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6 Best Debt Mutual Funds for Lump sum Investments 2025

Updated on August 31, 2025 , 47184 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 25 - 26

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 (%)2024 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
Nippon India Credit Risk Fund Growth ₹35.4843
↑ 0.01
₹1,014 500 1.75.19.38.28.38.28%1Y 11M 12D2Y 3M 25D
SBI Credit Risk Fund Growth ₹46.0699
↑ 0.01
₹2,221 5,000 1.24.48.17.98.17.93%2Y 2M 1D2Y 11M 16D
ICICI Prudential Regular Savings Fund Growth ₹32.1847
↑ 0.01
₹6,044 10,000 1.54.98.67.98.57.91%1Y 10M 13D2Y 7M 2D
HDFC Low Duration Fund Growth ₹58.3901
↑ 0.00
₹24,641 5,000 1.44.17.57.17.46.79%10M 25D1Y 9M 29D
Nippon India Low Duration Fund Growth ₹3,787.29
↑ 0.70
₹8,860 500 1.547.777.46.78%10M 24D1Y 2M 6D
ICICI Prudential Savings Fund Growth ₹550.59
↓ 0.00
₹26,748 500 1.64.387.786.76%9M 22D1Y 8M 8D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 2 Sep 25

Research Highlights & Commentary of 6 Funds showcased

CommentaryNippon India Credit Risk FundSBI Credit Risk FundICICI Prudential Regular Savings FundHDFC Low Duration FundNippon India Low Duration FundICICI Prudential Savings Fund
Point 1Bottom quartile AUM (₹1,014 Cr).Bottom quartile AUM (₹2,221 Cr).Lower mid AUM (₹6,044 Cr).Upper mid AUM (₹24,641 Cr).Upper mid AUM (₹8,860 Cr).Highest AUM (₹26,748 Cr).
Point 2Established history (20+ yrs).Established history (21+ yrs).Established history (14+ yrs).Oldest track record among peers (25 yrs).Established history (18+ yrs).Established history (22+ yrs).
Point 3Rating: 2★ (bottom quartile).Top rated.Rating: 1★ (bottom quartile).Rating: 3★ (upper mid).Rating: 3★ (lower mid).Rating: 4★ (upper mid).
Point 4Risk profile: Moderate.Risk profile: Moderate.Risk profile: Moderate.Risk profile: Moderately Low.Risk profile: Moderately Low.Risk profile: Moderately Low.
Point 51Y return: 9.28% (top quartile).1Y return: 8.09% (upper mid).1Y return: 8.59% (upper mid).1Y return: 7.53% (bottom quartile).1Y return: 7.69% (bottom quartile).1Y return: 8.01% (lower mid).
Point 61M return: 0.24% (bottom quartile).1M return: 0.13% (bottom quartile).1M return: 0.34% (upper mid).1M return: 0.32% (lower mid).1M return: 0.36% (upper mid).1M return: 0.40% (top quartile).
Point 7Sharpe: 3.44 (top quartile).Sharpe: 2.43 (bottom quartile).Sharpe: 2.62 (lower mid).Sharpe: 2.08 (bottom quartile).Sharpe: 2.68 (upper mid).Sharpe: 3.17 (upper mid).
Point 8Information ratio: 0.00 (top quartile).Information ratio: 0.00 (upper mid).Information ratio: 0.00 (upper mid).Information ratio: 0.00 (lower mid).Information ratio: 0.00 (bottom quartile).Information ratio: 0.00 (bottom quartile).
Point 9Yield to maturity (debt): 8.28% (top quartile).Yield to maturity (debt): 7.93% (upper mid).Yield to maturity (debt): 7.91% (upper mid).Yield to maturity (debt): 6.79% (lower mid).Yield to maturity (debt): 6.78% (bottom quartile).Yield to maturity (debt): 6.76% (bottom quartile).
Point 10Modified duration: 1.95 yrs (bottom quartile).Modified duration: 2.17 yrs (bottom quartile).Modified duration: 1.87 yrs (lower mid).Modified duration: 0.90 yrs (upper mid).Modified duration: 0.90 yrs (upper mid).Modified duration: 0.81 yrs (top quartile).

