What Not To Look For When Investing In Debt Funds

We usually discuss what to look for while investing in an asset class (such as equity, debt, gold, etc.) or through an investment vehicle (for example, mutual funds or portfolio management services). However, what not to look for is also important, for your clarity. Here are some of the aspects that should not play a role in your investment decision. Returns, Particularly Immediate Past Returns You would be wondering, returns is what we invest for; so why ignore that. What needs to be appreciated here is that an investment in a vehicle, for example, a mutual fund, is not an investment ‘in’ the vehicle itself but ‘through’ the vehicle. Ultimately, it is the underlying market, with all the volatility and uncertainty, where your investments will reach. A market may be relatively more or less volatile. For instance, equity is more volatile than debt. The fund...