What is Debt Mutual Fund?

Debt funds invest in securities that generate income. Examples of such securities are: corporate bonds, government securities, commercial paper, treasury bills etc. The dual objectives of investing in a debt fund are to achieve capital appreciation and also earn interest income. The interest rate that you will earn along with the maturity period are pre-decided by the issuer.

Types of debt funds

Benefits of investing in debt funds

Here are some of the benefits of investing in debt fund schemes:

How to invest in Debt Mutual Funds?

It is preferable to invest a lumpsum in debt mutual funds unless you are exploring gilt an income funds which are comparatively volatile.