Medium Duration Funds

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Medium Duration Funds


Medium Duration Funds are a type of debt mutual fund that invests in fixed-income securities such as bonds, debentures, and commercial papers with a medium-term maturity period ranging from three to five years. These funds have a moderate level of interest rate risk and are suitable for investors who are looking for higher returns than short-term debt funds but with lower risk than long-term debt funds. Here are some features of Medium Duration Funds:


Moderate Risk: Medium Duration Funds have a moderate level of interest rate risk compared to long-term debt funds. The NAV of the fund may be affected by changes in interest rates but to a lesser extent than long-term debt funds.


Potential for Higher Returns: Medium Duration Funds have the potential to provide higher returns than short-term debt funds, as they invest in higher-yielding securities with a medium-term maturity period.


Diversification: Medium Duration Funds provide diversification benefits to investors as they invest in a mix of fixed-income securities across different sectors and credit ratings.


Liquidity: Medium Duration Funds have higher liquidity than long-term debt funds as the securities have a medium-term maturity period.


Overall, Medium Duration Funds can be a suitable investment option for investors who are looking for higher returns than short-term debt funds with lower risk than long-term debt funds. However, investors should consult with a financial advisor before making any investment decisions, as these funds still carry some level of interest rate risk.



For more details contact us:

+91 93997 98706

services@finvestree.com

www.finvestree.com


#debtmutualfunds #investment #mutualfund #FInvesTree #MediumDurationFund

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