Investing in fixed income or debt instruments is supposed to help you sleep well at night. It's supposed to be safe and secure. The key word being 'supposed'. Over the past few months, the debt mutual fund industry has been rocked by multiple issues - defaults due to companies being unable to repay their dues, downgrades of companies because their financial position has deteriorated, and finally a freeze in bond market activity leading to the winding up of 6 debt funds from Franklin Templeton.