Need clarity on Debt fund risk

[aakash1234]

I want to invest money of my parents.
I will invest 60% in equity (large, small and mid caps).
Remaining 40%, I want to keep it more safe. As checked, short term duration funds have moderate risk and medium term have moderately high risk.
What is this risk? If credit rating of underlying assets is good, is it still risky?
Please help me understand this.

 

[zacobite]

I want to invest money of my parents.
I will invest 60% in equity (large, small and mid caps).
Remaining 40%, I want to keep it more safe. As checked, short term duration funds have moderate risk and medium term have moderately high risk.
What is this risk? If credit rating of underlying assets is good, is it still risky?
Please help me understand this.

debt fund risk is two fold.. risk of the debt to be recovered and if interest rates chg.. debt funds are not completely risk free.. choose