Short duration schemes or erstwhile short term funds are open-ended debt schemes that invest in instruments with macaulay duration between one and three years.
Gilt mutual funds are considered ideal for long-term debt mutual fund investors with an aggressive risk profile
As per new Sebi categorisation, corporate bond funds must invest at least 80 per cent of their corpus in the highest-rated corporate bonds.
Dynamic bond funds are meant for debt mutual fund investors who do not want to take calls on the interest rate movements in near term. Interest rate changes have a significant impact on debt funds, especially long-term and gilt schemes.
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