What's the difference between Liquid Funds, Gilt Funds & Debt Funds?

[mutualfund00]

I am confuse about what fund should i invest. cam anyone tell me whats the difference.

[Krypton]

Liquid Funds are those funds which invest into money market securities and debt securities that mature in 91 days. liquid means anything that is almost as good as cash.

Gilt Funds (Also known as Government Securities in India) invest in government papers (named dated securities) having medium to long term maturity period. They are issued by the Government of India, & have little risk of default and provide safety of principal to the investors. However, like all debt funds, gilt funds too are exposed to interest rate risk.

Debt Funds are the mutual funds which invest into a variety of debt securities like treasury bills, government securities or gilts, Certificate of Deposits (CDs), Commercial Papers (CPs), bonds and money market securities and many more.