The objective of debt funds is to invest in debt papers. By investing in debt instruments, these funds ensure low risk and provide stable income to the investors.
2. Agenda ● What is debt mutual fund?
● Types of debt mutual fund
● Why to invest in debt mutual fund?
● Risk Associated
● Comparison with fixed deposit
● Comparison with Equity Mutual
funds
3. WHAT IS DEBT
MUTUAL FUND?
● The objective of debt funds is to
invest in debt papers. By investing
in debt instruments, these funds
ensure low risk and provide stable
income to the investors.
● Invests in fixed income
instruments, such as bonds, G-
sec’s, commercial paper,
certificate of deposits, treasury
bills (T -Bills), money market
instruments, etc..
● Ideal for investors who want
regular income, but are risk-
averse.
● Less volatile and hence, are less
risky than equity funds.
4. Types of Debt mutual
funds
Gilt Funds
Income Funds
MIPs
STPs
Liquid Funds
5. Why to invest in debt
mutual funds?
● Debt funds have short maturity
● Debt funds are ideal for achieving
short term financial goals
● Debt mutual funds have low risk
ratio
● Debt mutual funds offer great
flexibility
● Debt funds give you two payout
options
10. Conclusion
● Different avenues are available to investors.
● Debt Mutual funds also offer good investment opportunities to the investors.
Like all investments, they also carry certain risks.
● The investors should compare the risks and expected yields after adjustments
of tax on various instruments while taking investment decisions.
