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Fincash » Mutual Funds » Best Debt Lumpsum Investments

6 Best Debt Mutual Funds for Lump sum Investments 2021

Updated on January 14, 2021 , 14743 views

Debt Mutual Fund schemes in India have grown over the years. As a result, the best performing mutual debt funds in the market keep on changing. There are various rating systems in place to judge a mutual fund scheme, namely CRISIL, Morning Star, ICRA. These systems evaluate a mutual fund in terms of returns, Standard Deviation, credit quality of securities, rate movement guidance by RBI, etc.

debt-lumpsum

Why To Invest Lump Sum in Debt Mutual Funds?

  • Better return than prevailing Fixed Deposit (FD) & Recurring deposit (RD) rates across banks
  • Returns are linked to debt markets
  • Immediate (T+1) redemption online
  • Indexation (Debt Taxation benefits) benefits on returns over three years

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Best Lumpsum Debt Mutual Funds FY 21 - 22

Below are the top ranked funds from Debt Categories primarily funds having AUM > 500 Crore & are in Ultra-short, Corporate bond, Credit Risk, Low Duration sub categories && Having maturity of less than 3 years and providing highest yields.

Top 6 Lump sum Debt Mutual Funds

FundNAVNet Assets (Cr)Min Investment3 MO (%)6 MO (%)1 YR (%)3 YR (%)2020 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
Nippon India Credit Risk Fund Growth ₹24.259
↑ 0.00
₹1,284 500 2.54.7-5.90.6-5.911.69%1Y 4M 2D1Y 10M 17D
HDFC Credit Risk Debt Fund Growth ₹18.0638
↓ 0.00
₹6,480 5,000 3.15.510.98.310.98.55%2Y 1M 2D2Y 7M 13D
ICICI Prudential Regular Savings Fund Growth ₹23.3973
↓ 0.00
₹6,685 10,000 2.14.39.68.69.87.85%2Y 1M 2D2Y 9M
Axis Credit Risk Fund Growth ₹16.0873
↓ 0.00
₹570 5,000 1.93.986.18.27.77%1Y 6M2Y 1M 6D
Aditya Birla Sun Life Credit Risk Fund Growth ₹15.1039
₹1,662 1,000 2.15.29.25.99.47.75%2Y 1M 10D2Y 9M 4D
Kotak Credit Risk Fund Growth ₹23.1998
↓ 0.00
₹1,851 5,000 1.33.66.47.26.67.49%1Y 9M 22D2Y 6M 11D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 15 Jan 21
*List of Debt Mutual Funds having net assets > 500 Crore and Fund have assets under manegement for atleast 3 years.

1. Nippon India Credit Risk Fund

(Erstwhile Reliance Regular Savings Fund - Debt Plan)

The primary investment objective of this option is to generate optimal returns consistent with moderate level of risk. This income may be complemented by capital appreciation of the portfolio. Accordingly investments shall predominantly be made in Debt & Money Market Instruments.

Nippon India Credit Risk Fund is a Debt - Credit Risk fund was launched on 8 Jun 05. It is a fund with Moderate risk and has given a CAGR/Annualized return of 5.8% since its launch.  Ranked 21 in Credit Risk category.  Return for 2020 was -5.9% , 2019 was 1.9% and 2018 was 6.1% .

Below is the key information for Nippon India Credit Risk Fund

Nippon India Credit Risk Fund
Growth
Launch Date 8 Jun 05
NAV (15 Jan 21) ₹24.259 ↑ 0.00   (0.01 %)
Net Assets (Cr) ₹1,284 on 30 Nov 20
Category Debt - Credit Risk
AMC Nippon Life Asset Management Ltd.
Rating
Risk Moderate
Expense Ratio 1.82
Sharpe Ratio -0.82
Information Ratio 0
Alpha Ratio 0
Min Investment 500
Min SIP Investment 100
Exit Load 0-12 Months (1%),12 Months and above(NIL)
Yield to Maturity 11.69%
Effective Maturity 1 Year 10 Months 17 Days
Modified Duration 1 Year 4 Months 2 Days

Growth of 10,000 investment over the years.

