Long Term Debt Funds ensures income for longer period to the investors
Debt mutual funds have been introduced with a view of providing secured investment options to the investors. Debt funds are the funds which invest in various bonds and securities of corporate as well as government agencies. The Debt mutual funds are further sub-divided into two categories namely, long term debt mutual funds and short term debt funds. We would in this section discuss long term debt funds.
The long term debt mutual funds are a type of debt funds in which investment is made with a long term perspective ranging from 3-5 years. The long term debt funds are known to provide a regular income to the investors over an extended period of time as compared to short term debt funds. The long term debt funds invest in money market instruments like Treasury bills, CDs (Certificates of Deposits), etc. for a period which is greater than one year. Thus, the investors intending to invest in secured schemes for a longer period should invest in for best long term Debt funds in India. The online debt mutual funds schemes facilitates the investors to have secured investment and at the same time enjoy the income for a prolonged period. The rate of interest changes according to the market fluctuations.
Who Should Invest in Long Term Debt Mutual Funds?
As of now, you must have understood why investing online in the debt long term fund schemes is beneficial for you. Now, it is a must to evaluate whether it suits your requirements or not. If you have the desire of attaining financial stability in the long run without bearing high risk on your capital, then the debt mutual funds are highly suitable. The long term debt funds investments provide the benefit of gaining regular income in the form of interest from different long term debt instruments in the market. Although there are various risk factors involved in these schemes, one easily gains higher returns due to the longer investment tenure. You can associate your financial stability goals with the long term debt funds to successfully attain them.
Long Term Debt Mutual Funds Have Following Features
The underlying points describe the Debt long term mutual Funds more significantly:
- Long term prospects: As the name suggests the long term Debt Funds aim for providing credit facilities to the corporate players and the government. Debt long term Funds are beneficial from the viewpoint of both organization and investors. From the investors side, the long term Debt Funds provide secure investments and steady fixed returns over a long period of time. Online Long term debt funds scheme attracts those clients who have a long term perspective of investment and cherish security factor as their top priority.
- Reduced risk-factor: As the investment through long term Debt Funds is made in the money market instruments your investment is safe. Even with the fluctuating rate of interest, the long term Debt mutual funds are the most secure form of investment. The investment is not made in equity, and so the chances of getting affected by market shocks are negligible. Thus, the client can be relieved from the tautness of the sudden fluctuations.
- Liquid in nature: The long term Debt Funds become liquid funds after the period of one year. This means you can withdraw the money invested after the stipulated time of one year. Though, one year is not a lock -in period because these are debt mutual funds. If you withdraw your money before one year you will not be able to get the estimated returns on the funds. But the Debt long term Funds are as good as cash in hand and can be converted into cash in hand as and when required.
- Tax-efficient: In comparison to the other investing strategies like FDs, RDs, etc. the long term debt funds proves to be more tax-efficient. For example, the interest you get on the bank savings is levied as per your Income Tax slab. But, the capital-gains (redemption of long term Debt ) after one year is 10% without indexation and 20% with indexation which is much lower than what you have to pay for the interest on bank savings.
Keeping in mind the above-mentioned points and also consulting our expert team you can enjoy the investment in Debt long term funds either through SIP or lumpsum depending on your investment strategies. The top performing funds only are included in our list. Our R&D team toils in rigorous efforts to maintain the efficiency and effectiveness of the site and helps you to engage money in long term debt funds online investment.
