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Equity Funds vs. Debt Funds in India: Types, Benefits & More!

While making investment decisions, investors may be faced with a choice between equity funds vs debt funds. 

What is the meaning of equity funds?

Equity funds are a type of mutual fund which invests predominantly in equities and equity-related securities. They are usually considered a high-risk investment option. 

What is the meaning of debt funds?

Debt funds are a type of mutual fund which invests primarily in fixed-income securities, money market instruments, corporate and government bonds and corporate debt securities. They are usually considered to be a low to moderate-risk investment option. W

When comparing equity funds vs debt funds, it is necessary to consider their investment horizon, asset allocation, risk, potential returns and individual investor’s goals.

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