What is Debt Fund – How to invest in Debt Fund – Debt Fund What is Debt Fund, is it right to invest money in Debt Fund, many similar questions are in your mind, today in this post we are talking about Debt Fund Kya Hai and Debt Fund. We will know the important things related to it and know how we can make good money by investing in debt funds. Because according to experts, debt fund mutual fund is a very beneficial fund.
Debt Fund Meaning
“Debt Fund” or “Debt Fund”
what is debt fund
Debt fund is a fund just like a mutual fund.
What is Debt Fund – What is Debt Fund?
Mutual funds are considered the most reliable for investing money in the market because mutual funds invest their money in different places and for this reason mutual funds are very much liked by the investors.
The same debt fund is a fund that comes under mutual funds, which invests its money mainly in corporate fixed deposits or in bonds. A debt fund invests 65% of the money in bonds and bank deposits.
Debt fund money is mainly invested in government bonds, company bonds, corporate fixed deposits and bank deposits and the remaining money is invested in equity ie shares.
Debt Fund Advantages – Debt Fund Benefit – Benefits of Debt Fund
Debt Fund has many advantages, out of which the biggest advantage is that its money is invested in bonds that give fixed returns. For this reason, there is no scope for loss in them and the risk of drowning of money is also less.
Debt fund’s money is invested in bonds like fixed deposits, then it does not get much returns and that is the reason why people invest less in it.
But if debt fund is compared with bank fixed deposit, then debt fund gives more returns than bank fixed deposit.
Debt Fund Interest Rate
Debt fund interest rates are much higher than bank fixed deposits. The interest you get in debt fund is many times more than the interest you get in the fixed deposit of the bank.
Since debt funds invest their money in fixed deposits, that is why their interest rate is always higher than bank’s fixed deposits.
Best Debt Funds
These are some of the debt funds which are the best debt funds for long term.
- Reliance Low Duration Fund
- Aditya Birla Sun Life Savings Fund
- Aditya Birla Sun Life Medium Term Plan
- UTI Treasury Advantage Fund
- DSP Credit Risk Fund
SIP in Debt Fund
If you want to make good money by investing in debt funds, then SIP in debt funds is very less beneficial. But if you are doing SIP in Debt Fund then you should SIP in Debt Fund for long term
Debt Fund Returns
Investing in Debt Fund is a profitable deal and for this reason, if you invest in Debt Fund, you will get very good Debt Fund Returns because it gives more returns than Bank’s Fixed Deposit and it is also safe.
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