Debt mutual fund is a type of mutual fund which invest in fixed income instrument such as corporate bonds, corporate debt security, Government bonds and money market instrument. It offers diversification across a range of debt instrument which help to risk mitigation and allow investor to buy and sell unit properly.
Types: Overnight Funds, Ultra-short Duration Funds, Liquid Funds, Low-Duration Funds, Money Market Funds and Short-Duration Funds.
Benefits: The debt mutual funds offer the opportunity to access professional expertise and market return and it has low portfolio risks