DebtFund
Definition
A mutual fund that invests primarily in fixed-income securities such as government bonds, corporate bonds, treasury bills, and money market instruments. Debt funds are generally less volatile than equity funds and are suitable for investors seeking regular income or capital preservation.
Example
A short-duration debt fund might invest in corporate bonds maturing in 1-3 years, offering returns of 6-8% with lower volatility than equity funds.
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