sanjay Kumar Singh.
In other debt-oriented funds, retail assets jumped from about Rs 45,000 crore to Rs 64,000 crore.
If you are in credit opportunity funds, income funds or dynamic bond funds for a long-term goal, stay put.
Heed your liquidity needs before investing in an FMP.
© 2026 Rediff.com - Investor Information - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances