Funds
What is debt fund?
A mutual fund that lends money rather than buying shares.
Explained in more detail
It holds bonds and similar instruments issued by governments and companies. Returns are usually steadier than equity but lower over long periods, and since April 2023 the tax treatment in India has been the same as a fixed deposit.
An example
For instanceMoney you need in two years often sits better in a debt fund than in equity.
Why this matters to you
You will meet this word in broker apps, company results and market news. Knowing what it means is not the goal on its own. The goal is being able to judge whether a number is good or bad for the investment you are actually holding.
On AlphaVik, any time debt fund appears in a view or a lesson, you can hover or tap the word and this explanation comes with it. You never have to leave the page to look something up.