alexa
Indianmoney.com Missed Call Number
 
Home Education Risks of investing in MF schemes: #2 Interest rate risk

For more knowledge from around the globe get Indianmoney App Now

Google Play
 
Get the Best Financial Advice on Mutual FundsClick Here
 
Risks of investing in MF schemes: #2 Interest rate risk

Risks of investing in MF schemes: #2 Interest rate risk

Thursday, July 6, 2017, 6:06 PM

A debt MF scheme majorly invests in debt instruments such as bonds, debentures, government securities,etc. Therefore, upward or downward movement in interest-rates impact the prices of these debt instruments. So, if central bank reduces interest-rates, the bond prices move up, and vice-versa. When bond-prices move up, the NAV of the debt mutual fund goes up, and when bond-prices decline, the NAV too declines.
Read More

Learn to Save, Spend, Invest & Borrow Wisely with our Youtube Channel

Get It now!