Liquid Fund is an asset sub-class within mutual funds that primarily invests in short-term money market instruments with high liquidity and low risk. These funds are ideal for parking surplus cash while earning better returns than a traditional savings account.
Short Duration Fund is an asset sub-class within debt mutual funds that invests in fixed-income instruments with a short to medium maturity period. These funds offer relatively stable returns with moderate risk, making them suitable for investors looking for better returns than liquid funds but with lower volatility than long-term debt funds.
Low Duration Funds are a category of debt mutual funds that primarily invest in fixed-income instruments such as bonds, treasury bills, and money market securities with a Macaulay duration ranging between 6 to 12 months. These funds aim to generate stable returns while maintaining relatively low interest rate risk.
Dynamic Bond Funds are a category of debt mutual funds that invest in a mix of short-term and long-term debt instruments. These funds actively manage their portfolios by adjusting the duration of investments based on interest rate movements and market conditions.
Ultra Short Duration Funds are a type of debt mutual fund that invest in fixed-income securities with a Macaulay duration of 3 to 6 months. These funds aim to offer better returns than liquid funds while maintaining low volatility and high liquidity.
A Short Duration Fund is a type of debt mutual fund that primarily invests in debt and money market instruments to maintain a Macaulay Duration of 1 to 3 years. These funds aim to provide stable returns with relatively low-interest rate risk compared to long-duration funds.
A Medium Duration Fund is a type of debt mutual fund that primarily invests in debt and money market instruments with a Macaulay duration between 3 to 4 years. These funds aim to provide moderate returns with relatively lower volatility compared to long-duration debt funds while offering better yield potential than short-duration funds.
A Floating Rate Debt Fund is a type of debt mutual fund that primarily invests in floating rate instruments, where the interest rate is not fixed but fluctuates periodically based on a benchmark rate (such as the repo rate or treasury yield).
The Money Market refers to a segment of the financial market where short-term borrowing and lending of funds take place, typically for periods ranging from a few days to one year. It is a highly liquid market where institutions, corporations, and governments trade financial instruments with low risk and quick maturity.
A Corporate Bond is a debt security issued by a corporation to raise capital. Investors who purchase corporate bonds lend money to the company in exchange for periodic interest payments (known as coupons) and the return of the principal amount at maturity.