Debt Funds are type of Mutual Fund which Invests in Fixed Deposits, Corporate Bonds, Money Market Instruments, Government Bonds, Commercial Papers, Treasury Bills…etc. The Return on these Investments are Guaranteed like a Fixed Deposits. Debt Funds are more Suitable for Conservative Investors Looking to Gain Little Higher Returns than there Fixed Deposit and the Capital Protection or a Guaranteed on the Principal amount Invested is required.
Debt Funds are Classified into Several Types Based on the Underlying Investments they Invest. Debt Funds are Suitable for Investors with an Investment Horizon of 2 Days to 3 Years.
Investors Looking who are very Conservative and Looking to Gain Better Returns Compared to there Fixed Deposits or Holding Idle Money in there Savings Account. Investors whose priority is Capital Protection Looking to Invest 1 Week to 3 Years can go for Debt Fund Investment.
Debt Funds are Taxed under two Categories Long Term Capital Gain and Short Term Capital Gain. Gains on Debt Fund Investments greater than 3 Years are Considered for Long Term Capital Gains. Gains on Debt Fund Investments Less than 3 Years are Considered Short Term Capital Gains.
Post Tax Returns on Debt Fund Investments Greater than 3 Years are Better than Investing in a Fixed Deposit.
The Selection of Debt Funds depends on the Credit Ratings of the Investments in Debt Fund, Yield to Maturity of the funds, Tenure of the Investments, Average Maturity of the Investments in the Debt Fund, Etc….
You Invest, Check NAV, Latest Information on Debt Funds, Compare Returns of Different Debt Funds through our website www.fundsinn.com/mutual-funds/debt-mutual-funds
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