Debt Funds are investment vehicles that primarily invest in fixed-income securities, such as bonds and treasury bills. They aim to provide investors with regular income and capital preservation by lending money to governments or corporations in exchange for interest payments. These funds are managed by professional fund managers who select a mix of debt instruments based on market conditions and interest rates. Investors can choose from various types of debt funds, including government bond funds, corporate bond funds, and short-term debt funds, depending on their risk tolerance and investment goals.