Nippon India Credit Risk Fund

  • Bottom quartile AUM (₹1,014 Cr).
  • Established history (20+ yrs).
  • Rating: 2★ (bottom quartile).
  • Risk profile: Moderate.
  • 1Y return: 9.28% (top quartile).
  • 1M return: 0.24% (bottom quartile).
  • Sharpe: 3.44 (top quartile).
  • Information ratio: 0.00 (top quartile).
  • Yield to maturity (debt): 8.28% (top quartile).
  • Modified duration: 1.95 yrs (bottom quartile).

SBI Credit Risk Fund

  • Bottom quartile AUM (₹2,221 Cr).
  • Established history (21+ yrs).
  • Top rated.
  • Risk profile: Moderate.
  • 1Y return: 8.09% (upper mid).
  • 1M return: 0.13% (bottom quartile).
  • Sharpe: 2.43 (bottom quartile).
  • Information ratio: 0.00 (upper mid).
  • Yield to maturity (debt): 7.93% (upper mid).
  • Modified duration: 2.17 yrs (bottom quartile).

ICICI Prudential Regular Savings Fund

  • Lower mid AUM (₹6,044 Cr).
  • Established history (14+ yrs).
  • Rating: 1★ (bottom quartile).
  • Risk profile: Moderate.
  • 1Y return: 8.59% (upper mid).
  • 1M return: 0.34% (upper mid).
  • Sharpe: 2.62 (lower mid).
  • Information ratio: 0.00 (upper mid).
  • Yield to maturity (debt): 7.91% (upper mid).
  • Modified duration: 1.87 yrs (lower mid).

HDFC Low Duration Fund

  • Upper mid AUM (₹24,641 Cr).
  • Oldest track record among peers (25 yrs).
  • Rating: 3★ (upper mid).
  • Risk profile: Moderately Low.
  • 1Y return: 7.53% (bottom quartile).
  • 1M return: 0.32% (lower mid).
  • Sharpe: 2.08 (bottom quartile).
  • Information ratio: 0.00 (lower mid).
  • Yield to maturity (debt): 6.79% (lower mid).
  • Modified duration: 0.90 yrs (upper mid).

Nippon India Low Duration Fund

  • Upper mid AUM (₹8,860 Cr).
  • Established history (18+ yrs).
  • Rating: 3★ (lower mid).
  • Risk profile: Moderately Low.
  • 1Y return: 7.69% (bottom quartile).
  • 1M return: 0.36% (upper mid).
  • Sharpe: 2.68 (upper mid).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 6.78% (bottom quartile).
  • Modified duration: 0.90 yrs (upper mid).

ICICI Prudential Savings Fund

  • Highest AUM (₹26,748 Cr).
  • Established history (22+ yrs).
  • Rating: 4★ (upper mid).
  • Risk profile: Moderately Low.
  • 1Y return: 8.01% (lower mid).
  • 1M return: 0.40% (top quartile).
  • Sharpe: 3.17 (upper mid).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 6.76% (bottom quartile).
  • Modified duration: 0.81 yrs (top quartile).
*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.

Research Highlights for Nippon India Credit Risk Fund

  • Bottom quartile AUM (₹1,014 Cr).
  • Established history (20+ yrs).
  • Rating: 2★ (bottom quartile).
  • Risk profile: Moderate.
  • 1Y return: 9.28% (top quartile).
  • 1M return: 0.24% (bottom quartile).
  • Sharpe: 3.44 (top quartile).
  • Information ratio: 0.00 (top quartile).
  • Yield to maturity (debt): 8.28% (top quartile).
  • Modified duration: 1.95 yrs (bottom quartile).
  • Average maturity: 2.32 yrs (lower mid).
  • Exit load: 0-12 Months (1%),12 Months and above(NIL).

