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Types of Debt Funds |
Liquid & Money Manger Funds:Investments in the range of one to ninety days which provide easy liquidity and ease of transaction |
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Short Term Income Funds: IThese invest in a mix of corporate & PSU debt and aim to deliver fixed deposit plus returns in the short term. |
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Bond Funds: These invest in longer duration bonds or corporates, PSUs, Government Agencies, RBI and Government of India. These aim to deliver interest accrual plus capital appreciation. Bonds funds require understanding the interest rate and maturity curve. Bonds deliver positive returns in a falling interest rate scenario and negative in a rising interest rate scenario. |
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