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4 Best Performing Accrual Debt Funds 2024
Accrual Funds adopt buy & hold strategy and focuses on delivering better returns compared to Bank fixed deposits. These funds take a credit-risk and invest in slightly lower-rated securities, in order to generate higher yields. Accrual Funds can also make returns from the Capital gains, but this tends to be a small portion of their total returns.
Accrual Funds are an ideal investment options for investors who have a view point about the interest rate movements. Accrual Funds, ideally focuses to earn interest Income in terms of coupon offered by Bonds. These are a type of Debt fund which typically invest in short to medium maturity papers. These papers are of mid-to-high quality, while focusing on holding securities until the maturity.
Accrual funds are not entirely immune to the effects of rising interest rates, especially when the rise is steep and fast, but the impact is far lower than on duration funds.
These funds are suitable for investors who want to earn desire stable returns. But, an investor should have a view on interest rates and should also keenly monitor the fund performances. It is advised to invest in Accrual Funds for least a 1-3-year horizon.
Who Should buy Accrual Funds?
To attain desirable stable returns in accrual funds, one needs to take some level of risk as these funds can minimal Volatility. Nevertheless, accrual fund's strategy is more predictable in returns. So, investors with a conservative appetite can invest this fund. Moreover, to attain good returns, it would be advisable to stay invested for a longer duration in accrual funds.
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Best Performing Accrual Funds to Invest in India FY 24 - 25
The Fund seeks to provide steady income and capital appreciation by investing primarily in corporate debt securities across maturities and ratings. There is no assurance or guarantee that the objectives of the scheme will be realised. IDFC Corporate Bond Fund is a Debt - Corporate Bond fund was launched on 12 Jan 16. It is a fund with Moderate risk and has given a Below is the key information for IDFC Corporate Bond Fund Returns up to 1 year are on (Erstwhile ICICI Prudential Ultra Short Term Plan) ICICI Prudential Ultra Short Term Plan is an open-ended income fund that intends to generate regular income through investments in a basket of debt and money market instruments of very short maturities with a view to providing reasonable returns, while maintaining an optimum balance of safety, liquidity and yield. However, there can be no assurance that the investment objective of the scheme will be realized. ICICI Prudential Corporate Bond Fund is a Debt - Corporate Bond fund was launched on 11 Aug 09. It is a fund with Moderately Low risk and has given a Below is the key information for ICICI Prudential Corporate Bond Fund Returns up to 1 year are on The investment objective of the Scheme is to generate income and capital gains through investments in a portfolio of debt and money market instruments. However, there can be no assurance that the investment objectives of the Scheme will be realized. The Scheme launched hereunder does not guarantee/indicate any returns. BNP Paribas Corporate Bond Fund is a Debt - Corporate Bond fund was launched on 8 Nov 08. It is a fund with Moderate risk and has given a Below is the key information for BNP Paribas Corporate Bond Fund Returns up to 1 year are on (Erstwhile Franklin India Income Builder Account - Plan A) The investment objective of the Scheme is primarily to provide investors Regular income under the Dividend Plan and Capital appreciation under the Growth Plan. Franklin India Corporate Debt Fund is a Debt - Corporate Bond fund was launched on 23 Jun 97. It is a fund with Moderate risk and has given a Below is the key information for Franklin India Corporate Debt Fund Returns up to 1 year are on Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2023 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity IDFC Corporate Bond Fund Growth ₹17.7798
↑ 0.01 ₹13,600 2.2 3.6 7 5 6.8 7.6% 3Y 1M 13D 3Y 11M 26D ICICI Prudential Corporate Bond Fund Growth ₹27.598
↑ 0.01 ₹26,944 2.1 4 7.6 6.2 7.6 7.86% 2Y 4M 20D 4Y 22D BNP Paribas Corporate Bond Fund Growth ₹25.2718
↑ 0.01 ₹150 2.2 4.2 7 4.7 7 7.52% 3Y 9M 25D 5Y 4M 10D Franklin India Corporate Debt Fund Growth ₹91.1487
↑ 0.03 ₹771 1.9 3.6 6.7 5.1 6.5 7.77% 1Y 10M 20D 2Y 10M 10D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 24 Jul 24 1. IDFC Corporate Bond Fund
CAGR/Annualized return of 7% since its launch. Return for 2023 was 6.8% , 2022 was 2.6% and 2021 was 3.7% . IDFC Corporate Bond Fund
Growth Launch Date 12 Jan 16 NAV (24 Jul 24) ₹17.7798 ↑ 0.01 (0.04 %) Net Assets (Cr) ₹13,600 on 30 Jun 24 Category Debt - Corporate Bond AMC IDFC Asset Management Company Limited Rating Risk Moderate Expense Ratio 0.6 Sharpe Ratio -0.53 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 7.6% Effective Maturity 3 Years 11 Months 26 Days Modified Duration 3 Years 1 Month 13 Days Growth of 10,000 investment over the years.
