Debt funds publish the yield to maturity in their factsheets, which captures the returns that the bonds will generate if held until maturity
Mutual funds usually publish the yield to maturity or YTM for all debt funds in their factsheets. The YTM is based on the current marked-to-market price of the bond, not the yield at which the security was acquired. Basically, YTM captures the returns that the bond will generate if held from current date until maturity, after factoring in all the interest received in this period. The other number that is disclosed by Mutual fund houses is the average maturity of the portfolio. This tells you the number of years to maturity for debt securities in a fund portfolio. It helps decide the NAV sensitivity to interest rate changes. Longer the average maturity, higher the NAV swings due to rate changes.
You can find the numbers on the snapshot page of the fund on our website. Here is a link for one of the funds Birla Sun Life Short Term Fund
Yes, using a combination of YTM and duration can help you gauge the return potential of a fund's portfolio as well as the kind of rate risk you may bear. But it is important too, to look at the fund's track record and expense ratio to make the choice.
1.ICICI Prudential Tax Plan
2.Reliance Tax Saver (ELSS) Fund
3.HDFC TaxSaver
4.DSP BlackRock Tax Saver Fund
5.Religare Tax Plan
6.Franklin India TaxShield
7.Canara Robeco Equity Tax Saver
8.IDFC Tax Advantage (ELSS) Fund
9.Axis Tax Saver Fund
10.BNP Paribas Long Term Equity Fund
You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds
Invest in Tax Saver Mutual Funds Online -
For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call
---------------------------------------------
Leave your comment with mail ID and we will answer them
OR
You can write to us at
PrajnaCapital [at] Gmail [dot] Com
OR
Leave a missed Call on 94 8300 8300
---------------------------------------------
Invest Mutual Funds Online
Download Mutual Fund Application Forms from all AMCs
Posts
No comments:
Post a Comment