A pure bond fund is a standard bond fund that cannot invest in the stock market and only invests in financial instruments with fixed expected annualized expected returns.

Primary debt funds also invest in fixed-income financial instruments, but according to the contract, primary debt funds can invest in convertible bonds and payable bonds, and actually hold convertible bond positions, but they cannot actively buy or sell stocks or create new shares.

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So simply put, the difference between the two is whether to invest in convertible bonds.

What does pure debt fund mean?

Pure debt funds are a type of bond fund, which are funds that specialize in investing in bonds and are issued by companies or the state.

Both have a certain period, after which the principal and interest will be returned.