Debt mutual funds invest in fixed income instruments to provide stable income with low risk, making them suitable for risk-averse investors seeking regular returns. They come in various types, including gilt funds and liquid funds, and offer flexibility and short-term financial goal achievement. However, investors should be aware of risks such as credit default and interest rate risks and compare these funds with alternatives like fixed deposits and equity mutual funds before investing.

1. DEBT MUTUAL FUNDS

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

6. Risk associated with
debt mutual funds
Risk
Risk
Credit Default Risk
Interest Rate Risk
Liquidity Risk

7. Comparison with
Fixed deposits
Rate of Return
Liquidity
Risk
Investment Option
Early Withdrawal
Tax status

8. Comparison with
Equity Mutual Funds
Invest Money
Returns
Risk
Long term Capital gain tax
Timing of buy and sale

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.

11. THANK YOU