The debt securities are repayable on the time of maturity. Therefore, the imperfections in the market, an issuer who is solvent can replay the amount promised on maturity so this value which is assured on the maturity makes the debt safer and preferred than the equity. Some examples of debt funds are treasury bills, corporate bonds, commercial papers, government securities, and many other money market instruments.

No doubt the value is assured, but the debt securities fluctuate in the value with overall changes in yield. Policies of the RBI and Government can change at any time which effects the interest rates and the interest rates are beyond the control of any single entity.

The non government segmented debt market is not as attractive as the equity market. RBI though has always stepped in whenever there is illiquid situation in the market.