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Best Debt Mutual Funds 2024

Updated on May 16, 2024 , 63449 views

Best debt funds vary according to the tenor of investment of the investor. Investors need to be clear on their time horizon of investment when selecting the best Debt fund for their investment and also factor in the interest rate scenario.

For investors with a very short holding period, say for a couple of days to a month, Liquid Funds and ultra-short term funds may be relevant. When the time horizon is one to two years then short-term funds may be the desired vehicle. For longer tenors, for more than 3 years, long-term debt funds are the most preferred instruments by investors, especially during falling interest rates. Above all, debt funds have proved to be less risky than equities when looking for short-term investments, however, the volatility of long-term income funds may match that of equities.

Best Debt Funds

As debt funds invest in fixed income instruments like government securities, treasury bills, corporate Bonds, etc., they have the capacity of generating consistent and regular returns over time. However, there are many qualitative and quantitative factors that one needs understand before selecting the best debt funds to invest, viz - AUM, Average Maturity, Taxation, the credit quality of the portfolio, etc. Below we have listed the top 5 best debt funds to invest across the various categories of debt funds - Best Liquid Funds, best ultra short-term funds, best short-term funds, best long-term funds and best Gilt Funds to invest in 2024 - 2025.

Why To Invest in Debt Mutual Funds?

  • Debt funds are considered to be an ideal investment for generating regular income. For example, choosing dividend payout can be an option for regular income.

  • In debt funds, investors can withdraw required money from the investment at any point in time and can let the remaining money stay invested.

  • Since debt funds largely invest in government securities, corporate debt and other securities like treasury bills, etc., they are not affected by equity market volatility.

  • If an investor is planning to achieve short-term Financial goals or invest for short periods then debt funds can be a good option. Liquid funds, ultra short-term funds, and short-term income funds may be the desired options.

  • In debt funds, investors can generate fixed income every month by starting a Systematic Withdrawal Plan (SWP is a reverse of SIP / STP) to withdraw a fixed amount on a monthly basis. Also, you can change the amount of the SWP when required.

Risks in Debt Mutual Funds

While Investing in debt funds, investors should be cautious about two major risks associated with them- credit risk and interest risk.

Credit Risk

A credit risk arises when a company that has issued the debt instruments does not make regular payments. In such cases, it has a major impact on the fund, depending on how much portion the fund has in the portfolio. Hence, it is suggested to be in debt instruments with a rating higher credit rating. An AAA rating is considered to be the highest quality with little or negligible payment Default Risk.

Interest Risks

The interest rate risk refers to a change in the bond price due to the change in the prevailing interest rate. When the interest rate rise in the economy the bond prices fall down and vice versa. The higher the maturity of the funds’ portfolio, the more prone it is to the interest rate risk. So in a rising interest rate scenario, it is advisable to go for lower maturity debt funds. And the reverse in a falling interest rate scenario.

Debt Mutual Fund Taxation

Tax implication on debt funds is computed in the following manner-

a. Short Term Capital Gains

If the holding period of a debt investment is less than 36 months, then it is classified as a short-term investment and these are taxed as per individual's tax slab.

b. Long Term Capital Gains

If the holding period of debt investment is more than 36 months, then it is classified as a long-term investment and is taxed at 20% with an indexation benefit.

Capital Gains Investment Holding Gains Taxation
Short Term Capital Gains Less than 36 months As per individual's tax slab
Long Term Capital Gains More than 36 months 20% with indexation benefits

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Best Debt Mutual Funds in India for Investments FY 24 - 25

Top 5 Liquid Mutual Funds

Top Liquid funds with AUM/Net Assets > 10,000 Crore.

FundNAVNet Assets (Cr)Min Investment1 MO (%)3 MO (%)6 MO (%)1 YR (%)2023 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
Axis Liquid Fund Growth ₹2,689.28
↑ 0.56
₹22,169 500 0.51.93.77.37.17.41%1M 13D1M 14D
Aditya Birla Sun Life Liquid Fund Growth ₹389.29
↑ 0.07
₹29,764 5,000 0.51.83.77.27.17.47%1M 17D1M 17D
ICICI Prudential Liquid Fund Growth ₹357.727
↑ 0.07
₹35,428 500 0.51.93.77.277.49%1M 11D1M 15D
Tata Liquid Fund Growth ₹3,805.55
↑ 0.71
₹17,463 5,000 0.51.83.77.277.37%1M 9D1M 9D
Nippon India Liquid Fund  Growth ₹5,898.02
↑ 1.14
₹25,253 100 0.51.83.77.277.48%1M 8D1M 12D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 17 May 24

Top 5 Ultra Short Term Bond Mutual Funds

Top Ultra Short Bond funds with AUM/Net Assets > 1,000 Crore.

