In a falling interest rate regime, how will the debt market perform? Which debt funds should I invest in to earn 9-10 per cent yearly returns?
Mutual funds (MFs) do not guarantee or assure any fixed returns. Our outlook for debt markets is positive for 2016. We expect the Reserve Bank of India to cut rates by 50-75 basis points in the next three to four quarters due to conducive macroeconomic factors, benign commodity prices and improvement in banks' asset quality. You can consider investing in credit accrual funds. Please consult a financial advisor for selecting an appropriate fund.
Should I redeem my investments in gold funds and invest the money in gold bonds instead?
The performance of gold funds depends on the yellow metal, which has not performed well in the recent past. Generally, investment in gold should not exceed five-10 per cent of your total investible surplus, excluding jewellery. Gold bond is a good strategy to invest.
I wish to continue with my father's MF investments after his death last year. Can I transfer it to my name?
Yes, provided you submit the necessary Know Your Customer documents to the asset management company. While it is a good decision to stay invested in MFs, your financial goals might be different from your father's. Consult a financial advisor and accordingly re-balance your portfolio.
, MD & CEO, ICICI Prudential Asset Management Company, answers your questions
The views expressed are expert's own. Send your queries to firstname.lastname@example.org