DateValue
31 Dec 15₹10,000
31 Dec 16₹11,001
31 Dec 17₹11,774
31 Dec 18₹12,489
31 Dec 19₹12,731
31 Dec 20₹11,981

Nippon 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 ₹191,330.
Net Profit of ₹11,330
Invest Now

Returns for Nippon 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 15 Jan 21

DurationReturns
1 Month 0.6%
3 Month 2.5%
6 Month 4.7%
1 Year -5.9%
3 Year 0.6%
5 Year 3.7%
10 Year
15 Year
Since launch 5.8%
Historical performance (Yearly) on absolute basis
YearReturns
2020 -5.9%
2019 1.9%
2018 6.1%
2017 7%
2016 10%
2015 8.8%
2014 11%
2013 8%
2012 9.6%
2011 8.4%
Fund Manager information for Nippon India Credit Risk Fund
NameSinceTenure
Sushil Budhia1 Feb 200.92 Yr.

Data below for Nippon India Credit Risk Fund as on 30 Nov 20

Asset Allocation
Asset ClassValue
Cash14.28%
Debt85.72%
Debt Sector Allocation
SectorValue
Corporate78.72%
Cash Equivalent13.48%
Securitized7.8%
Credit Quality
RatingValue
A39.75%
AA11.92%
AAA0.92%
Below B0%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Vineha Enterprises Private Limited
Debentures | -
26%₹327 Cr22,500
Sanghi Industries Limited
Debentures | -
13%₹166 Cr1,660
Mariposa Agri Ventures and Hospitalities Private Limited
Debentures | -
10%₹119 Cr894
Renew Wind Energy (Rajasthan One) Private Limited
Debentures | -
9%₹110 Cr1,285
INDIAN RECEIVABLE TRUST 19 FEB - 2019
Unlisted bonds | -
7%₹85 Cr1,330
INNOVATION TRUST XXX
Unlisted bonds | -
6%₹74 Cr187
Mariposa Agri Ventures and Hospitalities Private Limited
Debentures | -
5%₹61 Cr500
Narmada Wind Energy Private Limited
Debentures | -
3%₹36 Cr429
INNOVATION TRUST XXX
Unlisted bonds | -
2%₹22 Cr172
Nirma Limited
Debentures | -
1%₹15 Cr150

2. HDFC Credit Risk Debt Fund

(Erstwhile HDFC Corporate Debt Opportunities Fund)

To generate regular income and capital appreciation by investing predominantly in corporate debt.

HDFC Credit Risk Debt Fund is a Debt - Credit Risk fund was launched on 25 Mar 14. It is a fund with Moderate risk and has given a CAGR/Annualized return of 9.1% since its launch.  Ranked 9 in Credit Risk category.  Return for 2020 was 10.9% , 2019 was 8.6% and 2018 was 5.4% .

Below is the key information for HDFC Credit Risk Debt Fund

HDFC Credit Risk Debt Fund
Growth
Launch Date 25 Mar 14
NAV (15 Jan 21) ₹18.0638 ↓ 0.00   (-0.01 %)
Net Assets (Cr) ₹6,480 on 30 Nov 20
Category Debt - Credit Risk
AMC HDFC Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 1.64
Sharpe Ratio 1.31
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load 0-12 Months (1%),12-18 Months (0.5%),18 Months and above(NIL)
Yield to Maturity 8.55%
Effective Maturity 2 Years 7 Months 13 Days
Modified Duration 2 Years 1 Month 2 Days

Growth of 10,000 investment over the years.

DateValue
31 Dec 15₹10,000
31 Dec 16₹11,096
31 Dec 17₹11,825
31 Dec 18₹12,458
31 Dec 19₹13,536
31 Dec 20₹15,013

HDFC Credit Risk Debt Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹206,148.
Net Profit of ₹26,148
Invest Now

Returns for HDFC Credit Risk Debt Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 15 Jan 21

DurationReturns
1 Month 0.7%
3 Month 3.1%
6 Month 5.5%
1 Year 10.9%
3 Year 8.3%
5 Year 8.5%
10 Year
15 Year
Since launch 9.1%
Historical performance (Yearly) on absolute basis
YearReturns
2020 10.9%
2019 8.6%
2018 5.4%
2017 6.6%
2016 11%
2015 9%
2014
2013
2012
2011
Fund Manager information for HDFC Credit Risk Debt Fund
NameSinceTenure
Shobhit Mehrotra25 Mar 146.78 Yr.
Anand Laddha21 Oct 200.2 Yr.

