Frequently Asked Questions

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Bonds and NCDs

What are the differences between Bonds and Debt Mutual Fund?


Bonds are debt securities issued by entities like corporates or government organizations for a predefined duration. Debt Mutual Funds are Mutual Funds that invest in debt securities such as Bonds, Debentures, Commercial Papers, and other Fixed Income Securities. Debt MFs are an indirect way of investing in Bonds. For fixed investment needs, it is always better to invest in Bonds than Debt MFs. Refer to the table below: it reads the differences between Bonds and Debt Mutual Funds.