FundNAVNet Assets (Cr)Min Investment3 MO (%)6 MO (%)1 YR (%)3 YR (%)2023 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
Aditya Birla Sun Life Savings Fund Growth ₹503.528
↑ 0.12
₹10,748 1,000 23.87.45.87.27.95%5M 12D6M 4D
UTI Ultra Short Term Fund Growth ₹3,920.42
↑ 0.73
₹2,093 5,000 1.83.56.96.26.77.91%6M 1D6M 13D
ICICI Prudential Ultra Short Term Fund Growth ₹25.5463
↑ 0.00
₹12,180 5,000 1.93.77.25.66.98.02%4M 24D5M 8D
SBI Magnum Ultra Short Duration Fund Growth ₹5,511.26
↑ 1.05
₹9,018 5,000 1.93.67.15.577.68%4M 28D5M 8D
Kotak Savings Fund Growth ₹39.6242
↑ 0.01
₹12,372 5,000 1.93.56.95.46.87.8%6M 4D8M 8D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 17 May 24

Top and Best Floating Rate Mutual Funds

FundNAVNet Assets (Cr)Min Investment3 MO (%)6 MO (%)1 YR (%)3 YR (%)2023 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
Aditya Birla Sun Life Floating Rate Fund - Long Term Growth ₹318.526
↑ 0.07
₹11,409 1,000 2.13.87.55.97.57.93%1Y 25D2Y 7M 2D
ICICI Prudential Floating Interest Fund Growth ₹388.204
↑ 0.11
₹9,927 5,000 2.13.77.95.97.78.35%1Y 2M 1D7Y 1M 6D
Nippon India Floating Rate Fund Growth ₹41.1071
↑ 0.00
₹7,943 5,000 23.77.25.57.27.91%2Y 5M 23D3Y 3M 18D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 17 May 24

Top 5 Best Money Market Mutual Funds

FundNAVNet Assets (Cr)Min Investment3 MO (%)6 MO (%)1 YR (%)3 YR (%)2023 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
Aditya Birla Sun Life Money Manager Fund Growth ₹340.125
↑ 0.05
₹18,375 1,000 23.87.55.97.47.93%9M 22D9M 25D
UTI Money Market Fund Growth ₹2,832.87
↑ 0.55
₹11,680 10,000 23.87.55.97.47.71%9M 9D9M 9D
ICICI Prudential Money Market Fund Growth ₹348.737
↑ 0.05
₹15,509 500 23.87.55.87.47.77%6M 13D6M 30D
Kotak Money Market Scheme Growth ₹4,129.06
↑ 0.78
₹15,868 5,000 23.87.55.87.37.78%9M 22D9M 22D
L&T Money Market Fund Growth ₹24.3011
↑ 0.00
₹1,100 10,000 1.93.77.15.26.97.68%7M 18D8M 5D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 17 May 24

Top 5 Short Term Bond Mutual Funds

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)2023 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
PGIM India Short Maturity Fund Growth ₹39.3202
↓ 0.00
₹281.23.16.14.2 7.18%1Y 7M 28D1Y 11M 1D
ICICI Prudential Short Term Fund Growth ₹54.8845
↓ -0.01
₹16,8761.93.67.25.87.48.02%2Y 7M 2D4Y 9M 4D
UTI Short Term Income Fund Growth ₹28.9909
↓ 0.00
₹2,6891.73.86.876.97.51%2Y 5M 8D3Y 8M 5D
Nippon India Short Term Fund Growth ₹48.0153
↑ 0.00
₹5,5241.83.76.75.26.87.75%2Y 8M 5D3Y 6M
Aditya Birla Sun Life Short Term Opportunities Fund Growth ₹43.3566
↓ -0.01
₹6,7671.73.76.65.56.97.87%2Y 10M 2D4Y 2M 5D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 29 Sep 23

Top 5 Medium to Long Term Bond Mutual Funds

Top Medium to Long Term Bond funds with AUM/Net Assets > 500 Crore.

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)2023 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
SBI Magnum Income Fund Growth ₹64.485
↓ -0.03
₹1,7461.53.865.37.28.04%5Y 8M 16D10Y 5M 23D
ICICI Prudential Bond Fund Growth ₹36.4315
↓ -0.03
₹2,9371.73.96.85.37.77.42%5Y 9M 7D9Y 1M 24D
Aditya Birla Sun Life Income Fund Growth ₹114.518
↓ -0.08
₹1,7931.63.85.856.67.33%6Y 6M 29D10Y 6M 29D
Kotak Bond Fund Growth ₹70.203
↓ -0.05
₹1,8101.546.24.96.87.53%6Y 9M 22D16Y 7M 6D
HDFC Income Fund Growth ₹53.0329
↓ -0.04
₹7711.74.65.94.16.17.34%6Y 8M 27D11Y 4M
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 17 May 24

