Discover the Stability of Debt Funds on MINTIT

Liquid funds are a type of debt mutual fund. They invest in very short-term, highly liquid debt instruments like government securities, treasury bills, and commercial papers with maturities up to 91 days. This focus makes them a safe haven for parking surplus cash, offering higher returns than a savings account with quick access to your money.

1. What is a Liquid Fund?

Liquid funds are a category of debt mutual funds that prioritise safety and easy access to your money by investing in short-term fixed-income securities.

2. Where does Liquid Fund Invest?

Liquid funds invest primarily in:

• Government securities (Treasury bills)
• Commercial papers (short-term debt issued by companies)
• Certificates of deposit (issued by banks)
• Other very short-term money market instruments

3. How Can I Invest in a Liquid Fund?

You can invest in liquid funds easily through MINTIT! Simply create an account, browse our selection of liquid funds, compare them, and start investing.

4. What is the benchmark of Liquid Fund?

Liquid funds are typically benchmarked against the CCIL T Bill Liquidity Weight or NIFTY 1D Rate Index or NIFTY Liquid Index A-I or NIFTY Liquid Index B-I.

5. What is an average return on Liquid Fund?

Liquid funds returns generally range between 4%-7% annually, exceeding typical savings account interest rates.

6. What is the ideal time horizon for Liquid Fund?

Liquid funds are perfect for parking money you might need in the short term (a few days to a few months).

7. Who should invest in Liquid Fund?

Liquid funds are great if you:

• Have surplus cash you want to earn better returns on.
• Need an emergency fund with quick access.
• Want a low-risk investment option.

8. What is the taxation applicable on Liquid Fund?

There is no defined Short-term Capital Gains (STCG) or Long-term Capital Gains (LTCG) tax rate. Irrespective of duration, if you sell your debt mutual fund units, gains are taxed as per your income tax slab.

Additional Points to Note:

• Securities Transaction Tax (STT): STT is not levied on the sale of debt mutual funds and debt-oriented hybrid mutual funds.
• Dividend Distribution Tax (DDT): DDT has been abolished. Instead, dividends from mutual funds are now taxed in the hands of investors as per their income tax slab.

9. Is there any lock-in period in Liquid Fund?

Most liquid funds have no lock-in period. However, some might have a small exit load if you redeem within 6 or 7 days of investment.

10. Advantages of Liquid Fund?

• High liquidity (easy to withdraw your money quickly)
• Low risk
• Returns typically better than savings accounts

11. Disadvantages of Liquid Fund?

• Returns are generally lower than other longer-term debt or equity funds.
• Interest rate fluctuations can affect returns.

12. What shall be the Exit Load?

Exit loads vary from fund to fund, to know more about them, it is advisable to read scheme related documents.

13. Want to know more about Mutual Funds?

Mutual Fund Explained

Let us know if you want the benefit of any of these funds!
Download MINTIT Now!

Overnight funds are a specialised type of debt mutual fund. They invest exclusively in debt securities with a maturity of just one day. This makes them extremely safe and liquid, ideal for parking surplus cash for very short periods.

1. What is an Overnight Fund?

Overnight funds are debt mutual funds that invest in securities maturing the very next day, offering high liquidity and minimal risk.

2. Where does an Overnight Fund Invest?

Overnight funds predominantly invest in:

• Overnight government securities
• Tri-party repo (a type of short-term borrowing)
• Very short-term commercial papers and certificates of deposit.

3. How Can I Invest in an Overnight Fund?

Start investing in overnight funds directly through MINTIT! Explore our selection, compare key details, and invest in a fund that aligns with your needs.

4. What is the benchmark of an Overnight Fund?

Overnight funds are usually benchmarked against the CRISIL Overnight Fund Index or NIFTY 1D Rate Index.

5. What is an average return on an Overnight Fund?

Returns on overnight funds tend to fluctuate with short-term interest rates, typically ranging from 3%-5% annually.

6. What is the ideal time horizon for an Overnight Fund?

Overnight funds are perfect for parking money for extremely short periods (one day to a few weeks).

7. Who should invest in an Overnight Fund?

Overnight funds are ideal if you:

• Need to keep cash readily accessible for immediate needs.
• Want a slightly better return than a savings account with almost no risk.
• Have funds temporarily idle while awaiting other investment opportunities.

8. What is the taxation applicable on an Overnight Fund?

There is no defined Short-term Capital Gains (STCG) or Long-term Capital Gains (LTCG) tax rate. Irrespective of duration, if you sell your debt mutual fund units, gains are taxed as per your income tax slab.

