Mutual fund is one of the most popular ways to invest your money in distinct types of asset classes. Aggressive investors have option to explore opportunity in equity related schemes for a high return, whereas conservative investors can invest in appropriate debt related fund for low risk exposure.
A debt fund carries low risk in comparison to the equity oriented mutual fund, but they are not totally risk free as many people think. There are several types of debt mutual fund for different investment objectives and each fund are subject to certain risk.