Top 5 Banking and PSU Debt Mutual Funds

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)2023 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
HDFC Banking and PSU Debt Fund Growth ₹20.9934
↓ 0.00
₹6,2671.83.76.75.26.87.57%2Y 10M 27D4Y 17D
UTI Banking & PSU Debt Fund Growth ₹20.031
↑ 0.00
₹9471.83.66.27.26.77.51%2Y 8M 8D3Y 2M 19D
ICICI Prudential Banking and PSU Debt Fund Growth ₹29.9147
↓ 0.00
₹8,83723.77.35.87.37.79%2Y 11M 26D5Y 4M 2D
DSP BlackRock Banking and PSU Debt Fund Growth ₹21.9465
↓ 0.00
₹2,3761.94.16.95.16.77.56%5Y 1M 28D8Y 6M 22D
Aditya Birla Sun Life Banking & PSU Debt Fund Growth ₹334.357
↓ -0.03
₹10,0601.83.66.75.36.97.65%3Y 3M 25D5Y 9M 18D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 17 May 24

Top 5 Credit Risk Mutual Funds

Top Credit Risk funds with AUM/Net Assets > 500 Crore.

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)2023 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
SBI Credit Risk Fund Growth ₹41.5136
↓ 0.00
₹2,5061.83.66.86.28.38.49%2Y 14D2Y 8M 12D
HDFC Credit Risk Debt Fund Growth ₹21.9053
↓ -0.01
₹8,1671.63.76.65.86.68.62%2Y 1M 19D3Y 4D
Kotak Credit Risk Fund Growth ₹27.0115
↓ -0.02
₹8561.547.24.66.48.71%2Y 5M 5D3Y 1M 28D
L&T Credit Risk Fund Growth ₹26.4037
↓ 0.00
₹5691.73.36.35.56.58.3%1Y 10M 6D2Y 8M 5D
Nippon India Credit Risk Fund Growth ₹31.7005
↑ 0.00
₹1,02423.87.58.47.99.02%1Y 10M 2D2Y 2M 16D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 17 May 24

Top 5 Dynamic Bond Mutual Funds

Top Dynamic Bond funds with AUM/Net Assets > 500 Crore.

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)2023 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
SBI Dynamic Bond Fund Growth ₹32.6191
↓ -0.02
₹3,0701.74.16.35.57.17.36%7Y 4M 6D14Y 6M
IDFC Dynamic Bond Fund Growth ₹31.2642
↓ -0.05
₹2,3371.15.56.94.66.47.22%11Y 6M 22D27Y 8M 19D
HDFC Dynamic Debt Fund Growth ₹81.9423
↓ -0.08
₹6691.74.26.66.26.77.38%6Y 3M 2D11Y 2M 10D
Aditya Birla Sun Life Dynamic Bond Fund Growth ₹41.8829
↓ -0.04
₹1,7321.53.96.46.36.97.46%6Y 6M 7D10Y 9M 18D
Axis Dynamic Bond Fund Growth ₹26.8847
↓ -0.01
₹1,7081.84.16.14.96.67.5%4Y 6M 25D6Y 22D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 17 May 24

Top 5 Corporate Bond Mutual Funds

Top Corporate Bond funds with AUM/Net Assets > 500 Crore.

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)2023 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
Aditya Birla Sun Life Corporate Bond Fund Growth ₹102.562
↓ -0.02
₹21,1351.93.97.45.77.37.68%3Y 7M 2D5Y 6M 14D
HDFC Corporate Bond Fund Growth ₹29.5961
↑ 0.00
₹28,499247.25.57.27.73%3Y 8D5Y 2M
ICICI Prudential Corporate Bond Fund Growth ₹27.1906
↓ 0.00
₹26,23023.77.55.97.67.92%2Y 3M 14D4Y 2M 23D
Nippon India Prime Debt Fund Growth ₹54.413
↑ 0.00
₹2,8181.93.975.97.17.74%3Y 1M 20D4Y 1M 13D
Kotak Corporate Bond Fund Standard Growth ₹3,428.95
↓ -0.36
₹11,5841.93.86.95.46.97.77%3Y 4M 10D5Y 6M 18D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 17 May 24

Top 5 Gilt Mutual Funds

Top GILT funds with AUM/Net Assets > 500 Crore.

