Fixed income mutual funds are those mutual fund schemes whose underlying assets are fixed-income securities, such as - government securities, debentures, corporate bonds, and other money market instruments. These funds are also broadly known as debt funds. Corporate Bond Funds, Dynamic Bond Funds, Banking & PSU Debt Funds, Gilt Funds, Liquid Funds etc. fall under the category of Fixed Income Funds.

A fixed-income mutual fund typically carries features like:

Invests in Fixed Income Securities: It aims to generate returns by investing in bonds and other fixed-income securities. This means that these funds buy bonds and earn interest income on the investments.

Lower Market Volatility: Fixed Income securities have a lower volatility and are less affected by varied market fluctuations.

Diversified Portfolio: Debt funds tend to be invested in both