A debt fund is a mutual fund that lends money (to governments and companies) rather than buying shares, so it aims for steadier, more modest returns than equity, with less volatility. For a founder the usual role is the safer, medium-term slice of your money: a home for cash you will not need for a year or few but do not want swinging with the stock market. They are not risk-free (credit and interest-rate risk are real, so stick to high quality, short duration funds for safety), and their tax treatment has changed in recent years, so check the current rules. Use them as ballast and for near-term goals, not as a growth engine.
4 resources, 4 India-specific, 3 link-checked.
What debt funds are, the types, the risks, and their recently changed tax treatment in India, before you park money in one.
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