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Axis Mutual Fund presents a smart way of making your savings move up
So, with debt funds, you can...

Smarter than regular savings solutions and less risky than Equity, Debt Mutual Funds are solutions you must consider in your investment portfolio.

Here’s why debt funds are smarter than savings, and less risky than equity:
Stability with less volatility
Debt funds are less volatile compared to equity funds, making them more stable.
Flexibility & Liquidity
Professional fund management
Access to smart strategies
Tax efficiency
Less sensitive to market fluctuations
Access to instruments with fixed maturity & interest rates

Disclaimer: For individual nature of tax implications, investors are requested to consult their tax advisors before investing.

Features of Debt Funds
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Invest in debt securities like bonds & commercial paper
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Debt securities have pre-defined interest / coupon rate & maturity
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Allocate at least 65% of the fund’s corpus to debt securities
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Typically carry credit risk, interest rate risk, and reinvestment risk
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Returns depend on interest earned & price movement of overall portfolio

Types of Debt Funds

Debt mutual funds can be classified based on the type of securities they invest in and investment horizons:
1 day to 3 months
  • Overnight funds
Invest in debt securities that mature in 1 business day
  • Liquid Funds
Short-duration debt portfolio of residual maturity up to 91 days
3-6 months
  • Money market funds
Invest in debt securities of short maturity & low credit risk
6-18 months
  • Ultra-short funds
Comprise debt instruments of portfolio duration between 3-6 months
  • Low duration funds
Invest in fixed income instruments of duration between 6-12 months
1-3 years
  • Short duration funds
Constitute securities of duration between 1-3 years
  • Floater funds
Invest in floating rate instruments to benefit from fluctuating interest rates
3+ years
  • Medium duration funds
Invest in debt securities with duration between 4 to 7 years
  • Credit risk funds
Leverage credit-related opportunities through bonds that don’t have the highest rating
  • Dynamic bond funds
Portfolio comprises different maturities based on economic climate & the fund manager’s discretion
  • Gilt funds
Access to government securities across maturities

Frequently Asked Questions

Are debt mutual funds risk free?

No. Debt mutual funds are subject to various risks like interest rate risk, credit risk , reinvestment risk, etc. Interest rate risk refers to changes in the security’s price due to change in interest rates. Credit risk is the risk of non-repayment of the principal and interest by the issuer. Depending on the duration and structure of the schemes, the influence of the risks may vary.

Do debt mutual funds guarantee return?How can debt funds bring stability to your portfolio?Do debt funds have lock-in periods?What is duration in debt funds? Is it different from maturity?How do debt funds work?Who should invest in debt funds?What is indexation in debt funds?Which debt fund is best suited for me?
Disclaimer: This is an investor education and awareness initiative by Axis Mutual Fund. Investors have to complete one-time KYC process. Visit www.axismf.com or contact us on customerservice@axismf.com for more information. Investors should deal only with registered Mutual Funds, details of which are available on www.sebi.gov.in - Intermediaries/Market Infrastructure Institutions section. For any grievance redressal, investors can call us on 1800 221 322 or write us at customerservice@axismf.com or register complaint on SEBI Scores portal at https://scores.gov.in
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.