What type of securities do debt funds primarily invest in?

"Stocks" "Bonds" "Real Estate" "Commodities"

What are the potential risks associated with investing in debt funds?

"Higher returns than equity funds" "Fixed interest rates unaffected by market conditions" "Investing in high-risk corporate bonds" "Guaranteed returns regardless of economic climate"

What is a key factor that can negatively impact the performance of debt funds?

"Decreasing interest rates" "Rising interest rates" "Stable market conditions" "Low inflation"

What should investors consider before investing in debt funds?

"Their tolerance for risk" "Current stock market trends" "The latest cryptocurrency valuations" "Predictions about future interest rates"

What is a recommended strategy for mitigating risk in a debt fund investment?

"Concentrating investments in a single high-yield bond" "Investing only in government securities" "Diversifying the investment portfolio" "Timing the market to buy low and sell high"

What is a common misconception about debt funds?

"They are equivalent to savings accounts" "They guarantee high returns" "They are only suitable for short-term investments" "They are a risk-free investment option"

What is a potential indicator of rising interest rates impacting a debt fund portfolio?

"Increasing bond prices" "Stable or increasing returns over time" "Declining returns over time" "A surge in demand for bonds"

What is a recommended course of action if an investor has concerns about their debt fund?

"Ignore the concerns and hope for market improvement" "Immediately withdraw all funds from the investment" "Contact the fund manager to discuss the situation" "Invest more money to average down the losses"

What is an alternative investment option to debt funds that offers potentially higher growth but with increased risk?

"Savings accounts" "Certificate of Deposits (CDs)" "Real estate" "Money market funds"

What is a crucial factor to consider when choosing a debt fund?

"Past performance guarantees future returns" "The fund manager's popularity" "Alignment with the investor's financial goals" "The fund's marketing materials"