Passive debt funds for investors

When you think of investment returns, the first thing that probably comes to mind is stocks. Their ability to create wealth is well known. However, investors often miss out on two critical aspects of investing: risk and asset allocation. Not only can you lose your investment in stocks but the inherent volatility can make you a Nervous Nellie. To avoid such outcomes, investors can allocate a portion of their investable funds to the debt asset class. Through this diversification, investors can enjoy relatively stable returns offered by such securities. A low-cost way to add debt to your portfolio is passive debt funds. They simply track an underlying index and seek to generate returns as per that. They comprise index funds and exchange-traded funds/fund of funds. An example of passi

This article was originally published on March 18, 2024.