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Fincash » Mutual Funds » Best Debt Lumpsum Investments

6 Best Debt Mutual Funds for Lump sum Investments 2020

Updated on July 9, 2020 , 7797 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 20 - 21

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 (%)2019 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
Nippon India Credit Risk Fund Growth ₹23.1626
↑ 0.02
₹2,101 500 1.7-10.1-8.601.914.42%1Y 7M 20D2Y 2M 1D
UTI Credit Risk Fund Growth ₹10.9905
↑ 0.02
₹548 5,000 -6.2-30-32.9-10.2-4.811.43%5M 8D6M
L&T Credit Risk Fund Growth ₹21.3644
↑ 0.03
₹583 10,000 1.30.81.83.82.311.16%9M 4D11M 16D
HDFC Credit Risk Debt Fund Growth ₹17.1036
↑ 0.05
₹8,436 5,000 3.659.57.28.610.9%2Y 24D2Y 9M 29D
Axis Credit Risk Fund Growth ₹15.461
↑ 0.02
₹802 5,000 2.43.98.25.64.410.86%1Y 6M1Y 9M 18D
Nippon India Ultra Short Duration Fund Growth ₹2,960.99
↑ 7.62
₹820 100 1.92.82.24.60.910.78%5M 4D9M 23D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 10 Jul 20
*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 5.7% since its launch.  Ranked 21 in Credit Risk category.  Return for 2019 was 1.9% , 2018 was 6.1% and 2017 was 7% .

Below is the key information for Nippon India Credit Risk Fund

Nippon India Credit Risk Fund
Growth
Launch Date 8 Jun 05
NAV (10 Jul 20) ₹23.1626 ↑ 0.02   (0.09 %)
Net Assets (Cr) ₹2,101 on 30 Apr 20
Category Debt - Credit Risk
AMC Nippon Life Asset Management Ltd.
Rating
Risk Moderate
Expense Ratio 1.82
Sharpe Ratio -1.07
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 14.42%
Effective Maturity 2 Years 2 Months 1 Day
Modified Duration 1 Year 7 Months 20 Days

Growth of 10,000 investment over the years.

DateValue
30 Jun 15₹10,000
30 Jun 16₹10,905
30 Jun 17₹11,936
30 Jun 18₹12,558
30 Jun 19₹13,010
30 Jun 20₹11,869

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 10 Jul 20

DurationReturns
1 Month 1.7%
3 Month 1.7%
6 Month -10.1%
1 Year -8.6%
3 Year 0%
5 Year 3.6%
10 Year
15 Year
Since launch 5.7%
Historical performance (Yearly) on absolute basis
YearReturns
2019 1.9%
2018 6.1%
2017 7%
2016 10%
2015 8.8%
2014 11%
2013 8%
2012 9.6%
2011 8.4%
2010 4.7%
Fund Manager information for Nippon India Credit Risk Fund
NameSinceTenure
Kinjal Desai25 May 182.1 Yr.
Sushil Budhia1 Feb 200.41 Yr.

Data below for Nippon India Credit Risk Fund as on 30 Apr 20

Asset Allocation
Asset ClassValue
Cash9.37%
Debt90.63%
Debt Sector Allocation
SectorValue
Corporate83.23%
Securitized7.87%
Cash Equivalent7.5%
Government1.4%
Credit Quality
RatingValue
A41.97%
AA26.66%
AAA3.55%
BB0.39%
Below B0%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Vineha Enterprises Private Limited
Debentures | -
16%₹302 Cr22,500
Renew Wind Energy (Rajasthan One) Private Limited
Debentures | -
10%₹185 Cr2,120
Sanghi Industries Limited
Debentures | -
9%₹165 Cr1,660
Net Current Assets
Net Current Assets | -
7%₹137 Cr
Narmada Wind Energy Private Limited
Debentures | -
6%₹115 Cr1,340
Indiabulls Housing Finance Limited
Debentures | -
6%₹114 Cr1,350,000
MARIPOSA AGRI VENTURES AND HOSPITALITIES PRIVATE LIMITED
Debentures | -
6%₹112 Cr894
↓ -408
INDIAN RECEIVABLE TRUST 19 FEB - 2019
Unlisted bonds | -
5%₹96 Cr1,330
INNOVATION TRUST XXX
Unlisted bonds | -
4%₹80 Cr187
INNOVATION TRUST XXX
Unlisted bonds | -
4%₹66 Cr228
↑ 228

2. 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 1.2% since its launch.  Ranked 20 in Credit Risk category.  Return for 2019 was -4.8% , 2018 was 5.5% and 2017 was 6.9% .