Below is the key information for Nippon India Credit Risk Fund

Nippon India Credit Risk Fund
Growth
Launch Date 8 Jun 05
NAV (02 Sep 25) ₹35.4843 ↑ 0.01   (0.03 %)
Net Assets (Cr) ₹1,014 on 31 Jul 25
Category Debt - Credit Risk
AMC Nippon Life Asset Management Ltd.
Rating
Risk Moderate
Expense Ratio 1.46
Sharpe Ratio 3.44
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 8.28%
Effective Maturity 2 Years 3 Months 25 Days
Modified Duration 1 Year 11 Months 12 Days

Growth of 10,000 investment over the years.

DateValue
31 Aug 20₹10,000
31 Aug 21₹11,574
31 Aug 22₹12,031
31 Aug 23₹12,922
31 Aug 24₹13,930
31 Aug 25₹15,227

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 ₹206,148.
Net Profit of ₹26,148
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 2 Sep 25

DurationReturns
1 Month 0.2%
3 Month 1.7%
6 Month 5.1%
1 Year 9.3%
3 Year 8.2%
5 Year 8.7%
10 Year
15 Year
Since launch 6.5%
Historical performance (Yearly) on absolute basis
YearReturns
2024 8.3%
2023 7.9%
2022 3.9%
2021 13.5%
2020 -5.9%
2019 1.9%
2018 6.1%
2017 7%
2016 10%
2015 8.8%
Fund Manager information for Nippon India Credit Risk Fund
NameSinceTenure
Kinjal Desai25 May 187.28 Yr.
Sushil Budhia1 Feb 205.59 Yr.

Data below for Nippon India Credit Risk Fund as on 31 Jul 25

Asset Allocation
Asset ClassValue
Cash8.92%
Debt90.78%
Other0.29%
Debt Sector Allocation
SectorValue
Corporate76.68%
Government14.1%
Cash Equivalent8.92%
Credit Quality
RatingValue
A25.36%
AA43.97%
AAA30.68%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.02% Govt Stock 2031
Sovereign Bonds | -
8%₹77 Cr7,500,000
Renew Solar Energy (Jharkhand Five) Private Limited
Debentures | -
5%₹48 Cr5,000
Jubilant Bevco Limited
Debentures | -
4%₹42 Cr4,000
TRuhome Finance Limited
Debentures | -
4%₹41 Cr4,000
Mancherial Repallewada Road Private Limited
Debentures | -
4%₹41 Cr4,500
Prestige Projects Private Limited
Debentures | -
4%₹40 Cr4,000
The Sandur Manganese And Iron Ores Limited
Debentures | -
4%₹39 Cr4,000
Bamboo Hotel And Global Centre (Delhi) Private Limited
Debentures | -
4%₹38 Cr3,800
Delhi International Airport Limited
Debentures | -
4%₹36 Cr3,500
Vedanta Limited
Debentures | -
4%₹35 Cr3,500

2. SBI Credit Risk Fund

(Erstwhile SBI Corporate Bond Fund)

The investment objective will be to actively manage a portfolio of good quality corporate debt as well as Money Market Instruments so as to provide reasonable returns and liquidity to the Unit holders. However there is no guarantee or assurance that the investment objective of the scheme will be achieved.

Research Highlights for SBI Credit Risk Fund

  • Bottom quartile AUM (₹2,221 Cr).
  • Established history (21+ yrs).
  • Top rated.
  • Risk profile: Moderate.
  • 1Y return: 8.09% (upper mid).
  • 1M return: 0.13% (bottom quartile).
  • Sharpe: 2.43 (bottom quartile).
  • Information ratio: 0.00 (upper mid).
  • Yield to maturity (debt): 7.93% (upper mid).
  • Modified duration: 2.17 yrs (bottom quartile).
  • Average maturity: 2.96 yrs (bottom quartile).
  • Exit load: 0-12 Months (3%),12-24 Months (1.5%),24-36 Months (0.75%),36 Months and above(NIL).

