Difference between liquid funds vs debt funds | UTI Mutual Fund

investors can choose to invest in different mutual fund schemes to suit their risk appetite, financial goals, and investment horizon. People generally consider liquid funds and debt funds as different mutual fund categories. However, this is not the case.

Debt funds are a larger category of mutual fund schemes, which include overnight funds, liquid funds, duration funds, gilt funds, credit opportunities funds, etc. A liquid fund is a subset within the broader universe of debt funds.

Since debt funds encapsulate several other mutual fund schemes, the suitability of liquid funds and other debt funds is different for different investors.