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.