What are duration funds and how much money can be invested in such funds and for what period?—Aman Kapoor A fixed-income investor should allocate exposure to different debt fund categories (short-term debt, medium and/long-term debt, and credit) based on his recommended asset allocation, which in turn is dependent on his risk appetite. Shorter duration funds (Short duration, BPSU, Corporate Bond, etc.) provide accrual yield and subject investors to relatively lower market-to-market risk.
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