Types of debt mutual funds
Types of debt mutual funds There are several types of debt mutual funds, each with its own investment objective and risk profile. Here are some of the most common types of debt mutual funds: Liquid Funds : These funds invest in short-term debt instruments such as treasury bills, commercial papers, and certificates of deposit. They aim to provide liquidity and safety of capital to investors. Ultra Short Duration Funds : These funds invest in debt instruments with a slightly longer maturity period than liquid funds, typically up to one year. They aim to provide higher returns than liquid funds while maintaining a low level of risk. Short Duration Funds : These funds invest in debt instruments with a maturity period of one to three years. They aim to provide a higher return than ultra-short duration funds while maintaining a moderate level of risk. Medium Duration Funds : These funds invest in debt instruments with a maturity period of three to four years. They aim to provide higher...