wealth management for debt in india

Debt

Here at Karvy Private Wealth, we offer comprehensive solutions in the fixed income segment. We suggest debt investment options of various tenures and risk-reward profiles suitable to your portfolio.

Debt Mutual Funds

  • Gilt Funds: Gilt Funds invest in government securities of medium to long-term maturities. There is no risk of default and liquidity is considerably higher in case of government securities.
  • Income Funds: Income funds are total return products, which means, the return is made up of both interest income and capital appreciation or depreciation, depending upon profits or losses. The value of bond held in a long term portfolio, changes with changes in interest rates.
  • Monthly Income Plans: Monthly Income Plans are debt oriented hybrid funds which has around 70%-85% of the portfolio in debt and rest in equity
  • Liquid Funds: Liquid funds invest in safer short-term instruments such as Treasury Bills, Certificates of Deposit and Commercial Papers for a period of less than 91 days. The aim of Liquid Funds is to provide easy liquidity, preservation of capital and moderate income.
  • Fixed Maturity Plans: Fixed maturity plans (FMPs) are closed-end funds that invest in debt securities with maturities that match the term of the scheme. The debt securities are redeemed on maturity and paid to investors. FMPs are issued for various maturity periods ranging from 3 months to 5 years.

Bonds

  • PSU Bonds: These consist of medium or long term debt instruments issued by Public Sector Undertakings (PSUs). Most of the PSU Bonds are sold on Private Placement Basis at market determined interest rates.
  • Corporate Bond: We provide you investment opportunities into bonds issued by various corporations. These bonds are offered by corporate houses for a wide range of tenors but normally up to 15 years. These bonds are higher in risk as compared to government bonds. Corporate bond holders are compensated for this risk by receiving a higher yield than government bonds. Some bonds have an embedded call option that allows you to redeem before maturity date some carry a put-option and some allow you to convert the bond into equity.
  • Tax free bonds: These bonds are exempt from taxation on the interest income. These are usually issued by government-backed entities and hence have a lower risk of default.

Corporate Fixed Deposits

Corporate FD’s are those deposits placed by investors with companies for a fixed term carrying a prescribed rate of interest. These instruments yield higher interest rates than regular Bank FD’s. Corporate FD’s have different maturity periods along with varying interest payment options. The Corporate FDs carry a rating thus ensuring their financial health.

Real Estate Non Convertible Debentures (RE-NCD’s)

These are fixed tenure instruments issued by various types of real estate companies. Investors typically get a coupon of 11% to 12%. NCD’s can either be secured or unsecured. Secured Non-Convertible Debentures (NCDs) typically give a coupon ranging from 16% to 19% with either monthly/quarterly payouts. These instruments carry a security cover of 2 to 2.5 times the loan amount.

Mezzanine NCD’s

These are NCD’s raised in the form of debt for private companies which are not involved in the real estate business. Typically you can expect returns to vary in the range of 14 to 17%. They are secured by a security cover of 2 to 2.5 times the loan amount.

Portfolio Management Services (Debt)

Our Debt Portfolio Management Services (Debt PMS) are a platform that offers an opportunity to participate in a wide array of high-yielding debt securities that target regular income and capital appreciation. Here you directly own securities in your Demat account and get regular income along with your principal preservation.

More on Portfolio Management Services.

Karvy Private Wealth is a division of Karvy Stock Broking Limited having SEBI Registration No. NSE:INB/INF/INE 230770138; BSE:INB/INF 010770130/010770131; MSEI:INE 260770138; DP:IN-DP-175-2015; PMS Regn No.INP000001512
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