Ultra-short duration funds invest in debt and money market papers in such a way that the Macaulay Duration of the scheme portfolio is 3 months to 6 months. It is one of the low risk debt funds that tend to deliver slightly higher return than the bank FDs. This category is placed above the liquid funds in the risk-return pyramid given their relatively higher portfolio average maturity and allocation to non-AAA papers. These funds follow the blend of accrual and duration strategies to maximise the returns. It is suitable for investors looking to keep aside money for few months.