Debt Mutual Fund- Explained in a Laymen Language

Debt Fund or Fixed Income or Deposit Income or Regular Income funds or Rental Income from fixed asset , Its a Bond between lender and borrower , borrower will bound to repay principal amount at the end of the bond contract and interest on principal will be paid periodically as set in the bond contract , Fixed Deposit in bank , Public Provident Fund in Bank or post office , Recurring deposits , National Saving Certificate, Government Provident Fund , Employee Provident Fund all are different instrument under fixed income schemes ,  Like an owner of a vacant house gives his property to Tenant to live in and tenant pays rent to owner of the property and rental is fixed in nature and there is contract of rental agreement between two parties viz. owner and tenant for 11 months in India , post 11 months the contract of agreement needs to be reviewed for further extension ? Like this we have borrower of the funds and the lenders of the funds in the market , general public invests their surplus to such instruments that helps the issuer of the fixed income to receive money to run the operations , and in turn issuer or lenders promises to pay back the Principal to the investors after a agreed time period and in middle pays return in form of interest income as per agreed rate of interest as per market dynamics and inflation .   

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