PERSONAL FINANCE SPECIAL................... 5 types of debt funds you can invest in

5 types of debt funds you can invest in





Debt funds are not only tax-efficient but can also offer higher returns to investors. Sanket Dhanorkar lists five different types of debt funds in which you can invest, based on your goals and investment tenure.

1 Gilt funds 

These funds invest in all types of government debt, including bonds issued by the central bank on behalf of the Centre as well as those issued by the state governments. Since gilt funds invest in papers backed by the governments, they carry zero default risk. However, that does not mean they are safe from all aspects: Interest rate risks could be a concern. In fact, long-term gilt funds are the riskiest among debt funds, as they are most sensitive to interest rate changes.
WHO SHOULD INVEST Only those who are comfortable with a high degree of risk and looking for capital appreciation instead of protection should invest in a gilt fund.
Underlying bond prices will fluctuate wildly and will reflect in the fund's NAV.
TIME HORIZON Investors should ideally put money in a long-term gilt fund during a declining interest rate scenario with a time horizon of at least 18-24 months. You should invest in a short-term gilt fund for about one year. 

2 Short-term funds 

They invest in debt securities, such as commercial papers (CP), Certificate Of Deposits (CD) and bonds with a maturity of 3-6 months. They are not affected by changes in interest rates, so the returns profile is mostly consistent. But they tend to give slightly higher returns in comparison to liquid funds as they invest in slightly longer tenure papers.

WHO SHOULD INVEST Investors looking to park surplus money, but want to earn higher return than a liquid fund can invest in a short-term debt fund TIME HORIZON Short-term funds are best suited for an investment horizon of 6-12 months. 

3 Income funds 

These funds invest corpus across debt instruments, such as bonds, corporate debentures and government securities. They can also invest across a range of maturity profiles, i.e. they have the flexibility to invest in short-term instruments of upto 1-2 years as well as in long tenure papers of upto 15-20 years. These funds typically take aggressive calls based on the interest rate outlook to take advantage of the rate movements.
WHO SHOULD INVEST This type of fund works well for long-term investors, who have a high risk appetite since there is high interest rate risk associated with it. Invest in an income fund if you want to gain from both rising and falling interest rate scenarios.
TIME HORIZON Although income funds give the best returns in a falling interest rate scenario, one can invest across the entire rate cycle to earn good returns from them. 

4 Fixed maturity plans 

FMPs have a fixed tenure. They invest in papers with matching maturity. They are typically held till maturity and, therefore, takes away the interest rate risk. Even if interest rates move up, the fund NAV is not affected. FMPs offer returns that are relatively predictable, though not guaranteed. However, there is some reinvestment risk involved if interest rates prevailing at maturity are lower.
WHO SHOULD INVEST FMP is the answer for those looking to park their money for a fixed tenure during uncertain interest rate movements.
TIME HORIZON Opt for long-term FMPs, say, for 3-5 years, if you are looking at high yields. You may use shorter tenure FMPs in the 3-6 month horizon if you want to take advantage of a sharp spike in short-term rates. 

5 Liquid funds 

As the name suggests, these funds invest in highly liquid money market instruments, such as Treasury Bills, inter-bank call money market, Commercial Papers and Certificates of Deposit.
Returns on these funds are the most stable among debt funds. These provide easy liquidity and can even be used as a substitute for a savings bank account if you plan to park your surplus amount.
WHO SHOULD INVEST Liquid funds are ideal for investors who have a lot of money lying idle in the savings account and are interested in earning better returns compared to what banks offer.
TIME HORIZON Ideally, liquid funds should be used for very short investment time frame, say, as low as just a few days to a couple of months. Do not invest for a longer period as these offer low single-digit returns at best.

ETW140623

WOMAN SPECIAL............ Him and Her - Why Beta men are winning the game of love

Him and Her - Why Beta men are winning the game of love





The rules of romance have changed. Machismo isn't winning women in a world that's steadily seeing the rise of the female alpha. As women keep climbing the corporate ladder by displayng their tough, competitive side; at home, they are increasingly looking to find partners who can lend emotional support. The alpha men, used to their all-male ag gression are finding it difficult to woo this new powerful woman with a mind of her own. And the beta men, who had been left behind in the game of romance for long, are now the favourites.

