Debt Schemes

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.

1Overnight FundsInvestment in overnight securities having a maturity of 1 dayA debt scheme investing in overnight securities
2Liquid FundsInvestment in Debt and money market securities with maturity of up to 91 days onlyA liquid scheme
3Ultra Short Duration FundsInvestment in Debt & Money Market instruments such that the Macaulay duration of the portfolio is between 3 months – 6 monthsAn ultra – short term debt scheme investing in instruments with Macaulay duration between 3 months and 6 months
4Low Duration FundsInvestment in Debt & Money Market instruments such that the Macaulay duration of the portfolio is between 6 months – 12 monthsA low duration debt scheme investing in instruments with Macaulay duration between 6 months and 12 months
5Money Market FundsInvestment in Money Market instruments having maturity up to 1 yearA debt scheme investing in money market instruments
6Short Duration FundInvestment in Debt & Money Market instruments such that the Macaulay duration of the portfolio is between 1 year – 3 yearsA short term debt scheme investing in instruments with Macaulay duration between 1 year and 3 years
7Medium Duration FundsInvestment in Debt & Money Market instruments such that the Macaulay duration of the portfolio is between 3 years – 4 yearsA medium-term debt scheme investing in instruments with Macaulay duration between 3 years and 4 years
8Medium to Long Duration FundInvestment in Debt & Money Market instruments such that the Macaulay duration of the portfolio is between 4 – 7 yearsA medium-term debt scheme investing in instruments with Macaulay duration between 4 years and 7 years
9Long Duration FundInvestment in Debt & Money Market Instruments such that the Macaulay duration of the portfolio is greater than 7 yearsA debt scheme investing in instruments with Macaulay duration greater than 7 years
10Dynamic Bond FundsInvestment across durationA dynamic debt scheme investing across duration
11Corporate Bond FundsMinimum investment in corporate bonds – 80% of total assets (only in highest rated instruments)A debt scheme predominantly investing in highest rated corporate bonds
12Credit Risk FundsMinimum investment in corporate bonds – 65% of total assets ( investment in below highest rated instruments)A debt scheme investing in below highest-rated corporate bonds
13Banking and PSU FundMinimum investment in Debt instruments of banks, Public Sector Undertakings, Public Financial Institutions – 80% of total assetsA debt scheme predominantly investing in Debt instruments of banks, Public Sector Undertakings, Public Financial Institutions
14Gilt FundMinimum investment in Gsecs – 80% of total assets (across maturity)A debt scheme investing in government securities across the maturity
15Gilt Fund with 10-year constant durationMinimum investment in Gsecs – 80% of total assets such that the Macaulay duration of the portfolio is equal to 10 yearsA debt scheme investing in government securities having a constant maturity of 10 years
16Floater FundMinimum investment in floating rate instruments – 65% of total assetsA debt scheme predominantly investing in floating rate instruments

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