scorecardresearchUltra-short term, liquid funds in demand as bank rates fail to keep pace

Ultra-short term, liquid funds in demand as bank rates fail to keep pace

Updated: 22 Nov 2022, 11:31 AM IST
TL;DR.
Most banks have not raised savings account rates at all, and have only marginally raised fixed deposit rates. As a result, investments in these products has become unattractive now.
Ultra-short-term funds invest their money in debt and money market instruments with the portfolio duration of anywhere between 3 to 6 months. Also, there is low volatility and chance of a mark to market loss when investors come with a 3-month horizon.

Ultra-short-term funds invest their money in debt and money market instruments with the portfolio duration of anywhere between 3 to 6 months. Also, there is low volatility and chance of a mark to market loss when investors come with a 3-month horizon.