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Fincash » Mutual Funds » Best Debt Lumpsum Investments

6 Best Debt Mutual Funds for Lump sum Investments 2022

Updated on June 20, 2022 , 36069 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 22 - 23

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 (%)2021 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
Nippon India Credit Risk Fund Growth ₹27.5958
↑ 0.01
₹1,060 500 -0.60.710.12.813.58.08%1Y 9M 29D2Y 2M 5D
ICICI Prudential Regular Savings Fund Growth ₹25.0873
↓ -0.04
₹8,022 10,000 -0.11.247.56.27.99%1Y 9M 7D2Y 10M 2D
HDFC Credit Risk Debt Fund Growth ₹19.2887
↑ 0.01
₹8,640 5,000 -0.70.33.47.577.94%2Y 1M 10D2Y 8M 19D
Axis Credit Risk Fund Growth ₹17.1383
↑ 0.01
₹690 5,000 -0.20.83.56.467.73%1Y 5M 12D1Y 10M 20D
Aditya Birla Sun Life Credit Risk Fund Growth ₹16.1994
↑ 0.01
₹1,214 1,000 0.31.23.85.56.47.52%1Y 7M 17D2Y 6M 29D
SBI Credit Risk Fund Growth ₹36.1133
↑ 0.02
₹3,015 5,000 01.13.66.457.37%1Y 9M 4D2Y 8M 5D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 22 Jun 22
*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 6.1% since its launch.  Ranked 21 in Credit Risk category.  Return for 2021 was 13.5% , 2020 was -5.9% and 2019 was 1.9% .

Below is the key information for Nippon India Credit Risk Fund

Nippon India Credit Risk Fund
Growth
Launch Date 8 Jun 05
NAV (22 Jun 22) ₹27.5958 ↑ 0.01   (0.02 %)
Net Assets (Cr) ₹1,060 on 31 May 22
Category Debt - Credit Risk
AMC Nippon Life Asset Management Ltd.
Rating
Risk Moderate
Expense Ratio 1.82
Sharpe Ratio 1.02
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 8.08%
Effective Maturity 2 Years 2 Months 5 Days
Modified Duration 1 Year 9 Months 29 Days

Growth of 10,000 investment over the years.

DateValue
31 May 17₹10,000
31 May 18₹10,533
31 May 19₹11,065
31 May 20₹9,893
31 May 21₹10,875
31 May 22₹12,021

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 22 Jun 22

DurationReturns
1 Month 0.2%
3 Month -0.6%
6 Month 0.7%
1 Year 10.1%
3 Year 2.8%
5 Year 3.6%
10 Year
15 Year
Since launch 6.1%
Historical performance (Yearly) on absolute basis
YearReturns
2021 13.5%
2020 -5.9%
2019 1.9%
2018 6.1%
2017 7%
2016 10%
2015 8.8%
2014 11%
2013 8%
2012 9.6%
Fund Manager information for Nippon India Credit Risk Fund
NameSinceTenure
Kinjal Desai25 May 184.02 Yr.
Sushil Budhia1 Feb 202.33 Yr.

Data below for Nippon India Credit Risk Fund as on 31 May 22

Asset Allocation
Asset ClassValue
Cash13.73%
Debt86.27%
Debt Sector Allocation
SectorValue
Corporate58.63%
Government23.43%
Cash Equivalent13.73%
Securitized4.22%
Credit Quality
RatingValue
A21.98%
AA31.43%
AAA46.58%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
5.22% Govt Stock 2025
Sovereign Bonds | -
6%₹67 Cr7,000,000
JSW Steel Limited
Debentures | -
5%₹56 Cr550
8.2% Govt Stock 2025
Sovereign Bonds | -
5%₹52 Cr5,000,000
Tata Realty And Infrastructure Limited
Debentures | -
5%₹49 Cr500
Piramal Capital & Housing Finance Limited
Debentures | -
5%₹49 Cr594,997
7.35% Govt Stock 2024
Sovereign Bonds | -
4%₹46 Cr4,500,000
Greenlam Industries Limited
Debentures | -
4%₹44 Cr450
L&T Metro Rail (Hyderabad) Limited
Debentures | -
4%₹42 Cr400
Grasim Industries Limited
Debentures | -
3%₹35 Cr350
Nirma Limited
Debentures | -
3%₹35 Cr350

2. 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 8.3% since its launch.  Ranked 26 in Credit Risk category.  Return for 2021 was 6.2% , 2020 was 9.8% and 2019 was 9.5% .

