Debt Mutual fund is designed especially for the low risk investor who aims at capital preservation with decent returns on investment. Debt Funds invest in long-term borrowing of the government or corporate issuers at fixed rates of interest. These funds earn their returns from the interest payments that they receive from bonds / gilts and the fluctuations in the market price of their holdings. You can have limited exposure to these funds to add a balance to your portfolio. An ideal investment portfolio would have around 10-15% exposure to these instruments. Debt funds give you Capital Appreciation and Regular IncomeCapital Appreciation: Debt funds buy either listed or unlisted debt instruments at a certain price and sell them. The difference between the cost and sale price accounts for the appreciation or depreciation in the funds value. A debt instruments market price depends on the interest rates of its underlying assets and also any up or downward movement in the credit ratings of its holdings. Let us say our debt fund owns a security that yields a 10% interest. If the market interest rates fall, new instruments that hit the market would reflect the changed interest rates and offer lower returns. This would result in an increase in our funds price as the higher yield would raise our instruments value. As a result the NAV of our fund would increase which provides us with the capital appreciationRegular Income: Similar to the interest that banks offer us on our deposits, debt funds also earn a regular interest from the fixed income securities they are invested in. This income gets added to the debt fund on a regular basis. This income would be shared with us, thereby providing us with regular incomeThe tax advantage: Debt funds have to be looked beyond the rate offered on the investment. Dividends from debt mutual funds are taxed at a rate lower than highest marginal tax rate. The long term capital gains can also be paid after indexation benefit. Investors holding debt funds over one year time frame are taxed only for capital gain at a lower rate compared with bank deposits which are taxed at marginal rate of taxation. Long term capital gains, no TDS on redemption proceeds for resident investors and dividends being tax-free in the investor’s hands subject to distribution taxes.The list of Debt Mutual Funds available currently for purchase
| Category | Scheme Name | Launch Date | Min. Inv. |
| Debt - Floating Rate | Templeton FRIF - LTP (G) | 18-Feb-02 | 10,000 |
| Debt - Floating Rate | Templeton FRIF - STP (G) | 18-Feb-02 | 100,000 |
| Debt - Floating Rate | HDFC Float Rate Inc-LTP (G) | 8-Jan-03 | 5,000 |
| Debt - Floating Rate | HDFC Float Rate Inc-STP RP(G) | 8-Jan-03 | 100,000 |
| Debt - Floating Rate | ICICI Pru Floating RP - B (G) | 28-Mar-03 | 1,000,000 |
| Debt - Floating Rate | DSP-BR Floating Rate Fund (G) | 12-May-03 | 5,000 |
| Debt - Floating Rate | Birla SL FRF - LTP - RP (G) | 4-Jun-03 | 5,000 |
| Debt - Floating Rate | Birla SL FRF - STP - RP (G) | 4-Jun-03 | 5,000 |
