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6 Best Debt Mutual Funds for Lump sum Investments 2019

Updated on December 9, 2019 , 2935 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 19 - 20

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 (%)2018 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
Reliance Credit Risk Fund Growth ₹25.5813
↓ 0.00
₹6,067 500 00.82.24.9 13.11%1Y 9M2Y 5M 5D
Aditya Birla Sun Life Credit Risk Fund Growth ₹13.725
↓ 0.00
₹5,904 1,000 -2.9-0.22.35.5 12.51%1Y 4M 13D1Y 9M 14D
Franklin India Low Duration Fund Growth ₹22.2133
↑ 0.00
₹5,704 10,000 -0.91.35.47.3 10.98%10M 28D1Y 2M 5D
L&T Credit Risk Fund Growth ₹21.0205
↓ -0.01
₹2,093 10,000 -0.91.52.44.9 9.6%1Y 7M 20D2Y 3M
ICICI Prudential Regular Savings Fund Growth ₹21.1646
↓ -0.01
₹11,364 10,000 2.65.19.57.5 9.53%1Y 5M 23D1Y 10M 10D
Reliance Prime Debt Fund Growth ₹40.9659
↓ -0.01
₹957 1,000 1.24.17.97 9.48%1Y 7M 20D1Y 11M 12D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 11 Dec 19
*List of Debt Mutual Funds having net assets > 500 Crore and Fund have assets under manegement for atleast 3 years.

1. Reliance 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.

Reliance 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 6.7% since its launch.  Ranked 21 in Credit Risk category. .

Below is the key information for Reliance Credit Risk Fund

Reliance Credit Risk Fund
Growth
Launch Date 8 Jun 05
NAV (11 Dec 19) ₹25.5813 ↓ 0.00   (-0.02 %)
Net Assets (Cr) ₹6,067 on 31 Oct 19
Category Debt - Credit Risk
AMC Reliance Nippon Life Asset Management Ltd.
Rating
Risk Moderate
Expense Ratio 1.82
Sharpe Ratio 0.1
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 13.11%
Effective Maturity 2 Years 5 Months 5 Days
Modified Duration 1 Year 9 Months

Growth of 10,000 investment over the years.

DateValue
30 Nov 14₹10,000
30 Nov 15₹10,880
30 Nov 16₹12,063
30 Nov 17₹12,885
30 Nov 18₹13,544
30 Nov 19₹13,861

Reliance 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 Reliance Credit Risk Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 11 Dec 19

DurationReturns
1 Month -0.4%
3 Month 0%
6 Month 0.8%
1 Year 2.2%
3 Year 4.9%
5 Year 6.7%
10 Year
15 Year
Since launch 6.7%
Historical performance (Yearly) on absolute basis
YearReturns
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
Fund Manager information for Reliance Credit Risk Fund
NameSinceTenure
Prashant Pimple9 Oct 099.98 Yr.
Kinjal Desai25 May 181.35 Yr.

Data below for Reliance Credit Risk Fund as on 31 Oct 19

Asset Allocation
Asset ClassValue
Cash4.81%
Debt95.19%
Other0%
Debt Sector Allocation
SectorValue
Corporate95.19%
Cash Equivalent4.81%
Credit Quality
RatingValue
A36.27%
AA28.65%
AAA0.01%
BBB22.69%
Below B0.86%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
RMZ Buildcon Private Limited
Debentures | -
12%₹699 Cr10,100
Yes Bank Limited
Debentures | -
9%₹538 Cr6,500
MARIPOSA AGRI VENTURES AND HOSPITALITIES PRIVATE LIMITED
Debentures | -
6%₹345 Cr3,000
Nirma Limited
Debentures | -
5%₹290 Cr3,000
Vineha Enterprises Private Limited
Debentures | -
5%₹277 Cr22,500
Renew Wind Energy (Rajasthan One) Private Limited
Debentures | -
5%₹273 Cr3,060
Indiabulls Housing Finance Limited
Debentures | -
4%₹249 Cr2,960
Sugee Builders Private Limited
Debentures | -
4%₹228 Cr201
Aqua Space Developers Pvt. Ltd.
Debentures | -
4%₹215 Cr2,150
Piramal Enterprises Limited
Debentures | -
3%₹205 Cr2,096

2. 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% since its launch. .

