+91-22-489139096 Best Debt Mutual Funds for Lump sum Investments 2026
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.
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 26 - 27
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.
Fund Selection Methodology used to find 6 funds
Top 6 Lump sum Debt Mutual Funds
Fund NAV Net Assets (Cr) Min Investment 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2025 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity Nippon India Credit Risk Fund Growth ₹38.127
↓ -0.02 ₹1,574 500 1.2 3.8 6.8 8 8.9 8.66% 1Y 11M 26D 2Y 4M 13D Kotak Credit Risk Fund Growth ₹31.9317
↓ -0.02 ₹773 5,000 1.6 3.5 6.2 7.6 9.1 8.57% 1Y 8M 8D 2Y 8M 23D SBI Credit Risk Fund Growth ₹49.7619
↓ -0.03 ₹2,186 5,000 1.7 4.4 7.3 7.8 7.9 8.55% 2Y 1M 17D 2Y 9M 18D ICICI Prudential Regular Savings Fund Growth ₹34.8479
↓ -0.02 ₹6,333 10,000 1.6 4 7.3 8.3 9.5 8.53% 1Y 9M 25D 2Y 8M 5D Aditya Birla Sun Life Credit Risk Fund Growth ₹25.4389
↓ -0.01 ₹1,600 1,000 1.6 4.6 11.5 12.1 13.4 8.03% 1Y 11M 16D 2Y 7M 17D Kotak Low Duration Fund Growth ₹3,578.12
↓ -1.98 ₹12,093 5,000 1.3 3 5.5 6.6 7 7.5% 10M 17D 1Y 14D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 25 Sep 26 Research Highlights & Commentary of 6 Funds showcased
Commentary Nippon India Credit Risk Fund Kotak Credit Risk Fund SBI Credit Risk Fund ICICI Prudential Regular Savings Fund Aditya Birla Sun Life Credit Risk Fund Kotak Low Duration Fund Point 1 Bottom quartile AUM (₹1,574 Cr). Bottom quartile AUM (₹773 Cr). Upper mid AUM (₹2,186 Cr). Upper mid AUM (₹6,333 Cr). Lower mid AUM (₹1,600 Cr). Highest AUM (₹12,093 Cr). Point 2 Established history (21+ yrs). Established history (16+ yrs). Oldest track record among peers (22 yrs). Established history (15+ yrs). Established history (11+ yrs). Established history (18+ yrs). Point 3 Rating: 2★ (lower mid). Rating: 3★ (upper mid). Top rated. Rating: 1★ (bottom quartile). Not Rated. Rating: 4★ (upper mid). Point 4 Risk profile: Moderate. Risk profile: Moderately Low. Risk profile: Moderate. Risk profile: Moderate. Risk profile: Moderate. Risk profile: Moderate. Point 5 1Y return: 6.84% (lower mid). 1Y return: 6.24% (bottom quartile). 1Y return: 7.28% (upper mid). 1Y return: 7.31% (upper mid). 1Y return: 11.46% (top quartile). 1Y return: 5.46% (bottom quartile). Point 6 1M return: 0.29% (upper mid). 1M return: 0.15% (bottom quartile). 1M return: 0.11% (bottom quartile). 1M return: 0.16% (lower mid). 1M return: 0.24% (upper mid). 1M return: 0.31% (top quartile). Point 7 Sharpe: 0.99 (lower mid). Sharpe: 0.71 (bottom quartile). Sharpe: 1.34 (upper mid). Sharpe: 1.52 (upper mid). Sharpe: 1.89 (top quartile). Sharpe: 0.04 (bottom quartile). Point 8 Information ratio: 0.00 (top quartile). Information ratio: 0.00 (upper mid). Information ratio: 0.00 (upper mid). Information ratio: 0.00 (lower mid). Information ratio: 0.00 (bottom quartile). Information ratio: 0.00 (bottom quartile). Point 9 Yield to maturity (debt): 8.66% (top quartile). Yield to maturity (debt): 8.57% (upper mid). Yield to maturity (debt): 8.55% (upper mid). Yield to maturity (debt): 8.53% (lower mid). Yield to maturity (debt): 8.03% (bottom quartile). Yield to maturity (debt): 7.50% (bottom quartile). Point 10 Modified duration: 1.99 yrs (bottom quartile). Modified duration: 1.69 yrs (upper mid). Modified duration: 2.13 yrs (bottom quartile). Modified duration: 1.82 yrs (upper mid). Modified duration: 1.96 yrs (lower mid). Modified duration: 0.88 yrs (top quartile). Nippon India Credit Risk Fund
Kotak Credit Risk Fund
SBI Credit Risk Fund
ICICI Prudential Regular Savings Fund
Aditya Birla Sun Life Credit Risk Fund
Kotak Low Duration Fund
*List of Debt Mutual Funds having net assets > 500 Crore and Fund have assets under manegement for atleast 3 years.