Data below for HDFC Credit Risk Debt Fund as on 30 Nov 20

Asset Allocation
Asset ClassValue
Cash9.44%
Debt90.56%
Debt Sector Allocation
SectorValue
Corporate68.97%
Government21.59%
Cash Equivalent9.44%
Credit Quality
RatingValue
A11.39%
AA52.84%
AAA32.53%
BBB2.89%
Below B0.35%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Pipeline Infrastructure Private Limited
Debentures | -
7%₹461 Cr4,200
Indinfravit Trust
Unlisted bonds | -
5%₹359 Cr3,500
Power Finance Corporation Limited
Debentures | -
5%₹314 Cr2,790
Shriram - City Union Finance Limited
Debentures | -
4%₹279 Cr28,000
Punjab National Bank
Debentures | -
4%₹275 Cr2,725
DLF Limited
Debentures | -
4%₹250 Cr2,500
Vedanta Limited
Debentures | -
3%₹228 Cr2,327
Tata Motors Limited
Debentures | -
3%₹203 Cr2,000
Tata Motors Limited
Debentures | -
3%₹194 Cr1,900
Vedanta Limited
Debentures | -
2%₹149 Cr1,500

3. ICICI Prudential Regular Savings Fund

The fund’s objective is to provide reasonable returns, by maintaining an optimum balance of safety, liquidity and yield, through investments in a basket of debt and money market instruments with a view to delivering consistent performance. However, there can be no assurance that the investment objective of the Scheme will be realized.

ICICI Prudential Regular Savings Fund is a Debt - Credit Risk fund was launched on 3 Dec 10. It is a fund with Moderate risk and has given a CAGR/Annualized return of 8.8% since its launch.  Ranked 26 in Credit Risk category.  Return for 2020 was 9.8% , 2019 was 9.5% and 2018 was 6.6% .

Below is the key information for ICICI Prudential Regular Savings Fund

ICICI Prudential Regular Savings Fund
Growth
Launch Date 3 Dec 10
NAV (15 Jan 21) ₹23.3973 ↓ 0.00   (0.00 %)
Net Assets (Cr) ₹6,685 on 30 Nov 20
Category Debt - Credit Risk
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 1.57
Sharpe Ratio 2.08
Information Ratio 0
Alpha Ratio 0
Min Investment 10,000
Min SIP Investment 100
Exit Load 0-1 Years (1%),1 Years and above(NIL)
Yield to Maturity 7.85%
Effective Maturity 2 Years 9 Months
Modified Duration 2 Years 1 Month 2 Days

Growth of 10,000 investment over the years.

DateValue
31 Dec 15₹10,000
31 Dec 16₹10,954
31 Dec 17₹11,696
31 Dec 18₹12,474
31 Dec 19₹13,656
31 Dec 20₹14,992

ICICI Prudential Regular 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 ₹206,148.
Net Profit of ₹26,148
Invest Now

Returns for ICICI Prudential Regular 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 15 Jan 21

DurationReturns
1 Month 0.4%
3 Month 2.1%
6 Month 4.3%
1 Year 9.6%
3 Year 8.6%
5 Year 8.4%
10 Year
15 Year
Since launch 8.8%
Historical performance (Yearly) on absolute basis
YearReturns
2020 9.8%
2019 9.5%
2018 6.6%
2017 6.8%
2016 9.5%
2015 9%
2014 11%
2013 7.5%
2012 9.4%
2011 8.9%
Fund Manager information for ICICI Prudential Regular Savings Fund
NameSinceTenure
Manish Banthia7 Nov 164.15 Yr.
Akhil Kakkar3 Jun 173.58 Yr.

