It depends on the rate of interest you pay on the debt and also the rate of returns the mutual fund is generating. Let us say you have a loan with a bank with a preferential rate of interest of 5% per year and your mutual fund is earning 15% or more per year - in that case I would not payoff my debt by selling the mutual fund. Whereas, if my loan is charged at around 12% per year and my mutual fund is growing at 15% per year, i would pay off the debt using the mutual fund and start a fresh investment plan. This way we would save a lot on the interest we pay from our pocket.
It gets invested in the stock market or in any investment class that the mutual fund is supposed to invest in. Ex: Debt Mutual funds invest in Debt instruments like bonds and Equity Diversified funds invest in Equity Shares etc
No, it's not a good idea. Your mutual funds should be earning you a good interest. Consolidate your credit card debt and take out a "Line of Credit" as the interest rate is much lower.
Yes they are. Bonds are debt obligations and hence the person who owes the debt is supposed to pay the money back and our money is much safer than what it is in a stock or mutual fund. Since stocks and mutual funds are related to the stock market they have an inherent risk wherein we can lose money if the market collapses.
mutual fund, ppf,f.d,equity,debt,commodity,
Debt mutual funds are like Equity mutual funds with one main difference. Equity mutual funds buy shares whereas Debt mutual funds buy bonds and other debt products. So the returns on investment would be similar to what a bank would give us.
Debt mutual funds are like Equity mutual funds with one main difference. Equity mutual funds buy shares whereas Debt mutual funds buy bonds and other debt products. So the returns on investment would be similar to what a bank would give us.
Mutual funds are usually used to save for retirement, so you're increasing your assets. Debt is used to fund liabilities, actually the exact opposite of investing. Mutual funds add to wealth, debt takes it away.
A Fund of Fund is a Mutual Fund where the fund manager does not buy individual debt instruments. Instead he buys mutual funds of a particular type. In this case, Debt Oriented Mutual Funds.Example:a. IDFC All Seasons Bondb. ICICI Prudential Advisor Series - Very Cautious Planc. etc
Type your answer here... 1.25%.
It depends on the rate of interest you pay on the debt and also the rate of returns the mutual fund is generating. Let us say you have a loan with a bank with a preferential rate of interest of 5% per year and your mutual fund is earning 15% or more per year - in that case I would not payoff my debt by selling the mutual fund. Whereas, if my loan is charged at around 12% per year and my mutual fund is growing at 15% per year, i would pay off the debt using the mutual fund and start a fresh investment plan. This way we would save a lot on the interest we pay from our pocket.
It gets invested in the stock market or in any investment class that the mutual fund is supposed to invest in. Ex: Debt Mutual funds invest in Debt instruments like bonds and Equity Diversified funds invest in Equity Shares etc
No, it's not a good idea. Your mutual funds should be earning you a good interest. Consolidate your credit card debt and take out a "Line of Credit" as the interest rate is much lower.
Yes they are. Bonds are debt obligations and hence the person who owes the debt is supposed to pay the money back and our money is much safer than what it is in a stock or mutual fund. Since stocks and mutual funds are related to the stock market they have an inherent risk wherein we can lose money if the market collapses.
mutual fund, ppf,f.d,equity,debt,commodity,
They make money by buying and selling the instruments they are designed to invest in. For ex: Equity MF's will invest in stocks, a Debt MF will invest in Bonds and other debt instruments
Washington Mutual cannot offer information about their savings and banking practices to the public. It filed for bankruptcy in 2008 after being stripped of subsidaries, but not its debt or assets. The Washington Mutual banks were sold and rebrande as Chase banks.