Mutual funds are a popular investment option in India. There are two main types of mutual funds i.e., Equity Funds and Debt Funds. Debt funds invest in various debt instruments making them less volatile compared to Equity Funds. There are various types of debt funds such as Overnight Funds, Liquid Money Market Funds, Ultra-Short Duration Funds, Low Duration Funds, Long Duration Funds, Corporate Bond Funds, Credit Risk Funds, etc. Each of these funds caters to the different needs of investors.