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What is Understanding Debt Fund Risks about?

Debt funds are commonly perceived as safe investment options, but they carry more risk than liquid funds. While debt funds may provide higher returns than liquid funds over the long run due to their longer investment horizons, their net asset values are more volatile as they are impacted by changes in interest rates. Investors need to be aware of the risks and ensure debt funds only make up a small portion of their overall portfolio to minimize losses from interest rate fluctuations. Liquid funds remain a s

Author

Rajat Kaushik

Language

EN