Best way to manage your dad's money💸

2 Hybrid Funds :

Kotak Debt Hybrid Fund

Parag Parikh conservative hybrid fund

2 NCDs :

Nido Home Finance (9.75% to 10.2%)

Krazybees Services (10.80%)

Hybrid Fund rationale :

Both funds have different investment rationale, while Kotak focuses more on Long term bond purchases during the time of rate cut - Parag Parikh focuses on short tenure bonds providing more stable returns in near term.

Last few months have been rough for even hybrid funds due to uncertainty in repo rate cuts further. Although there can be uncertain specific years where these funds may underperform your expectations - that is mainly due to rate hike expectations, meaning when economic conditions suddenly show any significant improvements the chances for rate cut go lower and many times bond investors start expecting rate hike. Yet however, on most years historically they have shown higher than 10% returns

Both funds have Exit Load of 1% for 1 year, however the exit load isn’t applicable till 10% of NAV is withdrawn - this enable to start SWP from 1st year of investment itself.

NCD rationale :

Krazybees services is an education loan company, past history defines that company has never had a default or degrade in credit rating. June 2025, company also received a credit rating upgrade and the maturity for NCD is less than 1 year, making it even more safe option with decent interest

Nido Home Finance is an subsidiary company for edelweiss, a well known finance and AMC company.

Both NCDs are secured, meaning these bonds are backed by assets and in case of any default - the principal amount would be recoverable as per the bankruptcy crisis and asset value during the default (if it happens)

Historically CRISIL A rated or above bonds have less than 1% default rates, making it attractive and relatively very safe than equity.

NCDs have lock-in period, depending on which series of bond you have bought.

Nido Home Finance - had highest interest of 10.25% with 5 year lock-in with annual payouts. Further 3 year lock-in with annual payments were also available with 9.75%

Nido Home Finance recently had its IPO, it is yet to start trading in secondary markets

Krazybees Services is available in secondary market with said interest rate and close to 1 year maturity period.

Regards,

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