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What are debt funds?

Debt mutual funds invest your money in bonds and pass on the interest earned from them to you

What are debt funds?

Debt funds are mutual funds that invest in fixed income securities like bonds and treasury bills. In comparison to equity funds, they are lower on risk but also generate lower returns. Depending upon the type of bonds they invest in or their investment strategy, they can further be classified into medium & long-term funds, short-term funds, ultra short-term funds, gilt funds, fixed maturity plans (FMPs), etc.. To know more, read the article: How debt mutual funds work.

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