What’s in a Name

Fixed income fund was supposed to be the simple choice for risk-averse investor: decide on the term of investment and put your money in the appropriate kind. But, is it really that simple given the huge variety of debt funds available with not much to separate when it comes to their investment mandate? To be fair, barring basic schemes such as dynamic bond funds, plain income funds, ultra short-term and short-term funds, debt mutual funds are not designed for retail investors at all. Instead, this variety attracts institutional investors the most as they are actually the biggest investors in debt funds. Simply put, don’t commit your money to something which you don’t understand. Gather complete information and invest only if it suits your investment goal. Below are different debt schemes run by 2 AMCs and see for yourself how different they are from one another.