Learning

How debt mutual funds work

A debt mutual fund purchases bonds and passes on the interest earned from them to its investors. Here's a primer.

How debt mutual funds work

dhanak हिंदी में भी पढ़ें read-in-hindi

Debt mutual are a type of mutual fund that generate returns from their investors' money by investing in bonds or deposits of various kinds. In short, they lend money and earn interest on the money they have lent. This interest that they earn forms the basis for the returns that debt funds generate for investors.

This article was originally published on March 03, 2022, and last updated on September 23, 2022.


Other Categories