Lawyer Pinky Anand says, “Women, these days, look at their husband for emotional support.
Most alpha men would be too self centred to care for their wives. They would be flexing muscles at home, but an alpha woman-beta man part nership would be about mutual emo tional respect rather than control.“

In her recent book, The Alpha Woman Meets Her Match: How Today's Strong Women Can Find Love and Happiness Without Settling, Dr Sonya Rhodes, leading relationship therapist, says, “My clinical experience has shown me that alpha woman-alpha man partnership is at the greatest risk for divorce as two alphas compete for power and dominance. However, beta guys do not mind following or let a strong woman get to their ego.“ Dr Rhodes further explains in her book how the definition of beta men has also changed over the past decade. “The beta man is no longer the guy assumed to be gay if he likes yoga, dresses well, or is a ve gan. His ego doesn't depend on scoring macho points. He is dependable, respon sible and supportive. The old hierarchy of alpha and beta, in which the highest-rank ing alpha males run the show, isn't opera tive anymore.“ Even alpha men with great negotiating power and people manage ment skills fail when it comes to balanc ing power at home. And alpha women aren't ready to appease him anymore.

Documentary filmmaker Yasmin Kid wai asks if an ideal alpha couple really exists. “They are not a reality. Alpha women should look past the competitive male to find a man who's in touch with his inner beta qualities. He should be communicative, responsible and thoughtful ­ a man who complements her qualities,“ she says.

Management consultant and motiva tional speaker Jeroninio Almeida ex plains why beta men are stealing the show. “Beta men admire strong women.

These men aren't threatened to let the women shine. We are witnessing the rise of new ideals in masculinity.“

Theatre actor Bubbles Sabharwal ex plaining about the socio-cultural change, says, “The whole social environment has changed. In one of my plays, Women in Black, the alpha woman goes for a quieter beta man, whose sensitivity attracts her to him. A man who is supportive, makes her laugh, isn't threatened by her position of power outside home, is far more appealing to today's woman. Masculinity is being redefined every day.“

The quiet, intense beta man is the new macho for the modern woman. This man is sexy because his sense of identity and success is not dependent on the level of success achieved by his wife.

Dr Nisha Khanna, relationship and marriage counsellor, explains why beta men have marched ahead in the last decade. “Most successful women have a close group of friends. They aren't extroverts and are mostly known to be aloof, intimidating, even intriguing. Beta men, with their quiet charm, woo them faster and with a much larger chance of success than alphas. Power couples don't work in the long run anymore.“

Ad guru Prahlad Kakkar adds, “Most alpha men take pride in hunting. Hence, the alpha woman prefers the beta man.
She's more secure with him. Wolves are a perfect alpha couple, the she wolf doesn't feel the need to possess the he wolf.
They understand their roles perfectly. Humans haven't evolved to that level.“

nona.walia@timesgroup.com { While alpha men were busy marking their territories and demonstrating their machismo, the betas played it cool and marched forward to win hearts of women. Here's how the love game changed in the last decade... THREE ESSENTIALS OF AN ALPHA-BETA PARTNERSHIP In relationships, alpha women need to recognise that they can be overpowering, and often wear their partners out. This happens because alpha women often bring in their office `bossiness' back home. Even if with a beta man, the alpha woman must learn that the home space isn't about one-upmanship.

At the same time, the beta guy needs to be proactive and meet the alpha woman halfway in tackling issues head on. Couples should create a caring atmosphere where it is safe to raise concerns, be receptive, practise listening skills, monitor the tone of a conversation, and avoid sarcasm and snide remarks at any cost.

We live in an economy that requires two paychecks. One person's career may take off faster. Marriage is an economic and emotional partnership. Men need to value the contributions that their wives make.

-Inputs by Dr Sonya Rhodes

TL140622

GADGET GIZMO SPECIAL................. For the business user - 7 best features on - AMAZON'S NEW SMARTPHONE

For the business user - 7 best features on - AMAZON'S NEW SMARTPHONE





While Amazon has introduced a lot of cool gadgetry for consumers with its new Fire smartphone, which was launched June 18, it has a surprisingly robust list of features for work, including some things that will make enterprising professionals in the corporate sector happy.

1 Microsoft Outlook email, calendar, contacts.

The Fire can link to a corporate Microsoft Excha nge emai l system usi ng Microsoft's ActiveSync tool. Not only will that sync your data, but it also makes sure the phone meets corporate security policies.

2 View Microsoft Of f ice Files.
The phone includes an OfficeSuite Viewer app so you can look at files like spreadsheets or PowerPoints, right on Amazon Fire.

3 Encryption.

Fire can be set up to encrypt the data on the phone so that if it gets lost, hacked or stolen, no one can read your files.

