If you are a retail investor, you can allocate a portion of the portfolio to the medium- to long-term debt fund category instead of gilt funds.
Taking credit risks in shorter-tenure funds can help jack up returns considerably, boosting sales.
Monitor how long the high cash position lasts. If it lasts for a month or two, it is fine. But if it continues for a couple of quarters, seek your advisor's opinion on whether to exit the fund.
Before you rush to invest in these funds, understand the risks they carry and whether you have the appetite for them, says Sanjay Kumar Singh.
One risk of investing in a very low-cost ETF is if a fund house runs it at below cost, it could close it if it fails to attract institutional money
While seniors seeking a regular income should switch to debt funds from balanced funds, younger investors should invest in balanced funds after understanding their risks.
How do you pick a mutual fund scheme that suits your needs?
'To ensure you remain with the better performers, you need to consistently monitor your MF portfolios and weed out the non-performers, even if they are from a star fund manager or a fund house with a sound record.'
Equity investments are fruitful over the very long 20-year term.
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