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6 Best Debt Mutual Funds for Lump sum Investments 2025

Updated on February 9, 2025 , 46752 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 ₹33.6465
↑ 0.01
₹981 500 1.94.18.46.88.38.93%2Y 2M 1D2Y 7M 13D
ICICI Prudential Regular Savings Fund Growth ₹30.5732
↓ -0.01
₹6,287 10,000 1.43.786.98.58.52%1Y 10M 2D2Y 4M 10D
HDFC Low Duration Fund Growth ₹55.9459
↑ 0.01
₹18,122 5,000 1.63.57.56.37.47.88%10M 28D1Y 11M 16D
Aditya Birla Sun Life Savings Fund Growth ₹531.58
↑ 0.14
₹16,349 1,000 1.83.97.86.77.97.81%5M 23D7M 20D
SBI Magnum Low Duration Fund Growth ₹3,386.7
↑ 0.64
₹11,632 5,000 1.63.57.36.17.37.75%10M 28D1Y 8M 19D
Nippon India Ultra Short Duration Fund Growth ₹3,914.89
↑ 0.69
₹7,695 100 1.73.57.36.37.27.72%5M 7D6M 9D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 11 Feb 25
*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 6.4% since its launch.  Ranked 21 in Credit Risk category.  Return for 2024 was 8.3% , 2023 was 7.9% and 2022 was 3.9% .

Below is the key information for Nippon India Credit Risk Fund

Nippon India Credit Risk Fund
Growth
Launch Date 8 Jun 05
NAV (11 Feb 25) ₹33.6465 ↑ 0.01   (0.02 %)
Net Assets (Cr) ₹981 on 31 Dec 24
Category Debt - Credit Risk
AMC Nippon Life Asset Management Ltd.
Rating
Risk Moderate
Expense Ratio 1.63
Sharpe Ratio 3.46
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 8.93%
Effective Maturity 2 Years 7 Months 13 Days
Modified Duration 2 Years 2 Months 1 Day

Growth of 10,000 investment over the years.

DateValue
31 Jan 20₹10,000
31 Jan 21₹9,430
31 Jan 22₹10,689
31 Jan 23₹11,119
31 Jan 24₹12,017
31 Jan 25₹13,017

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 ₹197,169.
Net Profit of ₹17,169
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 11 Feb 25

DurationReturns
1 Month 0.7%
3 Month 1.9%
6 Month 4.1%
1 Year 8.4%
3 Year 6.8%
5 Year 5.3%
10 Year
15 Year
Since launch 6.4%
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 186.69 Yr.
Sushil Budhia1 Feb 205 Yr.

Data below for Nippon India Credit Risk Fund as on 31 Dec 24

Asset Allocation
Asset ClassValue
Cash8.28%
Debt91.44%
Other0.28%
Debt Sector Allocation
SectorValue
Corporate74.79%
Government16.64%
Cash Equivalent8.28%
Credit Quality
RatingValue
A14.77%
AA55.39%
AAA29.84%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.32% Govt Stock 2030
Sovereign Bonds | -
7%₹72 Cr7,000,000
Summit Digitel Infrastructure Limited
Debentures | -
6%₹61 Cr620
7.1% Govt Stock 2029
Sovereign Bonds | -
5%₹51 Cr5,000,000
Renew Solar Energy (Jharkhand Five) Private Limited
Debentures | -
5%₹49 Cr5,000
Century Textiles And Industries Limited
Debentures | -
5%₹45 Cr4,500
↑ 4,500
Truhome Finance Ltd. 9.25%
Debentures | -
4%₹40 Cr4,000
Prestige Projects Private Limited 11.75%
Debentures | -
4%₹40 Cr4,000
Sandur Manganese And Iron Ores Limited (The) 11%
Debentures | -
4%₹39 Cr4,000
Piramal Capital & Housing Finance Limited
Debentures | -
4%₹37 Cr485,063
Delhi International Airport Limited
Debentures | -
4%₹35 Cr3,500

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 8.2% since its launch.  Ranked 26 in Credit Risk category.  Return for 2024 was 8.5% , 2023 was 7.2% and 2022 was 5.1% .

Below is the key information for ICICI Prudential Regular Savings Fund

ICICI Prudential Regular Savings Fund
Growth
Launch Date 3 Dec 10
NAV (11 Feb 25) ₹30.5732 ↓ -0.01   (-0.02 %)
Net Assets (Cr) ₹6,287 on 31 Dec 24
Category Debt - Credit Risk
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 1.54
Sharpe Ratio 1.4
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 8.52%
Effective Maturity 2 Years 4 Months 10 Days
Modified Duration 1 Year 10 Months 2 Days

Growth of 10,000 investment over the years.

