These are the top-ranked funds within long duration mutual funds.Long Duration Funds invest in debt and money market instruments such that the duration of the portfolio is greater than 7 years.
The tenure of the instruments held by these funds exposes them to very high degrees of variations when interest rate changes.These funds tend to have high credit quality paper as the underlying - thereby reducing the Credit Risk of the fund.This is one of the smallest categories(less than 0.5 % of the total debt fund assets) with very few funds.We do not recommend funds in this category since we believe that the potential incremental return is not justified by the high interest rate risk.
The scheme seeks to generate optimal returns consistent with moderate levels of risk.This income may be complemented by capital appreciation of the portfolio.
