Mutual funds are becoming increasingly popular. However, sometimes it gets challenging to decide on which mutual fund to choose. Debt mutual funds are one such fund.
Debt funds, in fact, are low-risk mutual funds that invest most of the money from investors into fixed income instruments such as state and central government bonds, bonds issued by banks, corporate bonds, certificates of deposit, etc. As these are low-risk mutual funds, they turn out to be one of the best options for low-risk appetite investors.
Ajinkya Kulkarni, Co-founder, Wint Wealth, says, “Since debt mutual funds are different from equity mutual funds, investors need to consider some basic yet essential steps before choosing a debt mutual fund.”
1) Credit Rating
Credit rating
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