Additional Points to Note:

• Securities Transaction Tax (STT): STT is not levied on the sale of debt mutual funds and debt-oriented hybrid mutual funds.
• Dividend Distribution Tax (DDT): DDT has been abolished. Instead, dividends from mutual funds are now taxed in the hands of investors as per their income tax slab.

9. Is there any lock-in period in an Overnight Fund?

Generally, overnight funds do not have a lock-in period.

10. Advantages of Overnight Fund?

• Extremely high liquidity
• Very low risk
• Ideal for temporary cash parking

11. Disadvantages of Overnight Fund?

• Offers the lowest returns amongst debt fund categories
• Returns can be impacted by short-term fluctuations in interest rates

12. What shall be the Exit Load?

Exit loads vary from fund to fund, to know more about them, it is advisable to read scheme related documents.

13. Want to know more about Mutual Funds?

Mutual Fund Explained

Manage investments & explore overnight funds - MINTIT app!

Money market funds belong to the category of debt mutual funds. They invest in short-term debt instruments like commercial paper, certificates of deposit, and government securities with maturities of up to one year. This focus on short-term, high-quality debt makes them a relatively safe and liquid investment option.

1. What is a Money Market Fund?

Money market funds are debt mutual funds that prioritise stability and liquidity, investing in short-term, high-quality debt instruments.

2. Where does a Money Market Fund Invest?

Money market funds typically invest in:

• Treasury bills
• Commercial papers
• Certificates of deposit
• Short-term corporate bonds
• Repurchase agreements (repos)

3. How Can I Invest in a Money Market Fund?

MINTIT makes it easy to invest in money market funds! Browse our curated selection, compare key details, and start investing.

4. What is the benchmark of a Money Market Fund?

Money market funds might use benchmarks like the CCIL T Bill Liquidity Weight or NIFTY Money Market Index A-I.

5. What is an average return on a Money Market Fund?

Money market fund returns are influenced by short-term interest rates and generally offer slightly better returns than savings accounts or liquid funds.

6. What is the ideal time horizon for a Money Market Fund?

Money market funds suit investors with short to medium-term horizons (a few months to a year).

7. Who should invest in a Money Market Fund?

Consider money market funds if you:

• Need a relatively safe place to park cash for short-term needs.
• Want slightly higher returns than a savings account.
• Have a low to moderate risk tolerance.

8. What is the taxation applicable on a Money Market Fund?

There is no defined Short-term Capital Gains (STCG) or Long-term Capital Gains (LTCG) tax rate. Irrespective of duration, if you sell your debt mutual fund units, gains are taxed as per your income tax slab.

Additional Points to Note:

• Securities Transaction Tax (STT): STT is not levied on the sale of debt mutual funds and debt-oriented hybrid mutual funds.
• Dividend Distribution Tax (DDT): DDT has been abolished. Instead, dividends from mutual funds are now taxed in the hands of investors as per their income tax slab.

9. Is there any lock-in period in a Money Market Fund?

Money market funds typically do not have lock-in periods. Some might have a small exit load for redemptions within a very short period (e.g., within 7 days).

10. Advantages of a Money Market Fund?

• Low risk investment option
• Relatively high liquidity
• Potential for returns exceeding savings accounts

11. Disadvantages of a Money Market Fund?

• Returns are generally lower than longer-term debt or equity funds
• Can be slightly affected by interest rate fluctuations

12. What shall be the Exit Load?

Exit loads vary from fund to fund, to know more about them, it is advisable to read scheme related documents.

13. Want to know more about Mutual Funds?

Mutual Fund Explained

Ready to explore money market funds? Start your investment journey on MINTIT!

Ultra short duration funds are a type of debt mutual fund that invest in fixed-income securities with very short maturities (typically between 3 to 6 months). Their focus on short-term debt instruments aims to provide better returns than liquid funds while maintaining a relatively low-risk profile

1. What is an Ultra Short Duration Fund?

Ultra short duration funds are debt funds that invest in securities with maturities of 3-6 months, offering a balance of liquidity and slightly higher returns than liquid funds.

2. Where does an Ultra Short Duration Fund Invest?

Ultra short duration funds typically invest in:

• Short-term government securities
• Commercial papers
• Certificates of deposit
• Corporate bonds with short maturities

3. How Can I Invest in an Ultra Short Duration Fund?

MINTIT simplifies investing in ultra short duration funds. Compare our selection and start investing in the fund that meets your goals.

4. What is the benchmark for Ultra Short Duration Fund?

Ultra short duration funds may be benchmarked against the CCIL T Bill Liquidity Weight or NIFTY Ultra Short Duration Debt Index A-I or NIFTY Ultra Short Duration Debt Index B-I.

