Debt mutual funds should form part of investor’s core portfolio.

The interest on bank deposits have come down from 8% in 2015 to 5.50% in 2020. And post-tax, the net return for the investor gets reduced further.

To bring stability to your portfolio and at the same time generating better post tax-yield in the fixed income space, invest in debt mutual fund schemes for proper asset allocation and to re-balance the portfolio periodically.

There are various categories of debt mutual funds. The selection of debt fund depends on risk appetite and period of investment.

Recommended Debt Funds