+91-22-4891390916 New Debt Mutual Fund Categories Introduced by SEBI
Securities and Exchange Board of India (SEBI) introduced new and broad categories in Mutual Funds in order to bring uniformity in similar schemes launched by the different Mutual Funds. This is to aim and ensure that investors can find it easier to compare the products and evaluate the different options available before Investing in a scheme.
SEBI intends to make Mutual Fund investment easier for the investors. Investors could invest according to their needs, Financial goals and risk ability. SEBI has circulated new Mutual Fund categorisation on 6th October 2017. This mandates Mutual Fund Houses to categories all their debt schemes (existing & future scheme) into 16 distinct categories. SEBI has also introduced 10 new categories in Equity Mutual Funds.
New Categorisation in Debt Schemes
As per SEBI’s new categorisation, Debt fund schemes will have 16 categories. Here’s the list:
1. Overnight Fund
This debt scheme will invest in overnight securities having a maturity of one day.
2. Liquid Fund
These schemes will invest in debt and money market securities with a maturity of up to 91 days.
3. Ultra Short Duration Fund
This scheme will invest in debt and money market securities with a Macaulay duration between three to six months. Macaulay duration measures how long it will take the scheme to recoup the investment.
4. Low Duration Fund
The scheme will invest in debt and money market securities with a Macaulay duration between six to 12 months.
5. Money Market Fund
This scheme will invest in money market instruments having a maturity up to one year.
6. Short Duration Fund
This scheme will invest in debt and money market instruments with a Macaulay duration of one to three years.
7. Medium Duration Fund
This scheme will invest in debt and money market instruments with a Macaulay duration of three to four years.
8. Medium to Long Duration Fund
This scheme will invest in debt and money market instruments with a Macaulay duration of four to seven years.
9. Long Duration Fund
This scheme will invest in debt and money market instruments with a Macaulay duration greater than seven years.
10. Dynamic Bond Fund
This is a debt scheme that invests across all the duration.
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11. Corporate Bond Fund
This debt scheme mainly invests in the highest rated corporate Bonds. The fund can invest a minimum 80 percent of its total assets in the highest-rated corporate bonds
12. Credit Risk Fund
This scheme will invest in below the high-rated corporate bonds. The Credit Risk Fund should invest at least 65 percent of its assets below the highest-rated instruments.
13. Banking and PSU Fund
This scheme predominantly invests in debt instruments of Banks, Public Financial Institutional, Public Sector Undertakings.
14. Gilt Fund
This scheme invests in government securities across maturity. Gilt Funds will invest a minimum 80 percent of its total assets in government securities.
15. Gilt Fund with 10-year Constant Duration
This scheme will invest in government securities with a maturity of 10 years. 15. Gilt Fund with 10-year Constant Duration will invest a minimum 80 percent in government securities.
16. Floater Fund
This debt scheme mainly invests in floating rate instruments. Floater Fund will invest a minimum of 65 percent of its total assets in floating rate instruments.
Fund Selection Methodology used to find 10 funds
Best Debt Mutual Funds to Invest 2026
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2024 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity PGIM India Credit Risk Fund Growth ₹15.5876
↑ 0.00 ₹39 0.6 4.4 8.4 3 5.01% 6M 14D 7M 2D Axis Credit Risk Fund Growth ₹22.3504
↓ -0.01 ₹368 1.4 3.5 8.3 7.8 8.7 8.22% 2Y 1M 28D 2Y 5M 26D UTI Banking & PSU Debt Fund Growth ₹22.6813
↓ -0.01 ₹1,015 1 2.4 7.2 7.3 7.8 6.67% 1Y 3M 11D 1Y 5M 8D Aditya Birla Sun Life Savings Fund Growth ₹568.759
↓ -0.16 ₹23,615 1.3 2.9 7.1 7.4 7.4 6.81% 5M 19D 6M 11D Aditya Birla Sun Life Money Manager Fund Growth ₹383.737
↓ -0.01 ₹27,449 1.3 2.8 7 7.4 7.4 6.62% 6M 11D 6M 11D HDFC Banking and PSU Debt Fund Growth ₹23.6792
↓ -0.04 ₹5,719 0.6 2 6.6 7.2 7.5 6.99% 3Y 2M 19D 4Y 6M 18D Indiabulls Liquid Fund Growth ₹2,613.84
↑ 0.49 ₹165 1.5 2.9 6.4 6.9 6.6 6.02% 2M 2M 1D PGIM India Insta Cash Fund Growth ₹351.859
↑ 0.06 ₹505 1.5 2.9 6.4 6.9 6.5 5.96% 1M 11D 1M 13D PGIM India Low Duration Fund Growth ₹26.0337
