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Fincash » Mutual Funds » Best Debt Lumpsum Investments

6 Best Debt Mutual Funds for Lump sum Investments 2021

Updated on April 12, 2021 , 17113 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 21 - 22

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 (%)2020 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
Franklin India Low Duration Fund Growth ₹23.3174
↑ 0.02
₹980 10,000 2.67.413.35.21.610.08%9M 22D1Y 4M 27D
Nippon India Credit Risk Fund Growth ₹24.6821
↑ 0.01
₹1,132 500 1.84.48.40.6-5.99.83%1Y 4M 20D1Y 9M 29D
Franklin India Ultra Short Bond Fund - Super Institutional Plan Growth ₹29.8177
↑ 0.03
₹5,188 10,000 1.83.68.47.349.39%2M 23D1Y 7D
HDFC Credit Risk Debt Fund Growth ₹18.2921
↑ 0.01
₹6,996 5,000 1.34.810.88.210.97.94%1Y 11M 13D2Y 5M 10D
ICICI Prudential Regular Savings Fund Growth ₹23.6448
↑ 0.00
₹7,117 10,000 13.39.38.39.87.54%1Y 4M 17D1Y 10M 6D
Aditya Birla Sun Life Credit Risk Fund Growth ₹15.3987
↑ 0.01
₹1,577 1,000 1.94.511.35.99.47.38%1Y 5M 16D1Y 9M 14D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 12 Apr 21
*List of Debt Mutual Funds having net assets > 500 Crore and Fund have assets under manegement for atleast 3 years.

1. Franklin India Low Duration Fund

To provide regular income to investors through investment primarily in debt funds.

Franklin India Low Duration Fund is a Debt - Low Duration fund was launched on 26 Jul 10. It is a fund with Moderate risk and has given a CAGR/Annualized return of 8.2% since its launch.  Ranked 3 in Low Duration category.  Return for 2020 was 1.6% , 2019 was 5.2% and 2018 was 8.4% .

Below is the key information for Franklin India Low Duration Fund

Franklin India Low Duration Fund
Growth
Launch Date 26 Jul 10
NAV (12 Apr 21) ₹23.3174 ↑ 0.02   (0.09 %)
Net Assets (Cr) ₹980 on 28 Feb 21
Category Debt - Low Duration
AMC Franklin Templeton Asst Mgmt(IND)Pvt Ltd
Rating
Risk Moderate
Expense Ratio 0.88
Sharpe Ratio 1.09
Information Ratio 0
Alpha Ratio 0
Min Investment 10,000
Min SIP Investment 500
Exit Load 0-3 Months (0.5%),3 Months and above(NIL)
Yield to Maturity 10.08%
Effective Maturity 1 Year 4 Months 27 Days
Modified Duration 9 Months 22 Days

Growth of 10,000 investment over the years.

DateValue
31 Mar 16₹10,000
31 Mar 17₹11,020
31 Mar 18₹11,923
31 Mar 19₹12,976
31 Mar 20₹12,307
31 Mar 21₹13,853

Franklin India 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

Purchase not allowed

Returns for Franklin India 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 12 Apr 21

DurationReturns
1 Month 1.2%
3 Month 2.6%
6 Month 7.4%
1 Year 13.3%
3 Year 5.2%
5 Year 6.7%
10 Year
15 Year
Since launch 8.2%
Historical performance (Yearly) on absolute basis
YearReturns
2020 1.6%
2019 5.2%
2018 8.4%
2017 8.3%
2016 9.7%
2015 9.8%
2014 10.1%
2013 9.5%
2012 10.2%
2011 9.9%
Fund Manager information for Franklin India Low Duration Fund
NameSinceTenure
Santosh Kamath15 Apr 146.97 Yr.
Kunal Agrawal15 Apr 146.97 Yr.

