7 Benefits To Invest in Debt Fund

Unlike equity funds, debt funds are not affected by market volatility and generate stable returns.

Stable returns


65% of the capital is invested in fixed-income securities for low-risk returns.


Investments can be done through SIP or Lumpsum.

Hedge against market volatility

When stock prices fall in a volatile market, debt fund returns can help stabilise your portfolio.

Good for emergency funds

Capital protection, fixed returns, short-to-medium tenure, and higher liquidity make debt funds ideal for emergency purposes.


Debt fund units are easily redeemable. Unlike other fixed-income instruments (FDs and PPFs) these don’t have any lock-in.


Investors can lower their tax burden on long term capital gains with the help of indexation.

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