How is a debt mutual fund different from equity Mutual funds? Amol Joshi answers

economictimes.indiatimes.com:

Amol Joshi, Founder, PlanRupee Investment Services, says: “A liquid fund is nothing but one type of a debt or fixed income mutual fund and from there you do STP, that is systematic transfer plan, that is just one example how even an equity investor would benefit by using debt mutual fund, something like liquid fund.”
What exactly is a debt mutual fund? How is it different from an equity mutual fund?
Amol Joshi: Equity funds are popular and hence well understood by investors. Equity funds invest into equity stocks and shares. Similarly, debt mutual funds invest into debt securities though debt securities could be an instrument called a CD, that is certificate of deposit issued by banks or more commonly a debt mutual fund or a fixed income mutual fund is a mutual fund that invests into various debt instruments like CDs is one we discussed and bonds issued by various issuers. Those various issuers could be government issuers, there are government bonds.

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Then, there are PSU, public sector units or public sector undertakings which issue bonds and there are bonds issued by private corporate companies and private corporate groups as well. So, the debt mutual fund is very different from equity and it can form a part of investors' portfolio and provides very important and