In this episode of Smart Money, the focus is on investing in debt funds. A basic masterclass on why you should invest in debt funds, the myths around investing in debt funds, and how to go about it if you are a beginner.

Speaking to CNBC-TV18, Nasser Salim, Managing Partner at Flexi Capital, said, “Debt as an asset class is binary, the risk is binary. If you get your money or you don't get your money, unlike equity is an asset and therefore, it's very important for investors to know that there are inherent risks in debt just like the way there are risks in FDs for example also.”

He added, “Debt as an asset class comprises multiple factors that you need to look at before investing, which is why we also have SEBI which repeatedly comes out and says they have launched risk-o-meter in debt funds. We have also had many disclaimers being put out saying that past performance should not lead to future guaranteed returns, and so on, so forth. So I think it's very important to understand that.”

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Also Read: Here's how equity mutual funds have performed in August 2022