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6 Best Debt Mutual Funds for Lump sum Investments 2022

Updated on January 23, 2022 , 31134 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 ₹27.5505
↑ 0.02
₹1,110 500 1.43.213.42.813.56.89%1Y 9M 4D2Y 4M 2D
ICICI Prudential Regular Savings Fund Growth ₹24.894
↓ 0.00
₹8,416 10,000 1.32.76.38.46.26.88%1Y 11M 8D2Y 8M 23D
Axis Credit Risk Fund Growth ₹17.0666
↑ 0.00
₹754 5,000 12.55.96.166.59%1Y 6M 14D2Y 11D
Aditya Birla Sun Life Credit Risk Fund Growth ₹16.0664
↑ 0.00
₹1,403 1,000 12.46.35.96.46.5%1Y 10M 28D2Y 7M 10D
UTI Credit Risk Fund Growth ₹13.7589
↑ 0.01
₹554 5,000 0.818.721.7-5.921.56.28%1Y 6M 22D3Y
SBI Credit Risk Fund Growth ₹35.863
↑ 0.00
₹3,289 5,000 0.82.45.26.956.18%1Y 9M2Y 1M 24D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 25 Jan 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 6.3% 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 (25 Jan 22) ₹27.5505 ↑ 0.02   (0.06 %)
Net Assets (Cr) ₹1,110 on 31 Dec 21
Category Debt - Credit Risk
AMC Nippon Life Asset Management Ltd.
Rating
Risk Moderate
Expense Ratio 1.82
Sharpe Ratio 1.53
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 6.89%
Effective Maturity 2 Years 4 Months 2 Days
Modified Duration 1 Year 9 Months 4 Days

Growth of 10,000 investment over the years.

DateValue
31 Dec 16₹10,000
31 Dec 17₹10,703
31 Dec 18₹11,352
31 Dec 19₹11,572
31 Dec 20₹10,890
31 Dec 21₹12,361

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 ₹194,235.
Net Profit of ₹14,235
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 25 Jan 22

DurationReturns
1 Month 0.5%
3 Month 1.4%
6 Month 3.2%
1 Year 13.4%
3 Year 2.8%
5 Year 4.2%
10 Year
15 Year
Since launch 6.3%
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 183.61 Yr.
Sushil Budhia1 Feb 201.92 Yr.

Data below for Nippon India Credit Risk Fund as on 31 Dec 21

Asset Allocation
Asset ClassValue
Cash13.59%
Debt86.41%
Debt Sector Allocation
SectorValue
Corporate57.06%
Government24.33%
Cash Equivalent13.59%
Securitized5.02%
Credit Quality
RatingValue
A22.3%
AA25.9%
AAA51.8%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Renew Wind Energy (Rajasthan One) Private Limited
Debentures | -
5%₹54 Cr655
7.16% Govt Stock 2023
Sovereign Bonds | -
5%₹52 Cr5,000,000
8.15% Govt Stock 2022
Sovereign Bonds | -
4%₹51 Cr5,000,000
Tata Realty And Infrastructure Limited
Debentures | -
4%₹50 Cr500
L&T Metro Rail (Hyderabad) Limited
Debentures | -
4%₹44 Cr400
INNOVATION TRUST XXX
Unlisted bonds | -
4%₹41 Cr187
5.22% Govt Stock 2025
Sovereign Bonds | -
3%₹40 Cr4,000,000
Piramal Capital & Housing Finance Limited
Debentures | -
3%₹39 Cr465,002
Grasim Industries Limited
Debentures | -
3%₹36 Cr350
U.P. Power Corporation Limited
Debentures | -
3%₹36 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 8.5% 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 (25 Jan 22) ₹24.894 ↓ 0.00   (-0.01 %)
Net Assets (Cr) ₹8,416 on 31 Dec 21
Category Debt - Credit Risk
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 1.6
Sharpe Ratio 2.36
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 6.88%
Effective Maturity 2 Years 8 Months 23 Days
Modified Duration 1 Year 11 Months 8 Days

Growth of 10,000 investment over the years.