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 (11 Dec 19) ₹13.725 ↓ 0.00   (-0.02 %)
Net Assets (Cr) ₹5,904 on 31 Oct 19
Category Debt - Credit Risk
AMC Birla Sun Life Asset Management Co Ltd
Rating Not Rated
Risk Moderate
Expense Ratio 1.72
Sharpe Ratio 1.29
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 12.51%
Effective Maturity 1 Year 9 Months 14 Days
Modified Duration 1 Year 4 Months 13 Days

Growth of 10,000 investment over the years.

DateValue
30 Nov 15₹10,537
30 Nov 16₹11,749
30 Nov 17₹12,627
30 Nov 18₹13,346
30 Nov 19₹13,702

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 ₹197,169.
Net Profit of ₹17,169
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 11 Dec 19

DurationReturns
1 Month -2.6%
3 Month -2.9%
6 Month -0.2%
1 Year 2.3%
3 Year 5.5%
5 Year
10 Year
15 Year
Since launch 7%
Historical performance (Yearly) on absolute basis
YearReturns
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
Fund Manager information for Aditya Birla Sun Life Credit Risk Fund
NameSinceTenure
Maneesh Dangi17 Apr 154.54 Yr.
Sunaina Cunha1 Apr 172.58 Yr.

Data below for Aditya Birla Sun Life Credit Risk Fund as on 31 Oct 19

Asset Allocation
Asset ClassValue
Cash20.51%
Equity0.08%
Debt79.4%
Debt Sector Allocation
SectorValue
Corporate63.47%
Government16.65%
Cash Equivalent16.3%
Securitized3.5%
Credit Quality
RatingValue
A12.8%
AA26.62%
AAA49.68%
BB3.51%
BBB2.03%
Below B1.63%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
SP Imperial Star Private Limited
Unlisted bonds | -
4%₹248 Cr185
Adilink Infra & Multitrading Private Limited
Debentures | -
4%₹212 Cr2,650
Housing And Urban Development Corporation Ltd.
Debentures | -
3%₹200 Cr2,000
↑ 2,000
Sprit Textiles Private Limited
Debentures | -
3%₹199 Cr1,585
NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Debentures | -
3%₹184 Cr1,750
↑ 450
Air India Assets Holding Limited
Debentures | -
3%₹176 Cr1,750
L & T Vadodara Bharuch Tollway Limited
Debentures | -
3%₹170 Cr170,850
Tata Motors Finance Limited
Debentures | -
3%₹169 Cr1,330
Net Receivables / (Payables)
Net Current Assets | -
3%₹164 Cr
ASIRVAD MICRO FINANCE LIMITED
Debentures | -
3%₹161 Cr2,500

3. 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 8.9% since its launch.  Ranked 3 in Low Duration category. .

Below is the key information for Franklin India Low Duration Fund

Franklin India Low Duration Fund
Growth
Launch Date 26 Jul 10
NAV (11 Dec 19) ₹22.2133 ↑ 0.00   (0.01 %)
Net Assets (Cr) ₹5,704 on 31 Oct 19
Category Debt - Low Duration
AMC Franklin Templeton Asst Mgmt(IND)Pvt Ltd
Rating
Risk Moderate
Expense Ratio 0.78
Sharpe Ratio 3.09
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 10.98%
Effective Maturity 1 Year 2 Months 5 Days
Modified Duration 10 Months 28 Days

Growth of 10,000 investment over the years.

