5 Mistakes to Avoid While Investing in Debt Mutual Funds
Investing in debt mutual funds is a popular choice for those looking for lower risk and steady returns because these funds invest in fixed-income securities like bonds and government securities. However, even with their lower risk, investors often make mistakes that can impact their returns. Understanding Debt Mutual Funds Debt mutual funds invest in fixed-income securities, aiming to provide regular income and capital protection. Unlike equity funds, which invest in stocks, debt funds focus on investments that offer fixed returns, such as: Government Bonds : Loans to the government with periodic interest payments. Corporate Bonds : Loans to companies that pay regular interest. Money Market Instruments : Short-term, low-risk investments. Reach out to a mutual fund distributor in Jodhpur , if you wish to know more. Beware of These Mistakes in Debt Funds Investments Ignoring the Credit Quality of Bonds One of the biggest mistakes is overlooking the credit quality of the bond...