Index Fund Corner
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| Scheme Name | 1-Year Return | Invest Now | Fund Category | Expense Ratio |
|---|---|---|---|---|
| Axis Nifty 50 Index Fund | +32.80% | Invest Now | Equity: Large Cap | 0.12% |
| Axis Nifty 100 Index Fund | +38.59% | Invest Now | Equity: Large Cap | 0.21% |
| Axis Nifty Next 50 Index Fund | +71.83% | Invest Now | Equity: Large Cap | 0.25% |
| Axis Nifty 500 Index Fund | — | Invest Now | Equity: Flexi Cap | 0.10% |
| Axis Nifty Midcap 50 Index Fund | +46.03% | Invest Now | Equity: Mid Cap | 0.28% |
Different types of debt fund categories
can be divided into the following categories based on their maturity period:
Liquid Funds
They make investments in money market securities with a maximum maturity of 91 days. Liquid funds are an excellent option for short-term investments because they often yield higher returns than savings accounts.
Money Market Funds
They concentrate on short-term debt instruments that have a one-year maximum maturity. Investors looking for short-term, low-risk debt instruments might consider these products.
Overnight Funds
They make investments in debt instruments with a one-day maturity. These funds are regarded as being incredibly safe due to their low credit and interest rate risk.
Credit Risk Funds
They allocate at least 65% of their investible corpus to corporate bonds with ratings lower than the best corporate bonds. They offer marginally higher returns than the best-quality bonds but also entail some credit risk.
Floater Funds
These funds allocate a minimum of 65% of their assets to floating-rate bonds, which modify interest rates in response to current market conditions. These funds hold a low interest-rate risk.
Corporate Bond Funds
These funds primarily make investments in corporate debt instruments and allocate at least 80% of their total assets to the highest-rated corporate bonds.
Dynamic Bond Funds
They make investments in debt securities with different maturities based on the interest rate regime. These funds are suitable for investors with a three to five-year investment horizon and a moderate risk tolerance.
Gilt Funds
This is an investment vehicle that allocates at least 80% of its investible corpus to government securities of various maturities. There is no credit risk associated with these funds.
Banking and PSU Funds
These funds combine safety and respectable returns by investing in debt instruments issued by banks and public sector undertakings (PSUs).
Short Duration Funds
A short-duration fund is one that makes investments in debt securities and money market instruments with a Macaulay term of one to three years.
Ultra-short Funds
These funds make investments in debt securities with a Macaulay term of three to six months. They aim to reduce interest rate volatility while striking a balance between short-term and liquid funds.
Medium Duration Funds
These funds make investments in debt instruments that have a typical tenure of three to four years. These funds are appropriate for investors with a medium-term investment horizon and a moderate risk appetite.
Medium to Long Duration Funds
These funds cover a wider variety of periods, usually four to seven years. The goal is to strike a balance between the requirement for greater returns and the interest rate risk involved.
Long Duration Funds
They make investments in debt instruments that last longer than seven years. Those who have a long-term perspective on interest rate changes and a patient attitude might find long-term funds suitable.
Low Duration Funds
They are a type of debt mutual fund that makes investments in the money market and debt instruments that have a six-month to one-year time horizon. These funds seek to strike a balance between moderate returns, safety, and liquidity.