The categorisation of debt funds is simpler than that of equity funds. A debt fund investment, like a bond, is defined by two characteristics - its maturity and its credit rating. Maturity is a straightforward enough concept that you will encounter when learning how debt funds work. The maturity date of a bond is the date on which the principal value of a bond is to be returned to the investor in full.
This article was originally published on September 02, 2020.