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69. '' Mutual Fund manager may invest in any instrument raging from equities to debt to money market instruments .Generally , they prefer to invest in equities .'' In this context explain the instruments available under debt in India.
Each Mutual Fund scheme has a defined investment objectives and strategy. Mutual Fund managers may invest in any instrument raging from equities to debt to money market instrument , Generally , they prefer to invest in equities . Equity Mutual Funds are one of the avenues if an investor is looking for any real return on his investment , that is returns that are reasonably higer than the current rate of inflation .In the short-term ,investing in equities has broader tensions impacting on the direction of the markets . But the investors should not be immobilized beacuse of such fears -once this uncertainity gets over the markets look set to witness a sustainable rally in the long - term . The reasons for the optimism are simple : both valuations and fundamentals look attractive .In fact , the investor should use these dips in the market to buy equities or better still , a diversified equity fund with a good track record .If the investor has invested for the long -term in equities , there is nothing to worry about .Moreover, at current levels , the market offers many buying opportunities and any investment made at these levels should offer good growth potential . Overcoming fear is the key to sucessful investing . In uncertain times like this , the investors should remember that the resilience of stock markets has been proven time and again and markets have inevitably bounced back after each such event.
Ans: The Indian debt market can broadly be divided into two categories -the government securities market or the G-Sec markets consisting of Central Government and State Government securities , and bond market cosisting of Financial Institution (FI) bonds , PSU (Public Sector Units) bonds, and corporate bonds/debentures . The government securities segment is the most dominant category in the debt market.