Debt funds are a type of mutual fund that invest in a mix of fixed income securities like government bonds, treasury bills, corporate bonds, central/state government guaranteed papers, state loans and other instruments like PSU Bonds. Debt Funds also invest in money market securities like Certificate of Deposits (CDs) issued by banks and Commercial Papers by Corporates. Debt funds are ideal vehicles for wealth creation and capital appreciation.
The main reason to invest in debt funds is to earn interest and capital appreciation in form of increase in NAV of your units. Debt mutual funds are for people who, prefer relatively less risky and less volatile asset class as compared to equity do not want to take a lot of risks. They are preferred by investors who do not want to invest in a highly volatile equity market. Also, there are debt funds that are suitable to invest from as short a horizon of one day to as long as a few years. Also there are some Debt Funds that provide a steady income throughout the investment period.
Below are the different types of Debt Funds offered by Indiabulls AMC –
To provide a high level of liquidity with returns commensurate with low risk through a portfolio of money market & debt securities with maturity of upto 91days. However, there can be no assurance that the liquid fund investment objective of the Scheme will be achieved.
To provide liquidity with returns commensurate with low risk through a portfolio of money market and debt securities such that the Macaulay duration of the portfolio is between 3 months - 6 months.
This Short Term Fund Scheme will endeavour to generate stable returns over short term with a low risk strategy while maintaining liquidity through a portfolio comprising debt and money market instruments. However, there can be no assurance that the investment objective of the scheme will be achieved.
The primary investment objective of the Indiabulls Income Fund Scheme is to generate a steady stream of income and medium to long term capital appreciation/gain through investment in fixed income securities such that the Macaulay duration of the portfolio is between 3 years – 4 years. Portfolio Macaulay duration under anticipated adverse situation is 1 year to 4 years. However, there can be no assurance that the investment objective of the Scheme will be achieved.
The primary objective of the Indiabulls Savings Income Fund Scheme is to generate regular monthly returns through investment primarily in debt securities. The secondary objective of the Scheme is to generate long-term capital appreciation by investing a portion of the Income Fund Scheme's assets in equity securities. Monthly Income is not assured and is subject to availability of distributable surplus. However, there can be no assurance that the investment objective of the scheme will be achieved.
A money market scheme that seeks to provide reasonable returns, commensurate with moderately low risk while providing a high level of liquidity. However, there can be no assurance or guarantee that the investment objective of the Indiabulls Savings Fund Scheme would be achieved
To generate reasonable returns commensurate with the risk taken by active duration management of the portfolio. The Scheme would be investing in debt instruments including but not limited to bonds, debentures, government securities and money market instruments over various maturity periods. However, there can be no assurance that the investment objective of the scheme will be achieved. The Scheme(s) does not assure or guarantee any returns.