(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. Below is the key information for Nippon India Credit Risk Fund Returns up to 1 year are on (Erstwhile Kotak Income Opportunities Fund) The investment objective of the scheme is to generate income by investing in debt/ and money market securities across the yield curve and credit spectrum. The scheme will also seek to maintain reasonable liquidity within the fund. Research Highlights for Kotak Credit Risk Fund Below is the key information for Kotak Credit Risk Fund Returns up to 1 year are on (Erstwhile SBI Corporate Bond Fund) The investment objective will be to actively manage a portfolio of good
quality corporate debt as well as Money Market Instruments so as to provide
reasonable returns and liquidity to the Unit holders. However there is no
guarantee or assurance that the investment objective of the scheme will
be achieved. Research Highlights for SBI Credit Risk Fund Below is the key information for SBI Credit Risk Fund Returns up to 1 year are on The fund’s objective is to provide reasonable returns, by maintaining an optimum balance of safety, liquidity and yield, through investments in a basket of debt and money market instruments with a view to delivering consistent performance. However, there can be no assurance that the investment objective of the Scheme will be realized. Research Highlights for ICICI Prudential Regular Savings Fund Below is the key information for ICICI Prudential Regular Savings Fund Returns up to 1 year are on (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. Research Highlights for Aditya Birla Sun Life Credit Risk Fund Below is the key information for Aditya Birla Sun Life Credit Risk Fund Returns up to 1 year are on The primary objective of the Scheme is to generate income through investment
primarily in low duration debt & money market securities. However, there is no
assurance that the objective of the scheme will be realized Research Highlights for Kotak Low Duration Fund Below is the key information for Kotak Low Duration Fund Returns up to 1 year are on 1. Nippon India Credit Risk Fund
Nippon India Credit Risk Fund
Growth Launch Date 8 Jun 05 NAV (25 Sep 26) ₹38.127 ↓ -0.02 (-0.05 %) Net Assets (Cr) ₹1,574 on 31 Aug 26 Category Debt - Credit Risk AMC Nippon Life Asset Management Ltd. Rating ☆☆ Risk Moderate Expense Ratio 1.46 Sharpe Ratio 0.99 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 8.66% Effective Maturity 2 Years 4 Months 13 Days Modified Duration 1 Year 11 Months 26 Days Growth of 10,000 investment over the years.
