Risk associated with Debt Fund

POSTED BY Arshad Mirza ON October 20, 2012 4:58 pm ONE COMMENT

Hi All,

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?

Thanks,

Arshad

One reply on this article “Risk associated with Debt Fund”

  1. 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) .

    Manish

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