Debt income funds offer a plethora of options that include dynamic funds, medium term funds and long term income funds. Some of them try to leverage from interest rate fluctuations while others are rate-agnostic. Interest rates and fixed income instruments have an inverse relationship; when the overall interest rates in the economy rise, bond prices fall and vice versa. Income funds are likely to benefit more when the interest rates are peaking.
Income funds invest in fixed income instruments like corporate bonds and debentures, certificate of deposits, commercial papers, government securities and other money market instruments. Fund managers usually consider the credit rating of the instrument before investing in them and prefer to invest in instruments with a higher credit rating. Debt funds can also act as a cushion towards an all-equity portfolio. These are usually all-weather funds as they are considered to be less risky as compared to their equity counterparts and are an alternative to investors keen in holding fixed income instruments.
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
