Debt Funds in this asset class primarily invests in fixed income securities such as bonds, corporate debentures, government securities (gilts), money market instruments, etc. , and will suit investors who want regular and steady income assuming low to moderate levels of risk
A debt fund is for those investors who seek to deploy part of their funds in fixed income products as a conscious investment option. It enables you to earn a total return made up of both interest income, and changes in the value of capital; a facility that comes only with debt funds that do not restrict themselves to generating merely interest income. As market interest rates change, the value of your portfolio also changes, creating a total return portfolio in debt securities.
- It enables efficient and fruitful deployment of idle cash.
- The fund ensures a high level of liquidity and flexibility to access cash invested at a days notice.
- It offers a low risk option to invest in mutual funds.
- A portfolio which strategically deploys funds in the debt markets as part of an overall asset allocation to fixed income securities.
- Facilitates participation in markets that are large and institution-dominated.
- Provides the potential to earn total return from both interest and capital gains.
This product is suitable for investors who are seeking* :
- Long term wealth creation solution.
- A Debt Fund that invests in debt and money market instruments of various maturities with a view to maximise income while maintaining optimum balance of yield, safety and liquidity.