Below is the key information for SBI Credit Risk Fund

SBI Credit Risk Fund
Growth
Launch Date 19 Jul 04
NAV (02 Sep 25) ₹46.0699 ↑ 0.01   (0.02 %)
Net Assets (Cr) ₹2,221 on 31 Jul 25
Category Debt - Credit Risk
AMC SBI Funds Management Private Limited
Rating
Risk Moderate
Expense Ratio 1.55
Sharpe Ratio 2.43
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load 0-12 Months (3%),12-24 Months (1.5%),24-36 Months (0.75%),36 Months and above(NIL)
Yield to Maturity 7.93%
Effective Maturity 2 Years 11 Months 16 Days
Modified Duration 2 Years 2 Months 1 Day

Growth of 10,000 investment over the years.

DateValue
31 Aug 20₹10,000
31 Aug 21₹10,757
31 Aug 22₹11,148
31 Aug 23₹12,035
31 Aug 24₹12,969
31 Aug 25₹14,026

SBI 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 SBI 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 2 Sep 25

DurationReturns
1 Month 0.1%
3 Month 1.2%
6 Month 4.4%
1 Year 8.1%
3 Year 7.9%
5 Year 6.9%
10 Year
15 Year
Since launch 7.5%
Historical performance (Yearly) on absolute basis
YearReturns
2024 8.1%
2023 8.3%
2022 4.2%
2021 5%
2020 9.8%
2019 6.5%
2018 6.2%
2017 6.9%
2016 10.5%
2015 9.7%
Fund Manager information for SBI Credit Risk Fund
NameSinceTenure
Lokesh Mallya1 Feb 178.59 Yr.

Data below for SBI Credit Risk Fund as on 31 Jul 25

Asset Allocation
Asset ClassValue
Cash8.22%
Equity2.91%
Debt88.5%
Other0.36%
Debt Sector Allocation
SectorValue
Corporate73.53%
Government14.97%
Cash Equivalent8.22%
Credit Quality
RatingValue
A21.83%
AA62.09%
AAA16.08%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
6.92% Govt Stock 2039
Sovereign Bonds | -
7%₹152 Cr15,000,000
Aadhar Housing Finance Limited
Debentures | -
5%₹113 Cr11,200
Nirma Limited
Debentures | -
5%₹112 Cr11,000
Renew Solar Energy (Jharkhand Five) Private Limited
Debentures | -
5%₹106 Cr11,000
Infopark Properties Limited
Debentures | -
5%₹106 Cr10,500
Nj Capital Private Limited
Debentures | -
4%₹100 Cr10,000
The Sandur Manganese And Iron Ores Limited
Debentures | -
4%₹83 Cr8,500
6.79% Govt Stock 2034
Sovereign Bonds | -
4%₹82 Cr8,000,000
Avanse Financial Services Limited
Debentures | -
4%₹80 Cr8,000
Renserv Global Private Limited
Debentures | -
4%₹80 Cr8,000

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.

Research Highlights for ICICI Prudential Regular Savings Fund

  • Lower mid AUM (₹6,044 Cr).
  • Established history (14+ yrs).
  • Rating: 1★ (bottom quartile).
  • Risk profile: Moderate.
  • 1Y return: 8.59% (upper mid).
  • 1M return: 0.34% (upper mid).
  • Sharpe: 2.62 (lower mid).
  • Information ratio: 0.00 (upper mid).
  • Yield to maturity (debt): 7.91% (upper mid).
  • Modified duration: 1.87 yrs (lower mid).
  • Average maturity: 2.59 yrs (bottom quartile).
  • Exit load: 0-1 Years (1%),1 Years and above(NIL).

