However, since individual bonds are typically held until maturity, there is no real concern about price fluctuation. Under no circumstances does this information represent a recommendation to buy or sell securities. For more help on buying debt funds, see our article on how to choose the best bond funds. Investors who engage in distressed debt investing, especially larger hedge funds, often perform very robust analyses of risk, using advanced models and test scenarios. Debt funds typically perform differently than equity funds, AKA stock funds. Learn about Debt Debt is an amount of money borrowed by one party from another, often for making large purchases that they could not afford under normal circumstances. The Balance does not provide tax, investment, or financial services and advice.