Debt funds are widely popular in the stock market for multiple reasons. They offer you the perfect platform to increase your funds without any complications. You need to know the details of the different types of debt funds available in the market to determine the appropriate fund's competency for your investment plan. If the investor chooses the funds correctly, there is a higher chance of getting profitable returns. But for that, one must know the availability of different sorts of debt funds in the market.

Liquid Funds

Comes with a maximum duration of ninety-one days for maturity, liquid funds are one of the common types of debt funds available in the market. As these come with a short period, hence these tend to offer the investors quite profitable returns in terms of investments. If you are looking for an alternative for converting your funds, this one is the best option for you. Make sure to know how to buy debt for pennies on the dollar while investing in such debt funds for your profits.

Dynamic Funds

The next one on the list is the dynamic bond fund, which comes with varying maturities in the market. The maturities tend to depend on the interest rate regimes and tend to fluctuate depending on the current market situation. These come with moderate risk tolerances and are quite handy for the ones looking for investing in the duration of 3 to 5 years.

Corporate Funds

If you want to know how to buy debt for pennies on the dollar, you might consider investing in the corporate funds. These are one of the lucrative funds you will come across in the market. Although you need to invest most of your assets, yet they come with the highest rating with comparatively lower risk tolerance than the other debt portfolios available in the market. Make sure to invest in a superior-quality corporate bond to get the maximum profit in their business benefit.

Money Market Funds

These funds are available with a maturity till one year. These are mainly available to provide a stable asset value via liquid investments and pay income to the investors in terms of dividends. In case you are a beginner and looking for low-risk investments for short-term returns, you might consider investing in money market debt funds.

The other types of debt funds include banking, gilt funds, credit risk funds, floater funds, etc. Knowing the intricate details of these funds would guide you through the selection process. You need to check the expense ratio, returns, and the duration of the funds before investing in any debt portfolios available in the market. Make sure to choose the affordable one with lower risks to get maximum investment benefits.