Types of Debt Funds at a Glance

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Debt Fund is a kind of mutual fund which invests in fixed income securities like gilt funds, treasury bills, bonds, short term plans, monthly income plans, fixed maturity plans, liquid funds and etc. Debt Funds are convenient for short-term or medium-term investments. Short-term investment starts from three months to one year and the medium term starts from three years to five years. Debt funds are like liquid funds for short term investors. Keeping your money on a debt fund is better than keeping your money on a savings bank account. The liquid fund gives 7%-9% returns and also offers the same liquidity for meeting emergency requirements. Debt Funds are like a dynamic bond for medium-term investors. It gives higher returns compared to bank FD’s. The monthly income plans are also a good option if you want to earn regularly from your investment.

Beginners Guide for ELSS

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ELSS (Equity Linked Mutual Fund) is a kind of equity mutual fund which invests 80% of their assets on equity or equity related instruments. The lock in period of an ELSS is at least three years. It qualifies the tax exemption of 80C of the income tax act. The maximum exemption for an ELSS is Rs. 1, 50,000.

Top 5 Multi Cap Funds of 2019

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Investing in mutual funds there can be a question which fund will be best for you or where should you invest for a good return. When SEBI re-categorized the mutual funds, Mutual Funds advisors started to recommend the multi cap fund category to investors. Investors asked the first question that which is the best fund to invest but the first question should be which is category is most appropriate to choose the fund from- what should be it Large cap, Mid Cap, Small Cap, Multi Cap or Sectoral Fund category. Every category has its own advantages. Large Cap funds will give stability on your portfolio while Mid Cap and Small Cap funds will give you high returns.

Top 10 Large-cap funds in 2019

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The large-cap fund invests in large-cap companies which have larger market capitalization. These large-cap companies have a track record of steady wealth generation with low risks. People with a low-risk appetite can easily invest in a large-cap fund. One of the best features of the large-cap fund is that they can easily manage the market fluctuation. So, the return does not very rigorously in accordance with market volatility.