DateValue
30 Nov 14₹10,000
30 Nov 15₹10,995
30 Nov 16₹12,096
30 Nov 17₹13,107
30 Nov 18₹14,117
30 Nov 19₹15,203

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 ₹206,148.
Net Profit of ₹26,148
Invest Now

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 11 Dec 19

DurationReturns
1 Month -1.2%
3 Month -0.9%
6 Month 1.3%
1 Year 5.4%
3 Year 7.3%
5 Year 8.3%
10 Year
15 Year
Since launch 8.9%
Historical performance (Yearly) on absolute basis
YearReturns
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
Fund Manager information for Franklin India Low Duration Fund
NameSinceTenure
Santosh Kamath15 Apr 145.55 Yr.
Kunal Agrawal15 Apr 145.55 Yr.

Data below for Franklin India Low Duration Fund as on 31 Oct 19

Asset Allocation
Asset ClassValue
Cash21.34%
Debt76.65%
Other2.01%
Debt Sector Allocation
SectorValue
Corporate89.58%
Cash Equivalent6.81%
Government1.6%
Credit Quality
RatingValue
A39.83%
AA30.92%
AAA23.58%
BB4.54%
Below B1.13%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Greenko Clean Energy Projects Private Limited
Debentures | -
5%₹300 Cr30,000
Small Business Fincredit India Private Limited
Debentures | -
4%₹247 Cr2,500
Renew Power Ventures Private Limited
Debentures | -
4%₹217 Cr2,170
PIRAMAL CAPITAL & HOUSING FINANCE LIMITED
Debentures | -
4%₹200 Cr2,500
ESS KAY FINCORP LIMITED
Debentures | -
3%₹196 Cr2,000
Tata Projects Limited
Commercial Paper | -
3%₹190 Cr4,000
Vodafone Mobile Services Limited
Debentures | -
3%₹175 Cr1,970
HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED
Commercial Paper | -
3%₹167 Cr3,400
↓ -100
ReNew Solar Power Private Limited
Debentures | -
3%₹154 Cr1,498
Essel Infraprojects Limited
Debentures | -
3%₹154 Cr110

4. L&T Credit Risk Fund

(Erstwhile L&T Income Opportunities Fund)

The Scheme seeks to generate regular returns and capital appreciation by investing in debt (including securitised debt), government and money market securities.

L&T Credit Risk Fund is a Debt - Credit Risk fund was launched on 8 Oct 09. It is a fund with Moderate risk and has given a CAGR/Annualized return of 7.6% since its launch.  Ranked 12 in Credit Risk category. .

Below is the key information for L&T Credit Risk Fund

L&T Credit Risk Fund
Growth
Launch Date 8 Oct 09
NAV (11 Dec 19) ₹21.0205 ↓ -0.01   (-0.03 %)
Net Assets (Cr) ₹2,093 on 31 Oct 19
Category Debt - Credit Risk
AMC L&T Investment Management Ltd
Rating
Risk Moderate
Expense Ratio 1.83
Sharpe Ratio -0.13
Information Ratio -1.33
Alpha Ratio -14.5
Min Investment 10,000
Min SIP Investment 1,000
Exit Load 0-1 Years (1%),1 Years and above(NIL)
Yield to Maturity 9.6%
Effective Maturity 2 Years 3 Months
Modified Duration 1 Year 7 Months 20 Days

Growth of 10,000 investment over the years.

DateValue
30 Nov 14₹10,000
30 Nov 15₹10,975
30 Nov 16₹12,149
30 Nov 17₹12,984
30 Nov 18₹13,604
30 Nov 19₹13,974

L&T 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 L&T Credit Risk Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 11 Dec 19

DurationReturns
1 Month 0.6%
3 Month -0.9%
6 Month 1.5%
1 Year 2.4%
3 Year 4.9%
5 Year 6.8%
10 Year
15 Year
Since launch 7.6%
Historical performance (Yearly) on absolute basis
YearReturns
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
Fund Manager information for L&T Credit Risk Fund
NameSinceTenure
Shriram Ramanathan24 Nov 127.02 Yr.
Vikas Garg3 Apr 172.66 Yr.

