Debt Funds Risky ??

Till this morning, everything was fine but suddenly news broke that a mutual fund company has wound up their six schemes of Debt Mutual Funds. It triggered panic all over leading to speculations among people. The slump in case of Equity Market was inevitable because Share Market has plummeted, so our portfolio will go down. In case of debt funds there are some parameters which need to be factored in before selecting a scheme.

Generally investors put their money in schemes which offer higher returns, without understanding the risks in those funds. I personally feel that you should either make a proper research before investing or hire a professional to do it on your behalf.
As far as debt funds are concerned, there are some schemes which offer very low returns but are relatively insulated from market risks.

During the prevalent crisis, we need to realise the gravity of the situation and deep dive into the economics of financial market before making any monetary decisions.
Every crisis has a key takeaway for potential and existing investors. I hope we take a lesson from this pandemic Covid -19  that debt funds have their own risks attached and proper groundwork should be done before investment.


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