| Debt - Floating Rate | JM Floater Fund - STP (G) | 25-Jun-03 | 5,000 |
| Debt - Floating Rate | JM Floater - LTP - RP (G) | 25-Jun-03 | 5,000 |
| Debt - Floating Rate | Kotak Floater STP (G) | 7-Jul-03 | 5,000 |
| Debt - Floating Rate | UTI Floating Rate -STP-RP (G) | 29-Aug-03 | 5,000 |
| Debt - Floating Rate | Tata Floating Rate - STP (G) | 22-Dec-03 | 10,000 |
| Debt - Floating Rate | Tata Floating Rate - LTP (G) | 22-Dec-03 | 10,000 |
| Debt - Floating Rate | LIC MF Floating Rate (G) | 29-Mar-04 | 5,000 |
| Debt - Floating Rate | SBI Magnum Income-FRP -STP (G) | 14-Jul-04 | 2,000 |
| Debt - Floating Rate | SBI Magnum Income-FRP-LTRP (G) | 14-Jul-04 | 2,000 |
| Debt - Floating Rate | ICICI Pru Floating RP - C (G) | 30-Jul-04 | 30,000,000 |
| Debt - Floating Rate | ICICI Pru Floating RP - A (G) | 30-Jul-04 | 10,000 |
| Debt - Floating Rate | IDFC MMF-Invest. - RP A (G) | 30-Jul-04 | 5,000 |
| Debt - Floating Rate | Kotak Floater LTP (G) | 6-Aug-04 | 5,000 |
| Debt - Floating Rate | Reliance Floating Rate (G) | 27-Aug-04 | 25,000 |
| Debt - Floating Rate | ICICI Pru Floating RP-LTP B(G) | 4-Sep-04 | 1,000,000 |
| Debt - Floating Rate | ICICI Pru Floating RP-LTP A(G) | 4-Sep-04 | 15,000 |
| Debt - Floating Rate | Principal FRF- FMP RP (G) | 6-Sep-04 | 5,000 |
| Debt - Floating Rate | Principal FRF- SMP RP (G) | 6-Sep-04 | 5,000 |
| Debt - Floating Rate | JM Floater - LTP- Premium (G) | 5-Oct-04 | 5,000 |
| Debt - Floating Rate | HSBC FRF - LTP (RP) (G) | 8-Nov-04 | 10,000 |
| Debt - Floating Rate | HSBC FRF - STP (RP) (G) | 8-Nov-04 | 100,000 |
| Debt - Floating Rate | Can Robeco Float Rate-STP (G) | 22-Feb-05 | 5,000 |
| Debt - Institutional | ICICI Pru STP - Inst. Plan (G) | 24-Feb-03 | 25,000 |
| Debt - Institutional | ICICI Pru Income-Ins. Plan (G) | 15-Mar-03 | 25,000 |
| Debt - Institutional | IDFC MMF - TP - IP B (G) | 3-Apr-03 | 10,000,000 |
| Debt - Institutional | JM Short Term Plan - Inst (G) | 4-Apr-03 | 100,000 |
| Debt - Institutional | L & T Freedom Inc STF-IP-G | 10-Apr-03 | 1,000,000 |
| Debt - Institutional | Birla SL Saving Fund - IP (G) | 16-Apr-03 | 50,000,000 |
| Debt - Institutional | Principal Income STP- Inst (G) | 8-May-03 | 1,000,000 |
| Debt - Institutional | Principal Income-Inst Plan (G) | 8-May-03 | 1,000,000 |
| Debt - Institutional | Sundaram Bond Saver - IP (G) | 18-Aug-03 | 5,000,000 |
| Debt - Institutional | HSBC Income STP- Inst Plan (G) | 15-Sep-03 | 5,000,000 |
| Debt - Institutional | SBI Premier Liquid - IP (G) | 21-Nov-03 | 5,000,000 |
| Debt - Institutional | IDFC GSec - PF Inst B (G) | 17-Mar-04 | 2,500,000 |
| Debt - Institutional | IDFC MMF - TP - SIP C (G) | 1-Apr-04 | 50,000,000 |
| Debt - Institutional | DWS Insta Cash- Inst (G) | 25-Jun-04 | 10,000,000 |
| Debt - Institutional | IDFC MMF-Invest. - IP B (G) | 30-Jul-04 | 10,000,000 |
| Debt - Institutional | Tata FRF- Short Term Inst. (G) | 31-Aug-04 | 10,000,000 |
| Debt - Institutional | Fortis Short Term Income -IP (G) | 3-Sep-04 | 10,000,000 |
| Debt - Institutional | Principal FRF- FMP -Inst (G) | 6-Sep-04 | 10,000,000 |
