Page 87 - BFSI CHRONICLE 3092022.indd

BFSI Chronicle, 11 Edition September 2022
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DEBT

utual Funds offer mainly three investment
options viz. Equity Funds, Hybrid/Balance
Funds & Debt Funds. Investors having less
risk tolerance prefer to invest in debt mutual
Mfunds. Since debt mutual fund schemes invest
in fixed income generating securities such as corporate bonds,
Commercial Papers (CP), Certificate of Deposit (CD), Treasury
-Bills, Government securities and money market instruments.
These securities have a fixed maturity date and interest rate, the
investor earns fixed return till the maturity. These securities are
considered to be less volatile and low risk securities than equity
and hybrid funds and also provide more liquidity than traditional
debt instruments such as NSC, PPF, Company Deposits, Bank
Deposits etc.

Types of Debt Funds
There are various types of debt mutual funds available for investors
and investor can choose the suitable debt fund based on the
maturity period, risk tolerance and his investment objective.

Shri Sudhakar Kulkarni Overnight Fund:
Certified Financial Planner CM This fund invests in securities which have a maturity period of 1

day. Overnight Fund carry minimal credit risk and interest rate risk
owing to such a short maturity period and are hence perceived to

The Institute Of Cost Accountants Of India

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