Types of Debt Funds

Overnight Funds

Overnight funds are investment instruments that provide investors with the opportunity to earn a return on their idle cash. It is a type of mutual fund that invests in debt instruments with maturities of one day or less.


Liquid Funds

Liquid funds are debt mutual funds that lend money to companies for up to 91 days. They are considered much safer than other types of mutual funds because of their very short lending duration.


Ultra short-term funds

Ultra-short-term funds are mutual funds that invest in debt instruments with maturities of up to one year. The main advantage of investing in ultra-short-term funds is that they offer high returns with low risk.


Low Duration Funds

Low-duration funds are debt funds that allow you to invest your money in short-term debt securities that come with an average duration of 6 to 12 months.


Money Market Funds

Money market debt funds, or money market funds as they are also known, offer investors access to short-term debt instruments


Short term funds

Short-term funds are a good option for investors who want to earn regular income without taking on too much risk.


Medium Duration Funds

Medium-duration funds are a type of mutual fund that invests in debt instruments with maturities of three to four years.


Long Duration Funds

Long-duration funds are mutual fund schemes in long-term government bonds and other debt instruments with maturities of 10 years and above.


Dynamic Bond Funds

As the name suggests, dynamic bond funds are the funds in which your fund manager keeps changing your portfolio based on the fluctuating interest rate.


Banking and PSU Funds

Banks and public sector undertakings (PSUs) are the two most important types of investment funds. Banking debt funds invest primarily in medium-term time deposits with banks.