Interest Rate Sensitivity: Variations in interest rates can affect the performance of debt and money market funds, leading to fluctuations in returns. Inflation Risk: Short-term funds may not always keep pace with inflation, potentially reducing the actual value of your investment over time. ...
Return Potential and Taxation of Short Term Mutual Funds Depending on the assets that you have selected the best debt mutual funds for the short term will yield returns ranging from 7% to 8% as per your portfolio. he post-tax returns for short-term mutual funds are also attractive. In ter...
Short-term debt financing is a type of strategy that is focused on securing and allocating funds that can be used to manage...
Taxation remains similar to debt funds. Read more about debt funds here. 5. Recurring Deposits A recurring deposit is almost like a systematic investment plan for a fixed deposit. It offers investors the option to deposit a fixed amount each month and earn a fixed interest on it. However, ...
HDFC Short Term Debt Fund ₹14,976 Crs 11 yrs 11 m 0.4% View all Short Duration funds Key risk & return ratios Compared to other funds in the category Alpha 4.83 vs. 3.89 Higher outperformance against benchmark Sharpe 0.56 vs. 3.1 Poor risk-adjusted returns Beta 2.04 vs. 1.44 More sen...
As soon as a firm starts operating and furthermore, the moment it starts to grow, it needs to come to a decision about how to invest funds, how much cash and inventory to hold on to, how much financing to provide to customers, how to obtain the necessary funds, how much debt to tak...
Although a higher FMV may increase the capital gain on the home, the long-term capital gain tax is usually much less than the tax on ordinary income.Whenever a canceled debt involves real estate, the amount of COD and taxable income depends on several factors:whether the debt was a ...
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Things to remember when investing your money in a short term account or fund is accessibility, how much interest you will accumulate, the quality of service from the bank and any penalties you will accrue from the eventual withdrawal of the funds. Many options limit the amount of times you ...
Fairness in Taxation: Some argue that taxing short-term gains at higher rates promotes fairness in the tax system. Short-term traders who engage in frequent buying and selling of assets are more likely to realize gains within a year. Because these individuals have liquid access to more funds,...