Data below for L&T Credit Risk Fund as on 31 Oct 19

Asset Allocation
Asset ClassValue
Cash0.86%
Debt94.32%
Other4.82%
Debt Sector Allocation
SectorValue
Corporate80.67%
Government13.66%
Cash Equivalent0.86%
Credit Quality
RatingValue
A34.62%
AA40.15%
AAA24.98%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Green Infra Wind Energy Limited
Debentures | -
8%₹150 Cr1,500
Samasta Microfinance Limited
Debentures | -
8%₹149 Cr1,500
Renew Power Ventures Private Limited
Debentures | -
6%₹119 Cr1,210
Bharat Aluminium Company Limited
Debentures | -
6%₹115 Cr1,150
Vizag General Cargo Berth Private Limited
Debentures | -
5%₹99 Cr1,000
Tata Power Renewable Energy Limited
Debentures | -
5%₹99 Cr1,000
(B) Net Receivables/(Payables)
Receivables | -
5%₹95 Cr
Jhajjar Power Limited
Debentures | -
5%₹90 Cr90
Syndicate Bank
Debentures | -
4%₹86 Cr835
↓ -150
NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Debentures | -
4%₹85 Cr800

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. .

Below is the key information for ICICI Prudential Regular Savings Fund

ICICI Prudential Regular Savings Fund
Growth
Launch Date 3 Dec 10
NAV (11 Dec 19) ₹21.1646 ↓ -0.01   (-0.05 %)
Net Assets (Cr) ₹11,364 on 31 Oct 19
Category Debt - Credit Risk
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 1.81
Sharpe Ratio 4.98
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 9.53%
Effective Maturity 1 Year 10 Months 10 Days
Modified Duration 1 Year 5 Months 23 Days

Growth of 10,000 investment over the years.

DateValue
30 Nov 14₹10,000
30 Nov 15₹10,922
30 Nov 16₹12,034
30 Nov 17₹12,828
30 Nov 18₹13,592
30 Nov 19₹14,925

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 11 Dec 19

DurationReturns
1 Month 0.9%
3 Month 2.6%
6 Month 5.1%
1 Year 9.5%
3 Year 7.5%
5 Year 8.2%
10 Year
15 Year
Since launch 8.7%
Historical performance (Yearly) on absolute basis
YearReturns
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
Fund Manager information for ICICI Prudential Regular Savings Fund
NameSinceTenure
Manish Banthia7 Nov 162.39 Yr.
Akhil Kakkar3 Jun 171.82 Yr.

Data below for ICICI Prudential Regular Savings Fund as on 31 Oct 19

Asset Allocation
Asset ClassValue
Cash10.6%
Equity0.78%
Debt88.63%
Debt Sector Allocation
SectorValue
Corporate87.23%
Cash Equivalent10.6%
Government1.1%
Securitized0.29%
Credit Quality
RatingValue
A27.96%
AA53.94%
AAA12.59%
BB1.69%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
ICICI Bank Limited
Debentures | -
5%₹607 Cr5,990
Treps
CBLO/Reverse Repo | -
4%₹494 Cr
PIPELINE INFRASTRUCTURE PRIVATE LIMITED
Debentures | -
4%₹440 Cr4,359
↑ 1,320
Nuvoco Vistas Corporation Ltd.
Debentures | -
3%₹353 Cr3,500
Welspun Renewables Energy Private Limited
Debentures | -
3%₹328 Cr3,350
Aqua Space Developers Pvt. Ltd.
Debentures | -
3%₹300 Cr3,000
Net Current Assets
Net Current Assets | -
3%₹298 Cr
Muthoot Finance Limited
Debentures | -
2%₹281 Cr2,870,000
Prestige Estates Projects Limited
Debentures | -
2%₹246 Cr2,500
The Great Eastern Shipping Company Limited
Debentures | -
2%₹241 Cr2,493
↑ 2,493

6. Reliance Prime Debt Fund

(Erstwhile Reliance Medium Term Fund)

The primary investment objective of the Scheme is to generate regular income in order to make regular dividend payments to unit-holders and the secondary objective is growth of capital.