DateValue
31 Dec 16₹10,000
31 Dec 17₹10,677
31 Dec 18₹11,387
31 Dec 19₹12,466
31 Dec 20₹13,686
31 Dec 21₹14,539

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 25 Jan 22

DurationReturns
1 Month 0.4%
3 Month 1.3%
6 Month 2.7%
1 Year 6.3%
3 Year 8.4%
5 Year 7.7%
10 Year
15 Year
Since launch 8.5%
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 165.15 Yr.
Akhil Kakkar3 Jun 174.58 Yr.

Data below for ICICI Prudential Regular Savings Fund as on 31 Dec 21

Asset Allocation
Asset ClassValue
Cash19.04%
Equity3.59%
Debt77.37%
Debt Sector Allocation
SectorValue
Corporate68.41%
Cash Equivalent19.04%
Government8.65%
Securitized0.31%
Credit Quality
RatingValue
A8.35%
AA72.8%
AAA17.96%
BB0.88%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
6.67% Govt Stock 2035
Sovereign Bonds | -
5%₹428 Cr44,192,530
↑ 9,144,900
Prestige Estates Projects Limited
Debentures | -
3%₹257 Cr2,500
Nayara Energy Limited
Debentures | -
3%₹249 Cr2,500
6.1% Govt Stock 2031
Sovereign Bonds | -
3%₹227 Cr23,500,000
Aditya Birla Fashion and Retail Limited
Debentures | -
3%₹215 Cr1,750
Embassy Office Parks Reit
-, Since 31 Jul 20 | -
2%₹206 Cr5,728,893
Ongc Petro Additions Limited
Debentures | -
2%₹200 Cr2,000
The Great Eastern Shipping Company Limited
Debentures | -
2%₹177 Cr1,743
JM Financial Credit Solutions Limited
Debentures | -
2%₹176 Cr1,750
Mahindra Rural Housing Finance Limited
Debentures | -
2%₹153 Cr1,500

3. 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 7.4% 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 (25 Jan 22) ₹17.0666 ↑ 0.00   (0.02 %)
Net Assets (Cr) ₹754 on 15 Jan 22
Category Debt - Credit Risk
AMC Axis Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 1.66
Sharpe Ratio 2.81
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 6.59%
Effective Maturity 2 Years 11 Days
Modified Duration 1 Year 6 Months 14 Days

Growth of 10,000 investment over the years.

DateValue
31 Dec 16₹10,000
31 Dec 17₹10,643
31 Dec 18₹11,270
31 Dec 19₹11,761
31 Dec 20₹12,726
31 Dec 21₹13,487

Axis Credit Risk Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹200,132.
Net Profit of ₹20,132
Invest Now

Returns for Axis Credit Risk Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 25 Jan 22

DurationReturns
1 Month 0.4%
3 Month 1%
6 Month 2.5%
1 Year 5.9%
3 Year 6.1%
5 Year 6%
10 Year
15 Year
Since launch 7.4%
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 147.47 Yr.
Akhil Thakker9 Nov 210.14 Yr.

Data below for Axis Credit Risk Fund as on 15 Jan 22

Asset Allocation
Asset ClassValue
Cash15.3%
Debt84.7%
Debt Sector Allocation
SectorValue
Corporate73.37%
Cash Equivalent15.3%
Government9.42%
Securitized1.9%
Credit Quality
RatingValue
A8.27%
AA58.94%
AAA32.78%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Telesonic Networks Limited
Debentures | -
5%₹35 Cr350
6.79% Govt Stock 2027
Sovereign Bonds | -
4%₹31 Cr3,000,000
Aditya Birla Fashion and Retail Limited
Debentures | -
4%₹31 Cr250
Bahadur Chand Investments Private Limited
Debentures | -
4%₹30 Cr300
Nirma Limited
Debentures | -
3%₹25 Cr250
Flometallic India Private Limited
Debentures | -
3%₹25 Cr250
Narmada Wind Energy Private Limited
Debentures | -
3%₹23 Cr266
Sepset Constructions Limited
Debentures | -
3%₹20 Cr210
Godrej Industries Limited
Debentures | -
3%₹20 Cr200
Prestige Projects Private Limited
Debentures | -
3%₹20 Cr200
↑ 200

