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 –
Indiabulls Liquid Fund
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.
Indiabulls Short Term Fund
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.
Indiabulls Savings Income Fund
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.
Indiabulls Dynamic Bond Fund
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.
Indiabulls Overnight Fund
The scheme aims to identify securities which offer optimal level of yields/returns, considering risk-reward ratio. An appropriate mix of debt market securities and money market securities will be used to achieve this. The scheme will invest in Debt and money market securities getting matured on next business day. Money Market securities include cash and cash equivalents.