Debt funds are an investment vehicle that mainly invests in fixed income securities such as bonds, government securities, and other debt securities. The primary goal of debt funds is to provide regular income to the investors with low volatility.
One of the main advantages of investing in debt funds is the relatively lower risk compared to equity investments. Debt funds can provide better returns than traditional fixed deposits, with lower risks involved. Moreover, debt funds have a relatively shorter maturity period compared to bonds, making them a more liquid investment option.