Debt Mutual Funds

Debt Mutual Fund

Debt Mutual Fund

What is Debt Mutual Fund ?

Subramanian
When we buy a house loan from bank, Bank provides us money We need to return the money after fixed number of years Bank charges a fixed interest rate for the money that it has lent However, we also lend money to banks. In case of a fixed deposit, we lend money to the bank. In FD’s, you would see a similar resemblance as that of a house loan: You have lent money to the bank Banks will return the money after fixed period Bank will provide you a fixed interest after a specified period Therefore, FD is a debt instrument where you receive a periodical amount of interest for a specified period.