Debt Funds

Fixed income schemes across a spectrum of maturity and credit risk.

Debt mutual funds invest in government securities, corporate bonds, treasury bills and money market instruments. Categories differ mainly by portfolio maturity and by the credit quality the scheme is permitted to hold.

Debt funds are not fixed-return products. NAV moves with interest rates and with credit events in the underlying portfolio, and shorter-maturity categories generally move less than longer ones.

Key features

• Overnight, liquid, ultra short, short, medium and long duration categories
• Corporate bond, banking and PSU, gilt and credit risk categories
• Daily liquidity in most categories, with same or next-day settlement
• Portfolio maturity and credit profile disclosed in monthly factsheets
• Used by businesses for short-term treasury as well as by individuals
• Taxed as per prevailing rules for debt-oriented schemes