What Are Debt Mutual Funds? Meaning, Types, Benefits- The Ultimate Guide

Debt mutual funds are those funds which primarily invest in debt instruments such as bonds, debentures, certificates of deposits, etc.

This is a category of mutual fund that primarily invest in fixed-income securities, such as corporate and government bonds, treasury bills, and money market instruments. They are also known as income funds or bond funds. Investment in debt mutual funds is ideal for investors who are not willing to take up major risks but want safety of capital along with a stable return on their investment.

What are Mutual Funds? Meaning, Benefits, Types, Mechanism- The Ultimate Guide

Mutual fund refers to a large pool of money invested in proportions, in the stock exchange by sound professional expert known as the finance manager.

Mutual funds are ideal for investors who either lack large sums for investment, or for those who do not have the time to research the market, yet want to grow their wealth. The money collected in mutual funds is invested by professional fund managers according to the scheme’s stated objective.

Top Financial Terms You Must Know! Corporate Finance, Tax, Insurance (Series 2)

By understanding various financial terms and the mechanism in which it functions, one can reach great heights. Finance is a vast subject which has several branches.