Are Debt Funds The Right Investment For You?
Table of content
Debt funds are a popular investment option because they are known to offer better returns and higher liquidity than traditional investment options like fixed deposits.
This blog will walk you through the important facts around debt funds. We’ll help you understand how to invest in the best debt mutual funds in India using Cube.
What Are Debt Funds?
Debt funds are mutual funds that invest in low-risk, high-grade securities like government bonds, corporate bonds, commercial paper, Treasury bills, and more.
Investing in debt means that the fund will loan money to entities like the government or large organizations and earn an interest in exchange. This is how a debt fund generates returns.
Who Should Invest In Debt Funds?
Debt funds offer predictable returns between 7 to 9% and carry no lock-in period. Thus, conservative investors looking to get higher returns than FDs may benefit from investing in debt funds.
However, the perfect portfolio must be diversified within and across investments. Thus, debt funds may be also ideal for aggressive investors looking to add a safety net to their portfolio.
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Debt Funds Details At A Glance
1. Risk: Low
2. Ideal time frame: 1 to 3 Years
3. Returns: 7 to 9%
4. Minimum Investment: ₹10,000
5. Liquidity: 3 business days
6. Exit load: 0.25% (< 30 days)
Why Do We Love This?
Debt funds are ideal for the short term (1 to 3 years) and easy to understand as they deal with government securities, corporate bonds, and more.
Above all, they generate solid, predictable returns better than traditional investment options. This can be ideal for low-risk investors looking to participate in the market.
About Cube’s Mutual Fund Advisor
The top debt funds on Cube Wealth are handpicked by Wealth First, Cube’s mutual fund advisory partner. WF curates a list of the best debt funds every month and recommends options that work for you.
- Clients: 3,000+
- AUM: Rs. 7,000+ crores.
- Historical track record of beating the market by ~50%
How To Invest In Debt Funds Using Cube?
You can invest in the best debt funds using Cube Wealth in 5 simple steps:
- Download Cube Wealth
- Complete your KYC
- Take the risk quiz
- Get curated debt funds
- Tap on invest
Get The 4.5⭐rated Cube App Now
Top Debt Funds Currently Recommended On Cube Wealth
Note: Facts & figures are accurate as of 27-04-2021. Download the Cube Wealth app for the latest details.
See Full List Of Debt Funds Now
Watch this video to know more about handpicked mutual funds on Cube Wealth
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