Debt-based mutual funds are mutual fund schemes that invest in fixed income assets or instruments, they can be Government bonds, corporate bonds, Treasury bills, Certificates of deposit, and other money market instruments. Issuers of these instruments borrow money from lenders that generate fixed income with periodic maturity- It is difficult for individuals to invest in debt funds as the ticket size is usually high, so debt-based mutual funds are an optimum instrument to invest for people who want to participate in debt-market with limited risk.