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)2023 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
ICICI Prudential Gilt Fund Growth ₹93.3449
↓ -0.08
₹4,8651.83.77.468.37.51%4Y 11M 5D9Y 6M 11D
Aditya Birla Sun Life Government Securities Fund Growth ₹74.4464
↓ -0.08
₹1,3691.44.875.27.17.24%8Y 5M 1D15Y 11M 5D
UTI Gilt Fund Growth ₹57.4349
↓ -0.05
₹6441.74.66.75.16.76.96%6Y 4M 10D9Y 1M 2D
SBI Magnum Gilt Fund Growth ₹60.2862
↓ -0.06
₹7,8841.74.36.65.97.67.26%8Y 15Y 5M 19D
Nippon India Gilt Securities Fund Growth ₹34.8501
↓ -0.04
₹1,5471.54.46.14.76.77.27%7Y 4M 13D11Y 4M 24D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 17 May 24

1. PGIM India Credit Risk Fund

(Erstwhile DHFL Pramerica Credit Opportunities Fund)

The investment objective of the Scheme is to generate income and capital appreciation by investing predominantly in corporate debt. There can be no assurance that the investment objective of the Scheme will be realized.

PGIM India Credit Risk Fund is a Debt - Credit Risk fund was launched on 29 Sep 14. It is a fund with Moderate risk and has given a CAGR/Annualized return of 6.3% since its launch.  Ranked 2 in Credit Risk category. .

Below is the key information for PGIM India Credit Risk Fund

PGIM India Credit Risk Fund
Growth
Launch Date 29 Sep 14
NAV (21 Jan 22) ₹15.5876 ↑ 0.00   (0.01 %)
Net Assets (Cr) ₹39 on 31 Dec 21
Category Debt - Credit Risk
AMC Pramerica Asset Managers Private Limited
Rating
Risk Moderate
Expense Ratio 1.85
Sharpe Ratio 1.73
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 1,000
Exit Load 0-1 Years (1%),1 Years and above(NIL)
Yield to Maturity 5.01%
Effective Maturity 7 Months 2 Days
Modified Duration 6 Months 14 Days

Growth of 10,000 investment over the years.

DateValue
30 Apr 19₹10,000
30 Apr 20₹9,441
30 Apr 21₹10,261

PGIM India Credit Risk Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹194,235.
Net Profit of ₹14,235
Invest Now

Returns for PGIM India Credit Risk Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 21 Jan 22

DurationReturns
1 Month 0.3%
3 Month 0.6%
6 Month 4.4%
1 Year 8.4%
3 Year 3%
5 Year 4.2%
10 Year
15 Year
Since launch 6.3%
Historical performance (Yearly) on absolute basis
YearReturns
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
Fund Manager information for PGIM India Credit Risk Fund
NameSinceTenure

Data below for PGIM India Credit Risk Fund as on 31 Dec 21

Asset Allocation
Asset ClassValue
Debt Sector Allocation
SectorValue
Credit Quality
RatingValue
Top Securities Holdings / Portfolio
NameHoldingValueQuantity

2. Aditya Birla Sun Life Money Manager Fund

(Erstwhile Aditya Birla Sun Life Floating Rate Fund - Short Term)

The primary objective of the schemes is to generate regular income through investment in a portfolio comprising substantially of floating rate debt / money market instruments. The schemes may invest a portion of its net assets in fixed rate debt securities and money market instruments.

Aditya Birla Sun Life Money Manager Fund is a Debt - Money Market fund was launched on 13 Oct 05. It is a fund with Low risk and has given a CAGR/Annualized return of 6.8% since its launch.  Ranked 7 in Money Market category.  Return for 2023 was 7.4% , 2022 was 4.8% and 2021 was 3.8% .

Below is the key information for Aditya Birla Sun Life Money Manager Fund

Aditya Birla Sun Life Money Manager Fund
Growth
Launch Date 13 Oct 05
NAV (17 May 24) ₹340.125 ↑ 0.05   (0.02 %)
Net Assets (Cr) ₹18,375 on 31 Mar 24
Category Debt - Money Market
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk Low
Expense Ratio 0.33
Sharpe Ratio 2.18
Information Ratio 0
Alpha Ratio 0
Min Investment 1,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 7.93%
Effective Maturity 9 Months 25 Days
Modified Duration 9 Months 22 Days

Growth of 10,000 investment over the years.

DateValue
30 Apr 19₹10,000
30 Apr 20₹10,771
30 Apr 21₹11,374
30 Apr 22₹11,817
30 Apr 23₹12,529
30 Apr 24₹13,482

Aditya Birla Sun Life Money Manager Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹200,132.
Net Profit of ₹20,132
Invest Now

Returns for Aditya Birla Sun Life Money Manager Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 21 Jan 22

DurationReturns
1 Month 0.5%
3 Month 2%
6 Month 3.8%
1 Year 7.5%
3 Year 5.9%
5 Year 6.1%
10 Year
15 Year
Since launch 6.8%
Historical performance (Yearly) on absolute basis
YearReturns
2023 7.4%
2022 4.8%
2021 3.8%
2020 6.6%
2019 8%
2018 7.9%
2017 6.8%
2016 7.7%
2015 8.4%
2014 9.2%
Fund Manager information for Aditya Birla Sun Life Money Manager Fund
NameSinceTenure
Kaustubh Gupta15 Jul 1112.72 Yr.
Anuj Jain22 Mar 213.03 Yr.
Mohit Sharma1 Apr 177.01 Yr.
Dhaval Joshi21 Nov 221.36 Yr.

