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Mutual funds have many good-looking features for beginner investors; individuals can frequently attain greater returns and pay inferior fees at the same time as creating a diversify ICICI Prudential AMC assortment by a Separate Account managed through a Registered asset consultant.

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Q: Did you think debt is the cheapest source of funds?
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What are debt funds?

Debt mutual funds are like Equity mutual funds with one main difference. Equity mutual funds buy shares whereas Debt mutual funds buy bonds and other debt products. So the returns on investment would be similar to what a bank would give us.


What are debt mutual funds?

Debt mutual funds are like Equity mutual funds with one main difference. Equity mutual funds buy shares whereas Debt mutual funds buy bonds and other debt products. So the returns on investment would be similar to what a bank would give us.


Why is debt the cheapest source to finance a firm?

Because the firm don't have to pay an interest when obtaining it.debt isn't the cheapest source of finance on the contrarily interest must be paid on debt.The cheapest source of finance is retained earnings,this earnings can be converted into permanent share capital by issuing bonus shares t existing shareholders free of any cash contibutions


What is the cheapest and most important source of equity capital in a firm?

5. , the cheapest source of capital is debt. Whereas the most expensive source of capital is common stock. Because common stock holders do share the actual profit earned from the operation of a business. But when it comes to bonds, they are simply stated in terms of interest. Besides the ownership interest in common stock will make it more expensive while vice versa is for debt.


What does the term bond funds refer to?

Bond funds refer to debt investments. Debt investments are mortgage securities and goverment. In other words it invested in some sort of debt.


Name different categories of funds?

Some fund categories are: * Equity funds * Debt funds * Hedge funds * Fund of funds etc...


What is difference between mutual funds and debt?

Mutual funds are usually used to save for retirement, so you're increasing your assets. Debt is used to fund liabilities, actually the exact opposite of investing. Mutual funds add to wealth, debt takes it away.


What are debt funds in mutual funds?

Debt funds are specialized types of funds that invest in bonds and other debt instruments. Since they invest in debt instruments like government bonds, corporate bonds, debentures etc the returns are nearly guaranteed and at the same time, since they are safe instruments their returns are also only equivalent to bank deposits. Around 8-9% per annum.=======================Debt funds are funds that invest in long, medium or short-term income bearing instruments like corporate bonds, debentures, fixed deposits, treasury bills, commercial papers, etc. Debt funds guarantee a constant flow of returns and are less volatile than other equity funds that also form part of mutual funds investment.=======================Debt mutual funds are simply mutual funds that invest in an assortment of debt instruments like government bonds, fixed deposits and approved private deposits. Debt funds are primarily focused on getting regular returns. The fund invests in deposits with maturing tenures and varying interest rates. So when investing in these funds you should take care to match your individual time frame to that of the fund. The current income is also received in the form of dividend so the cash flow is generally tax free in the hands of investors.Debt funds are also highly liquid as they can be converted to cash easily and are useful in creating a well balanced portfolio.=======================Debt mutual funds are identical for parking time bound funds at minimal or no risk. Debt funds are useful for very conservative investors who don't want to take equity risk and want to keep their principal safe and earn decent return similar or slightly higher then bank fixed deposit or want to park their short term liquid funds. While investing in debt fund, one should be aware of the time horizon of investment after which he may require the funds for meeting his approaching goals.


Financing involves the provision of debt funds only?

true


What are interest bearing debt funds?

Interest-bearing debt funds are forms of capital that include loans, bonds, short-term notes, and interest-bearing payables to trade suppliers.


What are interest-bearing debt funds?

Interest-bearing debt funds are forms of capital that include loans, bonds, short-term notes, and interest-bearing payables to trade suppliers.


How many types of funds in markets?

Currently in India, they are: 1. Equity Diversified Funds 2. Equity Midcap Funds 3. Equity Infrastructure Funds 4. Equity Banking Funds 5. Equity Pharma Funds 6. Equity FMCG Funds 7. Equity Technology Funds (IT) 8. Arbitrage Funds 9. Equity Index Funds 10. Balanced Funds 11. Monthly Income Plans 12. Debt Funds 13. Liquid Funds 14. Income Funds 15. GILT Funds 16. Gold ETFs 17. Fund of Funds - Equity Oriented 18. Fund of Funds - Debt Oriented