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What are debt funds and its types?

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What are debt funds and its types?

Debt Funds are categorized as follows: Overnight Funds – invest in 1-day maturity papers (securities) Liquid Funds – invest in money market instruments maturing within 90 days Floating Rate Funds – invest in floating rate debt securities. Ultra-Short Duration Funds – invest in debt securities maturing in 3-6 months.

What is meant by debt funds?

A debt fund is an investment pool, such as a mutual fund or exchange-traded fund, in which the core holdings comprise fixed income investments. A debt fund may invest in short-term or long-term bonds, securitized products, money market instruments or floating rate debt.

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What are the types of debt funds in India?

Top 8 Types of Debt Funds

  • Short-Term Funds. As the term suggests, short-term debt funds have a shorter maturity period ranging from 1 to 3 years.
  • Ultra Short-Term Funds.
  • Income Funds.
  • Liquid Funds.
  • Dynamic Bond Funds.
  • Gilt Funds.
  • Fixed Maturity Plans.
  • Credit Opportunities Funds.

What are the different types of debt mutual funds?

Debt mutual funds can be classified in the following categories:

  • Overnight funds.
  • Liquid funds.
  • Ultra-short Duration funds.
  • Low Duration funds.
  • Money market funds.
  • Short Duration funds.
  • Medium Duration funds.
  • Medium to long Duration funds.

What are the types of debt?

Types of Debt. There are four main categories of debt. Most debt can be classified as either secured debt, unsecured debt, revolving debt, or a mortgage.

What are the different types of debt instruments?

Different Types of Debt Securities

  • Government Securities. The government is the largest borrower in the Indian debt markets – it borrows money by issuing securities of various periods.
  • Treasury Bills.
  • Commercial Paper.
  • Certificate of Deposit.
  • CBLO.
  • Non-convertible Debentures.
  • Corporate Bonds.
  • Call Money.
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Is PPF a debt fund?

Going by that definition, both the EPF and PPF are debt investments – an assured rate of return, and the principal will be returned over a predetermined tenure. So yes, they are both part of the debt portfolio.

Which category is best in debt fund?

List of Debt Mutual Funds in India

Fund Name Category Rating
ICICI Prudential Short Term Fund Debt 5
IDFC Banking & PSU Debt Fund Debt 5
SBI Magnum Constant Maturity Fund Debt 5
Aditya Birla Sun Life Corporate Bond Fund Debt 5

What are the 10 types of debt?

10 types of debt that won’t go away with bankruptcy

  • Credit card debt.
  • Medical bills (Studies show about 62\% of bankruptcies are linked to medical debt)
  • Overdue bills turned over to collection agencies.
  • Personal loans.
  • Utility bills.
  • Business debts.
  • Unpaid/overdue taxes.

How many types of debt are there?

But did you know those loans are actually considered different types of debt? Debt often falls into four categories: secured, unsecured, revolving and installment.

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