Data below for Aditya Birla Sun Life Money Manager Fund as on 31 Mar 24

Asset Allocation
Asset ClassValue
Cash67.37%
Debt32.42%
Other0.2%
Debt Sector Allocation
SectorValue
Corporate48.34%
Cash Equivalent32.29%
Government19.17%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
India (Republic of)
- | -
2%₹472 Cr50,000,000
Axis Bank Ltd.
Debentures | -
2%₹472 Cr10,000
IDFC First Bank Ltd.
Debentures | -
2%₹469 Cr10,000
07.38% MP Sdl 2025
Sovereign Bonds | -
2%₹466 Cr46,500,000
↑ 28,000,000
05.80 MH Sdl 2025
Sovereign Bonds | -
2%₹465 Cr47,000,000
Tata Teleservices Ltd
Debentures | -
2%₹445 Cr9,500
Small Industries Development Bank of India
Debentures | -
2%₹376 Cr8,000
HDFC Bank Ltd.
Debentures | -
2%₹329 Cr7,000
↑ 2,000
Indusind Bank Ltd.
Debentures | -
1%₹284 Cr6,000
ICICI Bank Ltd.
Debentures | -
1%₹236 Cr5,000

3. Aditya Birla Sun Life Savings Fund

The primary objective of the schemes is to generate regular income through investments in debt and money market instruments. Income maybe generated through the receipt of coupon payments or the purchase and sale of securities in the underlying portfolio. The schemes will under normal market conditions, invest its net assets in fixed income securities, money market instruments, cash and cash equivalents.

Aditya Birla Sun Life Savings Fund is a Debt - Ultrashort Bond fund was launched on 16 Apr 03. It is a fund with Moderately Low risk and has given a CAGR/Annualized return of 7.4% since its launch.  Ranked 6 in Ultrashort Bond category.  Return for 2023 was 7.2% , 2022 was 4.8% and 2021 was 3.9% .

Below is the key information for Aditya Birla Sun Life Savings Fund

Aditya Birla Sun Life Savings Fund
Growth
Launch Date 16 Apr 03
NAV (17 May 24) ₹503.528 ↑ 0.12   (0.02 %)
Net Assets (Cr) ₹10,748 on 31 Mar 24
Category Debt - Ultrashort Bond
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk Moderately Low
Expense Ratio 0.52
Sharpe Ratio 1.48
Information Ratio 0
Alpha Ratio 0
Min Investment 1,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 7.95%
Effective Maturity 6 Months 4 Days
Modified Duration 5 Months 12 Days

Growth of 10,000 investment over the years.

DateValue
30 Apr 19₹10,000
30 Apr 20₹10,739
30 Apr 21₹11,439
30 Apr 22₹11,902
30 Apr 23₹12,581
30 Apr 24₹13,526

Aditya Birla Sun Life Savings Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹200,132.
Net Profit of ₹20,132
Invest Now

Returns for Aditya Birla Sun Life Savings Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 21 Jan 22

DurationReturns
1 Month 0.5%
3 Month 2%
6 Month 3.8%
1 Year 7.4%
3 Year 5.8%
5 Year 6.2%
10 Year
15 Year
Since launch 7.4%
Historical performance (Yearly) on absolute basis
YearReturns
2023 7.2%
2022 4.8%
2021 3.9%
2020 7%
2019 8.5%
2018 7.6%
2017 7.2%
2016 9.2%
2015 8.9%
2014 9.7%
Fund Manager information for Aditya Birla Sun Life Savings Fund
NameSinceTenure
Sunaina Cunha20 Jun 149.79 Yr.
Kaustubh Gupta15 Jul 1112.72 Yr.
Monika Gandhi22 Mar 213.03 Yr.
Dhaval Joshi21 Nov 221.36 Yr.

