Wealth Management: Return on Debt Funds

What is a Debt Fund?

A debt fund is an investment pool, such as a mutual fund or exchange-traded fund, in which

  • Core holdings are fixed income investments.
  • The fund may invest in short-term or long-term bonds, securitized products, money market instruments or floating rate debt.
  • It refers to bonds or other debt instruments that will mature in more than one calendar or fiscal years.
  • The examples of such funds are Corporate and Government Bonds, Corporate Debt Securities and Money Market Instruments which offer capital appreciation.
  • Also they are referred as Fixed Income Funds or Bond Funds.

There is always a feeling that investment in Debt Funds are risk free and that they provide more returns than other investments.  Here is an article which gives a clear idea about this misconception.

Debt Fund
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Author: Admin Bankedge

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