5. What is an average return on an Ultra Short Duration Fund?

Returns generally range a bit higher than liquid funds but lower than longer-duration debt funds. They are influenced by short-term interest rates.

6. What is the ideal time horizon for an Ultra Short Duration Fund?

Ultra short duration funds are suitable for investors with a time horizon of a few months to a year.

7. Who should invest in an Ultra Short Duration Fund?

Consider these funds if you:

• Want slightly higher returns than liquid funds but need some liquidity.
• Have short-term financial goals you must meet.
• Have a low to moderate risk tolerance.

8. What is the taxation applicable on an Ultra Short Duration Fund?

There is no defined Short-term Capital Gains (STCG) or Long-term Capital Gains (LTCG) tax rate. Irrespective of duration, if you sell your debt mutual fund units, gains are taxed as per your income tax slab.

Additional Points to Note:

• Securities Transaction Tax (STT): STT is not levied on the sale of debt mutual funds and debt-oriented hybrid mutual funds.
• Dividend Distribution Tax (DDT): DDT has been abolished. Instead, dividends from mutual funds are now taxed in the hands of investors as per their income tax slab.

9. Is there any lock-in period in an Ultra Short Duration Fund?

Generally, they do not have lock-in periods. However, some funds may have a small exit load for redemptions within a very short time frame.

10. Advantages of an UltraShort Duration Fund?

• Offers better potential returns than liquid funds.
• Relatively low-risk investment option
• Maintains a degree of liquidity

11. Disadvantages of an UltraShort Duration Fund?

• Returns are lower than longer-term debt or equity funds
• Slightly more sensitive to interest rate fluctuations than liquid funds

12. What shall be the Exit Load?

Exit loads vary from fund to fund, to know more about them, it is advisable to read scheme related documents.

13. Want to know more about Mutual Funds?

Mutual Fund Explained

Explore ultra short duration funds and grow your wealth with MINTIT!

Short duration funds fall within the debt mutual fund category, investing in fixed-income securities with maturities typically ranging from 1 to 3 years. They seek to provide a balance between stability, income generation, and modest potential for capital appreciation.

1. What is a Short Duration Fund?

Short duration funds invest in debt securities with maturities between 1-3 years, aiming for income generation with moderate risk.

2. Where does a Short Duration Fund Invest?

Short duration funds invest in instruments like:

• Government securities
• Corporate bonds (both short and medium-term maturities)
• Commercial papers
• Certificates of deposit

3. How Can I Invest in a Short Duration Fund?

MINTIT makes it easy to invest in short duration funds! Browse our selection, compare, and choose the fund that best suits your investment goals.

4. What is the benchmark of a Short Duration Fund?

Short duration funds might be benchmarked against the CRISIL Short Term Debt Index or VR Bond Index or NIFTY Short Duration Debt Index A-II.

5. What is an average return on a Short Duration Fund?

Returns of short duration funds are influenced by interest rates and generally fall between liquid/ultra-short duration funds and longer-term bond funds.

6. What is the ideal time horizon for a Short Duration Fund?

Short duration funds are suitable for investors with a time horizon of 1-3 years.

7. Who should invest in a Short Duration Fund?

Consider short duration funds if you:

• Seek higher returns than ultra-short term funds with moderate risk.
• Have a slightly longer investment horizon (compared to ultra-short term).
• Need income along with some capital appreciation potential.

8. What is the taxation applicable on a Short Duration Fund?

There is no defined Short-term Capital Gains (STCG) or Long-term Capital Gains (LTCG) tax rate. Irrespective of duration, if you sell your debt mutual fund units, gains are taxed as per your income tax slab.

Additional Points to Note:

• Securities Transaction Tax (STT): STT is not levied on the sale of debt mutual funds and debt-oriented hybrid mutual funds.
• Dividend Distribution Tax (DDT): DDT has been abolished. Instead, dividends from mutual funds are now taxed in the hands of investors as per their income tax slab.

9. Is there any lock-in period in a Short Duration Fund?

Typically, no lock-in period exists. Some may have a small exit load for redemptions within a very short period.

10. Advantages of a Short Duration Fund?

Potential for higher returns than shorter-duration debt funds.

• Moderate risk profile versus long-term bond funds.
• Provides regular income generation.

11. Disadvantages of a Short Duration Fund?

• More sensitive to interest rate fluctuations than liquid or ultra-short duration funds.
• Returns are generally lower than longer-term debt or equity funds.

12. What shall be the Exit Load?

Exit loads vary from fund to fund, to know more about them, it is advisable to read scheme related documents.

13. Want to know more about Mutual Funds?

Mutual Fund Explained

Ready to invest in short duration funds? Start your journey with MINTIT!

