Debt Fund

Debt Fund - a debt fund is a pool fund held by several investors in which the core holdings are fixed income investments The Debt fund (pooled group of investors) may invest in long term or even short term bonds, floating race debt, money market funds, or securitized products... The main objective of a debt fund is the preservation of capital and to generate income... The fees ratio for debt funds are usually smaller then equity funds (on average), because the overall management costs are lower. Performance on a benchmark is considered to be secondary when investing in a debt fund.