When looking at the various schemes of mutual funds, you might come across the question, “what is a debt fund?”. It all starts with an organisation having the need to borrow money. An investor will then lend money to these companies in exchange for returns that are steady and stay constant. When you buy debt funds , the issuer will be borrowing money from you. These investments are made in government securities, T-bills, corporate bonds, commercial papers, deposit certificates, etc. The issuer can be a public or private organisation or the government. The focus of these income funds is to increase the value of the company’s capital as well as gain a steady lending rate. The rate of interest and duration are set in advance by the issuer. Thus, it is also known as fixed-income funds. If you have certain goals related to finance and want to accomplish them, the PGIM is one of the top fun houses that offer a range of schemes for debt mutual funds. How Does A Debt Fund Work? We now hav