Multiple choice

Debt funds target

  1. Protection of principal

  2. High growth with risk

  3. Long term capital appreciation

  4. Low risk and stable income

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Debt funds primarily aim to generate stable income with lower risk by investing in fixed-income securities like bonds, debentures, and money market instruments. Their main objectives are protecting principal and earning regular interest, not high growth or quick appreciation.