Important Points for IC 99 - Asset Management Exam
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Investment in Debt securities or bonds should be subject to credit rating, which helps the investors to assess the credit worthiness and the ability of the issuer of the securities / bonds to pay back their debt or borrowings in the stipulated time period. These ratings are issued by independent rating agencies such as CARE, CRISIL, FITCH, Brickwork and ICRA.
Some of the benefits of investing in debt mutual funds include : i) Less volatility, ii) More stability, iii) Freedom to withdraw money as and when required, iv) Better post tax returns.
These funds increase the portfolio maturity in a falling rising interest rate environment.
An advantage of mutual funds includes low cost management.
Less volatility is a benefit of investing in debt mutual funds.
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