BQ Big Decisions: Do Your Investments In Debt Funds Lack Strategy? Here’s A Fix

BQ Big Decisions: Do Your Investments In Debt Funds Lack Strategy? Here’s A Fix

BloombergQuint’s Big Decisions podcast gets you the insights you need to make big money decisions with confidence.

Hard as it is to remember life before the Covid-19 lockdown, try to picture yourself returning home from work at peak hour. You have three options — the public train, a cab and your boss’s brand new sports car, which he is willing to lend to you for a day.

If you’re familiar with the commute home, chances are you’ll instinctively know the best and worst options out of the three. Borrowing your boss’s convertible would seem like a horrible idea if you know there is going to be bumper to bumper traffic. What if you scratch the paint, or worse?

If you’re looking for comfort, a cab would seem like the better option. There are, of course chances that you’ll get home faster than you initially thought if the traffic is not too bad. And finally, the train is the great option if you don’t mind the crowd and you want to complete the journey in a set time.

Choosing between investments in debt securities is somewhat similar, but you’re often trying to do it without the instinct. The key, then, is to understand the risks involved in each investment option.

On this episode of BQ Big Decisions, BloombergQuint spoke with Swarup Mohanty, chief executive officer at Mirae Asset Investment Managers, about how to invest in debt mutual fund schemes, why they should be considered long-term investments and why an SIP is the best approach.

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