Data below for ICICI Prudential Regular Savings Fund as on 30 Nov 20

Asset Allocation
Asset ClassValue
Cash11.17%
Equity3.81%
Debt85.03%
Debt Sector Allocation
SectorValue
Corporate72.97%
Government11.59%
Cash Equivalent11.17%
Securitized0.47%
Credit Quality
RatingValue
A16.74%
AA55.32%
AAA21.95%
BBB2.56%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
5.77% GOI 2030
Sovereign Bonds | -
4%₹302 Cr30,500,000
Prestige Estates Projects Limited
Debentures | -
4%₹249 Cr2,500
ICICI Bank Limited
Debentures | -
3%₹221 Cr2,086
Kalpataru Properties (Thane) Private Limited
Debentures | -
3%₹201 Cr2,000
Aditya Birla Fashion and Retail Limited
Debentures | -
3%₹199 Cr1,750
MTNL
Debentures | -
3%₹183 Cr1,800
The Great Eastern Shipping Company Limited
Debentures | -
3%₹180 Cr1,743
TMF Holdings Limited
Debentures | -
3%₹178 Cr1,500
Embassy Office Parks REIT (Real Estate)
-, Since 31 Jul 20 | 542602
2%₹167 Cr4,846,800
↑ 3,320,000
Vedanta Limited
Debentures | -
2%₹164 Cr1,650

4. Axis Credit Risk Fund

(Erstwhile Axis Fixed Income Opportunities Fund)

To generate stable returns by investing in debt & money market instruments across the yield curve & credit spectrum. However, there is no assurance or guarantee that the investment objective of the Scheme will be achieved. The Scheme does not assure or guarantee any returns

Axis Credit Risk Fund is a Debt - Credit Risk fund was launched on 15 Jul 14. It is a fund with Moderate risk and has given a CAGR/Annualized return of 7.6% since its launch.  Ranked 4 in Credit Risk category.  Return for 2020 was 8.2% , 2019 was 4.4% and 2018 was 5.9% .

Below is the key information for Axis Credit Risk Fund

Axis Credit Risk Fund
Growth
Launch Date 15 Jul 14
NAV (15 Jan 21) ₹16.0873 ↓ 0.00   (0.00 %)
Net Assets (Cr) ₹570 on 30 Nov 20
Category Debt - Credit Risk
AMC Axis Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 1.78
Sharpe Ratio 1.39
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 1,000
Exit Load 0-12 Months (1%),12 Months and above(NIL)
Yield to Maturity 7.77%
Effective Maturity 2 Years 1 Month 6 Days
Modified Duration 1 Year 6 Months

Growth of 10,000 investment over the years.

DateValue
31 Dec 15₹10,000
31 Dec 16₹10,979
31 Dec 17₹11,685
31 Dec 18₹12,373
31 Dec 19₹12,912
31 Dec 20₹13,972

Axis 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 ₹200,132.
Net Profit of ₹20,132
Invest Now

Returns for Axis 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 15 Jan 21

DurationReturns
1 Month 0.5%
3 Month 1.9%
6 Month 3.9%
1 Year 8%
3 Year 6.1%
5 Year 6.9%
10 Year
15 Year
Since launch 7.6%
Historical performance (Yearly) on absolute basis
YearReturns
2020 8.2%
2019 4.4%
2018 5.9%
2017 6.4%
2016 9.8%
2015 8.7%
2014
2013
2012
2011
Fund Manager information for Axis Credit Risk Fund
NameSinceTenure
Devang Shah15 Jul 146.47 Yr.
Dhaval Patel4 Sep 200.32 Yr.

Data below for Axis Credit Risk Fund as on 30 Nov 20

Asset Allocation
Asset ClassValue
Cash6.85%
Debt93.15%
Debt Sector Allocation
SectorValue
Corporate87.15%
Cash Equivalent6.85%
Securitized4.98%
Government1.02%
Credit Quality
RatingValue
A8.19%
AA64.25%
AAA27.56%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Essel Mining & Industries Limited
Debentures | -
6%₹35 Cr350
Embassy Office Parks Reit
Debentures | -
6%₹32 Cr270
Bahadur Chand Investments Private Limited
Debentures | -
5%₹30 Cr300
India Grid Trust
Debentures | -
5%₹26 Cr250
Nirma Limited
Debentures | -
4%₹24 Cr250
Narmada Wind Energy Private Limited
Debentures | -
4%₹23 Cr266
Tata Steel Limited
Debentures | -
4%₹21 Cr120
Northern Arc Capital Limited
Debentures | -
4%₹20 Cr200
PVR Limited
Debentures | -
3%₹19 Cr200
MFL SECURITISATION TRUST LXXIX
Unlisted bonds | -
3%₹19 Cr576

5. Aditya Birla Sun Life Credit Risk Fund

(Erstwhile Aditya Birla Sun Life Corporate Bond Fund)

The investment objective of the Scheme is to generate returns by predominantly investing in a portfolio of corporate debt securities with short to medium term maturities across the credit spectrum within the investment grade. The Scheme does not guarantee/indicate any returns. There can be no assurance that the schemes’ objectives will be achieved.