Low duration funds are a type of debt mutual fund that focus on fixed-income securities with relatively short maturities. This emphasis on shorter-term debt makes them slightly less sensitive to interest rate fluctuations compared to longer-duration funds, while still offering potential for higher returns than ultra-short or liquid funds.

1. What is a Low Duration Fund?

Low duration funds are debt funds investing in securities with short to medium maturities (often around 6 months to 1 year), aiming to balance returns and stability.

2. Where does a Low Duration Fund Invest?

Low duration funds primarily invest in:

• Government securities (short to medium-term maturities)
• Corporate bonds (short to medium-term maturities)
• Commercial papers
• Certificates of deposit

3. How Can I Invest in a Low Duration Fund?

MINTIT simplifies investing in low duration funds! Explore our selection, compare features, and start investing in a fund aligned with your goals.

4. What is the benchmark of a Low Duration Fund?

Low duration funds might use the CCIL T Bill Liquidity Weight or NIFTY Low Duration Debt Index A-I or similar indices as their benchmark.

5. What is an average return on a Low Duration Fund?

Low duration fund returns are influenced by interest rates and typically exceed returns on ultra-short and liquid funds, while being lower than longer-term bond funds.

6. What is the ideal time horizon for a Low Duration Fund?

These funds suit investors with a time horizon of 6 months to about 2 years.

7. Who should invest in a Low Duration Fund?

Consider low duration funds if you:

• Want some income, potential for modest capital growth, and moderate risk.
• Seek higher returns than ultra-short or liquid funds.
• Have a slightly longer investment horizon than suitable for liquid/ultra-short funds.

8. What is the taxation applicable on a Low Duration Fund?

There is no defined Short-term Capital Gains (STCG) or Long-term Capital Gains (LTCG) tax rate. Irrespective of duration, if you sell your debt mutual fund units, gains are taxed as per your income tax slab.

Additional Points to Note:

• Securities Transaction Tax (STT): STT is not levied on the sale of debt mutual funds and debt-oriented hybrid mutual funds.
• Dividend Distribution Tax (DDT): DDT has been abolished. Instead, dividends from mutual funds are now taxed in the hands of investors as per their income tax slab.

9. Is there any lock-in period in a Low Duration Fund?

Generally, they have no lock-in period. However, some funds may have a small exit load for redemptions made within a very short time frame.

10. Advantages of a Low Duration Fund?

• Offers greater return potential than liquid or ultra-short duration funds.
• Less sensitive to interest rate changes compared to longer-duration funds
• Provides some income stability

11. Disadvantages of a Low Duration Fund?

• Returns are generally lower than equity or long-term bond funds.
• Some sensitivity to interest rate fluctuations remains.

12. What shall be the Exit Load?

Exit loads vary from fund to fund, to know more about them, it is advisable to read scheme related documents.

13. Want to know more about Mutual Funds?

Mutual Fund Explained

Ready to explore low duration funds for your portfolio? Download MINTIT today!

Medium duration funds are debt mutual funds that invest in fixed-income securities with maturities typically ranging from 3 to 4 years. They aim to strike a balance between longer-term income potential and managing interest rate risk.

1. What is a Medium Duration Fund?

Medium duration funds are debt funds that invest in securities with maturities of 3-4 years. They offer a balance of income and potential for capital appreciation.

2. Where does a Medium Duration Fund Invest?

Medium duration funds allocate their assets into:

• Government securities (with medium-term maturities)
• Corporate bonds (with medium-term maturities)
• Other fixed-income instruments

3. How Can I Invest in a Medium Duration Fund?

MINTIT makes it easy! Browse our selection of medium duration funds, compare their features, and start investing in the fund that aligns with your objectives.

4. What is the benchmark of a Medium Duration Fund?

Medium duration funds often use the VR Bond Index or NIFTY Medium Duration Debt Index A-III or similar indices as benchmarks.

5. What is an average return on a Medium Duration Fund?

Returns on medium duration funds fluctuate with interest rates. Historically, they have offered returns that exceed short-term debt funds but fall short of long-term bond funds.

6. What is the ideal time horizon for a Medium Duration Fund?

Medium duration funds are suitable for investors with a time horizon of approximately 3-4 years.

7. Who should invest in a Medium Duration Fund?

Consider medium duration funds if you:

• Seek a combination of income stability and potential for capital appreciation.
• Can tolerate some interest rate risk in exchange for higher potential returns.
• Have an investment horizon of a few years.

