Dear Sir,
What do you mean by low duration fund?
What is the Difference between Short term debt fund & low duration fund.
1 Answers
Hi,
What is Duration>
Duration is a measure of the sensitivity of the price -- the value of principal -- of a fixed-income investment to a change in interest rates. Duration is expressed as a number of years. Bond prices are said to have an inverse relationship with interest rates.
Low Duration Fund?
For example : Franklin India Low Duration Fund aims to provide steady returns by investing in a mix of money market and short term debt instruments while maintaining a low duration i.e. Debt securities with shorter duration maturity.
A short term or ultra-short term debt fund can be a Low Duration Fund.
Related article :
Debt Funds : Types, Benefits & Risk Vs Return
Please login or Register to submit your answer