Debt Funds are mutual funds that invest in fixed-income securities like bonds, debentures, treasury bills, and government securities. Instead of focusing on company shares, debt funds lend money to institutions such as corporations, banks, or the government and earn interest income. They are designed for investors who prefer stable, predictable returns and lower risk compared to equity funds.
These funds come in multiple types depending on the investment horizon - short-term (like Liquid or Overnight Funds) for quick access and safety, or long-term (like Gilt and Corporate Bond Funds) for steady income. Since debt funds are linked to interest rate movements, their performance may vary, but they are generally less volatile than equities.
Debt funds are suitable for conservative investors, those looking to park surplus money, or anyone seeking to balance risk in their overall portfolio. They can also be a good choice for achieving financial goals that require safety and steady returns, such as saving for emergencies or near-term expenses.
Browse by sub-category or view all funds below
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article