Thank you so much to both of you
@travi and
@TracerBullet for sharing this valuable information. This has been of great help.
So far, this seems to be case for the 4 Categories of Debt Funds, which have been shortlisted -
Overnight Fund - around 4.8 % past 1 year returns, expense ratio of around 0.1 %
Liquid Fund - around 5 % past 1 year returns, expense ratio of around 0.15 %
Money Market Fund - around 5 % past 1 year returns, expense ratio of around 0.22 %
Gilt Fund - around 6-7 % past 1 year returns,
Obviously the GILT Funds are giving the best returns over the past 1 year, as seen here -
https://www.etmoney.com/mutual-funds/debt/gilt/66
The problem is that I really do not understand the CYCLES that these Debt Funds go through, as what we are getting this year, we might not get in the next year, specially for the longer duration options of GILT and Money Market Funds. So I am taking so much of time before punching in the buy orders for the same. Otherwise it is so easy to just simply buy the Overnight Funds for the complete amount and pledge it and forget about it.
I have stayed invested into the " HDFC Liquid Fund - Direct Plan - Growth" for more then 3 years and 8 months now and it has given me a CARG of 4.5 % for the same. I invested 12,00,000 in April 2019 and its value has become Rs 14,16,928 as of 1 Jan 2023. I was expecting that it will give me 6 % atleast.
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