Debt funds are a type of actively managed mutual fund that primarily invests in debt instruments such as Treasury bills (T-bills), Government securities (G-secs), commercial papers (CP), government and corporate bonds, certificates of deposit (CD), and money market instruments. 

What are the different types of ?

1)      Liquid Funds:

This is considered relatively less risky among mutual funds. As the name suggests, they are liquid and allow investors to redeem and liquidate their investments depending on their needs. The portfolio of this fund comprises instruments that have a short maturity period of not exceeding 91 days.