I have following questions related to various risks in debt funds:
Are gilt funds safe during recession? I feel yes as they invest in government bonds, even though though they involve some inherent volatility. Am I right?
Are ultra short term debt funds safe during recession? I know they invest in short term bonds. I know due to recent ILFS issues, some funds have faced bad days:
So, I know debt funds have credit risk. However, I dont know whether and how debt funds survive recession. For example, below fund does not seem to affected due to 2008 recession:
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- Are all debt funds recession proof? If no, which categories of debt funds are not recession proof? Can you give me example of debt fund affected due to 2008 recession?
PS: I am trying to understand basics of investments.