Date Value 30 Jun 19 ₹10,000 30 Jun 20 ₹11,144 30 Jun 21 ₹11,753 30 Jun 22 ₹12,015 30 Jun 23 ₹12,769 30 Jun 24 ₹13,632 Returns for IDFC Corporate Bond Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Jul 24 Duration Returns 1 Month 0.7% 3 Month 2.2% 6 Month 3.6% 1 Year 7% 3 Year 5% 5 Year 6.4% 10 Year 15 Year Since launch 7% Historical performance (Yearly) on absolute basis
Year Returns 2023 6.8% 2022 2.6% 2021 3.7% 2020 11.6% 2019 8.5% 2018 6.3% 2017 6.2% 2016 2015 2014 Fund Manager information for IDFC Corporate Bond Fund
Name Since Tenure Suyash Choudhary 28 Jul 21 2.93 Yr. Gautam Kaul 1 Dec 21 2.58 Yr. Sreejith Balasubramanian 31 Aug 23 0.84 Yr. Data below for IDFC Corporate Bond Fund as on 30 Jun 24
Asset Allocation
Asset Class Value Cash 3.45% Debt 96.26% Other 0.29% Debt Sector Allocation
Sector Value Corporate 49.82% Government 46.48% Cash Equivalent 3.41% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 6.54% Govt Stock 2032
Sovereign Bonds | -11% ₹1,483 Cr 152,500,000
↓ -21,500,000 Export-Import Bank of India 7.4%
Domestic Bonds | -8% ₹1,076 Cr 107,350,000 7.26% Govt Stock 2033
Sovereign Bonds | -7% ₹1,014 Cr 100,000,000
↑ 1,000,000 Bajaj Housing Finance Ltd. 7.78%
Debentures | -7% ₹897 Cr 90,000,000 National Housing Bank
Debentures | -6% ₹867 Cr 86,500,000 7.18% Govt Stock 2033
Sovereign Bonds | -5% ₹682 Cr 67,500,000
↑ 20,000,000 National Bank For Agriculture And Rural Development
Debentures | -4% ₹549 Cr 55,000,000
↑ 17,500,000 Small Industries Development Bank Of India
Debentures | -3% ₹348 Cr 35,000,000 Small Industries Development Bank of India 7.68%
Debentures | -2% ₹310 Cr 31,000,000 HDFC Bank Limited
Debentures | -2% ₹290 Cr 30,000,000
↓ -7,500,000 2. ICICI Prudential Corporate Bond Fund
CAGR/Annualized return of 7% since its launch. Ranked 7 in Corporate Bond category. Return for 2023 was 7.6% , 2022 was 4.5% and 2021 was 4.1% . ICICI Prudential Corporate Bond Fund
Growth Launch Date 11 Aug 09 NAV (24 Jul 24) ₹27.598 ↑ 0.01 (0.03 %) Net Assets (Cr) ₹26,944 on 15 Jul 24 Category Debt - Corporate Bond AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆ Risk Moderately Low Expense Ratio 0.57 Sharpe Ratio 1.02 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 100 Exit Load NIL Yield to Maturity 7.86% Effective Maturity 4 Years 22 Days Modified Duration 2 Years 4 Months 20 Days Growth of 10,000 investment over the years.
