Debt Fund
What are debt funds?
The Debt Funds are a kind of mutual funds that invest majorly in the fixed income instruments. The objective of the debt funds is to seek current income and preserve the capital. The debt funds are comparatively less volatile than the equity funds and provide a steady income to the investors. Debt funds are considered as safer option because of their underlying asset is debt. Also known as Fixed Income Securities.
Benefits of investing in Debt Funds
- Liquidity
- Systematic approach towards investment
- Investment comfort, ideal investment option for conservative investors.
- Better returns than savings accounts, current accounts, Recurring Deposits, Fixed Deposits
- Offer diversification
- Efficiency in tax planning
- Earn interest and capital Appreciation.
Comparison of Debt Funds with FD’s, Recurring Deposits and Savings Account:
