October 20, 2012 4:58 pm
What are the risk associated with debt funds (Dynamic Bond funds to be specific). Can they go negative as well in terms of ROI like equity funds?
The main risk is of the interest rate change , which can impact the yield (read return) and mainly the quality of the debt instruments the fund is investing in . HIgher the quality, better the chances of getting stable return (not high always) .
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