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Medium to long term funds have a mandate to invest in debt and money market instruments with a duration of four to seven years. These schemes are suitable for debt investors with a long horizon and willingness to take extra risk.
These schemes invest in both short term bonds and very short term instruments. They invest in treasury bills, commercial papers, certificates of deposits and so on to take care of their liquidity needs. They also invest in corporate bonds, government securities, etc.
Banking & PSU funds invest in bonds and papers of banks and public sector companies. Since most of these entities are government-backed, they dont have the credit risk. That makes these schemes relatively safe
These schemes invest at least 80% of their corpus in the papers of the highest-rated companies. This makes them relatively safer than other debt schemes such as credit risk funds.
A value investor tries to choose stocks that are available at cheaper valuations. These investors employ various ratios and methodology to identify such stocks. Essentially, they look for stocks that are available at a discount to their real or intrinsic value.