Understanding Debt Fund and Equity Fund

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Understanding equity and debt funds will enable the investor to decide on where to allocate their assets to the best of its use.
to allocate their assets to the best of its use

As we can nowadays see the market has its highest risk where the question comes now in which funds can we invest either equity or debt funds.

Understanding equity and debt funds will enable the investor to decide on where to allocate their assets to the best of its use.

First let us understand what equity and debt funds.

Equity Fund

Equity fund also known as stock fund which primarily invests shareholders money in stocks.  It generates higher returns by investing in stocks of companies across all market capitalisation.

Debt Funds

They are securities basically invested in which provide a fixed income where it has chances of the market being less volatile as compared to the equity funds. It provides a steady investment to the investor and does not have to worry about the risk in the market.

Here the basic difference between equity and debt fund can be evaluated:

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