Debt Funds

Debt Funds

Debt funds are the mutual fund scheme investment on the significant corpus of money suitable for the fixed income or debt instrument. Debt Funds are the Mutual Funds invest in fixed income securities such as treasury bills and bonds. Debt funds mainly have more number of options that include the

  • Monthly income plans (MIPs)
  • Fixed maturity plans (FMPs)
  • Liquid funds
  • Short term plans (STPs)
  • Gilt fund

Some of the other categories of the Debt Funds mainly include the funds investing in long term bonds, medium-term, and short term bonds. Debt Funds are mainly preferred by individuals who do not like to invest in the volatile equity market.

Key Features Of Products:

  • Lowest Risk – Debt funds do not directly impact by share market fluctuations so that interest rate is based on share market movements.
  • Low Capital Appreciation – Investment aim is a much safer option with safe and steady returns. The debt market mainly has more number of instruments that facilitate buying and selling the loan for interest.
  • Duration – The mutual debt fund has both the debt instruments and bonds with fixed maturity duration. Duration ranges for overnight funds is 1 day, and it is available even up to 10 years.
  • Better Credit Quality – Underlying fixed-income securities are mainly rated for credit quality.

Benefits To Customers:

  • Not Affected By The Market Volatility – Debt mutual fund is not based on the market condition so investments on the securities have fixed maturity
  • Stabilizes The Portfolio: – Risk associated will be lower than equity instruments with debt instruments, so schemes offer stability
  • Suitable For New Investors – Most of the new investors mainly prefer to use low-risk appetite, and Debt mutual funds are an excellent option for investment.
  • High Liquidity – Investment based on the Debt mutual funds are a good option for investing surplus the cash on emergency reserve.
  • Achieves Investment Goals – Debt funds enable with a fixed maturity and give the lowest feature with steady returns.
  • Low Risk – Considered as the best debt-related investment options and less risky. It is the best investment for the purpose of short-term wealth building.
  • Low Transaction Costs – Buying and selling the debt mutual fund units only have lower transactional costs

Why Finkart?

Finkart offers a customer-centric approach, and the Debt funds are designed to cover the needs of customers. Finkart is research-based solutions through a secured digital platform that is ready to help you at any time by providing the best service.

  • Invest Instantly
  • Free-for-life account
  • Monitor and Track Investments
  • Custom Investment Solutions
  • Long repayment option
  • Quick loan disbursal
  • Easy and simple documentation
  • Friendly customer support
  • Hassle-free tax benefit