Is It Good to Invest in Debt Mutual Funds for Long Term Growth

Is It Good to Invest in Debt Mutual Funds for Long Term Growth

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Investing in debt mutual funds for long term growth can be suitable for investors who are risk-averse and who desire investing money in safe investment instruments generating steady returns.

Debt Mutual Funds like many other investment instruments is a good option for many investors. It completely depends upon an investors’ risk-taking ability. For the risk-averse individuals fixed income securities like bonds is a good option.

Know the debt fund meaning

Debt funds are Mutual fund schemes that invest in securities that are known to generate fixed income are termed as debt fund. For example, securities like Corporate Bonds, T-Bills, government securities, Commercial Papers (CP), Certificate of Deposit (CD), and other money market instruments.

More about debt funds

An investment pool in which the key holdings comprise fixed income investments is termed as debt fund. A debt fund may invest capital in bonds having short-term or long-term maturity, floating rate debt, security products, or money market instruments. For example, a mutual fund or exchange-traded fund.

Debt funds are a safe investment and suitable for short-term financial goals such as saving for a vacation. Debt mutual funds  are an ideal choice for risk-averse people.

About the best debt mutual funds

Recommended Long Term Mutual Funds to Invest in 2022

Nippon India Value Fund (G)

Canara Robeco Emerging Equities fund (Growth)

DSP Tax Saver Fund (Growth)

Parag Parikh Flexi Cap fund (Growth)

Canara Robeco Bluechip Equity Fund (Growth)

Mirae Asset Tax Saver Fund (Growth)

The Top-ranked Long Term Mutual Funds to Invest in 2022

ICICI Prudential Dividend Yield Equity Fund (G)

HDFC Large and Mid-Cap Fund (G)

Edelweiss Mid Cap Fund (G)

Bank of India Tax Advantage Fund Eco (G)

Union Long Term Equity Fund (G)

SBI Focused Equity Fund (G)

PGIM India Flexi Cap Fund (G)

What Are Bonds? Know why it is a preferred option in the country?

What bonds can be the best option for you if you are interested in fixed and predetermined income. You get the opportunity to park your money in varied type of bonds, enjoy the benefits of liquidity, minimal risk, protection of your face value, and more. Bonds are categorized in varied types.

Types of Government Securities in India

Cash Management Bills (CMBs)

Floating Rate Bonds

Treasury Inflation-Protected Securities (TIPS

Dated Government Securities

Capital Indexed Bonds

State Development Loans

Zero-Coupon Bonds

Treasury Bills

Bonds give you the option to start with the minimal investment of Rs. 1000/- (face value). There is no limit to the higher limit which can be increased in multiples of face value. You can plan your investment in bonds and debt mutual funds considering the essential factors and your goals in life.

If you are an individual having concern for your hard-earned money, making investment in Debt Mutual Funds for Long Term Growth can be a good choice. Before you make-up your mind for the investment in bonds or long-term debt mutual funds, it is good to educate yourself. You can visit the online platforms like BondsIndia.com and more to gather knowledge about fixed income securities

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