Data below for Aditya Birla Sun Life Savings Fund as on 31 Mar 24

Asset Allocation
Asset ClassValue
Cash38.02%
Debt61.65%
Other0.32%
Debt Sector Allocation
SectorValue
Corporate63.67%
Cash Equivalent21.04%
Government14.84%
Securitized0.12%
Credit Quality
RatingValue
AA29.33%
AAA70.67%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
HDFC Bank Limited
Debentures | -
5%₹598 Cr6,000
Nirma Limited
Debentures | -
4%₹500 Cr50,000
Tata Realty And Infrastructure Limited
Debentures | -
3%₹361 Cr36,000
Bharti Telecom Limited
Debentures | -
3%₹325 Cr3,250
Small Industries Development Bank of India 7.68%
Debentures | -
3%₹325 Cr32,500
↑ 32,500
Bajaj Housing Finance Ltd. 8%
Debentures | -
3%₹300 Cr30,000
Nirma Limited 8.3%
Debentures | -
2%₹250 Cr25,000
Cholamandalam Investment And Finance Company Limited
Debentures | -
2%₹249 Cr2,500
HDFC Bank Limited
Debentures | -
2%₹244 Cr2,450
National Bank For Agriculture And Rural Development
Debentures | -
2%₹244 Cr2,500

4. Aditya Birla Sun Life Corporate Bond Fund

(Erstwhile Aditya Birla Sun Life Short Term Fund)

An Open-ended income scheme with the objective to generate income and capital appreciation by investing 100% of the corpus in a diversified portfolio of debt and money market securities.

Aditya Birla Sun Life Corporate Bond Fund is a Debt - Corporate Bond fund was launched on 3 Mar 97. It is a fund with Moderately Low risk and has given a CAGR/Annualized return of 8.9% since its launch.  Ranked 1 in Corporate Bond category.  Return for 2023 was 7.3% , 2022 was 4.1% and 2021 was 4% .

Below is the key information for Aditya Birla Sun Life Corporate Bond Fund

Aditya Birla Sun Life Corporate Bond Fund
Growth
Launch Date 3 Mar 97
NAV (17 May 24) ₹102.562 ↓ -0.02   (-0.02 %)
Net Assets (Cr) ₹21,135 on 31 Mar 24
Category Debt - Corporate Bond
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk Moderately Low
Expense Ratio 0.47
Sharpe Ratio 1.14
Information Ratio 0
Alpha Ratio 0
Min Investment 1,000
Min SIP Investment 100
Exit Load NIL
Yield to Maturity 7.68%
Effective Maturity 5 Years 6 Months 14 Days
Modified Duration 3 Years 7 Months 2 Days

Growth of 10,000 investment over the years.

DateValue
30 Apr 19₹10,000
30 Apr 20₹11,000
30 Apr 21₹12,048
30 Apr 22₹12,530
30 Apr 23₹13,235
30 Apr 24₹14,187

Aditya Birla Sun Life Corporate Bond Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹203,125.
Net Profit of ₹23,125
Invest Now

Returns for Aditya Birla Sun Life Corporate Bond Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 21 Jan 22

DurationReturns
1 Month 0.8%
3 Month 1.9%
6 Month 3.9%
1 Year 7.4%
3 Year 5.7%
5 Year 7.3%
10 Year
15 Year
Since launch 8.9%
Historical performance (Yearly) on absolute basis
YearReturns
2023 7.3%
2022 4.1%
2021 4%
2020 11.9%
2019 9.6%
2018 7%
2017 6.5%
2016 10.2%
2015 8.9%
2014 10.9%
Fund Manager information for Aditya Birla Sun Life Corporate Bond Fund
NameSinceTenure
Kaustubh Gupta12 Apr 212.97 Yr.
Dhaval Joshi21 Nov 221.36 Yr.

Data below for Aditya Birla Sun Life Corporate Bond Fund as on 31 Mar 24

Asset Allocation
Asset ClassValue
Cash3.09%
Debt96.67%
Other0.24%
Debt Sector Allocation
SectorValue
Corporate52.23%
Government43.59%
Cash Equivalent3.09%
Securitized0.86%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.18% Govt Stock 2037
Sovereign Bonds | -
10%₹2,074 Cr207,824,100
↑ 20,500,000
7.18% Govt Stock 2033
Sovereign Bonds | -
7%₹1,465 Cr146,500,000
↑ 18,000,000
7.26% Govt Stock 2033
Sovereign Bonds | -
4%₹905 Cr90,089,300
↓ -22,000,000
7.32% Govt Stock 2030
Sovereign Bonds | -
3%₹725 Cr72,000,000
8.1% Govt Stock 2034
Sovereign Bonds | -
3%₹667 Cr66,637,700
National Bank For Agriculture And Rural Development
Debentures | -
3%₹652 Cr6,550
Small Industries Development Bank Of India
Debentures | -
3%₹544 Cr54,550
HDFC Bank Limited
Debentures | -
2%₹426 Cr42,500
Power Finance Corp Ltd. 7.6%
Debentures | -
2%₹400 Cr40,000
National Bank For Agriculture And Rural Development
Debentures | -
2%₹397 Cr4,000

5. HDFC Corporate Bond Fund

(Erstwhile HDFC Medium Term Opportunities Fund)

To generate regular income through investments in Debt/ Money Market Instruments and Government Securities with maturities not exceeding 60 months.

