Low duration funds offer robust returns
Sep 16, 07:09

Low Duration Funds are debt mutual funds investing in debt and money market securities such that the Macaulay duration of the portfolio is between 6 and 12 months. Their accrual strategy with relatively higher portfolio maturity helps them deliver better returns than other short-term debt funds. These funds allocate a certain portion to non-AAA-rated instruments that helps maximise returns. These schemes also play duration strategies at times based on the interest rate movements. These funds can be a suitable investment option for investors, especially to meet their short-term financial needs.

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