Invest in Debt Funds for Fixed Income Investments

By | 25/09/2018

If you want to earn interest income and capital appreciation with fixed income, then you should certainly consider Debt Funds. India’s Best Free On call Debt Funds Investment Advisory says that the securities in which Debt Funds invest are called Fixed Income because you will be made aware of what you receive from them. Therefore, this is a safe avenue for conservative investors.

Debt Funds offer higher rate of interest compared to a five year Bank FD. You have the option of Monthly Income Plans if you want to earn regular income from your investments.

What is a Debt Fund?

A debt fund is an investment pool in which you invest in short term and long term bonds and such other money market instruments. Fees are also low in Debt Funds compared to Equity Funds. India’s Best Free Online Debt Funds Investment Financial Advisory Portal Moneymindz says that Debt Funds are also called a credit fund or a fixed income fund.

Debt Funds are ideal for short term and midterm investments. This is due to the fact that debt funds act as liquid funds. They invest in different securities based on credit ratings (high quality). This decides how volatile the fund is.

Features of Debt Funds

  1. Diversification

Diversifying reduces risk. Debt Funds invest in multiple individual bonds. Therefore, your investments are safer than it would have been if no diversification took place.

  1. Fund Management

Fund managers provide dedicated management thus resulting in lesser need of the investor researching everything about companies and funds on his/her own.

  1. Liquidity
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You can sell or buy shares without worrying about bond maturities. This liquidity also works as an advantage to Debt Funds.

Merits of Debt Funds

  1. Invest in SIP

If you have a lump sum or some extra money, you can invest through Systematic Investment Plan which means you need to invest a fixed amount monthly.

  1. Time horizons

You have a short term horizon, midterm horizon and a long term horizon to select from.

  1. Good for those with low risk appetite

Generally, debt funds are suitable to an individual who has a low risk appetite. This is owing to the fact that Debt Funds are safer options to invest in.

If you want to earn interest income and capital appreciation with fixed income, then you should certainly consider Debt Funds. India’s Best Free On call Debt Funds Investment Advisory says that the securities in which Debt Funds invest are called Fixed Income because you will be made aware of what you receive from them. Therefore, this is a safe avenue for conservative investors.

Debt Funds offer higher rate of interest compared to a five year Bank FD. You have the option of Monthly Income Plans if you want to earn regular income from your investments.

What is a Debt Fund?

A debt fund is an investment pool in which you invest in short term and long term bonds and such other money market instruments. Fees are also low in Debt Funds compared to Equity Funds. India’s Best Free Online Debt Funds Investment Financial Advisory Portal Moneymindz says that Debt Funds are also called a credit fund or a fixed income fund.

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Debt Funds are ideal for short term and midterm investments. This is due to the fact that debt funds act as liquid funds. They invest in different securities based on credit ratings (high quality). This decides how volatile the fund is.

Features of Debt Funds

  1. Diversification

Diversifying reduces risk. Debt Funds invest in multiple individual bonds. Therefore, your investments are safer than it would have been if no diversification took place.

  1. Fund Management

Fund managers provide dedicated management thus resulting in lesser need of the investor researching everything about companies and funds on his/her own.

  1. Liquidity

You can sell or buy shares without worrying about bond maturities. This liquidity also works as an advantage to Debt Funds.

Merits of Debt Funds

  1. Invest in SIP

If you have a lump sum or some extra money, you can invest through Systematic Investment Plan which means you need to invest a fixed amount monthly.

  1. Time horizons

You have a short term horizon, midterm horizon and a long term horizon to select from.

  1. Good for those with low risk appetite

Generally, debt funds are suitable to an individual who has a low risk appetite. This is owing to the fact that Debt Funds are safer options to invest in.

For more information visit www.moneymindz.com or give a missed call to 022-62116588

For More Information Visit:

India First Free Online/On-call Financial Advisory Portal, Best Free Financial Assistance Portal Corporate Fixed Deposit (CFP)- MoneyMindz

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