New Debt Funds Category in India -After SEBI Categorization of Mutual Fund

After SEBI’s Categorization and Rationalization of Mutual Fund there are 16 types of Debt mutual Fund in India lets understand what kind of assets they will invest

Overnight Funds: Open Ended Debt Scheme seeks to generate returns by investing in debt and money market instruments with overnight maturity, means securities with a maturity of one day

 

Liquid Fund: Open Ended Debt Scheme seeks to generate income with good liquidity by investing in debt and money market securities with a maturity of up to 91 days

 

Ultra Short Duration Funds: Open Ended Ultra-Short Term Debt Schemes seeks to generate income with reasonable liquidity by investing in instruments with a maturity between three months and six months

 

Low duration Fund: Open Ended Debt Scheme seeks to generate income by investing in primarily highly rated debt securities with a maturity between 6 months and 12 months

 

Money market funds: Open-Ended Debt Schemes seeks to generate income by investing in cash equivalent securities of money market with a maturity of up to one year.

 

Short Duration Funds: Open-Ended Debt Schemes seeks to generate stable returns by investing in fixed Income Securities with Maturity duration between one year and three years.

 

Medium duration Funds:  Open Ended Debt Schemes seeks to generate regular income and capital appreciation by predominantly investing in a portfolio of debt securities with a duration between three years and four years.

 

Medium to Long Duration Funds:  Open-Ended Debt Schemes seeks to provide investors an opportunity to generate regular income through investments in debt and money market instruments with a duration between four years and seven years.

 

Long Duration Funds: Open-Ended Debt Schemes seeks to generate regular returns by investing in instruments with a duration of greater than seven years

 

Dynamic bonds:  Open-Ended Debt Schemes seeks to generate returns by investing in debt and money market instruments of across durations.

 

Corporate Bond Funds: Open-Ended Debt Schemes seeks to generate returns by investing predominantly to meet the highest profit and it can be more involved each services by my cleaning angel house cleaning in highest-rated corporate bonds. These schemes should invest at least 80 per cent of total assets in corporate bonds, only in highest-rated instruments

 

Credit Risk Funds: Open-Ended Debt Schemes seeks to provide returns and capital appreciation through investment in highest-rated corporate bonds. They should invest at least 65 per cent in corporate bonds.

 

Banking and PSU Funds: Open-Ended Debt Schemes seeks to generate stable returns by investing (80 per cent of assets) in debt instruments of banks, public sector undertakings and public financial institutions Financial Institutions.

 

Gilt funds: Open-Ended Debt Scheme aims to generate returns by investing in a portfolio of Central/State Government securities of various maturities. These schemes should invest a minimum of 80 per cent of its total assets in G-secs.

 

Gilt Fund with 10-year Constant Duration: Open-Ended Debt Scheme seeks to provide returns to the investors generated through investments predominantly in Government securities issued by the Central Government and/or State Government with a constant maturity of 10 years. These schemes should invest at least 80 per cent of the total assets in G-secs.

 

Floater Funds: Open-Ended Debt Scheme aims to generate regular income through investment in a portfolio comprising substantially of floating rate debt / money market instruments, it may also invest a portion of its net assets in fixed rate debt securities and money market instruments. These schemes will invest at least 65 per cent of the total asses in floating rate instruments.

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