What Are Debt Funds?

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What Are Debt Funds?

Gloria Rep Points:

Posted on September 8, 2009 at 3:44 am

I googled what are debt funds, and came up with this:"An investment pool, such as a mutual fund or exchange-traded fund, in which core holdings are fixed income investments. A debt fund may invest in short-term or long-term bonds, securitized products, money market instruments or floating rate debt. The fee ratios on debt funds are lower, on average, than equity funds because the overall management costs are lower."But I do not know what it means...can somebody translate this in English please? THANK YOU!

jill Rep Points:

Posted on September 8, 2009 at 4:29 am

I don't know what debt funds are too..it may have something to do with investing in businesses that deal with debt..like the home equity market..

capri Rep Points:

Posted on September 8, 2009 at 4:42 am

what exactly are debt funds? can they be identified?I read somewhere that debt funds deliver steady returns but the returns are not as attractive as equities.