Signal Desk · Markets

Sebi medium-duration fund rules explained for investors

2026-09-28 · 1 source · Economic Times Mutual Funds

In short

The reporting says Sebi allows short-duration debt funds to invest in instruments with maturities between one and three years. It says they sit in the middle on interest-rate risk and are riskier than liquid, ultra short term, and low duration funds.

This matters for investors choosing between debt funds. The reporting does not give fund names, returns, or a specific recommendation for September 2026.

What the reporting says

The available reporting says Sebi’s mandate classifies short-duration funds as debt schemes that can invest in instruments maturing between one and three years. It says these funds sit in the middle on interest-rate risk and are riskier than liquid, ultra short term and low duration funds. The reporting does not provide specific fund names, rankings or performance data for September 2026.

Why it matters

The reporting summarizes Sebi’s duration rules for debt mutual funds and says short-duration funds may hold instruments with one- to three-year maturities. It notes that these funds carry moderate interest-rate risk and are riskier than liquid, ultra short term and low duration funds. No specific mutual fund names, yields or rankings are provided in the available reporting.

Touches: Mutual Funds, Markets, Banking

Sources