What Are Debt Mutual Funds And Why You Should Invest In Them? Debt Mutual Funds Invest Funds In Fixed-Income Instruments Like Corporate Bonds, Govt Securities, Etc Benefits Of Debt Mutual Funds Debt Funds Help Investors In Building An Emergency Corpus These Funds Suit Investors Who Have A Low-Risk Appetite Debt Funds Provide Indexation Benefits And A Space For Capital Preservation Investors Can Build A Steady And Reliable Income Source Via Debt Funds Debt Funds Are Relatively More Liquid And Yield Higher Returns Debt Funds Are A Great Way For Individuals To Diversify Their Investments Capital Gains From Debt Funds Held For Over 3 Years Are Taxed At Lower Rates