Debt funds are comparatively less volatile mutual funds. They invest in fixed income securities, such as short-term plans (STPs), gilt fund, bond and treasury bills, monthly income plans (MIPs), fixed maturity plans (FMPs). Investments in debt funds are made considering absolute returns. Such investments usually create a steady source of income while preserving capital. On an average, the fee ratios of debt funds are less than that of equity funds.
Name of AMC: ICICI Prudential Asset Management Company Limited