What Is a SIP and How Does It Work?
A simple look at Systematic Investment Plans, rupee cost averaging and the role of time.
Read articleEquity vs Debt Funds: Key Differences
How equity and debt schemes differ in what they hold, how they behave and the risks involved.
What they invest in
Equity funds invest mainly in shares of companies. Debt funds invest in fixed-income instruments such as government securities, corporate bonds and money market instruments.
Risk and volatility
Equity funds can be more volatile in the short term because share prices move with market sentiment and company performance. Debt funds carry interest rate risk and credit risk, which can also affect their NAV.
Time horizon
Equity funds are generally associated with longer holding periods, while many debt fund categories are used for shorter horizons. The right mix depends on your own needs and risk appetite.
Taxation
Equity and debt funds are taxed differently under current laws, and rules change from time to time. Please check the latest provisions with a qualified tax professional.
This article is for general information and investor awareness only and should not be treated as a recommendation. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
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