Investing in Debt Mutual Funds simplified by scripbox.com
Bangalore (Nov. 19, 2014): scripbox.com - the automated investment platform which helps investors manage their money the right way - announced the availability of a debt fund portfolio to meet short to medium term investing needs. This selection complements the existing scripbox portfolio of equity funds for long term investors.
Debt mutual funds have long been considered an alternative to FDs but with over 3400 debt funds across 6 categories, selection of the right funds becomes extremely challenging even for professional investors. To remove this confusion, scripbox has used a scientific rule based method to recommend a portfolio of 2 debt funds which meet the criteria of consistent performance and high safety of capital. With this launch, scripbox is offering Indian investors the most reliable selection of mutual funds to invest in using its easy to use online investment platform.
According to Sanjiv Singhal, CEO of scripbox.com, “Debt funds are a better option compared to fixed deposits. Debt funds offer higher post-tax returns and with the selection of the right funds, the credit risk involved can be made comparable with fixed deposits. Investors have really liked the simplicity of our current portfolio of equity funds and have repeatedly asked us for recommendations to invest their short to medium term money. Our rule based recommendations incorporate the best investment practices and we are confident the new debt fund portfolio would enable investors to invest wisely and quickly.”
When compared to fixed deposits, debt funds investments offer multiple benefits. First, where funds are held for more than 3 years, the tax outgo is reduced to almost zero due to indexation. Second, fixed deposits attract TDS on accrued interest which reduces the amount being compounded and hence the overall returns. This makes debt funds return higher even for periods less than 3 years. Third, no TDS on debt funds reduces the complexity of filing IT returns. In addition, investments in debt funds can also be easily withdrawn at any time, offering a daily liquidity in the event of emergency needs.
While most investors only compare returns, the scripbox method also assesses credit risk and volatility of returns. This aligns the selected portfolio with an investor’s objective of balancing reasonable fixed income returns with safety of capital. With its sharp focus on selection, the scripbox debt fund portfolio is a straightforward, smart and hassle free solution for investors to get better returns on their short to medium term (1-3 years) money.