What Are Short Term Debt Funds?
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Short Term Debt Funds
Short Term Debt Funds or Short Term Debt Schemes invest in securities with short tenure that have low-interest rate risk of significant changes in the value of the securities.
Ultra-Short Term Funds, Short-Term Gilt Funds are also some of the funds in this category.
The contribution of interest income and the gain/loss in the value of the securities and the volatility in the returns from the fund will vary depending upon the tenure of the securities included in the portfolio and the change in interest rate.
Also Read About: Liquid Funds, Gilt Funds, Corporate Bond Funds
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Hi, I’m Managing Director at Gurpreet Saluja Financial Services where I help my investors to invest in mutual funds and achieve their financial goals. I’m also a Value Investor and here I write about Personal Finance & Investing.