What are the debt Funds?
What are the debt Funds? Here we will talk about this instrument that can give you a fixed return. We all want to raise our money.
And we know that if we want to grow our money then we have to invest our money. So mutual funds can be a good option for you.
But many do not want to take the risk of mutual funds or equity mutual funds.
In this case, a Debt fund can be a good option for those who want to earn an average return with very low risk or no risk.
So in this article, we will clear all your doubts on What is debt fund and how it works?.
And if you read this article carefully we can guarantee you that you can decide on your own that you should invest here or not.
You can start investing in debt funds through UPSTOX.
The meaning of Debt Fund-
To know What are the debt Funds? understand about debt first. I think we all know about debt.
Companies, financial institutions, and the government sometimes need money for a project or to run their expenses.
At that time some mutual funds give loans to these organizations.
Those are called Debt Funds. Debt means loan.
Purpose Debt funds — -
When we are investing our money, of course, we have a purpose.
If we want to beat inflation we have to invest in those instruments where we can easily get a decent return or a good return.
By good returns, we are talking about 8–15 percent return. One can get much more than this. But this is an average.