| Debt - Institutional | Principal FRF- SMP - Inst (G) | 6-Sep-04 | 10,000,000 |
| Debt - Institutional | HSBC FRF- LTP (Inst Plan) (G) | 8-Nov-04 | 5,000,000 |
| Debt - Institutional | HSBC FRF- STP (Inst Plan) (G) | 8-Nov-04 | 5,000,000 |
| Debt - Institutional | Sundaram Flexible Inc -IP (G) | 24-Dec-04 | 10,000,000 |
| Debt - Institutional | Sundaram Flexi Inc-STP-IP (G) | 24-Dec-04 | 10,000,000 |
| Debt - Long Term | JM Income Fund (G) | 12-Dec-94 | 5,000 |
| Debt - Long Term | Birla SL Income Plus -B RP (G) | 21-Oct-95 | 5,000 |
| Debt - Long Term | Templeton (I) Income Fund (G) | 3-Jan-97 | 10,000 |
| Debt - Long Term | Birla SL Income Fund (G) | 3-Mar-97 | 5,000 |
| Debt - Long Term | HDFC High Interest (G) | 27-Mar-97 | 5,000 |
| Debt - Long Term | Templeton India IBA (G) | 23-Jun-97 | 10,000 |
| Debt - Long Term | Sundaram Bond Saver (G) | 18-Dec-97 | 5,000 |
| Debt - Long Term | Reliance Income Fund (G) | 31-Dec-97 | 5,000 |
| Debt - Long Term | Escorts Income Plan (G) | 18-May-98 | 1,000 |
| Debt - Long Term | UTI Bond Fund (G) | 17-Jun-98 | 1,000 |
| Debt - Long Term | ICICI Pru Income (G) | 19-Jun-98 | 5,000 |
| Debt - Long Term | SBI Magnum Income Fund (G) | 30-Nov-98 | 2,000 |
| Debt - Long Term | Kotak Gilt Invt - Regular (G) | 5-Jan-99 | 5,000 |
| Debt - Long Term | LIC MF Bond Fund (G) | 9-May-99 | 5,000 |
| Debt - Long Term | Templeton (I) Govt Sec -CP (G) | 21-Jun-99 | 10,000 |
| Debt - Long Term | ICICI Pru Gilt (IP) (G) | 9-Aug-99 | 5,000 |
| Debt - Long Term | ICICI Pru Gilt (TP) (G) | 9-Aug-99 | 25,000 |
| Debt - Long Term | UTI G-Sec Investment (G) | 4-Sep-99 | 1,000 |
| Debt - Long Term | Tata Gilt Sec Fund (G) | 6-Sep-99 | 1,000 |
| Debt - Long Term | DSP-BR Govt. Sec. (G) | 23-Sep-99 | 5,000 |
| Debt - Long Term | JM G-Sec Fund (RP) (G) | 29-Sep-99 | 5,000 |
| Debt - Long Term | Birla SL Gilt Plus-Regular (G) | 11-Oct-99 | 5,000 |
| Debt - Long Term | Birla SL Gilt Plus-PF Plan (G) | 11-Oct-99 | 5,000 |
| Debt - Long Term | Birla Sun Life GSec - LTF (G) | 28-Oct-99 | 25,000 |
| Debt - Long Term | LIC MF Govt. Sec. Fund (G) | 29-Nov-99 | 10,000 |
| Debt - Long Term | Can Robeco Gilt PGS (G) | 14-Jan-00 | 10,000 |
| Debt - Long Term | L & T Gilt - Inv Plan (G) | 29-Mar-00 | 10,000 |
| Debt - Long Term | IDFC SSIF - RP A (G) | 7-Jul-00 | 5,000 |
| Debt - Long Term | HDFC Income Fund (G) | 11-Sep-00 | 5,000 |
| Debt - Long Term | Reliance Medium Term Fund (G) | 18-Sep-00 | 5,000 |
| Debt - Long Term | IDFC SSIF - STP Plan A (G) | 13-Dec-00 | 5,000 |
| Debt - Long Term | SBI Magnum Gilt - LTP (G) | 1-Jan-01 | 25,000 |
| Debt - Long Term | Escorts Gilt Fund (G) | 21-Mar-01 | 1,000 |
| Debt - Long Term | HDFC Gilt Fund - STP (G) | 25-Jul-01 | 5,000 |
| Debt - Long Term | HDFC Gilt Fund- LTP (G) | 25-Jul-01 | 5,000 |
| Debt - Long Term | Taurus Short Term Income (G) | 18-Aug-01 | 5,000 |
| Debt - Long Term | Taurus Gilt Fund (G) | 18-Aug-01 | 5,000 |
| Debt - Long Term | Principal GSec- Inv. Plan (G) | 23-Aug-01 | 5,000 |
| Debt - Long Term | Templeton (I) G-Sec - LTP (G) | 24-Dec-01 | 10,000 |
