Debt Fund Investments

Debt funds are nothing but investing in fixed income papers. The debt markets includes corporate banks and it comes in both short term as well as long term. Even government securities are also part of this debt funds

All companies need money to run their operations. They will get this money in two ways one is through listing the company and the other one is borrowing the money from some individual or coporate lenders at specific interest rates. The borrower (i.e. the company) promising the lender that he would pay back interest at certain intervals and the principal at the end of the term

RBI the government's bank also borrow money from the market. They will borrow money on behalf of central government, such securities which matures after a year what called as Government Securities and those that mature within a year called as treasury bills.