5 Basic Terms To Know About Debt Funds

Published On: 04-Jul-2017

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5 Basic Terms To Know About Debt Funds

Investing in a debt fund is quite different from buying a bond.

5 Basic Terms To Know About Debt Funds

Investing in a debt fund is quite different from buying a bond and holding it till maturity. In such instances, you won't lose your principal unless the bond issuer defaults. When you invest in a bond fund, however, the value of your investment fluctuates. Here we tell you what terms to be aware of before you invest in a debt fund.

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01

Coupon rate

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02

Yield

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03

Yield to Maturity

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04

Modified Duration

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05

Weighted Average Maturit

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