In recent past, there were numerous cases of default of interest payments. This affected the value of many mf.
Is there any debt mf which invests ONLY in Govt security/ govt Treasury bills etc. And is it correct to assume that there will be NO default risk
May I know your investment objective and time-horizon?
If it is towards building your Emergency Fund, you may consider Quantum Liquid fund, which primarily invests in Govt Treasury bills and securities.
Let’s not assume 100% default risk, but it can be very rare in these kind of schemes.
The time frame is 5+ years. The objective is to have safety and tax efficient returns.
If I invest in debt mf thru SIP, I will be able to withdraw, if needed, thru SWP after 36 months in a tax efficient manner. ( I have already exhausted tax free limit of int on FDs) .
So, only requirement is of SAFE MFs without risk of default. Hence the query about MF investing ONLY in Govt security etc.