Debt Mutual Funds Quiz
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Questions and Answers

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?

  • 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?

  • 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?

    <p>Their investment in corporate bonds</p> Signup and view all the answers

    How does Corporate Bond Fund differ from Medium to Long Duration Fund?

    <p>Their predominant investment in AA+ and above rated corporate bonds</p> Signup and view all the answers

    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

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    Description

    Test your knowledge of debt mutual funds with this quiz! Explore different types of debt schemes including Medium to Long Duration Fund, Long Duration Fund, Dynamic Bond, and Corporate Bond Fund. See how well you understand the investment strategies and duration ranges of these funds.

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