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Debt can play a role in providing stability, liquidity and diversification

Kirti Jha · DistrictNews · 2026-08-30

Debt can play a role in providing stability, liquidity and diversification

Debt can play a role in providing stability, liquidity and diversification. A 25-year-old may have a long investment journey and therefore more room to take equity risk. Two people of the same age can have very different financial circumstances, and their portfolios do not necessarily need to have the same equity-debt mix, says Krishanu Choudhary, Director & Unit Head, Anand Rathi Wealth. Young investors do not necessarily need to avoid debt mutual funds, even if they can take higher equity risk. Experts explain how debt can provide stability, liquidity and diversification based on financial goals and investment horizons.

Why it matters. Why it matters: Debt can play a role in providing stability, liquidity and diversification.

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