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6 Best Debt Mutual Funds for Lump sum Investments 2022

Updated on October 2, 2022 , 39310 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
ICICI Prudential Regular Savings Fund Growth ₹25.6461
↑ 0.02
₹8,014 10,000 1.51.94.47.46.28.08%1Y 5M 19D2Y 5M 5D
HDFC Credit Risk Debt Fund Growth ₹19.6678
↑ 0.02
₹8,700 5,000 1.613.17.478.07%2Y 29D2Y 8M 16D
Nippon India Credit Risk Fund Growth ₹28.097
↑ 0.01
₹1,030 500 1.41.13.53.213.57.95%1Y 8M 5D2Y 4D
Aditya Birla Sun Life Credit Risk Fund Growth ₹16.8941
↑ 0.01
₹1,225 1,000 44.26.46.46.47.76%1Y 9M 7D2Y 9M 4D
Axis Credit Risk Fund Growth ₹17.4424
↑ 0.01
₹666 5,000 1.41.33.36.367.72%1Y 5M 26D1Y 11M 19D
SBI Credit Risk Fund Growth ₹36.7531
↑ 0.02
₹2,952 5,000 1.51.63.56.357.57%1Y 7M 13D2Y 7M 24D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 4 Oct 22
*List of Debt Mutual Funds having net assets > 500 Crore and Fund have assets under manegement for atleast 3 years.

1. 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 (04 Oct 22) ₹25.6461 ↑ 0.02   (0.07 %)
Net Assets (Cr) ₹8,014 on 31 Aug 22
Category Debt - Credit Risk
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 1.53
Sharpe Ratio 0.65
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 8.08%
Effective Maturity 2 Years 5 Months 5 Days
Modified Duration 1 Year 5 Months 19 Days

Growth of 10,000 investment over the years.

DateValue
30 Sep 17₹10,000
30 Sep 18₹10,506
30 Sep 19₹11,455
30 Sep 20₹12,586
30 Sep 21₹13,574
30 Sep 22₹14,179

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 4 Oct 22

DurationReturns
1 Month 0.1%
3 Month 1.5%
6 Month 1.9%
1 Year 4.4%
3 Year 7.4%
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 165.82 Yr.
Akhil Kakkar3 Jun 175.25 Yr.

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

Asset Allocation
Asset ClassValue
Cash17.81%
Equity3.58%
Debt78.61%
Debt Sector Allocation
SectorValue
Corporate71.27%
Cash Equivalent14.76%
Government10.07%
Securitized0.34%
Credit Quality
RatingValue
A11.05%
AA65.52%
AAA22.87%
B0.56%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
6.54% Govt Stock 2032
Sovereign Bonds | -
3%₹253 Cr26,523,750
↓ -30,000,000
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%₹222 Cr1,750
Embassy Office Parks Reit
-, Since 31 Jul 20 | -
3%₹207 Cr5,712,698
National Bank For Agriculture And Rural Development
Debentures | -
2%₹198 Cr2,000
↑ 2,000
Ongc Petro Additions Limited
Debentures | -
2%₹197 Cr2,000
182 DTB 16032023
Sovereign Bonds | -
2%₹194 Cr20,000,000
↑ 20,000,000
JM Financial Credit Solutions Limited
Debentures | -
2%₹174 Cr1,750
The Great Eastern Shipping Company Limited
Debentures | -
2%₹173 Cr1,743

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 8.2% 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 (04 Oct 22) ₹19.6678 ↑ 0.02   (0.10 %)
Net Assets (Cr) ₹8,700 on 31 Aug 22
Category Debt - Credit Risk
AMC HDFC Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 1.55
Sharpe Ratio -0.29
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 8.07%
Effective Maturity 2 Years 8 Months 16 Days
Modified Duration 2 Years 29 Days

Growth of 10,000 investment over the years.

DateValue
30 Sep 17₹10,000
30 Sep 18₹10,341
30 Sep 19₹11,262
30 Sep 20₹12,296
30 Sep 21₹13,538
30 Sep 22₹13,951

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 4 Oct 22

DurationReturns
1 Month 0%
3 Month 1.6%
6 Month 1%
1 Year 3.1%
3 Year 7.4%
5 Year 6.9%
10 Year
15 Year
Since launch 8.2%
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 148.44 Yr.
Priya Ranjan1 May 220.33 Yr.

