This fund invests in securities which have a maturity period of 1 day.
Overnight Fund carry minimal credit risk and interest rate risk owing to such a short
maturity period and are hence perceived to be relatively stable.
Liquid Fund invests in debt and money market securities with residual
maturity upto 91 days only. The underlying instruments are fairly liquid and have the
potential to offer reasonable returns than traditional avenues. Some liquid funds also have
the option of instant redemption facility which allows redemptions upto ₹50,000 per day per
scheme per investor.
Ultra-Short Duration Fund
Ultra-Short Duration Fund invests in debt securities and money market
instruments such that the Macaulay Duration of the portfolio is between 3-6 months.
Low Duration Fund
Low Duration fund invests in debt securities and money market instruments
such that the Macaulay Duration of the portfolio is between 6-12 months.
Money Market Fund
Money Market Fund invests in money market securities with a maximum
maturity of 1 year. This fund is a good alternative to park surplus money for short term. It
can also be used as an emergency fund as it is relatively highly liquid and has the
potential to generate better returns than traditional avenues.
Short Duration Fund
Short Duration Fund invests in debt securities and money market instruments
such that the Macaulay Duration of the portfolio is between 1-3 years.
Medium Duration Fund
Medium Duration Fund invests in debt securities and money market
instruments such that the Macaulay Duration of the portfolio is between 3-4 years.
Corporate Bond Fund
Corporate Bond Fund predominantly invests in corporate bonds rated AA+ and
above. It is a good option for investors having a moderate risk appetite who want to invest
in papers having relatively lower credit risk.
Credit Risk Fund
This fund predominantly invests in papers rated AA and below (excluding AA+
rated corporate bonds). Credit Risk Fund aims to earn higher returns by investing in papers
which offer relatively higher interest rates. However, they carry credit risk compared to
other debt funds.
Banking & PSU Fund
Banking & PSU Fund invests at least 80% of its assets in debt and money
market securities of Banks, PSU (Public Sector Undertakings), Public Financial Institutions
and Municipal Bodies.
Dynamic Bond Fund
Dynamic Bond Funds invest in debt instruments having varying maturity based
on the current interest rates. The fund manager changes the portfolio dynamically depending
on the interest rates. These funds are a good option for investors having a slightly
moderate risk tolerance and are looking to earn regular income for medium term.
Gilt funds invest at least 80% of its assets in government securities with
varying maturities. They are considered relatively one of the stable investments as given
the exposure to sovereign papers, there is very little credit risk. This makes gilt funds a
good choice for risk averse investors.
View Debt Mutual Funds
Note - Macaulay Duration is the weighted average time to receive the cash flows from a bond.
It measures the time an investor would take to get his invested money in the bond by way of
periodic interest as well as principal repayments. It is usually measured in years.