What is the typical Macaulay Duration range for Low Duration Funds?

3 to 6 months 6 to 12 months 12 to 24 months 24 to 36 months

Which type of investor is best suited for Low Duration Funds?

High-risk, short-term investors Low-risk, long-term investors Low-risk, short-term investors High-risk, long-term investors

What is a key advantage of Low Duration Funds compared to Liquid Funds?

Lower risk Higher liquidity Potentially higher returns Longer maturity periods

How are Short Term Capital Gains (STCG) from Low Duration Funds taxed?

Taxed at a flat rate of 10% Taxed at a flat rate of 20% Added to taxable income and taxed according to the applicable income tax slab Exempt from taxation

What is the primary investment focus of Low Duration Funds?

Stocks and bonds Real estate and commodities Debt securities and money market instruments Derivatives and hedge funds

What is a defining characteristic of open-ended Low Duration Funds?

Fixed maturity date Limited trading opportunities Investors can enter and exit anytime until the fund matures Higher risk compared to closed-ended funds

What is the main risk associated with Low Duration Funds?

Market risk Inflation risk Interest rate risk Credit risk

What is a potential benefit of Low Duration Funds compared to Ultra-Short Duration Funds?

Lower fees Higher liquidity Greater diversification Bigger capital gains due to longer-maturity bonds

According to SEBI's categorization, how many types of Debt funds are there?

8 12 16 20

What is the recommended investment horizon for optimal results with Low Duration Funds?

Less than 6 months 6 to 12 months 1 to 3 years Over 3 years