HDFC Corporate Bond Fund is a Debt - Corporate Bond fund was launched on 29 Jun 10. It is a fund with Moderately Low risk and has given a CAGR/Annualized return of 8.1% since its launch.  Ranked 2 in Corporate Bond category.  Return for 2023 was 7.2% , 2022 was 3.3% and 2021 was 3.9% .

Below is the key information for HDFC Corporate Bond Fund

HDFC Corporate Bond Fund
Growth
Launch Date 29 Jun 10
NAV (17 May 24) ₹29.5961 ↑ 0.00   (0.01 %)
Net Assets (Cr) ₹28,499 on 31 Mar 24
Category Debt - Corporate Bond
AMC HDFC Asset Management Company Limited
Rating
Risk Moderately Low
Expense Ratio 0.59
Sharpe Ratio 1.13
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 300
Exit Load NIL
Yield to Maturity 7.73%
Effective Maturity 5 Years 2 Months
Modified Duration 3 Years 8 Days

Growth of 10,000 investment over the years.

DateValue
30 Apr 19₹10,000
30 Apr 20₹11,030
30 Apr 21₹12,060
30 Apr 22₹12,500
30 Apr 23₹13,181
30 Apr 24₹14,138

HDFC Corporate Bond Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹203,125.
Net Profit of ₹23,125
Invest Now

Returns for HDFC Corporate Bond Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 21 Jan 22

DurationReturns
1 Month 0.8%
3 Month 2%
6 Month 4%
1 Year 7.2%
3 Year 5.5%
5 Year 7.2%
10 Year
15 Year
Since launch 8.1%
Historical performance (Yearly) on absolute basis
YearReturns
2023 7.2%
2022 3.3%
2021 3.9%
2020 11.8%
2019 10.3%
2018 6.5%
2017 6.5%
2016 10.6%
2015 8.6%
2014 10.9%
Fund Manager information for HDFC Corporate Bond Fund
NameSinceTenure
Anupam Joshi27 Oct 158.44 Yr.
Dhruv Muchhal22 Jun 230.78 Yr.

Data below for HDFC Corporate Bond Fund as on 31 Mar 24

Asset Allocation
Asset ClassValue
Cash3.01%
Debt96.75%
Other0.24%
Debt Sector Allocation
SectorValue
Corporate49.13%
Government47.56%
Cash Equivalent3.01%
Securitized0.06%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
8.25% Govt Stock 2033
Sovereign Bonds | -
5%₹1,479 Cr145,000,000
↓ -2,500,000
8.1% Govt Stock 2034
Sovereign Bonds | -
3%₹800 Cr80,000,000
↓ -7,500,000
Hdb Financial Services Limited
Debentures | -
3%₹725 Cr72,500
National Bank For Agriculture And Rural Development
Debentures | -
2%₹672 Cr67,500
↓ -2,500
7.18% Govt Stock 2037
Sovereign Bonds | -
2%₹649 Cr65,000,000
↓ -10,000,000
7.69% Govt Stock 2028
Sovereign Bonds | -
2%₹575 Cr57,500,000
↓ -2,500,000
Mangalore Refinery And Petrochemicals Limited
Debentures | -
2%₹555 Cr5,670
Reliance Industries Limited
Debentures | -
2%₹525 Cr5,000
HDFC Bank Limited
Debentures | -
2%₹501 Cr50,000
LIC Housing Finance Limited
Debentures | -
2%₹497 Cr5,000

How to Evaluate Best Debt Mutual Funds

In order to select the best debt funds you wish to invest in, it is necessary to consider some of the important parameters such as average maturity, credit quality, AUM, expense ratio, tax implication., etc. Let's have an in-depth look-

1. Average Maturity/Duration

Average maturity is an essential parameter in debt funds that is sometimes overlooked by investors, who tend to invest for a long period without considering the risks involved. Investors need to decide their debt fund investment based on its maturity period, Matching the time period of investment with the maturity period of the debt fund is a good way to ensure you don't end up taking unnecessary risk. Thus, it is advisable to know the average maturity of a debt fund, before investing, in order to aim for optimum risk returns in debt funds. Looking at the average maturity (duration is a similar factor) is important, for example, a liquid fund may have an average maturity of a couple of days to maybe a month, this would mean it is a great option for an investor who is looking to invest money for a couple of days. Similarly, if you are looking at the time frame of one-year Investment plan then, a short-term debt fund can be ideal.

