What is the difference between debt funds and liquid funds?

What is Debt Fund? Debt funds invest in a portfolio of debt instruments such as government bonds, corporate bonds and money market securities. Debt instruments have a predefined coupon or income stream. Fund managers have to manage credit risk, i.e. read more

Short Term Debt Funds; Money Market or Liquid Funds: Invest in debt securities with less than 91 days to maturity. However, there is no mark to market for securities less than 60 days to maturity and this reduces the volatility in these funds. The primary source of return is interest income. read more

Liquid fund, which are a type of debt fund, invest in securities with lower maturity term of a maximum of 91 days give investors high liquidity. And other than the liquidity factor, such funds differ from debt funds in several ways. read more

what i understood is there is no exit load on liquid funds after the lock in period, which can be as less as 7 days , where as in debt funds even if you exit after a year you need to factor the tax 10% or 20% with or without indexation. read more