Debt Funds
Debt Funds invest in long-term borrowing of the government or corporate issuers at fixed rates of interest. These funds earn their returns from the interest payments that they receive from bonds / gilts and the fluctuations in the market price of their holdings. A Debt Fund is suitable for investors with a low risk appetite.
Equity Funds
Equity funds typically invest in stocks of companies. Compared to Debt and Hybrid Funds, these are high-return funds. Here's a tip: equities investments give the best results if you enter give your investments 3-5 years to grow.
Hybrid Funds
Hybrid Funds invest in both equity and debt markets. Hybrid investments are extremely proficient for investors who desire a higher return compared to debt funds but at slightly higher risk levels. Considering that a Hybrid Fund invests your money in equity markets as well, it can give an additional boost to your portfolio. |