| Debt - Long Term | UTI Gilt Advantage - LTP (G) | 28-Jan-02 | 5,000 |
| Debt - Long Term | Templeton (I) ST Income (G) | 31-Jan-02 | 5,000 |
| Debt - Long Term | Sahara Gilt Fund (G) | 6-Feb-02 | 5,000 |
| Debt - Long Term | Baroda Pioneer Gilt Fund (G) | 14-Feb-02 | 2,000 |
| Debt - Long Term | ICICI Pru Long Term Plan-RP (G) | 26-Mar-02 | 5,000 |
| Debt - Long Term | ICICI Pru Flexi Inc -Prem (G) | 21-Sep-02 | 5,000 |
| Debt - Long Term | HSBC Income Fund - IP (G) | 3-Dec-02 | 10,000 |
| Debt - Long Term | Franklin (I) International | 20-Dec-02 | 100,000 |
| Debt - Long Term | DWS Short Maturity - RP (G) | 21-Jan-03 | 5,000 |
| Debt - Long Term | DWS Premier Bond - RP (G) | 21-Jan-03 | 5,000 |
| Debt - Long Term | Birla SL Short Term Opp-RP (G) | 9-May-03 | 25,000 |
| Debt - Long Term | Tata Gilt High Fund (G) | 10-Jul-03 | 10,000 |
| Debt - Long Term | UTI-Gilt Adv -LTP PF(PDAR) (G) | 26-Sep-03 | 5,000 |
| Debt - Long Term | UTI Gilt Advantage-LTP PF(G) | 26-Sep-03 | 5,000 |
| Debt - Long Term | Tata Gilt RP (28/02/13) (G) | 29-Sep-03 | 50,000 |
| Debt - Long Term | Tata Gilt RP (28/02/25) (G) | 29-Sep-03 | 50,000 |
| Debt - Long Term | Tata Gilt RP (28/02/11) (G) | 29-Sep-03 | 50,000 |
| Debt - Long Term | Tata Gilt RP (28/02/10) (G) | 29-Sep-03 | 50,000 |
| Debt - Long Term | SBI Magnum Income Plus-SP (G) | 22-Oct-03 | 25,000 |
| Debt - Long Term | Kotak Gilt-Inv PF & Trust (G) | 11-Nov-03 | 5,000 |
| Debt - Long Term | ICICI Pru Gilt Inv Plan - PF | 14-Nov-03 | 25,000 |
| Debt - Long Term | SBI Magnum Gilt LTP - PF (G) | 28-Nov-03 | 25,000 |
| Debt - Long Term | SBI Magnum Gilt LTP-PF 1Yr (G) | 28-Nov-03 | 25,000 |
| Debt - Long Term | SBI Magnum Gilt LTP-PF 2Yr (G) | 28-Nov-03 | 25,000 |
| Debt - Long Term | SBI Magnum Gilt LTP-PF 3Yr (G) | 28-Nov-03 | 25,000 |
| Debt - Long Term | LIC MF Govt. Sec Fund-PF (G) | 24-Dec-03 | 25,000 |
| Debt - Long Term | SBI Dynamic Bond Fund (G) | 13-Jan-04 | 5,000 |
| Debt - Long Term | ICICI Pru Gilt (TP) PF | 31-Jan-04 | 25,000 |
| Debt - Long Term | IDFC GSec - PF- RP A (G) | 17-Mar-04 | 5,000 |
| Debt - Long Term | ING Gilt-PF Dynamic (G) | 31-Mar-04 | 30,000 |
| Debt - Long Term | Templeton (I) Govt Sec- PF (G) | 7-May-04 | 25,000 |
| Debt - Long Term | Birla SL Dynamic Bond -RP (G) | 24-Sep-04 | 5,000 |
| Debt - Short Term | L & T Triple Ace (G) | 31-Mar-97 | 2,000 |
| Debt - Short Term | DSP-BR Bond Fund - Retail (G) | 7-Apr-97 | 5,000 |
| Debt - Short Term | Tata Income Fund (App.) | 26-Apr-97 | 5,000 |
| Debt - Short Term | L & T Freedom Inc -STF -G | 27-Nov-97 | 3,000 |
| Debt - Short Term | Kotak Gilt Savings Plan (G) | 5-Jan-99 | 5,000 |
| Debt - Short Term | ING Income Fund (G) | 7-May-99 | 5,000 |
| Debt - Short Term | DSP-BR Treasury Bill Fund (G) | 23-Sep-99 | 5,000 |
| Debt - Short Term | Birla SL Gilt Plus-Liquid (G) | 11-Oct-99 | 5,000 |
| Debt - Short Term | Birla SL G-Sec - STF RP (G) | 28-Oct-99 | 25,000 |
| Debt - Short Term | Kotak Bond (Regular) (G) | 29-Nov-99 | 500,000 |
| Debt - Short Term | Kotak Bond (Deposit) (G) | 29-Nov-99 | 5,000 |
