We usually think of equities when we want to invest for the long run, since equities compound over time. But fixed-income investments compound too; with lesser volatility and therefore lesser risk. Investments in long-term debt funds can see marked-to-market losses in short term, but if held for long, they can be good compounder of money. As the gains are taxed at 20 percent with indexation for units held for more than three years, the returns are tax-efficient too. Therefore, in our asset allocation, we must include debt funds. Just that debt funds are typically used for shorter to medium-term goals. The best approach is to start a systematic investment plan.