Below is the key information for ICICI Prudential Regular Savings Fund

ICICI Prudential Regular Savings Fund
Growth
Launch Date 3 Dec 10
NAV (22 Jun 22) ₹25.0873 ↓ -0.04   (-0.17 %)
Net Assets (Cr) ₹8,022 on 31 May 22
Category Debt - Credit Risk
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 1.6
Sharpe Ratio 0.94
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 7.99%
Effective Maturity 2 Years 10 Months 2 Days
Modified Duration 1 Year 9 Months 7 Days

Growth of 10,000 investment over the years.

DateValue
31 May 17₹10,000
31 May 18₹10,606
31 May 19₹11,434
31 May 20₹12,447
31 May 21₹13,657
31 May 22₹14,298

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 22 Jun 22

DurationReturns
1 Month 0%
3 Month -0.1%
6 Month 1.2%
1 Year 4%
3 Year 7.5%
5 Year 7.2%
10 Year
15 Year
Since launch 8.3%
Historical performance (Yearly) on absolute basis
YearReturns
2021 6.2%
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%
Fund Manager information for ICICI Prudential Regular Savings Fund
NameSinceTenure
Manish Banthia7 Nov 165.57 Yr.
Akhil Kakkar3 Jun 175 Yr.

Data below for ICICI Prudential Regular Savings Fund as on 31 May 22

Asset Allocation
Asset ClassValue
Cash18.49%
Equity2.61%
Debt78.9%
Debt Sector Allocation
SectorValue
Corporate71.13%
Cash Equivalent18.49%
Government7.45%
Securitized0.33%
Credit Quality
RatingValue
A8.25%
AA71.65%
AAA19.19%
BB0.91%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
6.54% Govt Stock 2032
Sovereign Bonds | -
7%₹526 Cr55,523,750
↑ 5,821,700
Prestige Estates Projects Limited
Debentures | -
3%₹252 Cr2,500
Nayara Energy Limited
Debentures | -
3%₹243 Cr2,500
Aditya Birla Fashion and Retail Limited
Debentures | -
3%₹218 Cr1,750
Ongc Petro Additions Limited
Debentures | -
2%₹195 Cr2,000
JM Financial Credit Solutions Limited
Debentures | -
2%₹174 Cr1,750
The Great Eastern Shipping Company Limited
Debentures | -
2%₹173 Cr1,743
Dlf Limited
Debentures | -
2%₹164 Cr1,650
Torrent Power Limited
Debentures | -
2%₹150 Cr1,500
Rbl Bank Limited
Debentures | -
2%₹150 Cr1,500

3. 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 8.3% since its launch.  Ranked 9 in Credit Risk category.  Return for 2021 was 7% , 2020 was 10.9% and 2019 was 8.6% .

Below is the key information for HDFC Credit Risk Debt Fund

HDFC Credit Risk Debt Fund
Growth
Launch Date 25 Mar 14
NAV (22 Jun 22) ₹19.2887 ↑ 0.01   (0.07 %)
Net Assets (Cr) ₹8,640 on 31 May 22
Category Debt - Credit Risk
AMC HDFC Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 1.55
Sharpe Ratio 0.1
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 300
Exit Load 0-12 Months (1%),12-18 Months (0.5%),18 Months and above(NIL)
Yield to Maturity 7.94%
Effective Maturity 2 Years 8 Months 19 Days
Modified Duration 2 Years 1 Month 10 Days

Growth of 10,000 investment over the years.

DateValue
31 May 17₹10,000
31 May 18₹10,435
31 May 19₹11,259
31 May 20₹12,050
31 May 21₹13,539
31 May 22₹14,054

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 ₹200,132.
Net Profit of ₹20,132
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 22 Jun 22

DurationReturns
1 Month 0.2%
3 Month -0.7%
6 Month 0.3%
1 Year 3.4%
3 Year 7.5%
5 Year 6.9%
10 Year
15 Year
Since launch 8.3%
Historical performance (Yearly) on absolute basis
YearReturns
2021 7%
2020 10.9%
2019 8.6%
2018 5.4%
2017 6.6%
2016 11%
2015 9%
2014
2013
2012
Fund Manager information for HDFC Credit Risk Debt Fund
NameSinceTenure
Shobhit Mehrotra25 Mar 148.19 Yr.
Sankalp Baid22 Jan 211.35 Yr.

