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

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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.