8. What is the taxation applicable on a Medium Duration Fund?

There is no defined Short-term Capital Gains (STCG) or Long-term Capital Gains (LTCG) tax rate. Irrespective of duration, if you sell your debt mutual fund units, gains are taxed as per your income tax slab.

Additional Points to Note:

• Securities Transaction Tax (STT): STT is not levied on the sale of debt mutual funds and debt-oriented hybrid mutual funds.
• Dividend Distribution Tax (DDT): DDT has been abolished. Instead, dividends from mutual funds are now taxed in the hands of investors as per their income tax slab.

9. Is there any lock-in period in a Medium Duration Fund?

Most medium duration funds have no lock-in period. However, some may have a small exit load if you redeem units very early

10. Advantages of a Medium Duration Fund?

• Potential for higher returns compared to shorter-term debt funds.
• Provides income along with the potential for capital appreciation.
• Offers some stability compared to long-term bond funds.

11. Disadvantages of a Medium Duration Fund?

• More sensitive to interest rate changes than shorter-term funds.
• Returns might be lower than long-term debt or equity funds.

12. What shall be the Exit Load?

Exit loads vary from fund to fund, to know more about them, it is advisable to read scheme related documents.

13. Want to know more about Mutual Funds?

Mutual Fund Explained

Explore medium duration funds and take charge of your investments with MINTIT!

Long duration funds are debt mutual funds that invest predominantly in fixed-income securities with longer maturities, typically exceeding 7 years. These funds are more sensitive to interest rate fluctuations but can offer the potential for higher returns if interest rates decline.

1. What is a Long Duration Fund?

Long duration funds are debt funds focusing on securities with maturities of 7 years or longer, potentially offering higher returns but with increased sensitivity to interest rate changes.

2. Where does a Long Duration Fund Invest?

Long duration funds typically invest in:

• Long-term government securities (bonds)
• Long-term corporate bonds
• Other fixed-income instruments with extended maturities

3. How Can I Invest in a Long Duration Fund?

Start investing in long duration funds with MINTIT! Browse our selection, compare key details, and invest in a fund that suits your financial goals.

4. What is the benchmark of a Long Duration Fund?

Long duration funds may use indices like the CRISIL 10 Year Gilt Index or VR Bond Index or NIFTY Long Duration Debt Index A-III or similar benchmarks that track long-term government bonds.

5. What is an average return on a Long Duration Fund?

Returns of long duration funds are highly influenced by interest rate movements. They have the potential for higher returns but also carry higher risk.

6. What is the ideal time horizon for a Long Duration Fund?

Long duration funds are suitable for investors with a longer time horizon (5+ years) who can tolerate volatility associated with interest rate fluctuations.

7. Who should invest in a Long Duration Fund?

Consider long duration funds if you:

• Have a high-risk tolerance and seek enhanced potential returns.
• Want to invest for long-term financial goals and can handle volatility.
• Believe that interest rates have the potential to decline in the future.

8. What is the taxation applicable on a Long Duration Fund?

There is no defined Short-term Capital Gains (STCG) or Long-term Capital Gains (LTCG) tax rate. Irrespective of duration, if you sell your debt mutual fund units, gains are taxed as per your income tax slab.

Additional Points to Note:

• Securities Transaction Tax (STT): STT is not levied on the sale of debt mutual funds and debt-oriented hybrid mutual funds.
• Dividend Distribution Tax (DDT): DDT has been abolished. Instead, dividends from mutual funds are now taxed in the hands of investors as per their income tax slab.

9. Is there any lock-in period in a Long Duration Fund?

Generally, no lock-in period exists. Some may have a small exit load for redemptions within a very short period.

10. Advantages of a Long Duration Fund?

• Highest return potential within the debt fund category (if interest rates decrease).
• Ideal for long-term financial goals like retirement planning.

11. Disadvantages of a Long Duration Fund?

• High sensitivity to interest rate changes, leading to greater volatility.
• Returns can be significantly negative if interest rates rise.

12. What shall be the Exit Load?

Exit loads vary from fund to fund, to know more about them, it is advisable to read scheme related documents.

13. Want to know more about Mutual Funds?

Mutual Fund Explained

Ready to explore long duration funds? Start your journey with MINTIT!

Corporate bond funds are a type of debt mutual fund that primarily invest in bonds issued by corporations. These funds aim to provide regular income through interest payments and offer the potential for capital appreciation if bond prices rise.

1. What is a Corporate Bond Fund?

Corporate bond funds invest predominantly in debt securities issued by companies, offering income generation and the potential for capital gains.