Data below for Franklin India Low Duration Fund as on 28 Feb 21

Asset Allocation
Asset ClassValue
Cash13.85%
Debt86.15%
Debt Sector Allocation
SectorValue
Corporate86.15%
Cash Equivalent13.85%
Credit Quality
RatingValue
A36.43%
AA59.9%
BBB3.67%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
JM Financial Asset Reconstruction Company Limited
Debentures | -
13%₹130 Cr1,283
Talwandi Sabo Power Limited
Debentures | -
10%₹100 Cr1,000
Edelweiss Commodities Services Limited
Debentures | -
10%₹98 Cr2,000
The Tata Power Company Limited
Debentures | -
8%₹83 Cr780
Clix Capital Services Private Limited
Debentures | -
7%₹65 Cr650
Shriram Transport Finance Company Limited
Debentures | -
5%₹51 Cr500
JM Financial Credit Solutions Limited
Debentures | -
5%₹49 Cr500
Sadbhav Infrastructure Project Limited
Debentures | -
3%₹32 Cr232
Shriram Transport Finance Company Limited
Debentures | -
3%₹32 Cr250
Visu Leasing and Finance Private Limited
Debentures | -
3%₹30 Cr300

2. 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 5.9% since its launch.  Ranked 21 in Credit Risk category.  Return for 2020 was -5.9% , 2019 was 1.9% and 2018 was 6.1% .

Below is the key information for Nippon India Credit Risk Fund

Nippon India Credit Risk Fund
Growth
Launch Date 8 Jun 05
NAV (12 Apr 21) ₹24.6821 ↑ 0.01   (0.05 %)
Net Assets (Cr) ₹1,132 on 28 Feb 21
Category Debt - Credit Risk
AMC Nippon Life Asset Management Ltd.
Rating
Risk Moderate
Expense Ratio 1.82
Sharpe Ratio -0.71
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 9.83%
Effective Maturity 1 Year 9 Months 29 Days
Modified Duration 1 Year 4 Months 20 Days

Growth of 10,000 investment over the years.

DateValue
31 Mar 16₹10,000
31 Mar 17₹10,971
31 Mar 18₹11,716
31 Mar 19₹12,478
31 Mar 20₹11,075
31 Mar 21₹11,924

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 12 Apr 21

DurationReturns
1 Month 0.7%
3 Month 1.8%
6 Month 4.4%
1 Year 8.4%
3 Year 0.6%
5 Year 3.5%
10 Year
15 Year
Since launch 5.9%
Historical performance (Yearly) on absolute basis
YearReturns
2020 -5.9%
2019 1.9%
2018 6.1%
2017 7%
2016 10%
2015 8.8%
2014 11%
2013 8%
2012 9.6%
2011 8.4%
Fund Manager information for Nippon India Credit Risk Fund
NameSinceTenure
Sushil Budhia1 Feb 201.16 Yr.

Data below for Nippon India Credit Risk Fund as on 28 Feb 21

Asset Allocation
Asset ClassValue
Cash44.72%
Debt55.28%
Debt Sector Allocation
SectorValue
Cash Equivalent42.12%
Corporate33.8%
Government17.06%
Securitized7.02%
Credit Quality
RatingValue
A6.09%
AA13.73%
AAA27.95%
Below B0%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Vineha Enterprises Private Limited
Debentures | -
29%₹333 Cr22,500
Mariposa Agri Ventures and Hospitalities Private Limited
Debentures | -
11%₹121 Cr894
INNOVATION TRUST XXX
Unlisted bonds | -
6%₹70 Cr187
7.32% Govt Stock 2024
Sovereign Bonds | -
6%₹69 Cr6,500,000
↑ 6,500,000
Mariposa Agri Ventures and Hospitalities Private Limited
Debentures | -
5%₹62 Cr500
Renew Wind Energy (Rajasthan One) Private Limited
Debentures | -
5%₹56 Cr655
State Bank Of India
Debentures | -
5%₹54 Cr550
↑ 550
5.15% Govt Stock 2025
Sovereign Bonds | -
4%₹49 Cr5,000,000
↑ 5,000,000
U.P. Power Corporation Limited
Debentures | -
3%₹31 Cr305
↑ 305
Power Finance Corporation Limited
Debentures | -
2%₹26 Cr250
↑ 250

3. Franklin India Ultra Short Bond Fund - Super Institutional Plan

To provide a combination of regular income and high liquidity by investing primarily in a mix of short term debt and money market instruments.

