7 Benefits To Invest in Debt Funds

7 Benefits To Invest in Debt Fund

Unlike equity funds, debt funds are not affected by market volatility and generate stable returns. Stable returns

Low-risk 65% of the capital is invested in fixed-income securities for low-risk returns.

Flexibility Investments can be done through SIP or Lumpsum.

Hedge against market volatility When stock prices fall in a volatile market, debt fund returns can help stabilise your portfolio.

Good for emergency funds Capital protection, fixed returns, short-to-medium tenure, and higher liquidity make debt funds ideal for emergency purposes.

Liquidity Debt fund units are easily redeemable. Unlike other fixed-income instruments (FDs and PPFs) these don’t have any lock-in.

Tax-efficiency Investors can lower their tax burden on long term capital gains with the help of indexation.

[{"selector":"#anim-e24f2421-144b-446d-9cda-884d59f2c106","keyframes":[{"transform":"scale(1)","offset":0},{"transform":"scale(0.95)","offset":0.25},{"transform":"scale(1.05)","offset":0.75},{"transform":"scale(1)","offset":1}],"delay":0,"duration":600,"easing":"cubic-bezier(0.3, 0.0, 0.0, 1)","fill":"both","iterations":1}] Next: Largest FMCG Companies in India 2023 Read More