Debt funds are funds which invest in fixed-interest generating securities like corporate bonds, treasury bills, government securities commercial papers, and other money market instruments. Debt funds are called fixed-income securities as have a pre-decided maturity date and interest rate. Returns you get from these funds are not affected by the market fluctuations. Hence, these are known as low-risk investment options. Investors who are not ready to take a risk in their investment can invest in debt funds. Watch this video to unknown facts about debt funds.
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