Debate on Debt MFs
Greetings from PenguWIN In this blog, I would like to compare and contrast Debt Mutual Funds and other traditional Fixed Income products. In my earlier note on decoding the jargons, I had briefly explained about Debt MFs which you might want to refresh before reading further. Like a commercial break, I would like to deviate a minute and mention about 2 of our new partners (more than 3 months old now) that we have tied...
Debt Mutual Funds
Debt Mutual Fund refers to the money pooled from investors in fixed income securities, which include Government Bonds, Corporate Bonds, Money market instruments, by the Mutual Funds. These instruments have different periods of maturity and different coupon rates (interest earned from investment). As an example, Liquid Funds are a category of Debt Mutual Funds which are suitable for parking money for short term (more like a savings bank A/c) like a month or 2. Like...
Term Deposit
A term deposit is a fixed-term or tenure or maturity period deposit held at a financial institution. Typical examples include 90 days, 6 Months and 1-year Fixed Deposit in a bank. There is usually a penalty attached to the deposit for premature withdrawal and also a differential interest rate for Senior Citizens PenguWIN attempts to decode Financial Jargons <Term Deposit>