alleryStart learning →An Ultra-Short Duration Fund holds a portfolio with Macaulay duration between
A3 months and 6 months
B1 day and 3 months
C6 months and 12 months
D12 months and 36 months
Answer & Solution
Correct answer: A. 3 months and 6 months
1. SEBI classifies debt schemes by portfolio Macaulay duration bands.
2. Ultra-Short Duration is set between 3 and 6 months.
3. Low Duration sits between 6 and 12 months; Short Duration between 1 and 3 years.
4. The definition targets a specific interest-rate sensitivity profile for investors.
_Source: NISM Series V-A: Mutual Fund Distributors Workbook (Dec 2019), Ch 2 "Concept and Role of a Mutual Fund", §2.2.4B(3)_
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