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 7.2% 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 (25 Jan 22) ₹16.0664 ↑ 0.00   (0.02 %)
Net Assets (Cr) ₹1,403 on 31 Dec 21
Category Debt - Credit Risk
AMC Birla Sun Life Asset Management Co Ltd
Rating Not Rated
Risk Moderate
Expense Ratio 1.81
Sharpe Ratio 3.19
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 6.5%
Effective Maturity 2 Years 7 Months 10 Days
Modified Duration 1 Year 10 Months 28 Days

Growth of 10,000 investment over the years.

DateValue
31 Dec 16₹10,000
31 Dec 17₹10,809
31 Dec 18₹11,522
31 Dec 19₹11,763
31 Dec 20₹12,864
31 Dec 21₹13,682

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 25 Jan 22

DurationReturns
1 Month 0.3%
3 Month 1%
6 Month 2.4%
1 Year 6.3%
3 Year 5.9%
5 Year 6.3%
10 Year
15 Year
Since launch 7.2%
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 156.72 Yr.
Mohit Sharma6 Aug 201.41 Yr.

Data below for Aditya Birla Sun Life Credit Risk Fund as on 31 Dec 21

Asset Allocation
Asset ClassValue
Cash6.08%
Equity0.37%
Debt93.54%
Debt Sector Allocation
SectorValue
Corporate75.59%
Government17.96%
Cash Equivalent6.08%
Credit Quality
RatingValue
A6.86%
AA57.59%
AAA33.52%
Below B2.04%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Shriram City Union Finance Limited
Debentures | -
7%₹103 Cr1,000
8.35% Govt Stock 2022
Sovereign Bonds | -
5%₹76 Cr7,500,000
Indusind Bank Limited
Debentures | -
4%₹63 Cr610
6.1% Govt Stock 2031
Sovereign Bonds | -
3%₹43 Cr4,500,000
Bharti Hexacom Limited
Debentures | -
3%₹43 Cr430
Steel Authority Of India Limited
Debentures | -
3%₹42 Cr400
Tata Realty And Infrastructure Limited
Debentures | -
3%₹42 Cr420
Telesonic Networks Limited
Debentures | -
3%₹42 Cr420
Sundew Properties Limited
Debentures | -
3%₹42 Cr420
Tata Housing Development Company Limited
Debentures | -
3%₹41 Cr350

5. UTI Credit Risk Fund

(Erstwhile UTI Income Opportunities Fund)

The investment objective of the scheme is to generate reasonable income and capital appreciation by investing in debt and money market instruments across different maturities and credit ratings. There is no assurance that the investment objective of the scheme will be achieved.

UTI Credit Risk Fund is a Debt - Credit Risk fund was launched on 19 Nov 12. It is a fund with Moderate risk and has given a CAGR/Annualized return of 3.5% since its launch.  Ranked 20 in Credit Risk category.  Return for 2021 was 21.5% , 2020 was -27.8% and 2019 was -4.8% .

Below is the key information for UTI Credit Risk Fund

UTI Credit Risk Fund
Growth
Launch Date 19 Nov 12
NAV (25 Jan 22) ₹13.7589 ↑ 0.01   (0.07 %)
Net Assets (Cr) ₹554 on 31 Dec 21
Category Debt - Credit Risk
AMC UTI Asset Management Company Ltd
Rating
Risk Moderate
Expense Ratio 0
Sharpe Ratio 1.12
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load 0-12 Months (1%),12 Months and above(NIL)
Yield to Maturity 6.28%
Effective Maturity 3 Years
Modified Duration 1 Year 6 Months 22 Days

Growth of 10,000 investment over the years.