DateValue
31 Jan 20₹10,000
31 Jan 21₹10,908
31 Jan 22₹11,603
31 Jan 23₹12,177
31 Jan 24₹13,145
31 Jan 25₹14,214

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 11 Feb 25

DurationReturns
1 Month 0.5%
3 Month 1.4%
6 Month 3.7%
1 Year 8%
3 Year 6.9%
5 Year 7.1%
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 168.24 Yr.
Akhil Kakkar22 Jan 241.03 Yr.

Data below for ICICI Prudential Regular Savings Fund as on 31 Dec 24

Asset Allocation
Asset ClassValue
Cash17.38%
Equity1.68%
Debt80.6%
Other0.34%
Debt Sector Allocation
SectorValue
Corporate69.25%
Government11.42%
Cash Equivalent10.89%
Securitized6.42%
Credit Quality
RatingValue
A13.35%
AA55.97%
AAA30.68%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.1% Govt Stock 2034
Sovereign Bonds | -
6%₹368 Cr36,170,730
Embassy Office Parks Reit
Unlisted bonds | -
4%₹260 Cr6,954,163
Varroc Engineering Limited
Debentures | -
4%₹233 Cr25,000
Millennia Realtors Private Limited
Debentures | -
3%₹210 Cr2,100
Aadhar Housing Finance Ltd
Debentures | -
3%₹175 Cr17,500
7.17% Govt Stock 2030
Sovereign Bonds | -
2%₹152 Cr15,000,000
Nirma Limited
Debentures | -
2%₹151 Cr15,000
Dlf Home Developers Limited
Debentures | -
2%₹150 Cr15,000
Yes Bank Limited
Debentures | -
2%₹105 Cr1,050
JM Financial Home Loans Limited
Debentures | -
2%₹100 Cr10,000

3. 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.

HDFC Low Duration Fund is a Debt - Low Duration fund was launched on 18 Nov 99. It is a fund with Moderately Low risk and has given a CAGR/Annualized return of 7.1% since its launch.  Return for 2024 was 7.4% , 2023 was 7% and 2022 was 4.1% .

Below is the key information for HDFC Low Duration Fund

HDFC Low Duration Fund
Growth
Launch Date 18 Nov 99
NAV (11 Feb 25) ₹55.9459 ↑ 0.01   (0.02 %)
Net Assets (Cr) ₹18,122 on 31 Dec 24
Category Debt - Low Duration
AMC HDFC Asset Management Company Limited
Rating
Risk Moderately Low
Expense Ratio 1.03
Sharpe Ratio 1.24
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 300
Exit Load NIL
Yield to Maturity 7.88%
Effective Maturity 1 Year 11 Months 16 Days
Modified Duration 10 Months 28 Days

Growth of 10,000 investment over the years.

DateValue
31 Jan 20₹10,000
31 Jan 21₹10,778
31 Jan 22₹11,182
31 Jan 23₹11,653
31 Jan 24₹12,492
31 Jan 25₹13,412

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 ₹200,132.
Net Profit of ₹20,132
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 11 Feb 25

DurationReturns
1 Month 0.6%
3 Month 1.6%
6 Month 3.5%
1 Year 7.5%
3 Year 6.3%
5 Year 6%
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 159.27 Yr.
Praveen Jain6 Oct 222.32 Yr.
Dhruv Muchhal22 Jun 231.61 Yr.

Data below for HDFC Low Duration Fund as on 31 Dec 24

Asset Allocation
Asset ClassValue
Cash15.29%
Debt84.44%
Other0.28%
Debt Sector Allocation
SectorValue
Corporate66.51%
Government23.22%
Cash Equivalent9.58%
Credit Quality
RatingValue
AA8.62%
AAA91.38%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.93% Govt Stock 2033
Sovereign Bonds | -
7%₹1,286 Cr125,000,000
7.59% Govt Stock 2031
Sovereign Bonds | -
3%₹520 Cr51,250,000
Titan Company Limited
Debentures | -
3%₹500 Cr50,000
7.3% Govt Stock 2028
Sovereign Bonds | -
3%₹497 Cr49,500,000
Hdb Financial Services Limited
Debentures | -
2%₹450 Cr45,000
Aditya Birla Renewables Limited
Debentures | -
2%₹400 Cr40,000
National Bank For Agriculture And Rural Development
Debentures | -
2%₹374 Cr3,750
Power Finance Corporation Ltd.
Debentures | -
2%₹324 Cr32,500
National Bank For Agriculture And Rural Development
Debentures | -
2%₹299 Cr3,000
Power Finance Corporation Limited
Debentures | -
2%₹274 Cr2,750

4. 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 2024 was 7.9% , 2023 was 7.2% and 2022 was 4.8% .

