A debt fund is a type of mutual fund wherein the invested amount is distributed across securities that are likely to yield you a fixed income.
Points to Remember:
Debt funds offer a minimum amount of risk and a roughly fixed amount of returns.
They are also known as fixed income fund or credit fund.
Examples: Debt funds also include instruments such as: Gilt funds, Monthly Income Plans (MIPs), Short Term Plans (STP), Liquid Funds, Fixed Maturity Plans (FMPs) etc.