Deepak I always thought debt funds were 💯% safe, How are debt funds giving negative returns? In the last two days a few debt funds have given negative returns, due to some funds having marked down the value of their investments.
Debt funds Invest in different companies and if the interest or capital is not paid back on time the value has to be marked down, some funds have decided to do it now resulting in a fall in the NAV.
Remember the tagline of Mutualfund ads, "Mutual Fund Investments are subject to market risks"
It doesn't say only equity funds are subject to risks, debt funds are also subject to risks.
But every where people say shift money from Bank to debt funds for higher returns.
Whenever you want to make an investment, always consult your investment advisor, decide on your risk profile and financial goals only then Invest.
Do not invest basis recommendations on social media or on advertisements.
It's your hard earned money, stay safe Stay secure.
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#deepakrkhemani
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