A perusal of Convertible Debt Funds - A Diversification tool for your portfolio.
For conservative investors and for investors looking to diversify their portfolios, convertible debt is a luring option to consider for investment into growth-oriented companies. A convertible debt security is a security that can be swapped for a specified amount of stock at the option of the issuer or borrower. They are less volatile instruments that carry features of both stocks and bonds. When the stock price of the company is on a rise, these instruments proffer excellent returns on investments, and when the stock price falls, they provision the security of consistent coupon payment returns.