Date Value 31 Aug 21 ₹10,000 31 Aug 22 ₹10,395 31 Aug 23 ₹11,165 31 Aug 24 ₹12,035 31 Aug 25 ₹13,156 31 Aug 26 ₹14,098 Returns for Nippon India Credit Risk Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 25 Sep 26 Duration Returns 1 Month 0.3% 3 Month 1.2% 6 Month 3.8% 1 Year 6.8% 3 Year 8% 5 Year 7.1% 10 Year 15 Year Since launch 6.5% Historical performance (Yearly) on absolute basis
Year Returns 2025 8.9% 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% Fund Manager information for Nippon India Credit Risk Fund
Name Since Tenure Kinjal Desai 25 May 18 8.19 Yr. Sushil Budhia 1 Feb 20 6.5 Yr. Amber Singhania 11 Mar 26 0.39 Yr. Data below for Nippon India Credit Risk Fund as on 31 Aug 26
Asset Allocation
Asset Class Value Cash 6.49% Debt 93.24% Other 0.27% Debt Sector Allocation
Sector Value Corporate 71.87% Government 23.47% Cash Equivalent 4.39% Credit Quality
Rating Value A 18.79% AA 43.68% AAA 37.53% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.02% Govt Stock 2031
Sovereign Bonds | -5% ₹77 Cr 7,500,000 Triumph Composites Private Limited
Debentures | -5% ₹75 Cr 7,500
↑ 1,500 Aditya Birla Real Estate Limited
Debentures | -4% ₹55 Cr 5,500 National Bank For Agriculture And Rural Development
Debentures | -4% ₹55 Cr 5,500
↑ 2,500 Adani Airport Holdings Limited
Debentures | -3% ₹55 Cr 5,500
↑ 3,000 Delhi International Airport Limited
Debentures | -3% ₹51 Cr 5,000 National Bank For Agriculture And Rural Development
Debentures | -3% ₹49 Cr 5,000 HDFC Bank Ltd.
Debentures | -3% ₹48 Cr 1,000 Muthoot Fincorp Limited
Debentures | -3% ₹45 Cr 45,000 TRuhome Finance Limited
Debentures | -3% ₹40 Cr 4,000 2. Kotak Credit Risk Fund
Kotak Credit Risk Fund
Growth Launch Date 11 May 10 NAV (25 Sep 26) ₹31.9317 ↓ -0.02 (-0.07 %) Net Assets (Cr) ₹773 on 31 Aug 26 Category Debt - Credit Risk AMC Kotak Mahindra Asset Management Co Ltd Rating ☆☆☆ Risk Moderately Low Expense Ratio 1.71 Sharpe Ratio 0.71 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load 0-1 Years (1%),1 Years and above(NIL) Yield to Maturity 8.57% Effective Maturity 2 Years 8 Months 23 Days Modified Duration 1 Year 8 Months 8 Days Growth of 10,000 investment over the years.
Date Value 31 Aug 21 ₹10,000 31 Aug 22 ₹10,101 31 Aug 23 ₹10,615 31 Aug 24 ₹11,550 31 Aug 25 ₹12,359 31 Aug 26 ₹13,228 Returns for Kotak Credit Risk Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 25 Sep 26 Duration Returns 1 Month 0.2% 3 Month 1.6% 6 Month 3.5% 1 Year 6.2% 3 Year 7.6% 5 Year 5.7% 10 Year 15 Year Since launch 7.3% Historical performance (Yearly) on absolute basis
Year Returns 2025 9.1% 2024 7.1% 2023 6.4% 2022 0.9% 2021 5.3% 2020 6.6% 2019 9% 2018 6.2% 2017 6.6% 2016 10.4% Fund Manager information for Kotak Credit Risk Fund
Name Since Tenure Deepak Agrawal 11 May 10 16.24 Yr. Vihag Mishra 24 Oct 25 0.77 Yr. Data below for Kotak Credit Risk Fund as on 31 Aug 26
Asset Allocation
Asset Class Value Cash 5.33% Equity 10.03% Debt 84.09% Other 0.54% Debt Sector Allocation
Sector Value Corporate 71.68% Government 12.41% Cash Equivalent 5.33% Credit Quality
Rating Value A 10.19% AA 70.57% AAA 19.25% Top Securities Holdings / Portfolio
Name Holding Value Quantity Jubilant Bevco Limited
Debentures | -7% ₹56 Cr 500 Vedanta Aluminium Metal Limited
Debentures | -6% ₹50 Cr 5,000 Bamboo Hotel And Global Centre (Delhi) Private Limited
Debentures | -6% ₹50 Cr 5,000 TATA Projects Limited
Debentures | -6% ₹50 Cr 5,000 Muthoot Finance Limited
Debentures | -6% ₹50 Cr 5,000 Karnataka State Development Loans
Sovereign Bonds | -6% ₹45 Cr 4,500,000 Aditya Birla Real Estate Limited
Debentures | -6% ₹45 Cr 4,500 Aditya Birla Renewables Limited
Debentures | -5% ₹40 Cr 4,000 Indus Infra Trust Unit (Financial Services)
Equity, Since 15 Nov 25 | 5441375% ₹36 Cr 2,724,405 Au Small Finance Bank Limited
Debentures | -4% ₹30 Cr 30 3. SBI Credit Risk Fund
SBI Credit Risk Fund
Growth Launch Date 19 Jul 04 NAV (25 Sep 26) ₹49.7619 ↓ -0.03 (-0.06 %) Net Assets (Cr) ₹2,186 on 31 Aug 26 Category Debt - Credit Risk AMC SBI Funds Management Private Limited Rating ☆☆☆☆ Risk Moderate Expense Ratio 1.55 Sharpe Ratio 1.34 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 8.55% Effective Maturity 2 Years 9 Months 18 Days Modified Duration 2 Years 1 Month 17 Days Growth of 10,000 investment over the years.
