On our facebook page, a friend of scripbox (Mr Pradeep Arora) asked us a question and got us thinking. "I like your humour and your concept in that order. I will take a test drive for sure. One thing i cannot figure out is that why cant you offer a comprehensive basket. I would have loved to see some equity oriented hybrid funds and debt funds also. Maybe they could have formed a different package. or maybe you could have given a age oriented allocation of the total corpus. One thing that i struggle with is to figure out how much should be allotted to which type of fund (I am 53 yrs)."
Page - 88 Personal Finance and Investment Blog
Debt Funds, with longer term duration, but predominantly investing in government bonds are down over 5% in the past couple of months. I have spoken with a few people who seem to have got into these funds with the assumption that their capital cannot depreciate if you invest in a government bond fund, and rather surprised to see a fall in value of the NAV over the past month.
Quite often we are asked, why should one invest in equities. The Indian economy is gloomy. Political instability tends to hog most pages of the news papers. The global economy is not supporting the news flow in any way. In this uncertain scenario, why should one take a Risk At all? Why not put all your money in a safe haven of ‘Debt’.