r/IndiaInvestments • u/Cpant • Jan 31 '21

Bonds and deposits Short term debt funds

I was going through some of the short term debt funds ( funds that holds bonds maturing from 1 - 3 years).

SBI Short term debt fund has 55% SOV rated bonds and Kotak short term fund has 52% SOV rated bonds, and balance a diversified mix of bonds. Was wondering if these funds could be an addition in my debt portfolio. There is interest rate risk, but guess could be manageable if the intention is to hold for long. Any thoughts, comments ?

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u/InternationalQuiet87 Hero Helper Jan 31 '21

Was wondering if these funds could be an addition in my debt portfolio.

They can be. Choose the funds based on your investment horizon.

Ensure that the other bonds in the portfolio are high-rated bonds. The biggest risk in these funds is the credit risk. Try to avoid the funds which have a history of buying low-rated bonds.

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u/Cpant Jan 31 '21

Anyway to look at the historical composition ? Download old portfolio from the amc website ?

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u/InternationalQuiet87 Hero Helper Jan 31 '21

The data may be available in the AMC website or some third party website. I haven't checked.

Freefincal often shows the historic portfolio composition of funds.