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What kinds of debt funds are suitable for a horizon of three years?

Don't get venturesome with your debt fund investments, says Dhirendra Kumar

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What kinds of debt funds should I invest in for a horizon of three years?
- Rajesh

I would say that debt funds gave us a very unusual experience in 2019, which everybody should keep to heart. The hard fact is that debt funds are subject to risk. Although this risk never materialised earlier, it did in 2019. So err on the side of caution. You should not invest in anything beyond short-duration debt funds. Don't get venturesome with your debt fund investments. Trying to optimise your return by 1 or 2 per cent and putting your capital at stake is a not a wise thing.