Debt mutual funds are a type of investment vehicle that pools money from multiple investors to purchase debt securities, such as bonds or treasury bills. These funds aim to provide regular income and capital appreciation by investing in fixed-income instruments issued by corporations or governments. Investors can buy units of these mutual funds, which are managed by professional fund managers who make investment decisions on their behalf. Debt mutual funds offer diversification benefits as they invest across a range of debt securities with different maturity periods and credit ratings, thereby reducing the risk for individual investors.