How to choose a Best Debt Mutual Fund?

How to choose a Best Debt Mutual Fund?

1.  Ask yourself the following questions

Before deciding in which Debt mutual fund product to invest, it's important that you answer the following questions -

o    What is my investment objective.?

o    What is my investment horizon..?

o    How much risk am I willing to take..?

2.  Understand the Market Environment

Keep in mind that you must also consider various market factors like -

o    Would interest rates rise in the near term..?

o    How are the interest rates likely to move over the next few years?

As you may not be able to answer these questions yourself, you should seek advice from your distributor or keep yourself abreast with information available on the Market Reports section on http://www.icicipruamc.com.

3.  Assess you current Asset Allocation ..

It is also important for you to consider your overall asset allocation, the ratio of equity to debt in your complete investment portfolio, while deciding where to invest. Maintaining a good balance between equity and debt investments is essential to provide stability and the potential for growth in the long run.

4.  Identify the Type of fund that suits your needs ..

Depending on how you answer the questions above, you could seek assistance from your distributor to select an appropriate fund to match your needs.

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