Below is the key information for ICICI Prudential Regular Savings Fund

ICICI Prudential Regular Savings Fund
Growth
Launch Date 3 Dec 10
NAV (02 Sep 25) ₹32.1847 ↑ 0.01   (0.02 %)
Net Assets (Cr) ₹6,044 on 31 Jul 25
Category Debt - Credit Risk
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 1.43
Sharpe Ratio 2.62
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 7.91%
Effective Maturity 2 Years 7 Months 2 Days
Modified Duration 1 Year 10 Months 13 Days

Growth of 10,000 investment over the years.

DateValue
31 Aug 20₹10,000
31 Aug 21₹10,848
31 Aug 22₹11,369
31 Aug 23₹12,110
31 Aug 24₹13,153
31 Aug 25₹14,280

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 ₹203,125.
Net Profit of ₹23,125
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 2 Sep 25

DurationReturns
1 Month 0.3%
3 Month 1.5%
6 Month 4.9%
1 Year 8.6%
3 Year 7.9%
5 Year 7.3%
10 Year
15 Year
Since launch 8.2%
Historical performance (Yearly) on absolute basis
YearReturns
2024 8.5%
2023 7.2%
2022 5.1%
2021 6.2%
2020 9.8%
2019 9.5%
2018 6.6%
2017 6.8%
2016 9.5%
2015 9%
Fund Manager information for ICICI Prudential Regular Savings Fund
NameSinceTenure
Manish Banthia7 Nov 168.82 Yr.
Akhil Kakkar22 Jan 241.61 Yr.

Data below for ICICI Prudential Regular Savings Fund as on 31 Jul 25

Asset Allocation
Asset ClassValue
Cash8.22%
Equity7.86%
Debt83.54%
Other0.37%
Debt Sector Allocation
SectorValue
Corporate72.73%
Government14.8%
Cash Equivalent4.23%
Credit Quality
RatingValue
A16.98%
AA57.39%
AAA24.89%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.1% Govt Stock 2034
Sovereign Bonds | -
5%₹329 Cr31,767,530
Embassy Office Parks REIT (Real Estate)
-, Since 30 Apr 25 | 542602
4%₹233 Cr6,030,181
Millennia Realtors Private Limited
Debentures | -
4%₹211 Cr2,100
Varroc Engineering Limited
Debentures | -
3%₹204 Cr25,000
Vedanta Limited
Debentures | -
3%₹201 Cr20,000
Bamboo Hotel And Global Centre (Delhi) Private Limited
Debentures | -
3%₹186 Cr18,500
Aadhar Housing Finance Limited
Debentures | -
3%₹177 Cr17,500
6.79% Govt Stock 2034
Sovereign Bonds | -
3%₹169 Cr16,539,430
↑ 8,068,500
Nirma Limited
Debentures | -
3%₹152 Cr15,000
Lodha Developers Limited
Debentures | -
2%₹150 Cr15,000

4. HDFC Low Duration Fund

(Erstwhile HDFC Cash Management Fund - Treasury Advantage Plan)

To generate regular income through investment in debt securities and money market instruments.

Research Highlights for HDFC Low Duration Fund

  • Upper mid AUM (₹24,641 Cr).
  • Oldest track record among peers (25 yrs).
  • Rating: 3★ (upper mid).
  • Risk profile: Moderately Low.
  • 1Y return: 7.53% (bottom quartile).
  • 1M return: 0.32% (lower mid).
  • Sharpe: 2.08 (bottom quartile).
  • Information ratio: 0.00 (lower mid).
  • Yield to maturity (debt): 6.79% (lower mid).
  • Modified duration: 0.90 yrs (upper mid).
  • Average maturity: 1.83 yrs (upper mid).
  • Exit load: NIL.

Below is the key information for HDFC Low Duration Fund

HDFC Low Duration Fund
Growth
Launch Date 18 Nov 99
NAV (02 Sep 25) ₹58.3901 ↑ 0.00   (0.00 %)
Net Assets (Cr) ₹24,641 on 31 Jul 25
Category Debt - Low Duration
AMC HDFC Asset Management Company Limited
Rating
Risk Moderately Low
Expense Ratio 1.03
Sharpe Ratio 2.08
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 300
Exit Load NIL
Yield to Maturity 6.79%
Effective Maturity 1 Year 9 Months 29 Days
Modified Duration 10 Months 25 Days

Growth of 10,000 investment over the years.