Date Value 30 Jun 19 ₹10,000 30 Jun 20 ₹11,150 30 Jun 21 ₹11,797 30 Jun 22 ₹12,156 30 Jun 23 ₹13,094 30 Jun 24 ₹14,081 Returns for ICICI Prudential Corporate Bond Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Jul 24 Duration Returns 1 Month 0.7% 3 Month 2.1% 6 Month 4% 1 Year 7.6% 3 Year 6.2% 5 Year 7% 10 Year 15 Year Since launch 7% Historical performance (Yearly) on absolute basis
Year Returns 2023 7.6% 2022 4.5% 2021 4.1% 2020 10.4% 2019 9.9% 2018 6.4% 2017 6.3% 2016 9.8% 2015 8.8% 2014 9.4% Fund Manager information for ICICI Prudential Corporate Bond Fund
Name Since Tenure Manish Banthia 22 Jan 24 0.44 Yr. Ritesh Lunawat 22 Jan 24 0.44 Yr. Data below for ICICI Prudential Corporate Bond Fund as on 15 Jul 24
Asset Allocation
Asset Class Value Cash 7.36% Debt 92.38% Other 0.25% Debt Sector Allocation
Sector Value Corporate 62.27% Government 31.66% Cash Equivalent 5.8% Securitized 0.02% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 8.34% Govt Stock 2033
Sovereign Bonds | -8% ₹2,210 Cr 215,793,930 7.18% Govt Stock 2033
Sovereign Bonds | -6% ₹1,690 Cr 167,229,410
↓ -25,125,000 National Bank For Agriculture And Rural Development
Debentures | -3% ₹863 Cr 86,500 Pipeline Infrastructure Ltd.
Debentures | -3% ₹813 Cr 80,500 7.1% Govt Stock 2034
Sovereign Bonds | -3% ₹771 Cr 76,457,530
↑ 25,125,000 HDFC Bank Limited
Debentures | -3% ₹698 Cr 7,000 HDFC Bank Limited
Debentures | -3% ₹674 Cr 67,500
↑ 2,500 Small Industries Development Bank Of India
Debentures | -2% ₹632 Cr 6,350 Small Industries Development Bank Of India
Debentures | -2% ₹625 Cr 6,250 Bharat Petroleum Corporation Limited
Debentures | -2% ₹596 Cr 59,500 3. BNP Paribas Corporate Bond Fund
CAGR/Annualized return of 6.1% since its launch. Ranked 24 in Corporate Bond category. Return for 2023 was 7% , 2022 was 1.6% and 2021 was 2.2% . BNP Paribas Corporate Bond Fund
Growth Launch Date 8 Nov 08 NAV (24 Jul 24) ₹25.2718 ↑ 0.01 (0.03 %) Net Assets (Cr) ₹150 on 30 Jun 24 Category Debt - Corporate Bond AMC BNP Paribas Asset Mgmt India Pvt. Ltd Rating ☆☆☆ Risk Moderate Expense Ratio 0.87 Sharpe Ratio -0.28 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 300 Exit Load 0-12 Months (1%),12-24 Months (0.5%),24-36 Months (0.25%),36 Months and above(NIL) Yield to Maturity 7.52% Effective Maturity 5 Years 4 Months 10 Days Modified Duration 3 Years 9 Months 25 Days Growth of 10,000 investment over the years.
Date Value 30 Jun 19 ₹10,000 30 Jun 20 ₹11,103 30 Jun 21 ₹11,618 30 Jun 22 ₹11,649 30 Jun 23 ₹12,466 30 Jun 24 ₹13,312 Returns for BNP Paribas Corporate Bond Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Jul 24 Duration Returns 1 Month 0.7% 3 Month 2.2% 6 Month 4.2% 1 Year 7% 3 Year 4.7% 5 Year 5.8% 10 Year 15 Year Since launch 6.1% Historical performance (Yearly) on absolute basis
Year Returns 2023 7% 2022 1.6% 2021 2.2% 2020 9.9% 2019 0.9% 2018 5.2% 2017 6.7% 2016 10.8% 2015 7.2% 2014 10.8% Fund Manager information for BNP Paribas Corporate Bond Fund
Name Since Tenure Prashant Pimple 10 Jul 24 0 Yr. Vikram Pamnani 10 Jul 24 0 Yr. Jay Sheth 1 Sep 23 0.83 Yr. Data below for BNP Paribas Corporate Bond Fund as on 30 Jun 24
Asset Allocation
Asset Class Value Cash 4.95% Debt 94.81% Other 0.24% Debt Sector Allocation
Sector Value Corporate 49.45% Government 45.36% Cash Equivalent 4.95% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.1% Govt Stock 2029
Sovereign Bonds | -10% ₹15 Cr 1,500,000 Indian Railway Finance Corporation Limited
Debentures | -7% ₹11 Cr 110 Export Import Bank Of India
Debentures | -7% ₹10 Cr 100 Power Finance Corporation Ltd.
