Tata Banking & PSU Debt Fund is the new kid on the block. The new fund offer is open until October 3 and seeks to offer reasonable returns and minimize risk by investing in good-quality debt instruments.
At this juncture, given the uncertainty around various factors impacting bond yields, investors should go for short- and medium-duration debt funds that carry relatively lower risk. Banking and PSU debt funds, hence, are a good fit for investors with a moderate risk appetite.
Broad mandate
Within the short-term debt funds category, banking and PSU debt funds offer stable returns, a good play on rate movement on the shorter end of the yield curve and relatively lower credit risk.
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