2. Where does a Corporate Bond Fund Invest?

Corporate bond funds allocate their assets across:

• Corporate bonds of varying maturities and credit ratings
• Government securities (sometimes, for added stability)
• Other fixed-income instruments

3. How Can I Invest in a Corporate Bond Fund?

Investing in corporate bond funds is easy with MINTIT! Browse our curated selection, compare features, and start investing.

4. What is the benchmark of a Corporate Bond Fund?

Corporate bond funds might use indices like the CRISIL Composite Bond Fund Index or VR Bond Index orNifty Corporate Bond Index A-II or similar benchmarks that track corporate bond performance.

5. What is an average return on a Corporate Bond Fund?

Returns are influenced by interest rates and the credit quality of bonds. They can potentially be higher than other short-term debt funds but carry more risk.

6. What is the ideal time horizon for a Corporate Bond Fund?

The time horizon depends on the specific fund's focus. Generally, time horizons of a few years or longer are suitable.

7. Who should invest in a Corporate Bond Fund?

Corporate Bond funds might be good for you if you:

• Seek regular income and are comfortable with some risk.
• Want some potential for capital appreciation.
• Have an investment horizon of a few years or longer.

8. What is the taxation applicable on a Corporate Bond Fund?

There is no defined Short-term Capital Gains (STCG) or Long-term Capital Gains (LTCG) tax rate. Irrespective of duration, if you sell your debt mutual fund units, gains are taxed as per your income tax slab.

Additional Points to Note:

• Securities Transaction Tax (STT): STT is not levied on the sale of debt mutual funds and debt-oriented hybrid mutual funds.
• Dividend Distribution Tax (DDT): DDT has been abolished. Instead, dividends from mutual funds are now taxed in the hands of investors as per their income tax slab.

9. Is there any lock-in period in a Corporate Bond Fund?

Generally, they do not have a lock-in period. However, some might have an exit load for very early redemptions.

10. Advantages of a Corporate Bond Fund?

• Potential for higher returns compared to government-focused debt funds.
• Provides regular income through interest
• Offers diversification benefits in your portfolio

11. Disadvantages of a Corporate Bond Fund?

• Carries credit risk (the risk that the bond issuer could default).
• Sensitive to interest rate fluctuations.

12. What shall be the Exit Load?

Exit loads vary from fund to fund, to know more about them, it is advisable to read scheme related documents.

13. Want to know more about Mutual Funds?

Mutual Fund Explained

Want to explore corporate bond funds? Discover your options on MINTIT!

Credit risk funds are a specific category of debt mutual funds that invest predominantly in lower-rated corporate bonds. These bonds offer higher yields but also carry a higher risk of default compared to bonds issued by highly-rated companies or governments.

1. What is a Credit Risk Fund?

Credit risk funds are debt funds that invest primarily in lower-rated corporate bonds, aiming for higher potential returns but accepting greater default risk.

2. Where does a Credit Risk Fund Invest?

Credit risk funds mainly invest in:

• Corporate bonds with below-AAA credit ratings
• Some higher-rated securities for a degree of stability

3. How Can I Invest in a Credit Risk Fund?

MINTIT makes it easy to invest in credit risk funds. Browse, compare key details, and start investing in the fund aligned with your risk tolerance.

4. What is the benchmark of a Credit Risk Fund?

Credit risk funds might be benchmarked against the CRISIL Credit Risk Debt Index or NIFTY Credit Risk Bond Index B-II or similar indices.

5. What is an average return on a Credit Risk Fund?

Returns of credit risk funds are highly dependent on the performance of the underlying bonds and the overall economic environment. They have the potential to exceed returns of safer debt funds, but the increased risk must be considered.

6. What is the ideal time horizon for a Credit Risk Fund?

Due to their risk profile, credit risk funds are best suited for investors with a longer time horizon (5+ years) who can withstand some volatility.

7. Who should invest in a Credit Risk Fund?

Consider credit risk funds only if you:

• Have a high-risk tolerance and understand potential volatility.
• Seek higher returns with a longer investment horizon.
• Want to diversify your fixed-income portfolio.

8. What is the taxation applicable on a Credit Risk Fund?

There is no defined Short-term Capital Gains (STCG) or Long-term Capital Gains (LTCG) tax rate. Irrespective of duration, if you sell your debt mutual fund units, gains are taxed as per your income tax slab.

Additional Points to Note:

• Securities Transaction Tax (STT): STT is not levied on the sale of debt mutual funds and debt-oriented hybrid mutual funds.
• Dividend Distribution Tax (DDT): DDT has been abolished. Instead, dividends from mutual funds are now taxed in the hands of investors as per their income tax slab.

9. Is there any lock-in period in a Credit Risk Fund?

Most credit risk funds have no lock-in period, though it has exit load for redemptions made within a very short time frame.