Franklin India Ultra Short Bond Fund - Super Institutional Plan is a Debt - Ultrashort Bond fund was launched on 18 Dec 07. It is a fund with Moderate risk and has given a CAGR/Annualized return of 8.5% since its launch.  Return for 2020 was 4% , 2019 was 9.6% and 2018 was 8.7% .

Below is the key information for Franklin India Ultra Short Bond Fund - Super Institutional Plan

Franklin India Ultra Short Bond Fund - Super Institutional Plan
Growth
Launch Date 18 Dec 07
NAV (12 Apr 21) ₹29.8177 ↑ 0.03   (0.09 %)
Net Assets (Cr) ₹5,188 on 28 Feb 21
Category Debt - Ultrashort Bond
AMC Franklin Templeton Asst Mgmt(IND)Pvt Ltd
Rating
Risk Moderate
Expense Ratio 0.52
Sharpe Ratio 4.62
Information Ratio 0
Alpha Ratio 0
Min Investment 10,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 9.39%
Effective Maturity 1 Year 7 Days
Modified Duration 2 Months 23 Days

Growth of 10,000 investment over the years.

DateValue
31 Mar 16₹10,000
31 Mar 17₹10,953
31 Mar 18₹11,833
31 Mar 19₹12,923
31 Mar 20₹13,532
31 Mar 21₹14,624

Franklin India Ultra Short Bond Fund - Super Institutional Plan 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

Purchase not allowed

Returns for Franklin India Ultra Short Bond Fund - Super Institutional Plan

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 12 Apr 21

DurationReturns
1 Month 0.7%
3 Month 1.8%
6 Month 3.6%
1 Year 8.4%
3 Year 7.3%
5 Year 7.9%
10 Year
15 Year
Since launch 8.5%
Historical performance (Yearly) on absolute basis
YearReturns
2020 4%
2019 9.6%
2018 8.7%
2017 8.2%
2016 9.7%
2015 9.7%
2014 10%
2013 10%
2012 10.3%
2011 9.4%
Fund Manager information for Franklin India Ultra Short Bond Fund - Super Institutional Plan
NameSinceTenure
Santosh Kamath25 Oct 182.44 Yr.
Pallab Roy1 Jun 0812.84 Yr.

Data below for Franklin India Ultra Short Bond Fund - Super Institutional Plan as on 28 Feb 21

Asset Allocation
Asset ClassValue
Cash25.19%
Debt74.81%
Debt Sector Allocation
SectorValue
Corporate74.81%
Cash Equivalent25.19%
Credit Quality
RatingValue
A40.45%
AA59.5%
AAA0.05%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
JM Financial Credit Solutions Limited
Debentures | -
10%₹532 Cr5,400
Indostar Capital Finance Limited
Debentures | -
9%₹441 Cr4,400
Edelweiss Commodities Services Limited
Debentures | -
7%₹368 Cr7,500
Edelweiss Commodities Services Limited
Debentures | -
7%₹363 Cr3,650
Tata Realty and Infrastructure Limited
Debentures | -
5%₹237 Cr2,000
Clix Capital Services Private Limited
Debentures | -
5%₹234 Cr2,350
Clix Capital Services Private Limited
Debentures | -
4%₹200 Cr2,000
PNB Housing Finance Limited
Debentures | -
4%₹192 Cr1,910
Indostar Capital Finance Limited
Debentures | -
3%₹131 Cr1,301
↓ -866
Clix Capital Services Private Limited
Debentures | -
2%₹100 Cr1,000

4. 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 8.9% since its launch.  Ranked 9 in Credit Risk category.  Return for 2020 was 10.9% , 2019 was 8.6% and 2018 was 5.4% .

Below is the key information for HDFC Credit Risk Debt Fund

HDFC Credit Risk Debt Fund
Growth
Launch Date 25 Mar 14
NAV (12 Apr 21) ₹18.2921 ↑ 0.01   (0.07 %)
Net Assets (Cr) ₹6,996 on 28 Feb 21
Category Debt - Credit Risk
AMC HDFC Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 1.64
Sharpe Ratio 1.12
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load 0-12 Months (1%),12-18 Months (0.5%),18 Months and above(NIL)
Yield to Maturity 7.94%
Effective Maturity 2 Years 5 Months 10 Days
Modified Duration 1 Year 11 Months 13 Days

Growth of 10,000 investment over the years.

