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Mutual Funds returns - The Hindu BusinessLine thehindubusinessline.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from thehindubusinessline.com Daily Mail and Mail on Sunday newspapers.
Maulik Madhu
BL Research Bureau |
Updated on
January 09, 2021
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Those with a moderate risk appetite & an investment horizon of 3 years can consider the fund
Debt mutual fund investors need to watch out for two key risks interest-rate risk and credit risk. Corporate bond funds, and Banking and PSU funds are considered relatively safe, though individual schemes within them may carry higher levels of risk.
Conservative investors can choose schemes from these two categories for their core debt portfolio. Here, we look at corporate bond funds.
Cap your risk
Corporate bond funds are debt funds that must invest at least 80 per cent of their assets in only the highest-rated corporate bonds (typically AA+ and above).