Debt Mutual Fund

POSTED BY CHETAN MAHETA ON September 8, 2012 2:22 pm COMMENTS (11)

Dear All,


I Want to Invest Rs.25000/- in Debt Mutual Fund ?

Suggest Me Schemes to Invest ?

What are Normal Return of Debt Mutual Fund ?

How to Invest ?

11 replies on this article “Debt Mutual Fund”

  1. Bharat A says:

    Dear Ashal,

    I was referring to NRE FD which are tax free. That was my concerning too regarding liquid funds redemption for NRIs.

    I have about INR 800K which needs to be paid to the builder for under construction property in 3 or 4months time. Is thier any invest option for this amount for short term (3months) absolutely no risk. I can’t do NRE term deposit as the minimum tenure is 1year. I suppose keeping it in NRE savings account is better choice.

    Do you have any suggestions?

    Bharat A

    1. Dear Bharat, parking money in dividend options of liquid fund may be a good choice. In case you are ready to file your ITR, you may invest in growth option also.



  2. Bharat A says:

    Dear Ashal,

    For NRI’s the term deposit offered by banks are around 9.5% depending on the tenure. In this scenario for a 1year or 2year period investing in debt mutual fund is sensible or NRI FD is sensible? The NRI FD interest is fixed at 9.5% for 390days and for the same time frame will debt fund yield similar returns lets say quantum liquid fund.

    Also is it advisable to use Quantum Liquird fund to deposit 100K and do STP to Quantum Long term equity fund of 5K a month?

    Bharat A

    1. Dear Bharat, there are 2 kinds of FDs offered for NRIs. 1st one is NRE & 2nd one is NRO. NRE are tax free FDs where as NRO are taxable FDs. Which one you are talking about?

      FYI please, liquid funds for NRIs may not be the proper vehicle for the fact that redemption ‘ll invite TDS @ 30.9% rate. Yes the NRI in question may claim back that TDS by filing ITR if income tax liability is zero or less than the deducted Tax for all the indian income.



  3. ashish says:

    Dear Chetan,

    you can park your surplus money in liquid debt funds like :


    *if you withdraw your money within 30 days, there will be penalty of 1% i think.. please verify. I am using these funds and getting return of around 8-10%.


  4. CHETAN MAHETA says:

    Dear Ashal,

    My Saving A/c Gives me Interest rate of 4%

    Debt Mutual Fund will give me more Return. Moreover Liquidity is also there.


    1. Dear Chetan, as the money is to be kept liquid, please invest this amount in a liquid fund like Quantum Liquid fund.



  5. Karthik says:

    If it is a kind of emergency fund, go for a short term dept fund. I have parked some of my money like that in HDFC Short term opportunities fund,

  6. CHETAN MAHETA says:

    Actually Idle Balance is lying in my bank account..

    I dont have any goals..

    Just for the purpose of earning more return i want to go for debt mutual fund..

    suggest me other alternatives

    1. Dear Chetan, you mean to say you are earning merely 4% return from your money lying idle in bank account?



  7. Dear Chetan, Why do you want to invest in debt MFs? What’s your time frame? Do you have any linked goal for this money?

    Please answer.



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