Debt funds that invest in securities maturing within a year are safer than other debt funds.
The relatively risk-free short debt funds are: 1) Overnight funds, 2) Liquid funds, 3) Ultra short-duration funds, 4) Low-duration debt funds and 5) Money market debt funds.
Their yield to maturity (YTM) is in a narrow range at the moment. That’s because interest rates haven’t undergone any change in a while.
Yield to maturity: 6.7%
Yield to maturity: 7.4%
Yield to maturity: 7.8%
Yield to maturity: 7.9%
Yield to maturity: 7.7%
YTM as of February 29, 2024. Debt fund categories as per Value Research classification.