Data below for HDFC Credit Risk Debt Fund as on 31 May 22

Asset Allocation
Asset ClassValue
Cash16.19%
Equity1.68%
Debt82.13%
Debt Sector Allocation
SectorValue
Corporate69.38%
Cash Equivalent16.19%
Government12.74%
Credit Quality
RatingValue
A3.15%
AA54.08%
AAA42.76%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Bharti Hexacom Limited
Debentures | -
4%₹354 Cr3,600
Indinfravit Trust
Unlisted bonds | -
4%₹346 Cr3,500
Pipeline Infrastructure Limited
Debentures | -
4%₹331 Cr3,200
Power Finance Corporation Ltd.
Debentures | -
3%₹297 Cr2,790
Dlf Cyber City Developers Ltd
Debentures | -
3%₹266 Cr2,750
Coastal Gujarat Power Limited
Debentures | -
3%₹220 Cr2,030
Green Infra Wind Energy Limited
Debentures | -
2%₹210 Cr2,350
TATA Motors Limited
Debentures | -
2%₹204 Cr2,000
Hinduja Leyland Finance Limited
Debentures | -
2%₹196 Cr2,000
TATA Motors Limited
Debentures | -
2%₹194 Cr1,900

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% since its launch.  Ranked 4 in Credit Risk category.  Return for 2021 was 6% , 2020 was 8.2% and 2019 was 4.4% .

Below is the key information for Axis Credit Risk Fund

Axis Credit Risk Fund
Growth
Launch Date 15 Jul 14
NAV (22 Jun 22) ₹17.1383 ↑ 0.01   (0.06 %)
Net Assets (Cr) ₹690 on 31 May 22
Category Debt - Credit Risk
AMC Axis Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 1.66
Sharpe Ratio -0.07
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 7.73%
Effective Maturity 1 Year 10 Months 20 Days
Modified Duration 1 Year 5 Months 12 Days

Growth of 10,000 investment over the years.

DateValue
31 May 17₹10,000
31 May 18₹10,502
31 May 19₹11,321
31 May 20₹11,704
31 May 21₹12,737
31 May 22₹13,191

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 ₹197,169.
Net Profit of ₹17,169
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 22 Jun 22

DurationReturns
1 Month 0.3%
3 Month -0.2%
6 Month 0.8%
1 Year 3.5%
3 Year 6.4%
5 Year 5.5%
10 Year
15 Year
Since launch 7%
Historical performance (Yearly) on absolute basis
YearReturns
2021 6%
2020 8.2%
2019 4.4%
2018 5.9%
2017 6.4%
2016 9.8%
2015 8.7%
2014
2013
2012
Fund Manager information for Axis Credit Risk Fund
NameSinceTenure
Devang Shah15 Jul 147.88 Yr.
Akhil Thakker9 Nov 210.56 Yr.

Data below for Axis Credit Risk Fund as on 31 May 22

Asset Allocation
Asset ClassValue
Cash14.2%
Debt85.8%
Debt Sector Allocation
SectorValue
Corporate71.27%
Cash Equivalent14.2%
Government12.49%
Securitized2.03%
Credit Quality
RatingValue
A9.03%
AA58.31%
AAA32.66%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Telesonic Networks Limited
Debentures | -
5%₹35 Cr350
Aditya Birla Fashion and Retail Limited
Debentures | -
4%₹31 Cr250
Bahadur Chand Investments Private Limited
Debentures | -
4%₹30 Cr300
Nirma Limited
Debentures | -
4%₹25 Cr250
Flometallic India Private Limited
Debentures | -
3%₹24 Cr250
5.74% Govt Stock 2026
Sovereign Bonds | -
3%₹24 Cr2,500,000
↓ -500,000
Birla Corporation Limited
Debentures | -
3%₹23 Cr230
Hinduja Leyland Finance Limited
Debentures | -
3%₹20 Cr200
Sepset Constructions Limited
Debentures | -
3%₹20 Cr210
Sundew Properties Limited
Debentures | -
3%₹19 Cr200

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 6.9% since its launch.  Return for 2021 was 6.4% , 2020 was 9.4% and 2019 was 2.1% .

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 (22 Jun 22) ₹16.1994 ↑ 0.01   (0.03 %)
Net Assets (Cr) ₹1,214 on 15 Jun 22
Category Debt - Credit Risk
AMC Birla Sun Life Asset Management Co Ltd
Rating Not Rated
Risk Moderate
Expense Ratio 1.81
Sharpe Ratio 0.26
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 7.52%
Effective Maturity 2 Years 6 Months 29 Days
Modified Duration 1 Year 7 Months 17 Days

Growth of 10,000 investment over the years.

DateValue
31 May 17₹10,000
31 May 18₹10,592
31 May 19₹11,237
31 May 20₹11,394
31 May 21₹12,742
31 May 22₹13,240

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 ₹197,169.
Net Profit of ₹17,169
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 22 Jun 22

DurationReturns
1 Month 0.3%
3 Month 0.3%
6 Month 1.2%
1 Year 3.8%
3 Year 5.5%
5 Year 5.6%
10 Year
15 Year
Since launch 6.9%
Historical performance (Yearly) on absolute basis
YearReturns
2021 6.4%
2020 9.4%
2019 2.1%
2018 6.6%
2017 8.1%
2016 10.3%
2015
2014
2013
2012
Fund Manager information for Aditya Birla Sun Life Credit Risk Fund
NameSinceTenure
Sunaina Cunha17 Apr 157.13 Yr.
Mohit Sharma6 Aug 201.82 Yr.