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 (11 Feb 25) ₹531.58 ↑ 0.14   (0.03 %)
Net Assets (Cr) ₹16,349 on 31 Dec 24
Category Debt - Ultrashort Bond
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk Moderately Low
Expense Ratio 0.54
Sharpe Ratio 4.24
Information Ratio 0
Alpha Ratio 0
Min Investment 1,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 7.81%
Effective Maturity 7 Months 20 Days
Modified Duration 5 Months 23 Days

Growth of 10,000 investment over the years.

DateValue
31 Jan 20₹10,000
31 Jan 21₹10,653
31 Jan 22₹11,095
31 Jan 23₹11,642
31 Jan 24₹12,487
31 Jan 25₹13,460

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 11 Feb 25

DurationReturns
1 Month 0.6%
3 Month 1.8%
6 Month 3.9%
1 Year 7.8%
3 Year 6.7%
5 Year 6.1%
10 Year
15 Year
Since launch 7.4%
Historical performance (Yearly) on absolute basis
YearReturns
2024 7.9%
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%
Fund Manager information for Aditya Birla Sun Life Savings Fund
NameSinceTenure
Sunaina Cunha20 Jun 1410.63 Yr.
Kaustubh Gupta15 Jul 1113.56 Yr.
Monika Gandhi22 Mar 213.87 Yr.

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

Asset Allocation
Asset ClassValue
Cash49.01%
Debt50.74%
Other0.26%
Debt Sector Allocation
SectorValue
Corporate54.57%
Cash Equivalent36.83%
Government8.35%
Credit Quality
RatingValue
AA31.44%
AAA68.56%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
National Housing Bank 7.83%
Debentures | -
5%₹820 Cr82,000
Shriram Finance Company Limited
Debentures | -
4%₹602 Cr60,000
Nirma Limited
Debentures | -
3%₹486 Cr48,500
364 DTB
Sovereign Bonds | -
3%₹466 Cr47,500,000
↑ 47,500,000
National Housing Bank
Debentures | -
2%₹400 Cr40,000
Tata Realty And Infrastructure Limited
Debentures | -
2%₹360 Cr36,000
7.3% Govt Stock 2028
Sovereign Bonds | -
2%₹316 Cr31,500,000
Bajaj Housing Finance Ltd. 8%
Debentures | -
2%₹300 Cr30,000
Avanse Financial Services Ltd 9.40%
Debentures | -
2%₹299 Cr30,000
ICICI Home Finance Company Limited
Debentures | -
2%₹270 Cr27,000

5. SBI Magnum Low Duration Fund

(Erstwhile SBI-Short Horizon Fund - Ultra Short Term)

To provide investors with an opportunity to generate regular income with high degree of liquidity through investments in a portfolio comprising predominantly of money market instruments with maturity/residual maturity up to one year and debt instruments which are rated not below investment grade by a credit rating agency.

SBI Magnum Low Duration Fund is a Debt - Low Duration fund was launched on 27 Jul 07. It is a fund with Moderately Low risk and has given a CAGR/Annualized return of since its launch.  Ranked 41 in Low Duration category.  Return for 2024 was 7.3% , 2023 was 6.7% and 2022 was 4% .

Below is the key information for SBI Magnum Low Duration Fund

SBI Magnum Low Duration Fund
Growth
Launch Date 27 Jul 07
NAV (11 Feb 25) ₹3,386.7 ↑ 0.64   (0.02 %)
Net Assets (Cr) ₹11,632 on 31 Dec 24
Category Debt - Low Duration
AMC SBI Funds Management Private Limited
Rating
Risk Moderately Low
Expense Ratio 0.95
Sharpe Ratio 1.32
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 7.75%
Effective Maturity 1 Year 8 Months 19 Days
Modified Duration 10 Months 28 Days

Growth of 10,000 investment over the years.

DateValue
31 Jan 20₹10,000
31 Jan 21₹10,626
31 Jan 22₹10,983
31 Jan 23₹11,447
31 Jan 24₹12,235
31 Jan 25₹13,117

SBI Magnum 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 SBI Magnum 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 11 Feb 25

DurationReturns
1 Month 0.6%
3 Month 1.6%
6 Month 3.5%
1 Year 7.3%
3 Year 6.1%
5 Year 5.5%
10 Year
15 Year
Since launch
Historical performance (Yearly) on absolute basis
YearReturns
2024 7.3%
2023 6.7%
2022 4%
2021 3.2%
2020 6.7%
2019 8.3%
2018 7.5%
2017 6.6%
2016 8.3%
2015 8.6%
Fund Manager information for SBI Magnum Low Duration Fund
NameSinceTenure
Rajeev Radhakrishnan9 Jun 0816.66 Yr.
Pradeep Kesavan1 Dec 231.17 Yr.