| Debt - Short Term | Principal Income Fund (G) | 25-Oct-00 | 5,000 |
| Debt - Short Term | SBI Magnum Gilt - STP (G) | 1-Jan-01 | 25,000 |
| Debt - Short Term | ICICI Pru Short Term Plan (G) | 19-Oct-01 | 5,000 |
| Debt - Short Term | Birla SL Saving Fund - RP (G) | 22-Nov-01 | 5,000 |
| Debt - Short Term | HDFC High Interest - STP (G) | 6-Feb-02 | 5,000 |
| Debt - Short Term | Sahara Income Fund (G) | 6-Feb-02 | 3,000 |
| Debt - Short Term | Templeton (I) Govt Sec -TP (G) | 11-Feb-02 | 5,000 |
| Debt - Short Term | Baroda Pioneer Income (G) | 14-Feb-02 | 2,000 |
| Debt - Short Term | IDFC GSec -Inv Plan -RP A (G) | 21-Feb-02 | 5,000 |
| Debt - Short Term | IDFC GSec - STP -RP A (G) | 21-Feb-02 | 5,000 |
| Debt - Short Term | HDFC Short Term Plan (G) | 28-Feb-02 | 5,000 |
| Debt - Short Term | Birla SL Short Term - RP (G) | 18-Apr-02 | 5,000 |
| Debt - Short Term | Kotak Bond-Short Term Plan (G) | 22-Apr-02 | 5,000 |
| Debt - Short Term | Principal Income Fund-STP (G) | 25-Apr-02 | 5,000 |
| Debt - Short Term | JM Short Term Plan (G) | 24-Jun-02 | 5,000 |
| Debt - Short Term | IDFC Dynamic Bond -RP A (G) | 26-Jun-02 | 5,000 |
| Debt - Short Term | Tata Short Term Bond Fund (G) | 8-Aug-02 | 10,000 |
| Debt - Short Term | ING Short Term Income (G) | 16-Aug-02 | 5,000 |
| Debt - Short Term | DSP-BR Short Term Fund (G) | 4-Sep-02 | 5,000 |
| Debt - Short Term | Can Robeco Income (G) | 7-Sep-02 | 5,000 |
| Debt - Short Term | Tata Income Plus - Plan B (G) | 21-Nov-02 | 100,000 |
| Debt - Short Term | Tata Income Plus - Plan A (G) | 21-Nov-02 | 5,000 |
| Debt - Short Term | HSBC Income Fund - STP (G) | 3-Dec-02 | 100,000 |
| Debt - Short Term | Reliance Short Term Fund (G) | 17-Dec-02 | 50,000 |
| Debt - Short Term | Tata Gilt Sec - SMF (G) | 10-Jan-03 | 10,000 |
| Debt - Short Term | DWS Insta Cash Plan (G) | 21-Jan-03 | 100,000 |
| Debt - Short Term | IDFC MMF - TP - RP A (G) | 19-Feb-03 | 5,000 |
| Debt - Short Term | LIC MF Savings Plus Fund (G) | 4-Jun-03 | 5,000 |
| Debt - Short Term | UTI Short Term Income - RP (G) | 24-Jun-03 | 30,000 |
| Debt - Short Term | IDFC SSIF -MTP - RP A (G) | 27-Jun-03 | 5,000 |
| Debt - Short Term | Tata Dynamic Bond- Plan A(G) | 2-Sep-03 | 5,000 |
| Debt - Short Term | Tata Dynamic Bond- Plan B(G) | 2-Sep-03 | 100,000 |
| Debt - Short Term | Can Robeco Treasury Adv-RP (G) | 12-Sep-03 | 5,000 |
| Debt - Short Term | DWS Ultra STF - RP (G) | 20-Oct-03 | 5,000 |
| Debt - Short Term | HSBC Gilt Fund - STP (G) | 2-Dec-03 | 5,000 |
| Debt - Short Term | UTI G-Sec Fund - STP (G) | 9-Dec-03 | 1,000 |
| Debt - Short Term | SBI Magnum NRI - STB Plan (G) | 13-Jan-04 | 50,000 |
| Debt - Short Term | Fortis Flexi Debt Fund-RP (G) | 3-Sep-04 | 5,000 |
| Debt - Short Term | Fortis Short Term Income -RP (G) | 3-Sep-04 | 100,000 |
| Debt - Short Term | Reliance NRI Income Fund (G) | 1-Nov-04 | 50,000 |
| Debt - Short Term | Kotak Flexi Debt (G) | 30-Nov-04 | 5,000 |
| Debt - Short Term | Sundaram Flexi Inc-STP-RP (G) | 24-Dec-04 | 5,000 |
| Debt - Short Term | Sundaram Flexible Inc -RP (G) | 24-Dec-04 | 5,000 |
0 comments:
Post a Comment