What is the typical maturity duration range for Medium Duration Funds?

1 to 2 years 3 to 4 years 5 to 6 years 7 to 8 years

Which of the following is NOT a characteristic of Medium Duration Funds?

Maturity period between 3 to 4 years Higher liquidity compared to long-term funds Investment solely in government bonds Tax efficiency for long-term investments

How do Medium Duration Funds achieve diversification?

Investing in a variety of debt instruments Focusing on a single type of bond Investing only in money market instruments Limiting investments to a specific industry

What is the typical range of average returns for Medium Duration Funds?

1% to 3% 3% to 5% 7% to 9% 10% to 12%

What tax benefit applies to Medium Duration Funds held for more than three years?

Tax exemption on capital gains Lower tax rate on capital gains Tax deferral on interest earned No tax benefits apply

What is the primary risk associated with Medium Duration Funds?

Market risk Inflation risk Interest rate risk Liquidity risk

Who are Medium Duration Funds most suitable for?

Investors seeking short-term gains Investors with a high-risk tolerance Investors looking for an alternative to bank deposits for 1-3 years Investors seeking long-term growth over 10 years