DateValue
31 Aug 20₹10,000
31 Aug 21₹10,519
31 Aug 22₹10,862
31 Aug 23₹11,592
31 Aug 24₹12,421
31 Aug 25₹13,359

HDFC Low Duration Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹197,169.
Net Profit of ₹17,169
Invest Now

Returns for HDFC Low Duration Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 2 Sep 25

DurationReturns
1 Month 0.3%
3 Month 1.4%
6 Month 4.1%
1 Year 7.5%
3 Year 7.1%
5 Year 5.9%
10 Year
15 Year
Since launch 7.1%
Historical performance (Yearly) on absolute basis
YearReturns
2024 7.4%
2023 7%
2022 4.1%
2021 3.7%
2020 8.1%
2019 8%
2018 6.5%
2017 6.4%
2016 8.6%
2015 7.7%
Fund Manager information for HDFC Low Duration Fund
NameSinceTenure
Anupam Joshi27 Oct 159.85 Yr.
Praveen Jain6 Oct 222.9 Yr.
Dhruv Muchhal22 Jun 232.19 Yr.

Data below for HDFC Low Duration Fund as on 31 Jul 25

Asset Allocation
Asset ClassValue
Cash6.56%
Debt93.19%
Other0.25%
Debt Sector Allocation
SectorValue
Corporate70.89%
Government22.29%
Cash Equivalent6.56%
Credit Quality
RatingValue
AA11.32%
AAA88.68%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
6.63% Govt Stock 2031
Sovereign Bonds | -
4%₹1,048 Cr102,500,000
↑ 2,500,000
7.81% Govt Stock 2033
Sovereign Bonds | -
4%₹1,039 Cr100,000,000
Sikka Ports & Terminals Limited
Debentures | -
3%₹745 Cr7,450
Mangalore Refinery And Petrochemicals Limited
Debentures | -
3%₹644 Cr6,450
Jubilant Beverages Limited
Debentures | -
2%₹618 Cr59,740
7.11% Govt Stock 2028
Sovereign Bonds | -
2%₹506 Cr50,000,000
Power Finance Corporation Limited
Debentures | -
2%₹503 Cr50,000
National Bank For Agriculture And Rural Development
Debentures | -
2%₹432 Cr42,500
Bajaj Housing Finance Limited
Debentures | -
2%₹408 Cr40,000
Aditya Birla Renewables Limited
Debentures | -
2%₹406 Cr40,000

5. Nippon India Low Duration Fund

(Erstwhile Reliance Money Manager Fund)

The investment objective of the Scheme is to generate optimal returns consistent with moderate levels of risk and liquidity by investing in debt securities and money market securities.

Research Highlights for Nippon India Low Duration Fund

  • Upper mid AUM (₹8,860 Cr).
  • Established history (18+ yrs).
  • Rating: 3★ (lower mid).
  • Risk profile: Moderately Low.
  • 1Y return: 7.69% (bottom quartile).
  • 1M return: 0.36% (upper mid).
  • Sharpe: 2.68 (upper mid).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 6.78% (bottom quartile).
  • Modified duration: 0.90 yrs (upper mid).
  • Average maturity: 1.18 yrs (top quartile).
  • Exit load: NIL.

Below is the key information for Nippon India Low Duration Fund

Nippon India Low Duration Fund
Growth
Launch Date 20 Mar 07
NAV (02 Sep 25) ₹3,787.29 ↑ 0.70   (0.02 %)
Net Assets (Cr) ₹8,860 on 31 Jul 25
Category Debt - Low Duration
AMC Nippon Life Asset Management Ltd.
Rating
Risk Moderately Low
Expense Ratio 0.94
Sharpe Ratio 2.68
Information Ratio 0
Alpha Ratio 0
Min Investment 500
Min SIP Investment 100
Exit Load NIL
Yield to Maturity 6.78%
Effective Maturity 1 Year 2 Months 6 Days
Modified Duration 10 Months 24 Days

Growth of 10,000 investment over the years.

