The simplest type of a debt is a long-term bond fund. It is diversified across different kinds of fixed income instruments and is typically meant for long-term investments. The structure may be common, but making money out of it is a bit tricky.
What is it about?
A long-term bond fund is meant for investors who wish to make money over the long term, typically over a period of 3-5 years. Like we have always said, debt funds are to be chosen based on your investment tenure.
Hence, while other debt funds, like corporate bond funds and short-term bond funds are typically meant for horizons of up to roughly 3 years, the long-term bond funds are typically meant for the longer haul.
