| Fund name | Reasoning | How to use |
|---|---|---|
| HDFC Floating Rate Debt | Fits in this space due to its slightly longer maturity profile compared with peers. Takes some credit risk in AA and AA- rated papers for better yields; credit exposure has averaged less than 10% in the past 1 year. Has a diversified portfolio with relatively less concentration in issuers save for PSUs. Lower expense ratio than peers. | Marginally higher-risk fund that can be used to meet goals that are at least 1.5 – 3 years away. May sometimes show some volatility or negative returns on a week to week basis. Pair along with ultra-short/low duration/money market funds for a short-term goal or with longer-maturity funds for a long-term goal. |
