Debt Mutual Funds are low-risk funds that mainly invest in a mix of fixed income securities such as Government Bonds, Corporate Bonds but not in share markets.
Debt securities generally include treasury bills, government securities, and corporate bonds, etc. that generate fixed income/interest over a specified period, making these type of mutual funds a relatively safer investment option.
In comparison with Equity mutual funds, which meant for high risk-taking investors with long term investment horizon, Debt mutual funds are lower risk and offer short maturity periods.
Fees on debt funds are less than those related to equity funds because their management costs are comparatively lower.
A few important advantages of investing in debt mutual funds are low cost structure, stable returns, high liquidity and safety.
