Bond/Debenture
What is Bond/Debeture?
A bond debenture in a mutual fund refers to a type of mutual fund that primarily invests in bonds or debentures issued by corporations, governments, or other entities.
Bond: A bond is a fixed income investment where an investor loans money to an entity (typically a corporation or government) which borrows the funds for a defined period of time at a variable or fixed interest rate.
Debenture: A debenture is a type of bond or long-term debt instrument issued by corporations or governments to raise capital. Unlike secured bonds, debentures are not backed by specific assets.
bond debenture mutual fund is a mutual fund that invests primarily in bonds and debentures. Investors in these funds typically seek stable income streams and are often interested in diversifying their portfolios beyond stocks. These funds may vary in terms of the types of bonds they invest in (e.g., corporate bonds, government bonds, high-yield bonds) and their risk profiles.Mutual funds are managed by professional fund managers who make investment decisions on behalf of the investors.
