In this slides we will see why debt funds are important and what are its advantages.

1. DEBT FUNDS
IMPORTANCE OF DEBT FUNDS

2. Debt Funds
 Debt funds are basically mutual funds that are invested
in fixed income securities.
 These bonds can be short term, medium term and long
term.
 The maturity is for a fixed period.
 The returns are not that high as compared to equity.
 Debts funds are mostly to give security to the investor.

3. Features Of Debt Funds:
 Fixed maturity period
 Invested in fixed income securities
 More suitable for short term goals.
 Easy liquidity

4. How To Choose A Debt Fund?
 Need: The most important factor is to know one's need.
 AUM of the Fund House: Fund houses with AUM more
than 500 Cr. are always considered.
 Exit Load: One should also look at the exit load charges.
 Past performance: It is also necessary to check the past
performance.
 Asset allocation of the portfolio: It is also important to
check the investment.

5. Type Of Debt Funds
 Gilt funds: These funds invested in Govt.
securities only.
 Short term debt funds: These funds are
invested in commercial papers, bonds,
certificate of deposits, etc.

6.  Fixed Maturity Plan (FMP): They are invested
for a fixed period of time, in papers matching
their maturity.
 Liquid Funds: They are invested in liquid
instruments like, treasury bills, Certificate of
Deposits, commercial papers, etc.

7. Conclusion
Apart from these, there are many other funds
like income funds, pension funds, and so on.
so if you are a conservative investor and even
planning to invest, to get a regular follow of
income, debt funds are most suitable to you.

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