These schemes invest in debt instruments with macaulay duration of more than seven years. These schemes are extremely sensitive to interest rate changes. When the interest rate goes up, the returns from these schemes are hit badly. They can give high returns in a falling rate scenario. Investors with a higher risk appetite and longer investment horizons can opt for them.
These are ideal for investors with a long-term investment horizon and who can take extra risk for returns.
The minimum investment varies from scheme to scheme. It could range between Rs.100/ – to Rs.5,000/-