Date Value 31 Aug 21 ₹10,000 31 Aug 22 ₹10,363 31 Aug 23 ₹11,188 31 Aug 24 ₹12,056 31 Aug 25 ₹13,038 31 Aug 26 ₹14,058 Returns for SBI Credit Risk Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 25 Sep 26 Duration Returns 1 Month 0.1% 3 Month 1.7% 6 Month 4.4% 1 Year 7.3% 3 Year 7.8% 5 Year 7% 10 Year 15 Year Since launch 7.5% Historical performance (Yearly) on absolute basis
Year Returns 2025 7.9% 2024 8.1% 2023 8.3% 2022 4.2% 2021 5% 2020 9.8% 2019 6.5% 2018 6.2% 2017 6.9% 2016 10.5% Fund Manager information for SBI Credit Risk Fund
Name Since Tenure Lokesh Mallya 1 Feb 17 9.58 Yr. Prashanth Sridhar 1 Jul 26 0.17 Yr. Data below for SBI Credit Risk Fund as on 31 Aug 26
Asset Allocation
Asset Class Value Cash 6.73% Equity 6.67% Debt 83.06% Other 3.53% Debt Sector Allocation
Sector Value Corporate 68.91% Government 14.15% Cash Equivalent 6.73% Credit Quality
Rating Value A 10.66% AA 65.27% AAA 24.08% Top Securities Holdings / Portfolio
Name Holding Value Quantity Renew Solar Energy (Jharkhand Five) Private Limited
Debentures | -5% ₹100 Cr 11,000 Lodha Developers Limited
Debentures | -5% ₹100 Cr 10,000 TATA Projects Limited
Debentures | -5% ₹100 Cr 10,000 Nj Capital Private Limited
Debentures | -5% ₹99 Cr 10,000 H.G. Infra Engineering Limited
Debentures | -5% ₹99 Cr 10,000 Jtpm Metal TRaders Limited
Debentures | -4% ₹97 Cr 9,000 Renserv Global Private Limited
Debentures | -4% ₹80 Cr 8,000 Jsw Jfe Kalinga Steel Limited
Debentures | -4% ₹78 Cr 7,500 Motilal Oswal Home Finance Limited
Debentures | -3% ₹75 Cr 7,500 Aditya Birla Renewables Limited
Debentures | -3% ₹75 Cr 7,500 4. ICICI Prudential Regular Savings Fund
ICICI Prudential Regular Savings Fund
Growth Launch Date 3 Dec 10 NAV (25 Sep 26) ₹34.8479 ↓ -0.02 (-0.06 %) Net Assets (Cr) ₹6,333 on 31 Aug 26 Category Debt - Credit Risk AMC ICICI Prudential Asset Management Company Limited Rating ☆ Risk Moderate Expense Ratio 1.43 Sharpe Ratio 1.52 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 8.53% Effective Maturity 2 Years 8 Months 5 Days Modified Duration 1 Year 9 Months 25 Days Growth of 10,000 investment over the years.
