​What Are Debt Funds & Types of Debt Mutual Funds​​

​​​Different Types of SBI Debt Funds​​​​


What are debt funds?

Indians’ penchant for debt investment is quite well known. Ab​out 59%* of financial savings is parked in bank fixed deposits (FDs). But take a look at the investment universe. It is huge and flooded with other debt instruments which can be used to generate returns.

​Debt mutual funds are professionally managed mutual fund schemes that enable investors to take exposure to fixed income instruments.​ The underlying portfolio of a debt mutual fund scheme comprises securities of varying instruments (certificates of deposit or CDs, government security or G-secs, commercial papers or CPs, bonds, Treasury bills, etc.) as per asset allocation and investment objectives.

Benefits of debt funds

• Funds managed by professionals

• Reduces risk and enables you to take advantage of differing market environments

• Provide better schemes to manage different risk profiles through short term liquid funds

• Economically efficient

• Reduces tax liability