Can you invest in debt and equity together?

01:09 Mins Read

Can your portolio include both debt and equity instruments? Find the answer in this video.

Transcript

The short answer is yes. You can invest in debt and equity together. One way to go about this is to invest directly in debt and equity. This means you can invest in debt instruments like government securities, corporate bonds, commerical paper and fixed deposits. And simultaneously, you can invest directly in the stocks of companies through the equity market. Another way to invest in both debt and equity is to take the mutual fund route. So, your portfolio will have a mix of debt funds and equity funds. Lastly, if you do not wish to invest separately in debt funds and equity funds, you can choose hybrid funds. Hybrid mutual funds invest in more than one asset class. Most often, they invest in both debt and equity. If you want to learn more about this category of mutual funds You'll find all the details in the next chapter of Smart Money.

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Hybrid funds

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