Difference between Equity and Debt Funds Equity funds and debt funds are two types of mutual funds that invest in different types of securities. Equity funds invest in stocks, while debt funds invest in bonds and other fixed income securities. Further, we will discuss the key differences between equity and debt funds. Firstly, let's read about - What are Equity and Debt Funds ? Equity funds are mutual funds that invest in stocks of publicly traded companies. These funds can be further categorized into different types of funds, such as large-cap, mid-cap, small-cap, and sector-specific funds. Debt funds, on the other hand, invest in fixed income securities such as bonds, debentures, and other debt instruments issued by companies, banks, and governments. Let’s read about their differences - Risk and Return Equity funds are generally considered to be more risky than debt funds. This is because stocks can be volatile and their value can fluctuate based on a variety of factor...
Comments
Post a Comment