A debt fund is a mutual fund scheme that invests in fixed income instruments, such as Corporate and Government Bonds, corporate debt securities, and money market instruments etc. that offer capital appreciation. Debt funds are also referred to as Income Funds or Bond Funds.
The debentures which can't be converted in Equity are called non-convertible debentures (or NCDs). Description: Non-convertible debentures are used as tools to raise long-term funds by companies through a public issue.
While standard FDs are offered by banks, Corporate FDs or Company Fixed Deposits are Fixed Deposit Schemes offered by companies and Non-Banking Financial Corporations. Non-Convertible Debentures are also a type of corporate FD. Companies offer Fixed Deposit Schemes to the public as a practice of raising funds for business expansion or clearing debt.
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