Buying a debt instrument can be considered as lending money to the entity issuing the instrument. A debt fund() invests in fixed-interest generating securities such as corporate bonds, government securities, treasury bills, commercial paper, and other money market instruments. The fundamental reason for investing in debt funds is to earn a steady interest income and capital appreciation. br SIP. br Starting SIP will help investors to divert funds consistently, hence inculcating a savings habit. br As debt funds can give long term, risk-free return in range of 8 per annum. br It means it helps in capital appreciation as well. br Debt funds() also provide investors with option of income generation.