2. Interest Rate Scenario

Understanding the market environment is very important in debt funds which are affected by interest rates and its fluctuations. When the interest rate rises in the economy, the bond price falls and vice-versa. Also, during the time when the interest rates rise, new bonds are issued in the market with a higher yield than the older bonds, making those older bonds of lower value. Therefore, investors are more attracted towards newer bonds in the market and also a re-pricing of older bonds takes place. In case a debt fund is having an exposure to such "older bonds" then when the interest rates rise, the NAV of the debt fund would be impacted negatively. Furthermore, as debt funds are exposed to interest rate fluctuations, it disturbs the prices of the underlying bonds in the fund portfolio. For instance, long-term debt funds are at a higher risk during times of rising interest rates. During this time making a short-term investment plan will lower your interest rate risks.

If one has good knowledge of interest rates and can monitor the same, one can even take advantage of this. In a falling interest rate market, long-term debt funds would be a good choice. However, during the times of rising interest rates then it would be wise to be in funds with shorter average maturities like short-term funds, Ultra Short Term fund or even liquid funds.

3. Current Yield or Portfolio Yield

The yield is a measure of the interest income generated by the bonds in the portfolio. Funds that invest in debt or bonds that have a higher coupon rate (or yield) would have a higher overall portfolio yield. The yield to maturity(ytm) of a debt mutual fund indicates the running yield of the fund. When comparing debt funds on the basis of YTM, one should also look at that fact that how is the extra yield being generated. Is this at the cost of as lower portfolio quality? Investing in not so good quality instruments has its own issues. You don't want to end up investing in a debt fund which has such bonds or securities that may Default later on. So, always look at the portfolio yield and balance it off with the credit quality.

How-to-select-best-debt-funds

4. Credit Quality of Portfolio

In order to invest in best debt funds, checking the credit quality of the bonds and debt securities is an essential parameter. Bonds are assigned a credit rating by various agencies based on their ability to pay the money back. A bond with AAA rating is considered to be the best credit rating and also implies a safe and secure investment. If one truly wants safety and considers this as the paramount parameter in selecting the best debt fund, then getting into a fund with very high-quality debt instruments (AAA or AA+) may be the desired option.

5. Assets Under Management (AUM)

This is the foremost parameter to consider while choosing the best debt funds. AUM is the total amount invested in a particular scheme by all investors. Since, most Mutual Funds’ total AUM is invested in debt funds, investors need to select scheme assets that have a considerable AUM. Being in a fund which has a large exposure to corporates may be risky, since their withdrawals may be large which may affect the overall fund performance.

6. Expense Ratio

An important factor to be considered in debt funds is its expense ratio. A higher expense ratio creates a larger impact on the funds’ performance. For example, liquid funds have the lowest expense ratios which are up to 50 bps (BPS is a unit to measure interest rates wherein one bps is equal to 1/100th of 1%) whereas, other debt funds could charge up to 150 bps. So to make a choice between one debt mutual fund, it is important to consider the management fee or the fund running expense.

7. Taxation Impacts

Debt funds offer the benefit of long-term capital gains (more than 3 years) with indexation benefits. And the short term capital gains (less than 3 years) is taxed at 30%.

Things to consider as an investor

1. Fund Objectives

Debt Fund aims to earn optimal returns by maintaining a diversified portfolio of various types of securities. You can expect them to perform in a predictable manner. It is because of this reason, that debt funds are popular among conservative investors.

2. Fund Types

Debt funds are further divided into various categories like liquid funds, Monthly Income Plan (MIP), fixed maturity plans (FMP), Dynamic Bond Funds, income funds, credit opportunities funds, GILT funds, short-term funds and ultra short-term funds.

3. Risks

Debt funds are basically exposed to interest rate risk, credit risk, and liquidity risk. The fund value may fluctuate due to the overall interest rate movements. There’s a risk of default in the payment of interest and principal by the issuer. Liquidity risk happens when the fund manager is unable to sell the underlying security due to lack of demand.

4. Cost

Debt funds charge an expense ratio to manage your money. Till now SEBI had mandated the upper limit of expense ratio to be 2.25% (Might change time to time with regulations.).

5. Investment Horizon

An investment of 3 months to 1 year would be ideal for liquid funds. If you have a longer horizon of say 2 to 3 years, you may go for short-term bond funds.

6. Financial Goals

Debt funds can be used to achieve a variety of goals like earning additional income or for purpose of liquidity.

How to Invest in Best Debt Funds Online?

  1. Open Free Investment Account for Lifetime at Fincash.com.

  2. Complete your Registration and KYC Process

  3. Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!

    Get Started

Conclusion

Debt funds are one of the best ways to invest your money and generate income on a regular basis by choosing the relevant product matching your risk profile. So, investors looking to generate steady income or take advantage of the debt markets, can consider the above best debt funds for 2024 - 2025 and start investing!_

Disclaimer:
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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Amol Vyas, posted on 14 Jan 19 5:50 PM

The article is nice and informative but it could be in more simple words because lot of people have much less knowledge in such sector

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