Debt Funds?

#1
Anyone with any experience in investing in debt funds? I keep reading that they are a good option to FDs especially if you are in the 30% tax range. I generally invest in one year maturity FDs which typically have the highest interest rate at any point of time which I then renew every year. However if there is a two year FD at a higher rate then I will pick that for sure. Now the more I read the more I get to know that debt funds are a better option and almost as liquid, with a slight risk. But there are so many options : Ultra Short Term, Liquid, Short Term, Long Term and Gilt. Plus multiply that by the plethora of Fund Houses which run these. Also I assume growth options are a better bet due to indexation on Taxation as opposed to dividend which get taxed at 27.5%. Currently one of the FDs has matured and I am sitting on that, waiting to decide. Would also like to know if I pick a debt fund should I invest the full amount in lumpsum or should I break it into SIPs.
 
#2
Debt Funds ,,,Frauds & Scams

Shocking right....but very few know what is going on under closed curtains...
,,,
Even very good MF Companies are doing this scam (loopholes in SEBI rules) ,,,,so be aware of it especially since many mfg/realty etc companies are facing issues...

The options you can consider are

1 FDs of reputed AAA NBFC's

2 Buy NCD in secondary market ..various tenures from 2 months to 10 years..again only reputed

You can venture into Debt funds after 2/3 years when economy turns truly positive for all industries.
 
#3
I have reverse opinion , I too started investing in Debt Fund , Surprisingly fantastic yield in short term i.e. in few months > 4-5% , Annual yield seems > 14-15% , I now prefer Debt fund as a best option in this over-high market scenario & gradually shifting from matured FDs to debt fund.
 
#4
I think there is a slight risk involved with the quality of companies being important while picking one up. How are Franklin Ultra Short and Birla Dynamic Bond Funds?
 
#5
IMHO

Birla Dynamic is better,,,,

Franklin one...too risky...JSW,Edelweiss and DLF..acidic investments in its portfolio.

Anyway each one's risk profile and return expectations are different...so finally you decide.
 
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