Debentures | -7% ₹10 Cr 1,000 Hindustan Petroleum Corporation Limited
Debentures | -7% ₹10 Cr 100 Sundaram Bnp Paribas Home Finance Limited
Debentures | -7% ₹10 Cr 1,000 Tata Capital Limited
Debentures | -7% ₹10 Cr 1,000 HDFC Bank Limited
Debentures | -7% ₹10 Cr 100 GAil (India) Limited
Debentures | -7% ₹10 Cr 100 Power Grid Corporation Of India Limited
Debentures | -6% ₹9 Cr 100,000
↑ 99,000 4. Franklin India Corporate Debt Fund
CAGR/Annualized return of 8.5% since its launch. Ranked 22 in Corporate Bond category. Return for 2023 was 6.5% , 2022 was 3.2% and 2021 was 3.8% . Franklin India Corporate Debt Fund
Growth Launch Date 23 Jun 97 NAV (24 Jul 24) ₹91.1487 ↑ 0.03 (0.03 %) Net Assets (Cr) ₹771 on 30 Jun 24 Category Debt - Corporate Bond AMC Franklin Templeton Asst Mgmt(IND)Pvt Ltd Rating ☆☆ Risk Moderate Expense Ratio 0.78 Sharpe Ratio -1.5 Information Ratio 0 Alpha Ratio 0 Min Investment 10,000 Min SIP Investment 500 Exit Load 0-1 Years (0.5%),1 Years and above(NIL) Yield to Maturity 7.77% Effective Maturity 2 Years 10 Months 10 Days Modified Duration 1 Year 10 Months 20 Days Growth of 10,000 investment over the years.
Date Value 30 Jun 19 ₹10,000 30 Jun 20 ₹10,859 30 Jun 21 ₹11,546 30 Jun 22 ₹11,845 30 Jun 23 ₹12,575 30 Jun 24 ₹13,401 Returns for Franklin India Corporate Debt Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Jul 24 Duration Returns 1 Month 0.7% 3 Month 1.9% 6 Month 3.6% 1 Year 6.7% 3 Year 5.1% 5 Year 5.9% 10 Year 15 Year Since launch 8.5% Historical performance (Yearly) on absolute basis
Year Returns 2023 6.5% 2022 3.2% 2021 3.8% 2020 9% 2019 9.2% 2018 7.5% 2017 7.7% 2016 9% 2015 8.4% 2014 13% Fund Manager information for Franklin India Corporate Debt Fund
Name Since Tenure Rahul Goswami 6 Oct 23 0.74 Yr. Anuj Tagra 7 Mar 24 0.32 Yr. Chandni Gupta 7 Mar 24 0.32 Yr. Data below for Franklin India Corporate Debt Fund as on 30 Jun 24
Asset Allocation
Asset Class Value Cash 3.31% Debt 96.43% Other 0.26% Debt Sector Allocation
Sector Value Corporate 71.05% Government 25.38% Cash Equivalent 3.31% Credit Quality
Rating Value AA 3.56% AAA 96.44% Top Securities Holdings / Portfolio
Name Holding Value Quantity 8% Govt Stock 2034
Sovereign Bonds | -10% ₹77 Cr 7,500,000
↑ 4,000,000 ICICI Home Finance Company Limited
Debentures | -7% ₹51 Cr 5,000 Pipeline Infrastructure Ltd. 7.96%
Debentures | -7% ₹51 Cr 5,000 National Housing Bank
Debentures | -6% ₹50 Cr 5,000 Sikka Ports & Terminals Limited
Debentures | -6% ₹50 Cr 500 Small Industries Development Bank Of India
Debentures | -6% ₹48 Cr 450 Indian Railway Finance Corporation Limited
Debentures | -4% ₹30 Cr 3,000 National Bank For Agriculture And Rural Development
Debentures | -3% ₹27 Cr 2,500 Power Finance Corporation Ltd.
Debentures | -3% ₹27 Cr 2,500 LIC Housing Finance Limited
Debentures | -3% ₹26 Cr 250
Features of Accural Funds
1. Steady income
As these funds invest their money in companies for a long duration, investors can capitalize on interest income that they generate.
2. Less risk in interest rates
As accrual funds invest in small to mid termed bonds, they are not much affected by the interest rate risks.
3. Credit risk
These funds undertake credit risk by Investing in companies with a weaker credit rating, but more robust business prospects. These funds take credit risk in a believe that the company will do well and improve the Credit Score in the immediate future.
4. Taxation
Taxation of accrual funds is same like debt funds. If the holding period of the fund is less than 36 months, then it is classified as a short-term investment and these are taxed as per individual's tax slab. And, if wish to hold the fund for more than 36 months, then it is classified as a long-term investment and is taxed at 20% with an indexation benefit.
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