Question 1

Are debt Mutual Funds risk free?

Accepted Answer

Given the nature of securities that debt funds invest in, debt funds can be exposed to three types of risks, viz. interest rate risk, credit risk and liquidity risk.

Question 2

Do debt funds have a lock in period?

Accepted Answer

Most of the debt funds are open-ended and do not have lock-in period. Fixed Maturity Plans are one kind of debt mutual funds schemes with a pre-specified tenure. The basic objective of FMPs is to generate steady returns over a fixed period, thus immunizing investors against market fluctuations. FMPs are meant for investors who wish to lock their money at attractive yields prevailing at a given time

Question 3

How do I choose the right debt fund to invest in?

Accepted Answer

Based on you risk appetite & investment horizon you can choose from a wide array of debt Mutual Funds on digibank. The digibank app will also prompt you in case you choose a fund which is above/outside your risk profile. To know about the top performing debt Mutual Funds refer our report here at https://www.dbs.com/digibank/in/dbs-funds/dbsfundinformation.html

Debt Mutual Funds

Debt Mutual Funds

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