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<p>Investing in a debt fund is quite different from buying a bond.</p>

<p><strong>5 Basic Terms To Know About Debt Funds</strong></p>

With an emerging preference for channelising household savings through mutual funds, international funds also gain their share of popularity. Such funds provide a sense of geographical and currency diversification to the investment portfolio, thereby mitigating the systemic investment risk to some extent. 

However, the decision to invest in such funds should be based on a specific review and not a herd decision after noticing the recent outperformance of such funds. Here are six questions you must ask before you invest globally:

<p>What is a Mutual Fund?</p>

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<p>Quote: Smart Choices Make for Smart Investments</p>

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<p dir="ltr"><strong>At The Outset</strong></p>

<p dir="ltr"><strong>What is your investment objective?</strong></p>

<p dir="ltr">A smart investor&rsquo;s financial planning is based on a clear investment objective. You need to define an objective for yourself to help decide which schemes to invest in.</p>

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<p dir="ltr">Risk is a part and parcel of all investments. For <a href="https://www.utimf.com/">Mutual Funds</a>, risks can be minimized through careful investment and good ear for market movements.<br />
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<p>When investing in <a href="https://www.utimf.com/">mutual funds</a>, one can invest in either open-ended funds or close-ended mutual funds. Owing to the different features under these two categories, such funds may be suitable for different types of investors.</p>

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A smart investor folio should have the right balance of equity and debt funds. However, every folio reflects the investor personality, risk tolerance and their investment goals.

<p>The central bank tinkers with these five rates when it wants to affect the liquidity in the economy or control inflation.</p>

<p><strong>What are the key rates the RBI uses?</strong></p>

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