Medium Duration Funds
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 in...