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Invest in mutual funds or bonds?

It depends on your investment goals and risk apetite. If you are a high risk investor willing to take a few risks with your investment for higher returns go for Mutual funds. If you are a safe investor willing to compromise on returns for safety then go for bonds. Bonds are debt instruments and hence safe whereas mutual funds are stock market instruments and hence carry a risk.


What are the different types of funds available for investment?

The main types of funds available for investment include mutual funds, exchange-traded funds (ETFs), hedge funds, and index funds. Each type of fund has its own characteristics and investment strategies, catering to different risk profiles and investment goals.


What is the risk involved in business debt?

Mainly 3 types of risks are involved in the debt ie. interest rate risk,Liquidity risk & credut risk. Remeber that debt doesn't mean the risk free investment.


Is the investment of mutual funds risky?

Yes they are. Since mutual funds invest in the stock market they carry the same risk that stock market has. If the price of stocks tumbles due to some reason, the value of a mutual fund goes down and hence our investment worth also goes down. Certain type of funds like debt funds and balanced funds do not bear the brunt of a stock market collapse but they suffer losses too, during an economic crisis.


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.

Related Questions

Invest in mutual funds or bonds?

It depends on your investment goals and risk apetite. If you are a high risk investor willing to take a few risks with your investment for higher returns go for Mutual funds. If you are a safe investor willing to compromise on returns for safety then go for bonds. Bonds are debt instruments and hence safe whereas mutual funds are stock market instruments and hence carry a risk.


What are the different types of funds available for investment?

The main types of funds available for investment include mutual funds, exchange-traded funds (ETFs), hedge funds, and index funds. Each type of fund has its own characteristics and investment strategies, catering to different risk profiles and investment goals.


What is the risk involved in business debt?

Mainly 3 types of risks are involved in the debt ie. interest rate risk,Liquidity risk & credut risk. Remeber that debt doesn't mean the risk free investment.


A risk of money to get something in return is called?

Investment


The risk of Lower tier II debt investment?

http://en.wikipedia.org/wiki/US_emission_standard


Is the investment of mutual funds risky?

Yes they are. Since mutual funds invest in the stock market they carry the same risk that stock market has. If the price of stocks tumbles due to some reason, the value of a mutual fund goes down and hence our investment worth also goes down. Certain type of funds like debt funds and balanced funds do not bear the brunt of a stock market collapse but they suffer losses too, during an economic crisis.


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.


What are the best investment options for beginners in 2015?

For beginners in 2015, the best investment options are low-cost index funds, exchange-traded funds (ETFs), and diversified mutual funds. These options provide a good balance of risk and return, and are easy for beginners to understand and invest in.


What are the different types of investment fund structures available for investors to consider?

Investors can consider various types of investment fund structures, including mutual funds, exchange-traded funds (ETFs), hedge funds, and private equity funds. Each structure has its own characteristics and level of risk and return potential.


Is a bank fixed deposit the safest investment option in India?

The role of FDs in an investor's portfolio is something that needs to be carefully considered. While you can earn better returns than an FD by investing in debt mutual funds, but ensure that you take the right kind of debt fund based on your needs and risk profile.


What does Aim Mutual Funds do?

Aim Mutual Funds provides a variety of Mutual Funds to suit various investment objectives. These funds would include stock and bond funds with various amounts of risk and return ratios for different types of investors.


How can I find mutual fund options that align with my investment goals and risk tolerance?

To find mutual fund options that match your investment goals and risk tolerance, you can research and compare funds based on their investment objectives, historical performance, fees, and risk levels. You can also consult with a financial advisor for personalized recommendations.