DateValue
31 Aug 20₹10,000
31 Aug 21₹10,509
31 Aug 22₹10,872
31 Aug 23₹11,565
31 Aug 24₹12,375
31 Aug 25₹13,327

Nippon India Low Duration Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹197,169.
Net Profit of ₹17,169
Invest Now

Returns for Nippon India Low Duration Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 2 Sep 25

DurationReturns
1 Month 0.4%
3 Month 1.5%
6 Month 4%
1 Year 7.7%
3 Year 7%
5 Year 5.9%
10 Year
15 Year
Since launch 7.5%
Historical performance (Yearly) on absolute basis
YearReturns
2024 7.4%
2023 6.7%
2022 4.2%
2021 4.1%
2020 7.3%
2019 7%
2018 7.4%
2017 6.6%
2016 8.5%
2015 8.4%
Fund Manager information for Nippon India Low Duration Fund
NameSinceTenure
Vivek Sharma1 Feb 205.59 Yr.
Kinjal Desai25 May 187.28 Yr.

Data below for Nippon India Low Duration Fund as on 31 Jul 25

Asset Allocation
Asset ClassValue
Cash30.29%
Debt69.47%
Other0.24%
Debt Sector Allocation
SectorValue
Corporate66.24%
Government18.75%
Cash Equivalent14.77%
Credit Quality
RatingValue
AA12.84%
AAA87.16%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
91 Days Tbill (Md 28/08/2025)
Sovereign Bonds | -
4%₹389 Cr39,000,000
TATA Communications Limited
Debentures | -
2%₹202 Cr20,000
Telangana State Industrial Infrastructure Corporation Limited
Debentures | -
2%₹202 Cr20,000
National Bank For Agriculture And Rural Development
Debentures | -
2%₹198 Cr19,500
↑ 7,500
Axis Bank Ltd.
Debentures | -
2%₹188 Cr4,000
↑ 4,000
Highways Infrastructure Trust
Debentures | -
2%₹171 Cr1,750
Interise TRust
Debentures | -
2%₹171 Cr18,000
Aditya Birla Housing Finance Limited
Debentures | -
2%₹170 Cr17,000
Small Industries Development Bank Of India
Debentures | -
2%₹153 Cr15,000
Rec Limited
Debentures | -
2%₹152 Cr15,000

6. ICICI Prudential Savings Fund

(Erstwhile ICICI Prudential Flexible Income Plan)

To generate income through investments in a range of debt instruments and money market instruments of various maturities with a view to maximizing income while maintaining the optimum balance of yield, safety and liquidity.

Research Highlights for ICICI Prudential Savings Fund

  • Highest AUM (₹26,748 Cr).
  • Established history (22+ yrs).
  • Rating: 4★ (upper mid).
  • Risk profile: Moderately Low.
  • 1Y return: 8.01% (lower mid).
  • 1M return: 0.40% (top quartile).
  • Sharpe: 3.17 (upper mid).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 6.76% (bottom quartile).
  • Modified duration: 0.81 yrs (top quartile).
  • Average maturity: 1.69 yrs (upper mid).
  • Exit load: NIL.

Below is the key information for ICICI Prudential Savings Fund

ICICI Prudential Savings Fund
Growth
Launch Date 27 Sep 02
NAV (02 Sep 25) ₹550.59 ↓ 0.00   (0.00 %)
Net Assets (Cr) ₹26,748 on 31 Jul 25
Category Debt - Low Duration
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk Moderately Low
Expense Ratio 0.53
Sharpe Ratio 3.17
Information Ratio 0
Alpha Ratio 0
Min Investment 500
Min SIP Investment 100
Exit Load NIL
Yield to Maturity 6.76%
Effective Maturity 1 Year 8 Months 8 Days
Modified Duration 9 Months 22 Days

Growth of 10,000 investment over the years.

