When can I withdraw from debt fund?

About 9-12 months before your due date when you need the money, you can start moving out a fixed amount from your fund to a stable debt fund. This transfer or partial withdrawal needs to be done in monthly installments and not in one shot.

Can we redeem debt funds anytime?

You can redeem your mutual funds through online or offline methods. The redemption can be done on any business day through a convenient method. Mutual fund redemption should be done in a smart way to ensure that you get good returns. One should take note that the prices of mutual fund units are fixed only once a day.

Can debt fund lose money?

Long-term debt funds may give negative returns when interest rates are rising. Short-term debt funds offer a lower return when interest rates fall. Credit risk funds invest your money in bonds of a lower rating. You may lose money if the bond-issuer defaults on principal and interest repayments.

What are fund closings?

Initial (Fund) Closing Date means the date on which a Fund first accepts Capital Commitments from Investors, typically after the Fund manager has raised the minimum amount of capital needed to execute the Fund’s investment program.

Do debt funds have a lock-in period?

Debt funds are very liquid, and can be redeemed easily, usually within one or two working days of placing the redemption request. Unlike bank fixed deposits or recurring deposits, there is no lock-in period.

What is credit risk debt fund?

13 results. Credit risk funds are debt funds that lend at least 65\% of their money to not-so-highly rated companies. The borrowers pay higher interest charges as a way to compensate for their lower credit rating, which translates into a higher risk for the lender due to an increased possibility of default.

What is a soft closed fund?

A soft-closed fund is a fund that has been temporarily closed for new investments by the fund manager. The length of time the fund remains closed is also determined by the fund manager and not by Bestinvest. You are usually able to sell your holdings a fund during a soft closure.