10. Advantages of a Credit Risk Fund?

• Potential for significantly higher returns than safer debt funds.
• Can offer portfolio diversification benefits.

11. Disadvantages of a Credit Risk Fund?

• High risk of default, especially if economic conditions worsen.
• Can be volatile and returns are unpredictable.

12. What shall be the Exit Load?

Exit loads vary from fund to fund, to know more about them, it is advisable to read scheme related documents.

13. Want to know more about Mutual Funds?

Mutual Fund Explained

Explore investment opportunities and manage your portfolio with MINTIT!

Dynamic bond funds are a type of debt mutual fund that actively adjust their portfolio holdings in response to changing interest rates and economic conditions. These funds aim to maximise returns by strategically investing in bonds of varying maturities and credit profiles.

1. What is a Dynamic Bond Fund?

Dynamic bond funds are debt funds where fund managers actively change the portfolio mix (bond maturities, types) to capitalise on interest rate movements and market conditions.

2. Where does a Dynamic Bond Fund Invest?

Dynamic bond funds have the flexibility to invest in:

• Government securities of varying maturities
• Corporate bonds (different maturities and credit ratings)
• Other fixed-income instruments

3. How Can I Invest in a Dynamic Bond Fund?

Start investing in dynamic bond funds with MINTIT! Browse our selection, compare, and choose the fund aligned with your goals.

4. What is the benchmark of a Dynamic Bond Fund?

Dynamic bond funds might use indices like the CRISIL Composite Bond Fund Index or VR Bond Index or NIFTY Composite Debt Index or NIFTY Composite Debt Index A-III or similar benchmarks that track a broad range of bonds.

5. What is an average return on a Dynamic Bond Fund?

Returns of dynamic bond funds depend heavily on the fund manager's ability to navigate interest rate cycles. They aim to outperform traditional bond funds but might come with more volatility.

6. What is the ideal time horizon for a Dynamic Bond Fund?

While there's no strict rule, these funds generally suit investors with a medium-to-long-term horizon (3+ years).

7. Who should invest in a Dynamic Bond Fund?

Consider dynamic bond funds if you:

• Seek potentially higher returns than fixed-maturity debt funds.
• Are comfortable with some additional volatility.
• Have a moderate-to-high risk tolerance.

8. What is the taxation applicable on a Dynamic Bond Fund?

There is no defined Short-term Capital Gains (STCG) or Long-term Capital Gains (LTCG) tax rate. Irrespective of duration, if you sell your debt mutual fund units, gains are taxed as per your income tax slab.

Additional Points to Note:

• Securities Transaction Tax (STT): STT is not levied on the sale of debt mutual funds and debt-oriented hybrid mutual funds.
• Dividend Distribution Tax (DDT): DDT has been abolished. Instead, dividends from mutual funds are now taxed in the hands of investors as per their income tax slab.

9. Is there any lock-in period in a Dynamic Bond Fund?

Mostly these funds have no lock-in period. However, some might have a small exit load for redemptions within a very short time frame.

10. Advantages of a Dynamic Bond Fund?

• Potential to outperform traditional bond funds during interest rate fluctuations.
• Provides diversification across bond maturities and types.

11. Disadvantages of a Dynamic Bond Fund?

• Performance depends on the fund manager's expertise.
• Might carry more inherent volatility than fixed-maturity debt funds.

12. What shall be the Exit Load?

Exit loads vary from fund to fund, to know more about them, it is advisable to read scheme related documents.

13. Want to know more about Mutual Funds?

Mutual Fund Explained

Ready to explore dynamic bond funds? Start your journey with MINTIT

Floating rate funds are a type of debt mutual fund that invest predominantly in bonds and debt instruments with floating interest rates. These interest rates reset periodically in line with prevailing market rates, reducing the impact of interest rate fluctuations on the fund's returns.

1. What is a Floating Rate Fund?

Floating rate funds are debt funds that primarily invest in securities with variable interest rates, offering some protection against interest rate volatility.

2. Where does a Floating Rate Fund Invest?

Floating rate funds typically invest in:

• Floating rate bonds (issued by companies and governments)
• Bank loans with variable interest rates
• Other debt instruments with adjustable rates

3. How Can I Invest in a Floating Rate Fund?

MINTIT simplifies investing in floating rate funds! Browse, compare, and start investing in the fund that fits your goals.

4. What is the benchmark of a Floating Rate Fund?

Floating rate funds may be benchmarked against the CRISIL Composite Bond Index or VR Bond Index or CCIL T Bill Liquidity Weight or NIFTY Low Duration Debt Index A-I or NIFTY Short Duration Debt Index A-II or NIFTY Long Duration Debt Index A-III or similar short-term debt indices.

