PGIM India Debt Mutual Fund

Investment Objective

When it comes to PGIM India Debt Mutual Funds, investors focus mostly on generating short- to medium-term income. Since debt funds are invested in debt and money market instruments, the funds have different risk profiles and maturity durations depending on the instruments they invest in.

The fund invests in securities with maturity of up to one year, such as commercial papers, treasury bills, certificates of deposits, etc. This means the fund has a relatively low-interest rate and moderate credit risk.

Risks Involved in PGIM India Debt Mutual Fund

PGIM India Debt Mutual Fund Risk can be faired as low to moderately high relatively compared to equity funds. The fund value may go up or down as and when the price of underlying debt security changes. The price of debt securities might be affected by the level of interest rates, government policies, tax laws, and other economic developments. Some of the risks involved in PGIM India Debt Mutual Funds are credit, interest rate, and liquid risk.

Return Potential of PGIM India Debt Mutual Fund

The return potential of PGIM India Debt Mutual Fund depends on the type of fund, the credit rating and duration of the debt securities, and the market conditions. Historically, these funds have been known to deliver average returns of around 7%-10% over a period of say 5 years. However, there is no assurance or guarantee that the objectives of any scheme will be achieved.

Some of the funds and their returns are:

Who Should Invest in PGIM India Debt Mutual Fund?

PGIM India Debt Mutual Fund suits investors looking for stable income and high liquidity with low to moderately high market risk. Investors who want to diversify their portfolio across different asset classes and benefit from the interest rate movements can also invest in these funds. However, investors should be aware of the credit, interest rate, and liquidity risks involved in these funds and choose the fund that matches their risk appetite and time horizon. Investors should also consult their investment or tax advisors before investing in these funds.

Things To Consider Before Investing in PGIM India Debt Mutual Fund

Choosing the right investment scheme is essential for creating maximum returns. However, investors must consider factors or prerequisites that come into play in determining the right best PGIM India Debt Mutual Fund product. Here are some things to consider before investing in PGIM India Debt Mutual Fund.

• Your investment objective: You should clearly understand why you are investing in these funds and what you expect from them. You should also have a realistic expectation of the returns and risks involved in these funds.

• Your risk profile: You should assess your risk tolerance and capacity and choose the fund that suits your risk profile. You should also be comfortable with the volatility and fluctuations in the NAV of these funds.

• Your investment horizon: You should have a long-term perspective while investing in these funds and avoid frequent churning or switching. You should also align your investment horizon with the maturity duration of the fund to avoid interest rate risk.

• Your tax status: You should know the tax implications of investing in these funds and choose the fund that optimises your post-tax returns. You should also factor in the indexation benefit and capital gains tax applicable to these funds.

Tax on PGIM India Debt Mutual Fund

The tax on PGIM India Debt Mutual Fund depends on the type of fund and the holding period of the investment. Generally, debt funds are taxed as follows:

The current tax rate is the lower of (a) 10% of profit or (b) 20% of profit adjusted after indexation benefits. Indexation is a method of adjusting the investment's purchase price with inflation to reduce the taxable gain. Any cess/surcharge is not included.