Investment
Medium-term Debt Funds
Also known as: Medium Duration Funds, 3-7 Year Debt Funds
Debt mutual funds investing in securities with 3-7 year maturity for moderate duration exposure.
Detailed Explanation
Medium-term Debt Funds invest in debt securities with medium-term maturities (3-7 years), providing moderate interest rate sensitivity. They offer higher potential returns than short-term funds but with increased volatility. These funds are suitable for 3-7 year investment horizons where investors can accept moderate volatility for better yield than shorter duration funds.