Reliance Prime Debt Fund is a Debt - Corporate Bond fund was launched on 14 Sep 00. It is a fund with Moderately Low risk and has given a CAGR/Annualized return of 7.6% since its launch.  Ranked 20 in Corporate Bond category. .

Below is the key information for Reliance Prime Debt Fund

Reliance Prime Debt Fund
Growth
Launch Date 14 Sep 00
NAV (11 Dec 19) ₹40.9659 ↓ -0.01   (-0.01 %)
Net Assets (Cr) ₹957 on 31 Oct 19
Category Debt - Corporate Bond
AMC Reliance Nippon Life Asset Management Ltd.
Rating
Risk Moderately Low
Expense Ratio 0.71
Sharpe Ratio 2.94
Information Ratio 0
Alpha Ratio 0
Min Investment 1,000
Min SIP Investment 100
Exit Load NIL
Yield to Maturity 9.48%
Effective Maturity 1 Year 11 Months 12 Days
Modified Duration 1 Year 7 Months 20 Days

Growth of 10,000 investment over the years.

DateValue
30 Nov 14₹10,000
30 Nov 15₹10,894
30 Nov 16₹11,938
30 Nov 17₹12,719
30 Nov 18₹13,495
30 Nov 19₹14,584

Reliance Prime 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 ₹203,125.
Net Profit of ₹23,125
Invest Now

Returns for Reliance Prime 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 11 Dec 19

DurationReturns
1 Month 0.6%
3 Month 1.2%
6 Month 4.1%
1 Year 7.9%
3 Year 7%
5 Year 7.8%
10 Year
15 Year
Since launch 7.6%
Historical performance (Yearly) on absolute basis
YearReturns
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
Fund Manager information for Reliance Prime Debt Fund
NameSinceTenure
Amit Tripathi8 Oct 0712.07 Yr.
Anju Chhajer9 Oct 0910.07 Yr.
Kinjal Desai25 May 181.44 Yr.

Data below for Reliance Prime Debt Fund as on 31 Oct 19

Asset Allocation
Asset ClassValue
Cash3.94%
Debt96.06%
Other0%
Debt Sector Allocation
SectorValue
Corporate71.14%
Government17.69%
Securitized7.23%
Cash Equivalent3.94%
Credit Quality
RatingValue
A6.7%
AA19.83%
AAA73.47%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Debentures | -
9%₹84 Cr800
↓ -250
Adani Transmission Limited
Debentures | -
8%₹81 Cr808
Sansar Trust Sep 2017 III SR-A7 PTC
Unlisted bonds | -
7%₹69 Cr73
EMBASSY OFFICE PARKS REIT
Debentures | -
7%₹69 Cr650
Indiabulls Housing Finance Limited
Debentures | -
7%₹63 Cr750
INDIAN RECEIVABLE TRUST 18 FEB 2019
Unlisted bonds | -
6%₹61 Cr1,080
Power Finance Corporation Ltd.
Debentures | -
5%₹52 Cr500
Larsen And Toubro Limited
Debentures | -
5%₹51 Cr500
INDIA GRID TRUST
Debentures | -
5%₹51 Cr500
Reliance Utilities And Power Private Limited
Debentures | -
5%₹49 Cr500

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.

How to Invest in Debt Lump Sum Online?

  1. Open Free Investment Account for Lifetime at Fincash.com.

  2. Complete your Registration and KYC Process

  3. Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!

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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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