Important debt fund jargon

[@abhishekagrawal1200]

🎯 Key Takeaways for quick navigation: 00:28 📊 *Macaulay Duration: Crucial in bond investments, it indicates how long to recover the invested amount.* 01:28 📉 *Modified Duration: Measures a bond's sensitivity to interest rate changes, with higher duration indicating greater sensitivity.* 03:18 📈 *Ultra Short Duration Fund: SEBI-defined fund with 3-6 month maturity instruments, suitable for 1-2 year investments with returns close to bank rates.* 04:16 ⚖️ *Credit Risk Fund: Mandated by SEBI to invest 65% in double A and below corporate bonds, maximizing returns by taking on higher credit risk.* 06:32 💰 *Debt Fund Objective: Use debt funds for capital preservation, not return chasing. Park excess funds for returns similar to bank rates; for higher returns, opt for equity funds.* Made with HARPA AI

[@abhinavseth2536]

the images in the pdf are not clear and hence, its difficult to see any number such as the numbers highlighted in UTI Money Market Fund etc.

[@anand4peace]

Like your videos, because it's crisp and also has enough info. Love the animation which complements, in turn makes us remember easily. Thanks 👍

[@sarthakdua7093]

1:33, bond prices and interest rates are directly proportional? Don't bond prices go down if interest rates go up and vice versa?

[@tanujatabassum5273]

Exactly my question too

[@LUXESTATEX]

@@tanujatabassum5273 if interest rates would go up then people would sell current bonds because they are getting higher interest rate bonds so current bond prices would go down and vice versa. so rates up then bonds down.

[@jishnu18]

They are talking about rate cutes. if rate cut happens then bond yield goes up and vice versa

[@Sandeesh_Srikantam]

Please think about making video versions of all versify modules !

[@varsitybyzerodha]

Hi Sundeesh, yep. We're working on this.

[@priyasubramanian89]

Thank you so much for the super informative content. However, I am having struggle reading the images in the pdf. Could you please upload clear images ?

[@RajkumarDumpala]

Make video plylist for taxition for all investmant in mutal fund and equity and FNO

[@DataDost]

Nice video ❤

[@GururajBN]

Why create a fund like Credit Risk Fund, if there is so much caveat about it?

[@SiddharthPrabhu1983]

Karthik, if bonds are expected to provide returns on par with bank deposits, is there any particular advantage in going with bonds? Is it just the liquidity aspect?

[@LUXESTATEX]

Interest on fixed deposits is subject to tax deduction at source (TDS). Every time your fixed deposit matures, and you renew, there is TDS deducted, and compounding is affected. With debt funds, there is no TDS. You only pay tax when you redeem the units and nothing in between.

[@Preity.B]

Could you please explain how bond prices and interest rates are directly proportional? Aren't they inversely proportional? Please correct me if I am wrong

[@Debjit625]

Yes they are inversely proportional ,I think it was just slip of tongue .

[@maheshodedra8609]

Hi Karthik, Thanks for a great video, as you mentioned we can park excess funds in Debt MF and expect FD returns in debt funds then why can't we park the money in FD directly where it's is fully protected? Your thoughts will be highly appreciated !!

[@jayaramans7398]

Zerodha I have same query. Can you clarity

[@LUXESTATEX]

Interest on fixed deposits is subject to tax deduction at source (TDS). Every time your fixed deposit matures, and you renew, there is TDS deducted, and compounding is affected. With debt funds, there is no TDS. You only pay tax when you redeem the units and nothing in between.@@jayaramans7398

[@LUXESTATEX]

Interest on fixed deposits is subject to tax deduction at source (TDS). Every time your fixed deposit matures, and you renew, there is TDS deducted, and compounding is affected. With debt funds, there is no TDS. You only pay tax when you redeem the units and nothing in between.

[@vikramk6869]

Could you please explain in an even simpler way? I am not able to understand anything properly.

[@rajeshgh9457]

Sir, one request, please make a video on building a trading system based on price action. So that we beginners after going thru technical analysis videos can build a trading system n can get going with actual trading. Initially even if we are not able to make profits atleast we can control our losses. 🙏💥💥💥

[@varsitybyzerodha]

Hi Rajesh, we'll look into the possibilities, thank you.