Aditya Birla Sun Life Credit Risk Fund is a Debt - Credit Risk fund was launched on 17 Apr 15. It is a fund with Moderate risk and has given a CAGR/Annualized return of 7.4% since its launch.  Return for 2020 was 9.4% , 2019 was 2.1% and 2018 was 6.6% .

Below is the key information for Aditya Birla Sun Life Credit Risk Fund

Aditya Birla Sun Life Credit Risk Fund
Growth
Launch Date 17 Apr 15
NAV (15 Jan 21) ₹15.1039
Net Assets (Cr) ₹1,662 on 30 Nov 20
Category Debt - Credit Risk
AMC Birla Sun Life Asset Management Co Ltd
Rating Not Rated
Risk Moderate
Expense Ratio 1.6
Sharpe Ratio 1.03
Information Ratio 0
Alpha Ratio 0
Min Investment 1,000
Min SIP Investment 100
Exit Load 0-365 Days (1%),365 Days and above(NIL)
Yield to Maturity 7.75%
Effective Maturity 2 Years 9 Months 4 Days
Modified Duration 2 Years 1 Month 10 Days

Growth of 10,000 investment over the years.

DateValue
31 Dec 15₹10,000
31 Dec 16₹11,030
31 Dec 17₹11,922
31 Dec 18₹12,709
31 Dec 19₹12,974
31 Dec 20₹14,189

Aditya Birla Sun Life 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 ₹203,125.
Net Profit of ₹23,125
Invest Now

Returns for Aditya Birla Sun Life 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 15 Jan 21

DurationReturns
1 Month 0.6%
3 Month 2.1%
6 Month 5.2%
1 Year 9.2%
3 Year 5.9%
5 Year 7.2%
10 Year
15 Year
Since launch 7.4%
Historical performance (Yearly) on absolute basis
YearReturns
2020 9.4%
2019 2.1%
2018 6.6%
2017 8.1%
2016 10.3%
2015
2014
2013
2012
2011
Fund Manager information for Aditya Birla Sun Life Credit Risk Fund
NameSinceTenure
Sunaina Cunha1 Apr 173.75 Yr.
Mohit Sharma6 Aug 200.4 Yr.

Data below for Aditya Birla Sun Life Credit Risk Fund as on 30 Nov 20

Asset Allocation
Asset ClassValue
Cash6.93%
Equity0.24%
Debt92.84%
Debt Sector Allocation
SectorValue
Corporate75.54%
Government17.3%
Cash Equivalent6.93%
Credit Quality
RatingValue
A20.48%
AA42.77%
AAA33.43%
BBB1.52%
Below B1.8%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
L&T Vadodara Bharuch Tollway Limited
Debentures | -
10%₹171 Cr170,850
Shriram - City Union Finance Limited
Debentures | -
9%₹141 Cr1,400
L&T Infrastructure Finance Company Limited
Debentures | -
5%₹89 Cr850
Indusind Bank Limited
Debentures | -
4%₹65 Cr700
L&T Infrastructure Finance Company Limited
Debentures | -
3%₹52 Cr500
Coastal Gujarat Power Limited
Debentures | -
3%₹52 Cr513
Tata Housing Development Company Limited
Debentures | -
2%₹38 Cr350
Tata Realty and Infrastructure Limited
Debentures | -
2%₹36 Cr350
LIC Housing Finance Limited
Debentures | -
2%₹36 Cr350
REC Limited
Debentures | -
2%₹31 Cr281

6. Kotak Credit Risk Fund

(Erstwhile Kotak Income Opportunities Fund)

The investment objective of the scheme is to generate income by investing in debt/ and money market securities across the yield curve and credit spectrum. The scheme will also seek to maintain reasonable liquidity within the fund.

