We feel financially secure when we earn a fixed amount of income. To meet the routine expenses or for some other reason, we require ready cash always. In the case of investment as well, we desire to get regular and stable income.
There is a varied class of investors who have different investment goals. Some want capital appreciation, some wealth creation while some want a consistent return. To fulfil the goals of investment, we make different choices to invest our monies. The debt funds are those assets of the mutual fund schemes that derive a regular or fixed returns.
In the case of mutual fund programme, the fund manager pools the money of various investors and invest the same into diversified investment plans. Debt funds are one of the asset categories in mutual fund investment, wherein the pooled sum of money is invested in various debt instruments which fetch fixed returns.
Before going further in the investment procedure, we must know our goals to take an accurate decision. The investors who desire to fetch good returns during a short span of time can put their monies into the short-term debt funds. The investors who do not want to indulge in rigid investment structure can opt the short-term debt funds.
Various benefits attached with debt funds are stated below:
1. Security of Capital: As the money put in debt funds is further invested in the debt instruments or bonds of the company, they are less prone to market volatility.
2. Higher Returns: Though in the case of mutual fund investment, the returns are subject to market risk, but an investor can opt for less volatile debt funds to invest in their monies so as to fetch high yield.
3. Liquidity: The short-term debt funds provide open-ended schemes that offer easy cash convertibility without any lock-in period.
4. Professional Management: The schemes under debt funds are designed and managed by highly experienced professionals who assure proper administration for the same.
5. Returns in Form of Interest: An individual can put money into the fixed deposit accounts to fetch regular interest. The debt funds provide much higher returns which are nothing but the interest amount generated from an investment made in the debt instruments.
Accordingly, an investor can attain a secure investment with aspiring returns by putting monies into debt funds.
In the case of mutual fund investments, the debt funds always provide the favourable results fulfilling the desires of the investors. The first and foremost thing that we want is the security of the funds, as we put the hard-earned monies into the investments and we never think to lose such corpus. The short-term debt funds offer such security with a regular and fixed income.
One can put monies into the debt funds using the online mode of investment as well that would be helpful in reducing the paper work involved. Also, a strong investment decision can be taken by using such tools which are generated to provide ease to the investors.
So if you too desire to put money into debt funds, you can buy them online using the services offered by My SIP Online which has a team of experts indulged in providing the best investment services.
No comments:
Post a Comment