Data below for Aditya Birla Sun Life Credit Risk Fund as on 15 Jun 22

Asset Allocation
Asset ClassValue
Cash20.16%
Equity0.39%
Debt79.45%
Debt Sector Allocation
SectorValue
Corporate72.07%
Cash Equivalent20.16%
Government7.39%
Credit Quality
RatingValue
A6.88%
AA64.51%
AAA27.04%
Below B1.57%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Shriram City Union Finance Limited
Debentures | -
8%₹101 Cr1,000
Indusind Bank Limited
Debentures | -
5%₹63 Cr610
Bharti Hexacom Limited
Debentures | -
3%₹42 Cr430
Tata Housing Development Company Limited
Debentures | -
3%₹42 Cr350
Telesonic Networks Limited
Debentures | -
3%₹41 Cr420
Steel Authority Of India Limited
Debentures | -
3%₹41 Cr400
Tata Realty And Infrastructure Limited
Debentures | -
3%₹41 Cr420
JM Financial Credit Solutions Limited
Debentures | -
3%₹37 Cr370
Bharti Hexacom Limited
Debentures | -
3%₹34 Cr350
The Tata Power Company Limited
Debentures | -
2%₹30 Cr300

6. 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.

SBI Credit Risk Fund is a Debt - Credit Risk fund was launched on 19 Jul 04. It is a fund with Moderate risk and has given a CAGR/Annualized return of 7.4% since its launch.  Ranked 3 in Credit Risk category.  Return for 2021 was 5% , 2020 was 9.8% and 2019 was 6.5% .

Below is the key information for SBI Credit Risk Fund

SBI Credit Risk Fund
Growth
Launch Date 19 Jul 04
NAV (22 Jun 22) ₹36.1133 ↑ 0.02   (0.04 %)
Net Assets (Cr) ₹3,015 on 15 Jun 22
Category Debt - Credit Risk
AMC SBI Funds Management Private Limited
Rating
Risk Moderate
Expense Ratio 1.55
Sharpe Ratio 0.09
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 7.37%
Effective Maturity 2 Years 8 Months 5 Days
Modified Duration 1 Year 9 Months 4 Days

Growth of 10,000 investment over the years.

DateValue
31 May 17₹10,000
31 May 18₹10,509
31 May 19₹11,258
31 May 20₹12,015
31 May 21₹13,095
31 May 22₹13,587

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 22 Jun 22

DurationReturns
1 Month 0.3%
3 Month 0%
6 Month 1.1%
1 Year 3.6%
3 Year 6.4%
5 Year 6.2%
10 Year
15 Year
Since launch 7.4%
Historical performance (Yearly) on absolute basis
YearReturns
2021 5%
2020 9.8%
2019 6.5%
2018 6.2%
2017 6.9%
2016 10.5%
2015 9.7%
2014 10.6%
2013 10.1%
2012 9.8%
Fund Manager information for SBI Credit Risk Fund
NameSinceTenure
Lokesh Mallya1 Feb 175.33 Yr.

Data below for SBI Credit Risk Fund as on 15 Jun 22

Asset Allocation
Asset ClassValue
Cash23.5%
Debt76.5%
Debt Sector Allocation
SectorValue
Corporate50.84%
Government25.67%
Cash Equivalent23.5%
Credit Quality
RatingValue
A10.72%
AA43.7%
AAA45.58%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
6.84% Govt Stock 2022
Sovereign Bonds | -
5%₹151 Cr15,000,000
TATA International Limited
Debentures | -
5%₹150 Cr1,500
Indinfravit Trust
Debentures | -
5%₹148 Cr1,500
Coastal Gujarat Power Limited
Debentures | -
3%₹102 Cr1,000
Aadhar Housing Finance Limited
Debentures | -
3%₹101 Cr1,000
182 Dtb 01092022
Sovereign Bonds | -
3%₹99 Cr10,000,000
182 Dtb 29092022
Sovereign Bonds | -
3%₹98 Cr10,000,000
Flometallic India Private Limited
Debentures | -
3%₹95 Cr950
Avanse Financial Services Limited
Debentures | -
3%₹94 Cr950
Nuvoco Vistas Corporation Limited
Debentures | -
3%₹91 Cr900

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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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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