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Currently pursuing BBA and after next 2 month, we will go for the management training in some of the companies, where you have to select the topic and according to that topic you have to complete the training, so I select the Finance topic, and the core one is investment methods. Though I am in a preliminary stage so I have no knowledge about this topic, so I browse here and looking for the information about topic Debt Portfolio Management. Any information about this topic will be appreciated.
The Debt portfolio management is deals with the construction and management of portfolio in debt instruments. The primary object of this is for generating income with the different investment techniques. It consists of large number of equity share, the fund manager is plays here a very vital role, which is used for identify suitable stocks from a large number of equity shares. With this debt method the fund manager is look for the security for that in the whole universe. This is the part of mutual fund method which consists of short maturity period, generally up to one year. But some of the schemes are considered for a long term of time interval. Which is consists of “debt” mutual funds, depending on the maturity period of the scheme which is selected. Some other investment technique which is offering by the fund manager is “market-traded instruments” or the “debt securities”.
In the Indian market the debt portfolio management is acts like the debt fund which provide stable income stream to the investors. Hence a debt fund is works mainly in the field those are offering them a fixed rate of return money according to the scheme which is selected. The debt management in India is offers the instruments like the Certificate of Deposit, which is scheduled by the commercial banks, except the regional rural banks. They are using the negotiable promissory documents for this type of schemes. Ant the other instrument is known as Commercial Paper, it is used in the short term schemes. This instrument is mainly used in the unsecured instrument making corporate companies or banks, which is needed for the less term working capital. This can be issued by the individuals, banks, companies or other corporate bodies those are registered in India.
The debt portfolio management is generally used for the financial necessity of the company those are incorporating in India. The investment process in this investment method is termed as the long period. It is also plays role in the working capitals those are in-consistence. The proper management technique is very much required in portfolio management. I think there is no risk in debt management, and this is also not gives any burden to the investor. Only problem is that while you are investing for the scheme you have to give a large amount of money, but there is no tension to invest in the next time. This is the helpful for the individual investment for any scheme.
In the process of debt portfolio management, the simple idea is if any family or the individual is make any investment or take any loan from any bank or other reputed company those are offering these terms, he/she have to pay the amount in a certain period ,the time interval is assigned by the bank or the company. There are also some of the investment options offered by them to make the loan payment. And the payment are not taxable, means you need not pay any tax for that or any extra charge with the amount. Many of the companies are focuses on long term strategies for the debt portfolio management. People those are having the payment sin the mode like employed loans, mortgages or re-mortgages, the payment for the loans are possible to made with the help of debt portfolios in a efficient way. Debt portfolio management companies are also offering some cut off their payments to their valuable customers by combining some of the liabilities of the payment fro the loan they take. Which is most convenient for the payer to keep track on the payment process.