Sir
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
Anand
3 Answers
Dear Anand,
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.
SIR
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.
Regards
Anand
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