MUMBAI: Before investing in a debt mutual fund, always check for three parameters. These parameters are available on monthly factsheets of mutual fund houses or third party data aggregators such as valueresearchonline.com. 1.Yield-to-maturity (YTM)The YTM of a debt mutual fund will tell you what kind of pre-tax return you can expect from the fund, provided certain assumptions are met. 2.Modified Duration (MD)The modified duration of a debt mutual fund is a measure of its sensitivity to interest rates. 3.Credit RatingThe portfolios of mutual funds are released every month and are available on the website of the fund houses.

Source: Mint May 26, 2021 09:22 UTC