What are passive debt mutual funds: 5 things to know

1.Passive debt funds are fixed income mutual funds which track debt or money market index in terms of portfolio.
2.They invest in highquality debt instruments.
3.Passive liquid funds, passive gilt funds and target maturity schemes are three types of passive debt funds.
4.Since the funds are passively managed, they are relatively low in cost as compared to actively managed debt funds.
5.Passive debt funds provide stable and visible returns over a specific time horizon.


Content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.