SEBI has decided on a total of 16 categories under Debit Schemes. 16 categories are very high for debt funds considering their similarity in risk and returns from a retail investor perspective. Some categories like Overnight Fund and Liquid Fund are similar. The same is the case with money market funds and ultra-short-term debt fund categories.
| 1 | Overnight Funds | Investment in overnight securities having a maturity of 1 day | A debt scheme investing in overnight securities |
| 2 | Liquid Funds | Investment in Debt and money market securities with maturity of up to 91 days only | A liquid scheme |
| 3 | Ultra Short Duration Funds | Investment in Debt & Money Market instruments such that the Macaulay duration of the portfolio is between 3 months – 6 months | An ultra – short term debt scheme investing in instruments with Macaulay duration between 3 months and 6 months |
| 4 | Low Duration Funds | Investment in Debt & Money Market instruments such that the Macaulay duration of the portfolio is between 6 months – 12 months | A low duration debt scheme investing in instruments with Macaulay duration between 6 months and 12 months |
| 5 | Money Market Funds | Investment in Money Market instruments having maturity up to 1 year | A debt scheme investing in money market instruments |
| 6 | Short Duration Fund | Investment in Debt & Money Market instruments such that the Macaulay duration of the portfolio is between 1 year – 3 years | A short term debt scheme investing in instruments with Macaulay duration between 1 year and 3 years |
| 7 | Medium Duration Funds | Investment in Debt & Money Market instruments such that the Macaulay duration of the portfolio is between 3 years – 4 years | A medium-term debt scheme investing in instruments with Macaulay duration between 3 years and 4 years |
| 8 | Medium to Long Duration Fund | Investment in Debt & Money Market instruments such that the Macaulay duration of the portfolio is between 4 – 7 years | A medium-term debt scheme investing in instruments with Macaulay duration between 4 years and 7 years |
| 9 | Long Duration Fund | Investment in Debt & Money Market Instruments such that the Macaulay duration of the portfolio is greater than 7 years | A debt scheme investing in instruments with Macaulay duration greater than 7 years |
| 10 | Dynamic Bond Funds | Investment across duration | A dynamic debt scheme investing across duration |
| 11 | Corporate Bond Funds | Minimum investment in corporate bonds – 80% of total assets (only in highest rated instruments) | A debt scheme predominantly investing in highest rated corporate bonds |
| 12 | Credit Risk Funds | Minimum investment in corporate bonds – 65% of total assets ( investment in below highest rated instruments) | A debt scheme investing in below highest-rated corporate bonds |
| 13 | Banking and PSU Fund | Minimum investment in Debt instruments of banks, Public Sector Undertakings, Public Financial Institutions – 80% of total assets | A debt scheme predominantly investing in Debt instruments of banks, Public Sector Undertakings, Public Financial Institutions |
| 14 | Gilt Fund | Minimum investment in Gsecs – 80% of total assets (across maturity) | A debt scheme investing in government securities across the maturity |
| 15 | Gilt Fund with 10-year constant duration | Minimum investment in Gsecs – 80% of total assets such that the Macaulay duration of the portfolio is equal to 10 years | A debt scheme investing in government securities having a constant maturity of 10 years |
| 16 | Floater Fund | Minimum investment in floating rate instruments – 65% of total assets | A debt scheme predominantly investing in floating rate instruments |