All About Debt Funds: Types Of Debt Funds & How To Invest | Mutual Fund Guide | Money Today

Debt funds are an important part of the fixed-income universe, but with multiple categories, investment durations and risk levels, choosing the right one can be confusing. In this edition of Money Today, Sakshi Batra speaks with Shweta Rajani, Mutual Fund Head at Anand Rathi Wealth, to decode debt funds for investors. The discussion covers different types of debt funds, how they generate returns, and how they compare with fixed deposits, G-Secs and corporate bonds. It also explains key risks, including interest-rate, credit and liquidity risks, along with taxation and the impact of changing interest rates. The episode further explores how investors can evaluate debt funds, understand yield-to-maturity and credit quality, and choose funds based on their investment horizon and financial goals.