5. What is an average return on a Floating Rate Fund?

Returns fluctuate with short-term interest rates. They generally offer returns similar to short-term debt funds and can exceed them during periods of rising interest rates.

6. What is the ideal time horizon for a Floating Rate Fund?

Floating rate funds suit investors with a short to medium-term investment horizon (approximately 1-3 years).

7. Who should invest in a Floating Rate Fund?

Consider floating rate funds if you:

• Want to protect your investments from rising interest rates.
• Seek stable returns with low volatility.
• Have a short to medium-term investment horizon.

8. What is the taxation applicable on a Floating Rate Fund?

There is no defined Short-term Capital Gains (STCG) or Long-term Capital Gains (LTCG) tax rate. Irrespective of duration, if you sell your debt mutual fund units, gains are taxed as per your income tax slab.

Additional Points to Note:

• Securities Transaction Tax (STT): STT is not levied on the sale of debt mutual funds and debt-oriented hybrid mutual funds
• Dividend Distribution Tax (DDT): DDT has been abolished. Instead, dividends from mutual funds are now taxed in the hands of investors as per their income tax slab.

9. Is there any lock-in period in a Floating Rate Fund?

Most floating rate funds have no lock-in period. Some may have a small exit load for redemptions within a very short time frame (e.g., within 7 days).

10. Advantages of a Floating Rate Fund?

• Reduced sensitivity to interest rate changes compared to fixed-rate funds.
• Provides some income stability and capital protection.

11. Disadvantages of a Floating Rate Fund?

• Returns might lag behind longer-term debt funds when interest rates decline.
• Can still be impacted by changes in credit quality of underlying bonds.

12. What shall be the Exit Load?

Exit loads vary from fund to fund, to know more about them, it is advisable to read scheme related documents.

13. Want to know more about Mutual Funds?

Mutual Fund Explained

Explore floating rate funds and diversify your portfolio with MINTIT!

Gilt funds are a specialised type of debt mutual fund that invest exclusively in government securities (G-Secs). The government backs these securities, making them very low-risk investments. However, their returns are also sensitive to interest rate changes.

1. What is a Gilt Fund?

Gilt funds are debt funds that invest solely in government securities, offering a high degree of safety but with sensitivity to interest rate fluctuations.

2. Where does a Gilt Fund Invest?

Gilt funds allocate their assets entirely to:

• Central government securities
• State government securities

3. How Can I Invest in a Gilt Fund?

MINTIT makes investing in gilt funds simple! Browse our selection, compare key details, and start investing.

4. What is the benchmark of a Gilt Fund?

Gilt funds often use indices like the CRISIL 10 Year Gilt Index or NIFTY All Duration G-Sec Index or CRISIL Dynamic Gilt Index or similar benchmarks that track government bonds.

5. What is an average return on a Gilt Fund?

Returns on gilt funds are heavily dependent on interest rate movements, offering the potential for high returns when rates fall but also risk if interest rates rise.

6. What is the ideal time horizon for a Gilt Fund?

Gilt funds suit investors with various time horizons, but they are especially sensitive to interest rate cycles, making timing important.

7. Who should invest in a Gilt Fund?

Consider gilt funds if you:

• Are highly risk-averse and prioritise capital safety.
• Want to include very safe assets in your portfolio.
• Believe that interest rates have the potential to decline in the future.

8. What is the taxation applicable on a Gilt Fund?

There is no defined Short-term Capital Gains (STCG) or Long-term Capital Gains (LTCG) tax rate. Irrespective of duration, if you sell your debt mutual fund units, gains are taxed as per your income tax slab.

Additional Points to Note:

• Securities Transaction Tax (STT): STT is not levied on the sale of debt mutual funds and debt-oriented hybrid mutual funds.
• Dividend Distribution Tax (DDT): DDT has been abolished. Instead, dividends from mutual funds are now taxed in the hands of investors as per their income tax slab.

9. Is there any lock-in period in a Gilt Fund?

Generally, they do not have a lock-in period. However, some funds might have a exit load for redemptions.

10. Advantages of a Gilt Fund?

• Extremely low credit risk due to government backing.
• Can offer significant returns if interest rates decline.

11. Disadvantages of a Gilt Fund?

• Potential for capital losses if interest rates rise.
• Returns can be volatile due to interest rate sensitivity.

12. What shall be the Exit Load?

Exit loads vary from fund to fund, to know more about them, it is advisable to read scheme related documents.

13. Want to know more about Mutual Funds?

Mutual Fund Explained

Ready to explore gilt funds? Discover your options with MINTIT!