Who Should Invest in Corporate Bond Debt Funds?
Investors who should invest in Corporate Bond Debt Funds are looking for the following points :
1. Investors Looking for Stable Income: Returns on corporate debt funds are usually predictable. However, there is no assurance of consistent profits. When interest rates vary, long-term debt funds, such as corporate bond funds become riskier.
2. Investors with a Moderate Risk Profile: Corporate bond funds are less risky than other types of debt funds. However, they are not fully risk-free. As a result, while investing in these funds, investors should have a moderate risk tolerance.
3. For Conservative Investors: Corporate bond funds that invest in high-quality debt securities preserve capital. As a result, they are better suited to risk-averse investors seeking fixed income rather than aggressive investors.
4. For Medium-Long Term Horizon: These debt funds are appropriate for investors with a 2-3 year investment horizon. Investors who wish to take advantage of the indexation benefit on capital gains taxes must invest for at least three years. businesses