New Delhi, Sept. 8 -- People think that investing in equity funds is very complex, but I feel that investing in debt mutual funds is equally, if not more complex. Investing in a debt fund carries its own risks. In this article, I will discuss the various types of risks involved in investing in debt funds and what are the precautions to be taken while investing in them.

Any investment involves some degree of risk. No investment is safe. Like if you do not want to invest the money to avoid the risk and keep the money at home, you incur the risk of erosion of money due to inflation.

Likewise, if you invest in a very safe product, you carry the risk of the twin ghosts of "inflation and tax" eating into your returns. There are basically thre...