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

Asset Allocation
Asset ClassValue
Cash12.38%
Equity1.68%
Debt85.94%
Debt Sector Allocation
SectorValue
Corporate74.44%
Cash Equivalent12.38%
Government11.5%
Credit Quality
RatingValue
A4.53%
AA54.84%
AAA40.64%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Bharti Hexacom Limited
Debentures | -
4%₹354 Cr3,600
Indinfravit TRust
Debentures | -
4%₹343 Cr3,500
Pipeline Infrastructure Limited
Debentures | -
4%₹327 Cr3,200
Power Finance Corporation Ltd.
Debentures | -
3%₹301 Cr2,790
Dlf Cyber City Developers Ltd
Debentures | -
3%₹267 Cr2,750
The Tata Power Company Limited
Debentures | -
3%₹222 Cr2,030
Green Infra Wind Energy Limited
Debentures | -
2%₹206 Cr2,350
TATA Motors Limited
Debentures | -
2%₹205 Cr2,000
7.1% Govt Stock 2029
Sovereign Bonds | -
2%₹199 Cr20,000,000
TVS Credit Services Limited
Debentures | -
2%₹198 Cr200

3. 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 (04 Oct 22) ₹28.097 ↑ 0.01   (0.02 %)
Net Assets (Cr) ₹1,030 on 31 Aug 22
Category Debt - Credit Risk
AMC Nippon Life Asset Management Ltd.
Rating
Risk Moderate
Expense Ratio 1.82
Sharpe Ratio -0.09
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 7.95%
Effective Maturity 2 Years 4 Days
Modified Duration 1 Year 8 Months 5 Days

Growth of 10,000 investment over the years.

DateValue
30 Sep 17₹10,000
30 Sep 18₹10,479
30 Sep 19₹10,871
30 Sep 20₹9,987
30 Sep 21₹11,524
30 Sep 22₹11,934

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 4 Oct 22

DurationReturns
1 Month 0.2%
3 Month 1.4%
6 Month 1.1%
1 Year 3.5%
3 Year 3.2%
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 184.27 Yr.
Sushil Budhia1 Feb 202.58 Yr.

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

Asset Allocation
Asset ClassValue
Cash12.58%
Debt87.42%
Debt Sector Allocation
SectorValue
Corporate64.69%
Government18.74%
Cash Equivalent12.58%
Securitized3.99%
Credit Quality
RatingValue
A19.82%
AA37.44%
AAA42.74%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
JSW Steel Limited
Debentures | -
5%₹55 Cr550
Tata Realty And Infrastructure Limited
Debentures | -
5%₹49 Cr500
Piramal Capital & Housing Finance Limited
Debentures | -
5%₹48 Cr594,997
5.22% Govt Stock 2025
Sovereign Bonds | -
5%₹48 Cr5,000,000
7.35% Govt Stock 2024
Sovereign Bonds | -
4%₹45 Cr4,500,000
Greenlam Industries Limited
Debentures | -
4%₹44 Cr450
L&T Metro Rail (Hyderabad) Limited
Debentures | -
4%₹42 Cr400
Nirma Limited
Debentures | -
4%₹40 Cr400
Grasim Industries Limited
Debentures | -
3%₹35 Cr350
Summit Digitel Infrastructure Limited
Debentures | -
3%₹34 Cr350

4. 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 7.3% 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 (04 Oct 22) ₹16.8941 ↑ 0.01   (0.06 %)
Net Assets (Cr) ₹1,225 on 31 Aug 22
Category Debt - Credit Risk
AMC Birla Sun Life Asset Management Co Ltd
Rating Not Rated
Risk Moderate
Expense Ratio 1.81
Sharpe Ratio 0.83
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 7.76%
Effective Maturity 2 Years 9 Months 4 Days
Modified Duration 1 Year 9 Months 7 Days

Growth of 10,000 investment over the years.

DateValue
30 Sep 17₹10,000
30 Sep 18₹10,476
30 Sep 19₹11,287
30 Sep 20₹11,646
30 Sep 21₹12,627
30 Sep 22₹13,431

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 ₹200,132.
Net Profit of ₹20,132
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 4 Oct 22

DurationReturns
1 Month 0.2%
3 Month 4%
6 Month 4.2%
1 Year 6.4%
3 Year 6.4%
5 Year 6.1%
10 Year
15 Year
Since launch 7.3%
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 157.38 Yr.
Mohit Sharma6 Aug 202.07 Yr.

