Can you please guide me to choose between Index fund and Debt fund? I wish to build a corpus with 10% annual return without indulging in much risk. Can you also suggest some of the funds from above categories?
Ans: Hello Abhinaya, As regards your concern, both categories fall under different asset classes.
Indexes are equity assets and Debt Funds are asset classes themselves. Compared to Index Funds, which are low-risk equity funds, debt funds carry minimal or very little risk.
Listed below are some schemes for above categories:
- HDFC Index Fund - S&P BSE Sensex Plan Quant Flexicap Fund
- UTI Nifty 50 Index Fund
- ICICI Pru Short Term Fund
- Aditya Birla Sun Life Corporate Bond Fund