Date Value 31 Aug 21 ₹10,000 31 Aug 22 ₹10,481 31 Aug 23 ₹11,164 31 Aug 24 ₹12,125 31 Aug 25 ₹13,164 31 Aug 26 ₹14,238 Returns for ICICI Prudential Regular Savings Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 25 Sep 26 Duration Returns 1 Month 0.2% 3 Month 1.6% 6 Month 4% 1 Year 7.3% 3 Year 8.3% 5 Year 7.3% 10 Year 15 Year Since launch 8.2% Historical performance (Yearly) on absolute basis
Year Returns 2025 9.5% 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% Fund Manager information for ICICI Prudential Regular Savings Fund
Name Since Tenure Manish Banthia 7 Nov 16 9.74 Yr. Akhil Kakkar 22 Jan 24 2.53 Yr. Data below for ICICI Prudential Regular Savings Fund as on 31 Aug 26
Asset Allocation
Asset Class Value Cash 7.67% Equity 9.83% Debt 82.13% Other 0.37% Debt Sector Allocation
Sector Value Corporate 65.88% Government 16.63% Cash Equivalent 7.28% Credit Quality
Rating Value A 9.5% AA 68.41% AAA 22.08% Top Securities Holdings / Portfolio
Name Holding Value Quantity Jtpm Metal TRaders Limited
Debentures | -4% ₹249 Cr 23,000 Embassy Office Parks REIT (Real Estate)
-, Since 30 Apr 25 | 5426023% ₹217 Cr 4,793,752 Vedanta Aluminium Metal Limited
Debentures | -3% ₹201 Cr 20,000 Adani Enterprises Limited
Debentures | -3% ₹201 Cr 20,000 TRuhome Finance Limited
Debentures | -3% ₹198 Cr 20,000 Bamboo Hotel And Global Centre (Delhi) Private Limited
Debentures | -3% ₹186 Cr 18,500 Adani Power Limited
Debentures | -3% ₹175 Cr 17,500 Keystone Realtors Limited
Debentures | -3% ₹171 Cr 23,500 Nirma Limited
Debentures | -2% ₹151 Cr 15,000 Aavas Financiers Limited
Debentures | -2% ₹150 Cr 15,000 5. Aditya Birla Sun Life Credit Risk Fund
Aditya Birla Sun Life Credit Risk Fund
Growth Launch Date 17 Apr 15 NAV (25 Sep 26) ₹25.4389 ↓ -0.01 (-0.03 %) Net Assets (Cr) ₹1,600 on 31 Aug 26 Category Debt - Credit Risk AMC Birla Sun Life Asset Management Co Ltd Rating Risk Moderate Expense Ratio 1.59 Sharpe Ratio 1.89 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 8.03% Effective Maturity 2 Years 7 Months 17 Days Modified Duration 1 Year 11 Months 16 Days Growth of 10,000 investment over the years.
Date Value 31 Aug 21 ₹10,000 31 Aug 22 ₹10,664 31 Aug 23 ₹11,379 31 Aug 24 ₹12,336 31 Aug 25 ₹14,323 31 Aug 26 ₹16,064 Returns for Aditya Birla Sun Life Credit Risk Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 25 Sep 26 Duration Returns 1 Month 0.2% 3 Month 1.6% 6 Month 4.6% 1 Year 11.5% 3 Year 12.1% 5 Year 9.9% 10 Year 15 Year Since launch 8.5% Historical performance (Yearly) on absolute basis
Year Returns 2025 13.4% 2024 11.9% 2023 6.9% 2022 7.1% 2021 6.4% 2020 9.4% 2019 2.1% 2018 6.6% 2017 8.1% 2016 10.3% Fund Manager information for Aditya Birla Sun Life Credit Risk Fund
Name Since Tenure Sunaina Cunha 17 Apr 15 11.3 Yr. Mohit Sharma 6 Aug 20 5.99 Yr. Data below for Aditya Birla Sun Life Credit Risk Fund as on 31 Aug 26
Asset Allocation
Asset Class Value Cash 3.35% Equity 7.85% Debt 88.42% Other 0.38% Debt Sector Allocation
Sector Value Corporate 70.81% Government 17.61% Cash Equivalent 3.35% Credit Quality