4 Support for enterprise securi ty software known as Mobile Device Management.

With mobile device management (MDM), it can locate phones, remotely wipe them, add corporate apps and enforce security policies, such as passwords.

5 Files from the corporate net work.

Amazon promises that you can access your corporate network on your Fire phone via your user name and password.

6 Enterprise app store.

Amazon of fers something called “Whispercast“ as a tool businesses can use to manage the Fire phone, Kindle Fire tablet and other Kindle devices. They can use this to add and remove books, files, and apps like a private app store.

7 Apps.

 Most importantly, Amazon says it is working on getting busi ness apps into its app store. This

 includes  apps to take notes, scan documents and prepare invoices from your tablet. Free apps like Skype and GoToMeeting are available, too .

BUSINESSINSIDER.IN ETP140620

FOOD SPECIAL ....................DECODING DAHI

DECODING DAHI  With sundry varieties served to us on menus, here's a guide to which yoghurt is your best bet There's no comfort food like a plate of dahi-khichdi. Well, we've savoured the humble yoghurt (fermented milk product), with or without sugar, way before it evolved with various flavours and toppings into a healthy dessert and packaged-flavoured varieties. But how true are their claims? The practice of choosing a healthy yoghurt is all about reading the labels to check the nutrition facts (looking for added sugars and protein content) and the ingredient list (to avoid additives and sweeteners). Refined sugar will show up in most flavoured yoghurts, you might consider choosing a plain yoghurt and adding your own fruits or berries. Note: although common ingredients like pectin and guar gum are derived from plant sources, their presence is a sign of a poorer-quality product. Here's how to select the healthiest variety from the counter. WHOLE-MILK YOGURT  Recent studies are beginning to show less of an association between dietary fat intake and heart disease. In fact, in a recent study, researchers found that those who consumed high-fat milk, butter and cream were less likely to become obese over a period of 12 years compared to men who never or rarely ate high-fat dairy. Another study, found that in most of the studies, high-fat dairy was associated with a lower risk of obesity. A major health benefit of full-fat yoghurt is that it hardly contains the thickeners and additives that are used to achieve proper consistency and flavour in lowfat yoghurts. Whole-milk yoghurt is a convenient way to pack in a lot of nutrition. So, let the calories be. SOYA YOGHURT This takes the debate over the soya milk a step further. Soya yoghurt is made from cultured soya milk and does not contain any dairy. It is suita ble for people with lactose intolerance and those who follow a vegan diet. The same bacterial strains used to culture dairy based yoghurts ­ L acidophilus and S thermophilus -are used in soya-based ones. Their nutrient content is similar to that of dairy yoghurts, except that the saturated fat content of soya yoghurts is much lower than that of dahis made from whole milk. But health freaks going in for the soya variety, note: they tend to contain cornstarch. LACTOSE-FREE YOGHURT  Lactose-free yoghurt is essentially made of cow'smilk yoghurt that has been treated to break down the lactose, or milk sugar, that irritates people with lactose intolerance. Consuming lactose may cause lactose-intolerant people to experience gas, bloating and abdominal pain. Lactose-free yoghurt is good for them as it gives them access to a healthy source of calcium, protein and probiotics. The nutrition profile of lactose-free yoghurt is similar to that of regular varieties, although they often come in a variety of flavours, including plain vanilla, and strawberry, which contain sugar, gums and artificial flavours. FLAVOURED YOGHURT This one's a nutritional disaster. Most of the flavour in these yoghurts come from added sugar and sweeteners; not to mention, colour and artificial fruit. Although fruited or flavoured yoghurts are often low in fat, consumers may inadvertently end up consuming the same amount of calories as they would with the full-fat ones. If you like flavoured yoghurts, look for brands that have ingredients like just milk, sugar or other naturally occurring sweeteners, and active cultures. Stay away from anything that contains high-fructose corn syrup. Those looking for a natural feed, steer clear. LOW-FAT YOGHURTS Low or nonfat yoghurt contains a healthy dose of potassium, which can help lower blood pressure by countering the effects of sodium. Dietary potassium is linked to a reduced risk of developing kidney stones and decreased bone loss. The nutritional quality of yoghurt can be diminished if thickeners and sweeteners are added to replace the flavour and texture lost with the removed fat. When selecting a brand, look for something that contain live bacterial cultures. Reduced-fat versions may contain other portions of dairy products, including cream, buttermilk and milk, to achieve ideal textures.

MM140623