FinSaver

Debt Portfolio Advisory is a professional advisory service that helps investors evaluate and structure their debt investments based on their financial goals, risk profile, liquidity requirements and investment horizon. The objective is to create a diversified and suitable fixed-income portfolio rather than selecting debt investments solely on the basis of interest rates.

A debt portfolio is a collection of fixed-income investments held by an investor. Depending on the investor’s requirements and suitability, it may include instruments such as government securities, bonds, NCDs, treasury bills, debt mutual funds and other eligible fixed-income instruments.

Selecting a debt investment only on the basis of its interest rate may not provide a complete picture of the associated risks. A debt investment advisor can help evaluate factors such as credit quality, maturity, liquidity, concentration and suitability before making investment recommendations.

No. Debt investments are not completely risk-free. Depending on the instrument, investors may be exposed to credit risk, interest rate risk, liquidity risk, reinvestment risk and other risks. Professional debt portfolio advisory focuses on understanding these risks and selecting investments based on the investor’s risk profile and objectives.

Debt investments may include government securities, treasury bills, State Development Loans (SDLs), PSU bonds, corporate bonds, Non-Convertible Debentures (NCDs), debt mutual funds and other eligible fixed-income instruments.

The suitability of an instrument depends on factors such as risk, tenure, liquidity, taxation and the investor’s financial objectives.

FinSaver is designed to provide professional debt portfolio advisory by understanding an investor’s financial objectives, risk profile and liquidity requirements and evaluating suitable debt investment opportunities.

The advisory process may include portfolio construction, diversification, investment evaluation, monitoring and periodic review, subject to the agreed scope of services.

A fixed deposit is a specific banking product with predetermined terms, whereas a debt portfolio can consist of multiple fixed-income investments with different issuers, maturities, yields and risk characteristics.

Debt portfolio advisory focuses on constructing and reviewing the overall portfolio rather than evaluating a single investment in isolation.

Debt investments can be considered as part of an overall income-planning strategy. A suitable portfolio may be structured with consideration to expected cash flows, maturity dates, liquidity requirements and the investor’s objectives. However, actual returns or income are not guaranteed.

Debt portfolio advisory may be relevant for investors who have significant allocations to fixed-income investments or who want professional assistance in evaluating and managing their debt portfolio.

This may include HNIs, retirees, family offices, trusts, institutions and other eligible investors, subject to suitability assessment.

A debt portfolio should be reviewed periodically because factors such as interest rates, credit quality, liquidity, maturity profile and the investor’s financial circumstances can change over time.

The frequency of review should depend on the nature and complexity of the portfolio and the investor’s requirements.

A Debt Portfolio Health Check is a review of an existing debt portfolio to identify factors such as concentration, credit exposure, maturity profile, liquidity and suitability in relation to the investor’s objectives and risk profile.

It can help investors understand whether their existing debt portfolio is appropriately structured.

No. Returns from debt investments are not guaranteed. Different debt instruments carry different levels of credit, interest-rate, liquidity and other risks. Investment recommendations are made based on the investor’s profile, objectives, investment horizon and suitability.

Suitability depends on the individual’s financial situation, risk profile, investment objectives and investment horizon. Debt investments can have different levels of risk, so an investor’s suitability should be assessed before making any investment decision.