When should you dump mutual funds?

Consistent underperformance. Conventional wisdom says to dump a fund if it trails its peers over a stretch of three to four years.

Are debt funds good to invest now?

Khandelwal explained, in order to earn higher returns, these funds have taken a higher risk than required by investing in low quality papers. When investing in debt funds, the priority is not to earn high returns but to ensure safety, and may be a 1\% to 2\% more return as compared to FD or saving accounts.

Are debt funds good for long term?

In short, Drop in Interest Rate will benefit the Long Term Debt Funds the most as they invest in Government of India Bonds and Corporate Bonds of long term maturity. In last 6 months, the average maturity of almost all Long Term Debt Funds, Dynamic Bonds and Income Funds have increased considerably.

Are You Ready to rethink about investing in debt mutual funds?

Now, there is something you can do to ensure your peace of mind if you are ready to rethink about investing in debt mutual funds. Since you know now the so-called theoretical risks do not remain only in text books, it is time take the risks associated with debt mutual funds seriously. One, all debt mutual funds have some amount of risk in them.

Is it the right time to switch to short term debt mutual funds?

Thus I am of the opinion that it is the right time to switch to Short Term Debt Mutual Funds. They can potentially deliver double-digit returns like long term debt funds when the interest rates decreased. You can also check out a post on various types of mutual funds and how to start investing in them

How risky are debt mutual funds?

Since you know now the so-called theoretical risks do not remain only in text books, it is time take the risks associated with debt mutual funds seriously. One, all debt mutual funds have some amount of risk in them. Two, some debt mutual funds can be extremely risky.

Should you invest in debt funds with longer duration?

Only you are ready to take extra returns for extra returns, you should consider debt funds with longer duration. Again, stick to short and medium duration funds if you want to play relatively safer. Opt for longer duration funds only if you are investing for a long period and can afford to take more risk.