↑ 0.01 ₹104 1.5 3.3 6.3 4.5 7.34% 6M 11D 7M 17D Aditya Birla Sun Life Corporate Bond Fund Growth ₹115.883
↓ -0.32 ₹29,856 0.4 1.8 6.3 7.5 7.4 7.12% 4Y 10M 24D 7Y 6M 14D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 21 Jan 22 Research Highlights & Commentary of 10 Funds showcased
Commentary PGIM India Credit Risk Fund Axis Credit Risk Fund UTI Banking & PSU Debt Fund Aditya Birla Sun Life Savings Fund Aditya Birla Sun Life Money Manager Fund HDFC Banking and PSU Debt Fund Indiabulls Liquid Fund PGIM India Insta Cash Fund PGIM India Low Duration Fund Aditya Birla Sun Life Corporate Bond Fund Point 1 Bottom quartile AUM (₹39 Cr). Lower mid AUM (₹368 Cr). Upper mid AUM (₹1,015 Cr). Upper mid AUM (₹23,615 Cr). Top quartile AUM (₹27,449 Cr). Upper mid AUM (₹5,719 Cr). Bottom quartile AUM (₹165 Cr). Lower mid AUM (₹505 Cr). Bottom quartile AUM (₹104 Cr). Highest AUM (₹29,856 Cr). Point 2 Established history (11+ yrs). Established history (11+ yrs). Established history (12+ yrs). Established history (22+ yrs). Established history (20+ yrs). Established history (11+ yrs). Established history (14+ yrs). Established history (18+ yrs). Established history (18+ yrs). Oldest track record among peers (28 yrs). Point 3 Top rated. Rating: 5★ (top quartile). Rating: 5★ (upper mid). Rating: 5★ (upper mid). Rating: 5★ (upper mid). Rating: 5★ (lower mid). Rating: 5★ (lower mid). Rating: 5★ (bottom quartile). Rating: 5★ (bottom quartile). Rating: 5★ (bottom quartile). Point 4 Risk profile: Moderate. Risk profile: Moderate. Risk profile: Moderate. Risk profile: Moderately Low. Risk profile: Low. Risk profile: Moderately Low. Risk profile: Low. Risk profile: Low. Risk profile: Moderate. Risk profile: Moderately Low. Point 5 1Y return: 8.43% (top quartile). 1Y return: 8.28% (top quartile). 1Y return: 7.17% (upper mid). 1Y return: 7.09% (upper mid). 1Y return: 7.02% (upper mid). 1Y return: 6.60% (lower mid). 1Y return: 6.40% (lower mid). 1Y return: 6.38% (bottom quartile). 1Y return: 6.30% (bottom quartile). 1Y return: 6.29% (bottom quartile). Point 6 1M return: 0.27% (bottom quartile). 1M return: 0.34% (lower mid). 1M return: 0.29% (lower mid). 1M return: 0.38% (upper mid). 1M return: 0.36% (upper mid). 1M return: 0.15% (bottom quartile). 1M return: 0.48% (top quartile). 1M return: 0.49% (top quartile). 1M return: 0.47% (upper mid). 1M return: 0.01% (bottom quartile). Point 7 Sharpe: 1.73 (lower mid). Sharpe: 2.72 (upper mid). Sharpe: 1.48 (lower mid). Sharpe: 3.14 (upper mid). Sharpe: 3.04 (upper mid). Sharpe: 0.74 (bottom quartile). Sharpe: 3.18 (top quartile). Sharpe: 3.16 (top quartile). Sharpe: -1.66 (bottom quartile). Sharpe: 0.66 (bottom quartile). Point 8 Information ratio: 0.00 (top quartile). Information ratio: 0.00 (top quartile). Information ratio: 0.00 (upper mid). Information ratio: 0.00 (upper mid). Information ratio: 0.00 (upper mid). Information ratio: 0.00 (lower mid). Information ratio: -0.71 (bottom quartile). Information ratio: -0.10 (bottom quartile). Information ratio: 0.00 (lower mid). Information ratio: 0.00 (bottom quartile). Point 9 Yield to maturity (debt): 5.01% (bottom quartile). Yield to maturity (debt): 8.22% (top quartile). Yield to maturity (debt): 6.67% (lower mid). Yield to maturity (debt): 6.81% (upper mid). Yield to maturity (debt): 6.62% (lower mid). Yield to maturity (debt): 6.99% (upper mid). Yield to maturity (debt): 6.02% (bottom quartile). Yield to maturity (debt): 5.96% (bottom quartile). Yield to maturity (debt): 7.34% (top quartile). Yield to maturity (debt): 7.12% (upper mid). Point 10 Modified duration: 0.54 yrs (lower mid). Modified duration: 2.16 yrs (bottom quartile). Modified duration: 1.28 yrs (lower mid). Modified duration: 0.47 yrs (upper mid). Modified duration: 0.53 yrs (upper mid). Modified duration: 3.22 yrs (bottom quartile). Modified duration: 0.17 yrs (top quartile). Modified duration: 0.11 yrs (top quartile). Modified duration: 0.53 yrs (upper mid). Modified duration: 4.90 yrs (bottom quartile). PGIM India Credit Risk Fund
Axis Credit Risk Fund
UTI Banking & PSU Debt Fund
Aditya Birla Sun Life Savings Fund
Aditya Birla Sun Life Money Manager Fund
HDFC Banking and PSU Debt Fund
Indiabulls Liquid Fund
PGIM India Insta Cash Fund
PGIM India Low Duration Fund
Aditya Birla Sun Life Corporate Bond Fund
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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