Data below for Aditya Birla Sun Life Credit Risk Fund as on 31 Aug 22

Asset Allocation
Asset ClassValue
Cash3.73%
Equity0.46%
Debt95.82%
Debt Sector Allocation
SectorValue
Corporate73.64%
Government22.17%
Cash Equivalent3.73%
Credit Quality
RatingValue
A6.34%
AA62.96%
AAA30.7%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Shriram City Union Finance Limited
Debentures | -
8%₹102 Cr1,000
The Tata Power Company Limited
Debentures | -
6%₹76 Cr750
Indusind Bank Limited
Debentures | -
5%₹59 Cr580
Tata Housing Development Company Limited
Debentures | -
3%₹43 Cr350
Bharti Hexacom Limited
Debentures | -
3%₹42 Cr430
Telesonic Networks Limited
Debentures | -
3%₹42 Cr420
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
Steel Authority Of India Limited
Debentures | -
3%₹31 Cr300

5. 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 (04 Oct 22) ₹17.4424 ↑ 0.01   (0.08 %)
Net Assets (Cr) ₹666 on 31 Aug 22
Category Debt - Credit Risk
AMC Axis Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 1.66
Sharpe Ratio -0.34
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 7.72%
Effective Maturity 1 Year 11 Months 19 Days
Modified Duration 1 Year 5 Months 26 Days

Growth of 10,000 investment over the years.

DateValue
30 Sep 17₹10,000
30 Sep 18₹10,414
30 Sep 19₹10,880
30 Sep 20₹11,767
30 Sep 21₹12,648
30 Sep 22₹13,071

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 4 Oct 22

DurationReturns
1 Month 0.1%
3 Month 1.4%
6 Month 1.3%
1 Year 3.3%
3 Year 6.3%
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 148.14 Yr.
Akhil Thakker9 Nov 210.81 Yr.

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

Asset Allocation
Asset ClassValue
Cash16.15%
Debt83.85%
Debt Sector Allocation
SectorValue
Corporate64.73%
Government16.9%
Cash Equivalent16.15%
Securitized2.22%
Credit Quality
RatingValue
A9.88%
AA49.3%
AAA40.82%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
5.15% Govt Stock 2025
Sovereign Bonds | -
7%₹47 Cr5,000,000
Aditya Birla Fashion And Retail Limited
Debentures | -
5%₹32 Cr250
7.38% Govt Stock 2027
Sovereign Bonds | -
5%₹30 Cr3,000,000
↑ 2,000,000
Bahadur Chand Investments Private Limited
Debentures | -
5%₹30 Cr300
Godrej Properties Limited
Debentures | -
4%₹25 Cr250
Godrej Housing Finance Limited
Debentures | -
4%₹25 Cr250
↑ 250
Flometallic India Private Limited
Debentures | -
4%₹25 Cr250
Birla Corporation Limited
Debentures | -
4%₹23 Cr230
Hinduja Leyland Finance Limited
Debentures | -
3%₹20 Cr200
Sundew Properties Limited
Debentures | -
3%₹19 Cr200

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 (04 Oct 22) ₹36.7531 ↑ 0.02   (0.04 %)
Net Assets (Cr) ₹2,952 on 31 Aug 22
Category Debt - Credit Risk
AMC SBI Funds Management Private Limited
Rating
Risk Moderate
Expense Ratio 1.55
Sharpe Ratio -0.47
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 7.57%
Effective Maturity 2 Years 7 Months 24 Days
Modified Duration 1 Year 7 Months 13 Days

Growth of 10,000 investment over the years.

DateValue
30 Sep 17₹10,000
30 Sep 18₹10,440
30 Sep 19₹11,203
30 Sep 20₹12,144
30 Sep 21₹13,021
30 Sep 22₹13,467

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 4 Oct 22

DurationReturns
1 Month 0.3%
3 Month 1.5%
6 Month 1.6%
1 Year 3.5%
3 Year 6.3%
5 Year 6.1%
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 175.58 Yr.
Mohit Jain30 Nov 174.75 Yr.

Data below for SBI Credit Risk Fund as on 31 Aug 22

Asset Allocation
Asset ClassValue
Cash23.19%
Debt76.81%
Debt Sector Allocation
SectorValue
Corporate61.8%
Cash Equivalent19.57%
Government18.63%
Credit Quality
RatingValue
A10.95%
AA50.13%
AAA38.92%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
6.84% Govt Stock 2022
Sovereign Bonds | -
5%₹150 Cr15,000,000
TATA International Limited
Debentures | -
5%₹150 Cr1,500
Indinfravit TRust
Debentures | -
5%₹147 Cr1,500
The Tata Power Company Limited
Debentures | -
3%₹101 Cr1,000
Aadhar Housing Finance Limited
Debentures | -
3%₹101 Cr1,000
Flometallic India Private Limited
Debentures | -
3%₹95 Cr950
Avanse Financial Services Limited
Debentures | -
3%₹93 Cr950
Jindal Stainless Limited
Debentures | -
3%₹87 Cr900
5.63% Govt Stock 2026
Sovereign Bonds | -
3%₹86 Cr9,000,000
TVS Credit Services Limited
Debentures | -
3%₹80 Cr800
↑ 800

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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