Short-duration mutual fund

Tue, 12 May 2026 00:00:00 +0000

A short-duration mutual fund in India is an open-ended debt scheme that must maintain a portfolio Macaulay duration of 1 to 3 years, under SEBI ’s October 2017 scheme categorisation circular. The Macaulay duration is a measure of the weighted average time to receive a bond’s cash flows, and serves as a proxy for interest rate sensitivity. A portfolio with Macaulay duration of 1 to 3 years is moderately sensitive to interest rate changes – more sensitive than ultra-short duration or money-market funds but significantly less sensitive than medium-duration , medium-to-long-duration , or long-duration funds .

Short-Duration Fund on WebNotes

Short-duration mutual fund