Kotak Credit Risk Fund is a Debt - Credit Risk fund was launched on 11 May 10. It is a fund with Moderately Low risk and has given a CAGR/Annualized return of 8.2% since its launch.  Ranked 18 in Credit Risk category.  Return for 2020 was 6.6% , 2019 was 9% and 2018 was 6.2% .

Below is the key information for Kotak Credit Risk Fund

Kotak Credit Risk Fund
Growth
Launch Date 11 May 10
NAV (15 Jan 21) ₹23.1998 ↓ 0.00   (-0.02 %)
Net Assets (Cr) ₹1,851 on 30 Nov 20
Category Debt - Credit Risk
AMC Kotak Mahindra Asset Management Co Ltd
Rating
Risk Moderately Low
Expense Ratio 1.52
Sharpe Ratio 0.39
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 7.49%
Effective Maturity 2 Years 6 Months 11 Days
Modified Duration 1 Year 9 Months 22 Days

Growth of 10,000 investment over the years.

DateValue
31 Dec 15₹10,000
31 Dec 16₹11,043
31 Dec 17₹11,768
31 Dec 18₹12,498
31 Dec 19₹13,620
31 Dec 20₹14,520

Kotak 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 ₹203,125.
Net Profit of ₹23,125
Invest Now

Returns for Kotak 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 15 Jan 21

DurationReturns
1 Month 0.6%
3 Month 1.3%
6 Month 3.6%
1 Year 6.4%
3 Year 7.2%
5 Year 7.7%
10 Year
15 Year
Since launch 8.2%
Historical performance (Yearly) on absolute basis
YearReturns
2020 6.6%
2019 9%
2018 6.2%
2017 6.6%
2016 10.4%
2015 9.1%
2014 11.1%
2013 7.3%
2012 9.8%
2011 8.9%
Fund Manager information for Kotak Credit Risk Fund
NameSinceTenure
Deepak Agrawal11 May 1010.65 Yr.

Data below for Kotak Credit Risk Fund as on 30 Nov 20

Asset Allocation
Asset ClassValue
Cash15.32%
Debt84.68%
Debt Sector Allocation
SectorValue
Corporate43.97%
Government40.71%
Cash Equivalent15.32%
Credit Quality
RatingValue
A14.03%
AA46.57%
AAA39.41%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Talwandi Sabo Power Limited
Debentures | -
10%₹191 Cr1,938
Punjab & Sind Bank
Debentures | -
7%₹129 Cr1,284
Coastal Gujarat Power Limited
Debentures | -
6%₹113 Cr1,000
Andhra Bank
Debentures | -
5%₹91 Cr880
L&T Infrastructure Finance Company Limited
Debentures | -
5%₹84 Cr800
Bahadur Chand Investments Private Limited
Debentures | -
4%₹75 Cr750
Power Finance Corporation Limited
Debentures | -
4%₹69 Cr620
Andhra Bank
Debentures | -
4%₹67 Cr650
U.P. Power Corporation Limited
Debentures | -
3%₹54 Cr540
7.20% KA SDL 2027
Sovereign Bonds | -
3%₹53 Cr5,000,000

Smart Tips to Look for in Debt Funds

1. Yield

The yield is a measure of the interest Income generated by the Bonds in the portfolio.

For instance, let's assume that a bond has a Face Value of INR 100 with an 8 percent coupon rate. This means that the investor will earn INR 8 p.a., on each bond that he invests in. As the bonds are traded in the open market, the price will fluctuate each Business Day. The interest rates rise and fall and demand for the bonds moves up and down. And this impacts the price of the bond. Let’s assume interest rates rise to 10 percent. Even then the investor will continue to earn INR 8. So to increase the yield to 10 percent, which is the current market rate of interest, the price of the bond will have to drop to INR 80.

In another instance, lets assume that the interest rates fall to 6 percent. Again, the investor will continue to earn INR 8. This time the price of the bond will have to go up to INR 133.

If we look at these assumptions, there are two aspects to it- the one is that the yield is not fixed, but fluctuates to changes in the interest rate. The second one is the price of the bond moves inversely to interest rates. It moves to maintain a level where it will attract buyers.

2. Yield to Maturity

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.

3. Modified Duration

Modified duration provides a fair indication of a bond’s sensitivity to a change in interest rates. The higher the duration, the more volatility the bond exhibits with a change in interest rates

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.

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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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