Podcast
Play an AI-generated podcast conversation about this lesson
Questions and Answers
What is the primary difference between Medium to Long Duration Fund and Long Duration Fund?
What is the primary difference between Medium to Long Duration Fund and Long Duration Fund?
- The Macaulay duration range they invest in (correct)
- The type of debt and money market instruments they invest in
- Their investment strategy across duration
- Their minimum investment requirement in corporate bonds
What distinguishes Dynamic Bond from Corporate Bond Fund?
What distinguishes Dynamic Bond from Corporate Bond Fund?
- Their credit rating criteria for corporate bonds
- Their investment focus on duration (correct)
- Their predominant investment in corporate bonds
- Their minimum investment requirement in debt and money market instruments
What sets Credit Risk Fund apart from Corporate Bond Fund?
What sets Credit Risk Fund apart from Corporate Bond Fund?
- Their focus on debt and money market instruments
- Their investment strategy across duration
- Their investment in below highest rated corporate bonds (correct)
- Their minimum investment requirement in corporate bonds
What is the distinguishing factor between Long Duration Fund and Credit Risk Fund?
What is the distinguishing factor between Long Duration Fund and Credit Risk Fund?
Signup and view all the answers
How does Corporate Bond Fund differ from Medium to Long Duration Fund?
How does Corporate Bond Fund differ from Medium to Long Duration Fund?
Signup and view all the answers
Flashcards are hidden until you start studying
Study Notes
Debt Funds
- Medium to Long Duration Fund has a shorter duration compared to Long Duration Fund, typically 3-7 years
- Dynamic Bond Fund has an active management strategy, adjusting duration and credit exposure based on market conditions, distinguishing it from Corporate Bond Fund's fixed duration and credit exposure
- Credit Risk Fund focuses on credit risk, investing in lower-rated papers to generate higher returns, whereas Corporate Bond Fund invests in high-quality papers with lower returns
- Long Duration Fund has a longer duration, typically 7-10 years, exposing investors to higher interest rate risk, whereas Credit Risk Fund takes on credit risk
- Corporate Bond Fund has a shorter duration, typically 1-3 years, and invests in high-quality corporate bonds, differentiating it from Medium to Long Duration Fund's longer duration and flexibility
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