Data below for SBI Magnum Low Duration Fund as on 31 Dec 24

Asset Allocation
Asset ClassValue
Cash17.76%
Debt81.98%
Other0.26%
Debt Sector Allocation
SectorValue
Corporate61.94%
Government23.53%
Cash Equivalent13.86%
Securitized0.41%
Credit Quality
RatingValue
AA11.58%
AAA88.42%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.3% Govt Stock 2028
Sovereign Bonds | -
12%₹1,507 Cr150,000,000
TRent Limited
Debentures | -
4%₹486 Cr5,000
L&T Metro Rail (Hyderabad) Limited
Debentures | -
3%₹323 Cr3,250
Power Finance Corporation Limited
Debentures | -
3%₹322 Cr3,250
INDIA UNIVERSAL TRUST AL2
Unlisted bonds | -
3%₹311 Cr327
India Grid TRust
Debentures | -
2%₹300 Cr3,000
06.32 KA Sdl 2028
Sovereign Bonds | -
2%₹283 Cr28,994,800
Rec Limited
Debentures | -
2%₹274 Cr27,500
7.93% Govt Stock 2033
Sovereign Bonds | -
2%₹257 Cr25,000,000
National Bank For Agriculture And Rural Development
Debentures | -
2%₹254 Cr25,500

6. Nippon India Ultra Short Duration Fund

(Erstwhile Reliance Liquid Fund - Cash Plan)

The investment objective of the Scheme is to generate optimal returns consistent with moderate levels of risk and high liquidity. Accordingly, investments shall predominantly be made in Debt and Money Market Instruments.

Nippon India Ultra Short Duration Fund is a Debt - Ultrashort Bond fund was launched on 7 Dec 01. It is a fund with Low risk and has given a CAGR/Annualized return of 6.1% since its launch.  Ranked 62 in Ultrashort Bond category.  Return for 2024 was 7.2% , 2023 was 6.7% and 2022 was 4.6% .

Below is the key information for Nippon India Ultra Short Duration Fund

Nippon India Ultra Short Duration Fund
Growth
Launch Date 7 Dec 01
NAV (11 Feb 25) ₹3,914.89 ↑ 0.69   (0.02 %)
Net Assets (Cr) ₹7,695 on 31 Dec 24
Category Debt - Ultrashort Bond
AMC Nippon Life Asset Management Ltd.
Rating
Risk Low
Expense Ratio 1.14
Sharpe Ratio 1.22
Information Ratio 0
Alpha Ratio 0
Min Investment 100
Min SIP Investment 100
Exit Load NIL
Yield to Maturity 7.72%
Effective Maturity 6 Months 9 Days
Modified Duration 5 Months 7 Days

Growth of 10,000 investment over the years.

DateValue
31 Jan 20₹10,000
31 Jan 21₹10,438
31 Jan 22₹11,269
31 Jan 23₹11,799
31 Jan 24₹12,599
31 Jan 25₹13,507

Nippon India Ultra Short 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 ₹200,132.
Net Profit of ₹20,132
Invest Now

Returns for Nippon India Ultra Short 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 11 Feb 25

DurationReturns
1 Month 0.6%
3 Month 1.7%
6 Month 3.5%
1 Year 7.3%
3 Year 6.3%
5 Year 6.2%
10 Year
15 Year
Since launch 6.1%
Historical performance (Yearly) on absolute basis
YearReturns
2024 7.2%
2023 6.7%
2022 4.6%
2021 7.8%
2020 4.9%
2019 0.9%
2018 7.3%
2017 5.8%
2016 6.8%
2015 7.6%
Fund Manager information for Nippon India Ultra Short Duration Fund
NameSinceTenure
Vivek Sharma1 Oct 1311.35 Yr.
Kinjal Desai25 May 186.7 Yr.
Akshay Sharma1 Dec 222.17 Yr.

Data below for Nippon India Ultra Short Duration Fund as on 31 Dec 24

Asset Allocation
Asset ClassValue
Cash65.7%
Debt34.04%
Other0.26%
Debt Sector Allocation
SectorValue
Corporate47.14%
Cash Equivalent44.02%
Government8.57%
Credit Quality
RatingValue
AA14.99%
AAA85.01%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
National Bank For Agriculture And Rural Development
Debentures | -
4%₹309 Cr3,100
182 D Tbill Mat - 14/02/2025
Sovereign Bonds | -
4%₹289 Cr29,000,000
182 DTB 12062025
Sovereign Bonds | -
3%₹239 Cr24,500,000
PNb Housing Finance Limited
Debentures | -
3%₹225 Cr22,500
Small Industries Development Bank Of India
Debentures | -
3%₹199 Cr2,000
HDFC Credila Financial Services Ltd
Debentures | -
2%₹190 Cr19,000
Indinfravit Trust
Debentures | -
2%₹187 Cr19,500
Rec Limited
Debentures | -
2%₹182 Cr1,850
Piramal Capital & Housing Finance Ltd
Debentures | -
1%₹100 Cr10,000
Nuvama Wealth Finance Limited
Debentures | -
1%₹100 Cr10,000

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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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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