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Mutual-Fund
What is 'Debt Funds'
Definition: Debt funds are mutual funds that invest in fixed income securities like bonds and treasury bills. Gilt fund, monthly income plans (MIPs), short term plans (STPs), liquid funds, and fixed maturity plans (FMPs) are some of the investment options in debt funds. Apart from these categories, debt funds include various funds investing in short term, medium term and long term bonds.
Description: Debt funds are preferred by individuals who are not willing to invest in a highly volatile equity market. A debt fund provides a steady but low income relative to equity. It is comparatively less volatile.
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AMFI seeks tax parity for debt funds, fund of fundsThe Association of Mutual Funds in India has proposed tax changes for debt-oriented mutual funds and fund of funds in the Union Budget. They recommend a 10% tax rate without indexation, introduction of a debt-linked savings scheme, and a revision of the definition of equity-oriented funds.
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How to redeem mutual fund unitsRedeeming from a mutual fund is a straightforward process. Investors can choose to redeem a part or all of their investment depending on their financial needs and goals.
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