One of the unfortunate yet common errors that amateur investors commit is directing all their funds into one kind of investment. The hallmark of a successful investor would ideally be a diversified portfolio. In a nutshell, this means that the investor will need to be exposed to multiple asset classes. One such major asset class apart from equity is debt. Debt is one of the most prominent markets that investors can place their funds to multiply their wealth. For those commencing their investment journey, debt funds are a crucial segment that should be a part of their portfolio. But before delving into the details of what to know before choosing a debt fund, one needs to understand what a debt fund is and how it works.