DateValue
31 Mar 16₹10,000
31 Mar 17₹11,048
31 Mar 18₹11,743
31 Mar 19₹12,431
31 Mar 20₹13,565
31 Mar 21₹14,837

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 ₹206,148.
Net Profit of ₹26,148
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 12 Apr 21

DurationReturns
1 Month 1.1%
3 Month 1.3%
6 Month 4.8%
1 Year 10.8%
3 Year 8.2%
5 Year 8.2%
10 Year
15 Year
Since launch 8.9%
Historical performance (Yearly) on absolute basis
YearReturns
2020 10.9%
2019 8.6%
2018 5.4%
2017 6.6%
2016 11%
2015 9%
2014
2013
2012
2011
Fund Manager information for HDFC Credit Risk Debt Fund
NameSinceTenure
Shobhit Mehrotra25 Mar 147.02 Yr.
Anand Laddha21 Oct 200.44 Yr.

Data below for HDFC Credit Risk Debt Fund as on 28 Feb 21

Asset Allocation
Asset ClassValue
Cash18.62%
Debt81.38%
Debt Sector Allocation
SectorValue
Corporate60.15%
Government22.66%
Cash Equivalent17.19%
Credit Quality
RatingValue
A11.09%
AA52.7%
AAA33.01%
BBB2.85%
Below B0.34%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Indinfravit Trust
Unlisted bonds | -
5%₹354 Cr3,500
Power Finance Corporation Limited
Debentures | -
4%₹306 Cr2,790
Pipeline Infrastructure Private Limited
Debentures | -
4%₹291 Cr2,700
Shriram - City Union Finance Limited
Debentures | -
4%₹282 Cr28,000
Punjab National Bank
Debentures | -
4%₹281 Cr2,725
DLF Limited
Debentures | -
4%₹250 Cr2,500
Vedanta Limited
Debentures | -
3%₹233 Cr2,327
Tata Motors Limited
Debentures | -
3%₹199 Cr2,000
Tata Motors Limited
Debentures | -
3%₹191 Cr1,900
Vedanta Limited
Debentures | -
2%₹150 Cr1,500

5. 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 8.7% since its launch.  Ranked 26 in Credit Risk category.  Return for 2020 was 9.8% , 2019 was 9.5% and 2018 was 6.6% .

Below is the key information for ICICI Prudential Regular Savings Fund

ICICI Prudential Regular Savings Fund
Growth
Launch Date 3 Dec 10
NAV (12 Apr 21) ₹23.6448 ↑ 0.00   (0.01 %)
Net Assets (Cr) ₹7,117 on 28 Feb 21
Category Debt - Credit Risk
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 1.57
Sharpe Ratio 1.5
Information Ratio 0
Alpha Ratio 0
Min Investment 10,000
Min SIP Investment 100
Exit Load 0-1 Years (1%),1 Years and above(NIL)
Yield to Maturity 7.54%
Effective Maturity 1 Year 10 Months 6 Days
Modified Duration 1 Year 4 Months 17 Days

Growth of 10,000 investment over the years.

DateValue
31 Mar 16₹10,000
31 Mar 17₹11,000
31 Mar 18₹11,757
31 Mar 19₹12,574
31 Mar 20₹13,773
31 Mar 21₹14,941

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 ₹206,148.
Net Profit of ₹26,148
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 12 Apr 21

DurationReturns
1 Month 0.7%
3 Month 1%
6 Month 3.3%
1 Year 9.3%
3 Year 8.3%
5 Year 8.2%
10 Year
15 Year
Since launch 8.7%
Historical performance (Yearly) on absolute basis
YearReturns
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%
2011 8.9%
Fund Manager information for ICICI Prudential Regular Savings Fund
NameSinceTenure
Manish Banthia7 Nov 164.4 Yr.
Akhil Kakkar3 Jun 173.83 Yr.