DateValue
31 Dec 16₹10,000
31 Dec 17₹10,690
31 Dec 18₹11,276
31 Dec 19₹10,736
31 Dec 20₹7,753
31 Dec 21₹9,418

UTI Credit Risk Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%

Returns for UTI 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 25 Jan 22

DurationReturns
1 Month 0.3%
3 Month 0.8%
6 Month 18.7%
1 Year 21.7%
3 Year -5.9%
5 Year -1.3%
10 Year
15 Year
Since launch 3.5%
Historical performance (Yearly) on absolute basis
YearReturns
2021 21.5%
2020 -27.8%
2019 -4.8%
2018 5.5%
2017 6.9%
2016 10.3%
2015 8.9%
2014 11.5%
2013 7.7%
2012
Fund Manager information for UTI Credit Risk Fund
NameSinceTenure
Ritesh Nambiar9 Nov 129.15 Yr.

Data below for UTI Credit Risk Fund as on 31 Dec 21

Asset Allocation
Asset ClassValue
Cash22.42%
Debt77.58%
Debt Sector Allocation
SectorValue
Corporate54.7%
Government22.88%
Cash Equivalent22.42%
Credit Quality
RatingValue
A7.3%
AA59.9%
AAA32.8%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Piramal Capital & Housing Finance Limited
Debentures | -
7%₹40 Cr480,554
National Bank For Agriculture And Rural Development
Debentures | -
5%₹25 Cr250
Summit Digitel Infrastructure Private Limited
Debentures | -
5%₹25 Cr250
4.68% Govt Stock 2034
Sovereign Bonds | -
4%₹24 Cr250,000,000
India Grid TRust
Debentures | -
4%₹21 Cr210
The Tata Power Company Limited
Debentures | -
4%₹21 Cr200
Torrent Power Limited
Debentures | -
4%₹20 Cr20
Amba River Coke Limited
Debentures | -
4%₹20 Cr201
Vedanta Limited
Debentures | -
4%₹20 Cr200
Aadhar Housing Finance Limited
Debentures | -
4%₹20 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 7.6% 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 (25 Jan 22) ₹35.863 ↑ 0.00   (0.01 %)
Net Assets (Cr) ₹3,289 on 31 Dec 21
Category Debt - Credit Risk
AMC SBI Funds Management Private Limited
Rating
Risk Moderate
Expense Ratio 1.55
Sharpe Ratio 1.29
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 6.18%
Effective Maturity 2 Years 1 Month 24 Days
Modified Duration 1 Year 9 Months

Growth of 10,000 investment over the years.

DateValue
31 Dec 16₹10,000
31 Dec 17₹10,689
31 Dec 18₹11,350
31 Dec 19₹12,089
31 Dec 20₹13,270
31 Dec 21₹13,928

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 25 Jan 22

DurationReturns
1 Month 0.4%
3 Month 0.8%
6 Month 2.4%
1 Year 5.2%
3 Year 6.9%
5 Year 6.7%
10 Year
15 Year
Since launch 7.6%
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 174.92 Yr.

Data below for SBI Credit Risk Fund as on 31 Dec 21

Asset Allocation
Asset ClassValue
Cash26.75%
Debt73.25%
Debt Sector Allocation
SectorValue
Corporate51.91%
Cash Equivalent25.85%
Government22.24%
Credit Quality
RatingValue
A8.42%
AA52.79%
AAA38.8%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
5.63% Govt Stock 2026
Sovereign Bonds | -
13%₹411 Cr41,500,000
Indinfravit Trust
Debentures | -
5%₹151 Cr1,500
TATA International Limited
Debentures | -
5%₹151 Cr1,500
Tmf Holdings Limited
Debentures | -
4%₹116 Cr900
TATA Projects Limited
Debentures | -
3%₹113 Cr1,100
Aadhar Housing Finance Limited
Debentures | -
3%₹104 Cr1,000
Coastal Gujarat Power Limited
Debentures | -
3%₹104 Cr1,000
Mahindra Rural Housing Finance Limited
Debentures | -
3%₹102 Cr1,000
Flometallic India Private Limited
Debentures | -
3%₹95 Cr950
Avanse Financial Services Limited
Debentures | -
3%₹95 Cr950

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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