Rating Value A 9.8% AA 49.73% AAA 40.47% Top Securities Holdings / Portfolio
Name Holding Value Quantity 6.94% Govt Stock 2036
Sovereign Bonds | -6% ₹96 Cr 9,500,000
↓ -1,000,000 Eris Lifesciences Limited
Debentures | -5% ₹74 Cr 7,400
↑ 6,050 Jubilant Bevco Limited
Debentures | -5% ₹73 Cr 6,500 Jtpm Metal TRaders Limited
Debentures | -4% ₹58 Cr 5,377 GMR Airports Limited
Debentures | -3% ₹55 Cr 5,200 Rec Limited
Debentures | -3% ₹50 Cr 5,000 National Bank For Agriculture And Rural Development
Debentures | -3% ₹50 Cr 5,000
↓ -2,500 Small Industries Development Bank Of India
Debentures | -3% ₹49 Cr 5,000 Adani Airport Holdings Limited
Debentures | -3% ₹48 Cr 4,800
↑ 4,800 Tata Capital Housing Finance Limited
Debentures | -3% ₹45 Cr 4,467 6. Kotak Low Duration Fund
Kotak Low Duration Fund
Growth Launch Date 6 Mar 08 NAV (25 Sep 26) ₹3,578.12 ↓ -1.98 (-0.06 %) Net Assets (Cr) ₹12,093 on 31 Aug 26 Category Debt - Low Duration AMC Kotak Mahindra Asset Management Co Ltd Rating ☆☆☆☆ Risk Moderate Expense Ratio 1.17 Sharpe Ratio 0.04 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 7.5% Effective Maturity 1 Year 14 Days Modified Duration 10 Months 17 Days Growth of 10,000 investment over the years.
Date Value 31 Aug 21 ₹10,000 31 Aug 22 ₹10,298 31 Aug 23 ₹10,965 31 Aug 24 ₹11,724 31 Aug 25 ₹12,606 31 Aug 26 ₹13,315 Returns for Kotak Low Duration Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 25 Sep 26 Duration Returns 1 Month 0.3% 3 Month 1.3% 6 Month 3% 1 Year 5.5% 3 Year 6.6% 5 Year 5.9% 10 Year 15 Year Since launch 7.1% Historical performance (Yearly) on absolute basis
Year Returns 2025 7% 2024 7.3% 2023 6.7% 2022 3.9% 2021 3.5% 2020 7.9% 2019 8.3% 2018 7.3% 2017 7.1% 2016 8.9% Fund Manager information for Kotak Low Duration Fund
Name Since Tenure Deepak Agrawal 31 Jan 15 11.59 Yr. Dharmesh Thakkar 24 Oct 25 0.85 Yr. Data below for Kotak Low Duration Fund as on 31 Aug 26
Asset Allocation
Asset Class Value Cash 33.17% Debt 66.49% Other 0.34% Debt Sector Allocation
Sector Value Corporate 68.5% Government 17.83% Cash Equivalent 13.33% Credit Quality
Rating Value AA 14.9% AAA 85.1% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.15% Karnataka Sgs 2031
Sovereign Bonds | -4% ₹503 Cr 50,000,000 National Bank For Agriculture And Rural Development
Debentures | -4% ₹477 Cr 47,500 Jtpm Metal TRaders Limited
Debentures | -3% ₹432 Cr 40,000 Bajaj Housing Finance Limited
Debentures | -3% ₹401 Cr 40,000 Bajaj Housing Finance Limited
Debentures | -2% ₹258 Cr 26,000 Rec Limited
Debentures | -2% ₹249 Cr 25,000 RADHAKRISHNA SECURITISATION TRUST
Unlisted bonds | -2% ₹205 Cr 210 Karnataka (Government of) 0.0725%
- | -2% ₹202 Cr 20,000,000 Vedanta Limited
Debentures | -2% ₹202 Cr 20,000 6.92% Tamilnadu Sgs 2029
Sovereign Bonds | -2% ₹201 Cr 20,000,000
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.
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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Research Highlights for Nippon India Credit Risk Fund