What are the various type of debt funds?

 Debt funds are for investors who wish to park money for a limited length of time and are looking for capital safety or regular income from their investments.



Debt funds, on the other hand, come in a variety of shapes and sizes.

You can start a savings account, just like in a bank, where you can deposit and withdraw money whenever you want. However, if you are not likely to spend the money for a long time, it is not a good idea to keep it idle. In this scenario, you could open a fixed deposit, which locks your money away for a certain length of time and allows you to earn a greater rate of interest. You can also set up a recurring deposit, in which you invest a set amount each month for a set length of time. All of these items are beneficial.

Similarly, there are debt fund varieties available in Mutual Funds to meet diverse investor demands, such as Liquid Funds, Income Funds, Government Securities, and Fixed Maturity Plans.

An investor should choose strategies that meet his or her own needs.

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