Sunday, March 22, 2009

SAFE DEBT FUNDS FOR AN NRI


Mr.Tyagi wrote :
HI, Mr.Srikanth,



First of all I cannot fin dout any space in your blog where I can ask questions. Can u educate me where am I suppose totype in my question?



My actual question is I'm a NRI and woul dlike to park my money in safe Debt funds. Can you suggest some safe Debt funds that I can invest in? Also let me know is it safer to invest in Long term debt funds or short term debt funds?



REgards

Thyagi

SRIKANTH SHANKAR MATRUBAI replied:

Mr.Tyagi,
I am not a Technical Person, hence there is no provision to type your question in my blog. My email is the only solution.
Your idea of investing in Debt Funds is very good considering the State of Equity Markets today. And moreover, Indian Debt Securities offer Higher Interest Rates compared to Developed Markets making the Debt Funds an attractive Option.
While investing in Debt funds, please note that the Currency Rate Fluctuations could also affect your returns. Another Caveat is that Debt Funds are not risk-free like Bank Fixed Deposits. However, an Appreciating Rupee would obviously work in your favour.
Considering the Falling Interest Rates, you would be better off investing in Long Term Debt Funds rather than Short Term as these would not yield much.
My Top Picks would be
ICICI Prudential Income Opportunities Fund
Birla Sunlife Income Plus
Canara Robecco Income(Growth) Fund

and my all time Favourite
HDFC Income Plan

You could also consider investing in TATA Capital NCD which is giving Attractive Rate of 12%. You can see more details about the same in my blog http://goodfundadvisor.blogspot.com
Best of luck,
Srikanth shankar Matrubai

Also visit http://equityadvise.blogspot.com for an indepth Equity Analysis

1 comment:

  1. Hi

    I"m a NRI and would like to invest in safe debt funds, NRE FD' are giving poor rate of returns.

    ReplyDelete

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