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Profits Ki Baat: What is Debt Linked Savings Scheme? Know the benefits of investing according to today’s need

Highlights

Debt funds are also known as income funds and bond funds.
ELSS i.e. Equity-Linked Savings Scheme is most popular for investment.
Most of the investments in debt funds have been made in AUM liquid funds.

New Delhi. Investing through mutual funds is considered safer than investing directly in the activity market. Because here fund managers manage your money better. Before investing in mutual funds, we must know about its different categories and the returns they get. One of them is Debt Fund, a mutual fund scheme that invests in corporate, government bonds, corporate debt securities and money market instruments.

Debt funds are also known as income funds and bond funds. There are some advantages of investing in debt funds. Among these, their low cost nature, stable profits and safety are important. Debt funds are suitable for investors who want regular income without taking any risk. Let us know about the important schemes related to debt funds.

Also read- Record investment in mutual funds through SIP, youth made maximum investment, told the main reason for this

Growing Popularity of ELSS
Among the many fund categories offered by mutual funds, ELSS i.e. Equity-Linked Savings Scheme is the most popular. There are 1.43 crore folios in ELSS till the end of August 2022. The most reason for this is that it provides tax benefits under Section 80C of the Income Tax Act. Apart from this, this scheme gives returns linked to the equity market. Therefore ELSS has attracted a large number of investors.
has attracted towards you.

Investment in AUM also increased
At the same time, the highest investment in debt funds is in AUM liquid funds, which is Rs 4.2 lakh crore. Because it also includes corporate investors. This is followed by large-cap and flexi-cap funds. The total assets under management of mutual fund companies have increased to Rs 39.88 lakh crore on a yearly basis in September this year.

Large-cap funds have given negative returns of 1.6% in the last one year, 15.4 per cent in the last three years, 10.6% per annum in the last five years and 12.7 per cent in the last ten years as on 6 October 2022. Mutual funds are meant for the public, although corporates also invest in it. The popularity of ELSS is due to tax benefits and better performance. At the same time, debt-linked savings schemes include parameters related to tenor and credit risk.

Tags: investment and return, Mutual funds, stock market

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