DateValue
31 Aug 20₹10,000
31 Aug 21₹10,555
31 Aug 22₹10,887
31 Aug 23₹11,708
31 Aug 24₹12,607
31 Aug 25₹13,618

ICICI Prudential 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 ICICI Prudential 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 2 Sep 25

DurationReturns
1 Month 0.4%
3 Month 1.6%
6 Month 4.3%
1 Year 8%
3 Year 7.7%
5 Year 6.3%
10 Year
15 Year
Since launch 7.7%
Historical performance (Yearly) on absolute basis
YearReturns
2024 8%
2023 7.6%
2022 4.5%
2021 3.8%
2020 8.6%
2019 8.8%
2018 7.3%
2017 7.1%
2016 9.1%
2015 8.8%
Fund Manager information for ICICI Prudential Savings Fund
NameSinceTenure
Nikhil Kabra13 Sep 240.97 Yr.
Darshil Dedhia12 Jun 232.22 Yr.

Data below for ICICI Prudential Savings Fund as on 31 Jul 25

Asset Allocation
Asset ClassValue
Cash26.81%
Debt72.93%
Other0.26%
Debt Sector Allocation
SectorValue
Corporate68.36%
Government23.1%
Cash Equivalent8.28%
Credit Quality
RatingValue
AA13.06%
AAA86.94%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.81% Govt Stock 2033
Sovereign Bonds | -
5%₹1,283 Cr123,435,980
National Bank For Agriculture And Rural Development
Debentures | -
4%₹1,027 Cr101,750
6.63% Govt Stock 2031
Sovereign Bonds | -
2%₹614 Cr60,000,000
↑ 7,500,000
7.11% Govt Stock 2028
Sovereign Bonds | -
2%₹498 Cr49,273,600
6.99% Govt Stock 2034
Sovereign Bonds | -
2%₹476 Cr46,625,930
Small Industries Development Bank Of India
Debentures | -
2%₹449 Cr44,500
National Bank For Agriculture And Rural Development
Debentures | -
2%₹437 Cr43,000
↑ 5,000
National Bank For Agriculture And Rural Development
Debentures | -
1%₹404 Cr40,000
Small Industries Development Bank Of India
Debentures | -
1%₹353 Cr35,000
Bharti Telecom Limited
Debentures | -
1%₹352 Cr35,000

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.

How to Invest in Debt Lump Sum 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!

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FAQs

1. How do debt fund managers identify which is high-quality security?

A: Debt fund managers have their techniques for evaluating each bond and assessing the debtor's chances of defaulting to pay the bond. Usually, the higher the credit rating lesser is the chance for the creditor defaulting.

2. Why is debt mutual funds low-risk?

A: Debt mutual funds deal with securities and bonds along other money market instruments. The chances of these instruments failing are usually less, and hence, your investment will remain secure, thereby making debt mutual funds low-risk investments.

3. Do fund managers invest in low-quality securities?

A: Yes, sometimes fund managers do invest in low-quality securities if chances of good ROI exist. However, this will be a calculated risk taken by your fund manager and only if the portfolio of investment already has stable, high-quality securities.

4. Is there any short-term debt mutual fund?

A: Yes, if you opt for a Liquid Fund in which investments are made in money market instruments that have a maturity of 91 days, then you can realize your investment in a matter of three months. This is a short-term investment that you can undertake to get a better understanding of debt mutual funds.

5. Can I invest long-term in a debt mutual fund?

A: Yes, you can invest long-term in debt mutual funds. For example, suppose you invest in the Nippon India Credit Risk Fund or the ICICI Prudential Regular Savings Fund. In that case, it is better that you hold your investment at least for one year, 5 months, and 19 days and 2 years, one month, and 2 days respectively, to get maximum ROI. But you can keep investing beyond that for 3 years.

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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