Best Debt Fund Manager In India

POSTED BY vksnathan ON April 11, 2013 6:07 pm COMMENTS (17)

Hi All,

I am planning to invest the maturity amount of my fixed deposits in debt mutual funds.Thanks to Subra from Subramoney for the article on FD vs Debt mutual funds and Pattu for the calculator to compare returns between FD and Debt mutual funds.

After going thru several articles on Debt Mutual funds I decided to go with Dynamic Bond Funds as I would like to leave the decision of choosing the maturity term of debt instrument to the Fund Manager.

Can you please provide some pointers to articles regarding best debt fund managers in India as my Search did not yield good results ?.

Find below some additional info regarding my investment horizon and tax bracket.

1.I do not have any immediate need of the funds for the next 3 years.

2.I fall in the 30% tax bracket and I am planning to invest the amount in growth mode

17 replies on this article “Best Debt Fund Manager In India”

  1. Nishanth says:

    hello dear,
    I hv an investment in Birla Sun Life Dynamic Bond Fund – Regular Plan – Dividend (Dividend reinvestment plan) NAV 11.76, Amount-5lakhs approx. Couple of days ago it fell 6% in a day ,what do I do ,shud I book loss & go to another better debt or balanced fund scheme… if so plz suggest which one.
    thanks

    1. Dynamic bond funds can be quite volatile , thats the reason they also give good returns. I cant comment on the action because its not sure how long have you invested in and what exactly is your goal.

      1. Nishanth says:

        thanks for ur reply Manish,I had invested in August’16 and have hardly seen any gains so far & now it is abt 6 %down my target is fo4 1 to 3 years suggest me the best or 2 Balanced funds plz,

        1. ICICI pru balanced advantage fund is one of the good funds !

  2. Dear Vksnathan, not related to this discussion but fulfilling your old demand, I have written an article on Max Gain. Dear Manish ‘ll publish the same in few days in main JI site. I already published the same in my blog. You can check the article either in my blog or in JI after it’s published.

    Please feel free to discuss the Max Gain at lengths.

    Thanks

    Ashal

  3. vksnathan says:

    Thanks Ashal,Sharad and Pattu for your valuable time and suggestions.

  4. 3sharad says:

    Hi Nathan,

    I suggest the following funds:

    1. SBI Dynamic Bond Fund
    2. SBI Magnum Income Fund
    3. Reliance Dynamic Bond Fund

    Selection based on the multiple factor rating methodology including Risk adjusted Performance over various time periods, Investment style and ability to make right decisions consistently, Diversification and quality of holdings in the portfolio.

    Hope this helps.

    Regards,
    Sharad

  5. Dear Vksnathan, from your query, I assume, you are going to invest in debt funds as a replacement of FDs & in actual you may not redeem at all after 3Y. Given this situation, Dynamic funds are ok with me as you are leaving the choice of papers & maturity time frame on the fund manager. As you fall in 30% tax slab, investing in growth option is a good idea from taxation point.

    Thanks

    Ashal

  6. vksnathan says:

    Thanks Pattu and Ayush.

    Yes.Capital Protection will be the primary requirement for this investment.Returns and Tax Considerations will come second.I am not currently planning to redeem partially or fully after 3 years as I don’t foresee any needs for the fund currently

    Thanks again to Pattu for pointing to performance tab in VR.I will use this in the future while evaluating debt funds.

    However I am not clear about one point.I understand that one should select debt fund based on investment horizon.Not sure how Liquid Funds or Ultra Short term funds fit in this picture as I consider the investment period to be 3 years.Isn’t there a better option ?

    1. if you are going to redeem in 3 yrs then dynamic funds can be risky. .If not as Ashal suggested go for them. Because they are risky they can fetch better returns!

  7. Ayush says:

    She was once featured in Mutual Fund Insight. I read her interview. And i think good performance of some of the funds she manages speaks for itself.

    1. Okay. Thanks, For ultra-short funds, anyone who can eliminate/minimize possibility of negative returns should work. Most people can do this due to the very nature of the underlying paper.

      1. Ayush says:

        Thanks for pointing out. I didn’t know that Ultra Short Term Funds can also give negative returns sometimes. I know that now. From now, i will also consider this before looking at them.

  8. Ayush says:

    @vksnathan You can go for Birla Sun Life Floating Rate LT Direct if you want to invest in a Ultra Short Term Fund. It is managed by Sunaina da Cunha. She is a good fund manager.

    1. Hi Ayush, how do you know she is good?

  9. Sorry I meant
    “I will advise you to choose a ultra-short term fund and not dynamic bond funds.”

  10. Dear nathan,

    This is pattu. Thanks! Dynamic bond funds can be quite risky.
    You need to be clear about the following:
    Are you sure you want to partially or fully redeem after 3 yrs? Then it is best to focus on capital protection and not returns. I will advise you to choose a ultra-short term fund and dynamic bond funds.
    Looking at interest rate cycles is, in my opinion, an unnecessary idiots game. for short-term goals an investor should simply choose the option with lowest risk and lowest tax out-go.

    don’t worry about debt managers. For a ultra-short term funds, given their nature, choose a fund with ‘low-risk’ rating and you should be good.

    I will take a return of pre-tax return of 6-8% with low risk.
    Something like SBI Ultra Short Term Debt -G should do just fine for me.

    If you are thinking about dynamic bond or income funds go to VRonline and
    click the ‘performance’ tab of the fund you have short-listed.
    If the ‘worst’ performance is negative for a year or a quarter and if this repeats when you invest you will stand to loose.

    Almost all liquid funds and ultra-short term funds have never given negative returns.
    this is how I will think if it was my money.

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