Data below for ICICI Prudential Regular Savings Fund as on 28 Feb 21

Asset Allocation
Asset ClassValue
Cash17.76%
Equity3.38%
Debt78.86%
Debt Sector Allocation
SectorValue
Corporate65.13%
Cash Equivalent17.76%
Government13.38%
Securitized0.34%
Credit Quality
RatingValue
A13.92%
AA57.33%
AAA22.61%
BBB3.01%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
182 DTB 19082021
Sovereign Bonds | -
7%₹527 Cr53,500,000
↑ 53,500,000
Prestige Estates Projects Limited
Debentures | -
4%₹249 Cr2,500
Kalpataru Properties (Thane) Private Limited
Debentures | -
3%₹200 Cr2,000
Aditya Birla Fashion and Retail Limited
Debentures | -
3%₹200 Cr1,750
TMF Holdings Limited
Debentures | -
3%₹180 Cr1,500
The Great Eastern Shipping Company Limited
Debentures | -
2%₹174 Cr1,743
MTNL
Debentures | -
2%₹174 Cr1,770
↓ -30
ICICI Bank Limited
Debentures | -
2%₹166 Cr1,586
Vedanta Limited
Debentures | -
2%₹165 Cr1,650
Adarsh Advisory Services Private Limited
Debentures | -
2%₹163 Cr1,166

6. 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 7.5% since its launch.  Return for 2020 was 9.4% , 2019 was 2.1% and 2018 was 6.6% .

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 (12 Apr 21) ₹15.3987 ↑ 0.01   (0.08 %)
Net Assets (Cr) ₹1,577 on 28 Feb 21
Category Debt - Credit Risk
AMC Birla Sun Life Asset Management Co Ltd
Rating Not Rated
Risk Moderate
Expense Ratio 1.6
Sharpe Ratio 1.05
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 7.38%
Effective Maturity 1 Year 9 Months 14 Days
Modified Duration 1 Year 5 Months 16 Days

Growth of 10,000 investment over the years.

DateValue
31 Mar 16₹10,000
31 Mar 17₹11,029
31 Mar 18₹11,915
31 Mar 19₹12,601
31 Mar 20₹12,947
31 Mar 21₹14,132

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 ₹203,125.
Net Profit of ₹23,125
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 12 Apr 21

DurationReturns
1 Month 0.9%
3 Month 1.9%
6 Month 4.5%
1 Year 11.3%
3 Year 5.9%
5 Year 7.1%
10 Year
15 Year
Since launch 7.5%
Historical performance (Yearly) on absolute basis
YearReturns
2020 9.4%
2019 2.1%
2018 6.6%
2017 8.1%
2016 10.3%
2015
2014
2013
2012
2011
Fund Manager information for Aditya Birla Sun Life Credit Risk Fund
NameSinceTenure
Sunaina Cunha1 Apr 174 Yr.
Mohit Sharma6 Aug 200.65 Yr.

Data below for Aditya Birla Sun Life Credit Risk Fund as on 28 Feb 21

Asset Allocation
Asset ClassValue
Cash9.35%
Equity0.32%
Debt90.32%
Debt Sector Allocation
SectorValue
Corporate69.71%
Government20.61%
Cash Equivalent9.35%
Credit Quality
RatingValue
A20.27%
AA46.15%
AAA30.49%
BBB1.2%
Below B1.88%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
L&T Vadodara Bharuch Tollway Limited
Debentures | -
11%₹171 Cr170,850
Shriram - City Union Finance Limited
Debentures | -
9%₹141 Cr1,400
L&T Infrastructure Finance Company Limited
Debentures | -
6%₹88 Cr850
8.35% Govt Stock 2022
Sovereign Bonds | -
5%₹79 Cr7,500,000
Indusind Bank Limited
Debentures | -
4%₹71 Cr700
Coastal Gujarat Power Limited
Debentures | -
3%₹52 Cr513
L&T Infrastructure Finance Company Limited
Debentures | -
3%₹52 Cr500
Tata Housing Development Company Limited
Debentures | -
2%₹39 Cr350
Tata Realty and Infrastructure Limited
Debentures | -
2%₹36 Cr350
LIC Housing Finance Limited
Debentures | -
2%₹35 Cr350

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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