As per the SEBI circular, open-end debt mutual fund schemes have been categorized under the following subheads:

Overnight Fund: An open-ended debt scheme investing in overnight securities. The investment is in overnight securities having a maturity of 1 day.

Liquid Fund: An open-ended liquid scheme whose investment is into debt and money market securities with a maturity of up to 91 days only.

Ultra Short Duration Fund: An open-ended ultra-short term debt scheme investing in debt and money market instruments with Macaulay duration between 3 months and 6 months.

Low Duration Fund: An open-ended low-duration debt scheme investing in debt and money market instruments with Macaulay duration between 6 months and 12 months.

Money Market Fund: An open-ended debt scheme investing in money market instruments having a maturity of up to 1 year.

Short Duration Fund: An open-ended short-term debt scheme investing in debt and money market instruments with Macaulay duration between 1 year and 3 years.

Medium Duration Fund: An open-ended medium-term debt scheme investing in debt and money market instruments with Macaulay’s duration of the portfolio being between 3 years and 4 years. Portfolio Macaulay duration under anticipated adverse situations is 1 year to 4 years.

Medium to Long Duration Fund: An open-ended medium-term debt scheme investing in debt and money market instruments with Macaulay duration between 4 years and 7 years. Portfolio Macaulay’s duration under anticipated adverse situations is 1 year to 7 years.

Long Duration Fund: An open-ended debt scheme investing in debt and money market instruments with a Macaulay duration greater than 7 years.

Dynamic Bond: An open-ended dynamic debt scheme investing across duration.

Corporate Bond Fund: An open-ended debt scheme predominantly investing in AA+ and above-rated corporate bonds. The minimum investment in corporate bonds shall be 80 percent of total assets (only in AA+ and above rated corporate bonds)

Credit Risk Fund: An open-ended debt scheme investing in below highest-rated corporate bonds. The minimum investment in corporate bonds shall be 65 percent of total assets (only in AA (excludes AA+ rated corporate bonds) and below-rated corporate bonds).

Banking and PSU Fund: An open-ended debt scheme predominantly investing in debt instruments of banks, Public Sector Undertakings, Public Financial Institutions, and Municipal Bonds. The minimum investment in such instruments should be 80 percent of total assets.

Gilt Fund: An open-ended debt scheme investing in government securities across maturity. The minimum investment in G-Secs (Government Securities) is defined to be 80 percent of total assets (across maturity).

Floater Fund: An open-ended debt scheme predominantly investing in floating rate instruments (including fixed rate instruments converted to floating rate exposures using swaps/derivatives). Minimum investment in floating rate instruments (including fixed rate instruments converted to floating rate exposures using swaps/derivatives) shall be 65 percent of total assets.