Below is the key information for UTI Credit Risk Fund

UTI Credit Risk Fund
Growth
Launch Date 19 Nov 12
NAV (10 Jul 20) ₹10.9905 ↑ 0.02   (0.18 %)
Net Assets (Cr) ₹548 on 30 Apr 20
Category Debt - Credit Risk
AMC UTI Asset Management Company Ltd
Rating
Risk Moderate
Expense Ratio 1.7
Sharpe Ratio -2.51
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 11.43%
Effective Maturity 6 Months
Modified Duration 5 Months 8 Days

Growth of 10,000 investment over the years.

DateValue
30 Jun 15₹10,000
30 Jun 16₹10,905
30 Jun 17₹11,973
30 Jun 18₹12,574
30 Jun 19₹12,884
30 Jun 20₹9,509

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 10 Jul 20

DurationReturns
1 Month -7.7%
3 Month -6.2%
6 Month -30%
1 Year -32.9%
3 Year -10.2%
5 Year -2.9%
10 Year
15 Year
Since launch 1.2%
Historical performance (Yearly) on absolute basis
YearReturns
2019 -4.8%
2018 5.5%
2017 6.9%
2016 10.3%
2015 8.9%
2014 11.5%
2013 7.7%
2012
2011
2010
Fund Manager information for UTI Credit Risk Fund
NameSinceTenure
Ritesh Nambiar9 Nov 127.65 Yr.

Data below for UTI Credit Risk Fund as on 30 Apr 20

Asset Allocation
Asset ClassValue
Cash30.34%
Debt69.66%
Debt Sector Allocation
SectorValue
Corporate45.97%
Cash Equivalent30.34%
Government18.89%
Securitized4.8%
Credit Quality
RatingValue
A15.63%
AA42.18%
AAA42.18%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Net Current Assets
Net Current Assets | -
15%₹70 Cr00
ZEE Learn Limited
Debentures | -
9%₹41 Cr600
Reliance Industries Limited
Debentures | -
9%₹41 Cr400
↑ 400
GOVT STOCK
Sovereign Bonds | -
8%₹36 Cr350,000,000
↑ 350,000,000
AMBA River Coke Limited
Debentures | -
7%₹35 Cr351
Edelweiss Retail Finance Limited
Debentures | -
7%₹33 Cr350,000
Piramal Enterprises Limited
Debentures | -
6%₹30 Cr300
Essar Oil Limited
Debentures | -
6%₹29 Cr30
7.26% Govt Stock 2029
Sovereign Bonds | -
6%₹27 Cr250,000,000
↑ 250,000,000
Power Finance Corporation Ltd.
Debentures | -
5%₹25 Cr250
↑ 250

3. 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 7.3% since its launch.  Ranked 12 in Credit Risk category.  Return for 2019 was 2.3% , 2018 was 5.6% and 2017 was 7.2% .

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

L&T Credit Risk Fund
Growth
Launch Date 8 Oct 09
NAV (10 Jul 20) ₹21.3644 ↑ 0.03   (0.15 %)
Net Assets (Cr) ₹583 on 30 Apr 20
Category Debt - Credit Risk
AMC L&T Investment Management Ltd
Rating
Risk Moderate
Expense Ratio 1.83
Sharpe Ratio -0.79
Information Ratio 0
Alpha Ratio 0
Min Investment 10,000
Min SIP Investment 1,000
Exit Load 0-1 Years (1%),1 Years and above(NIL)
Yield to Maturity 11.16%
Effective Maturity 11 Months 16 Days
Modified Duration 9 Months 4 Days

Growth of 10,000 investment over the years.

DateValue
30 Jun 15₹10,000
30 Jun 16₹10,910
30 Jun 17₹12,008
30 Jun 18₹12,598
30 Jun 19₹13,148
30 Jun 20₹13,034

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 10 Jul 20

DurationReturns
1 Month 4%
3 Month 1.3%
6 Month 0.8%
1 Year 1.8%
3 Year 3.8%
5 Year 6.1%
10 Year
15 Year
Since launch 7.3%
Historical performance (Yearly) on absolute basis
YearReturns
2019 2.3%
2018 5.6%
2017 7.2%
2016 10.1%
2015 9.4%
2014 11.4%
2013 5.8%
2012 9.5%
2011 9.7%
2010 5.8%
Fund Manager information for L&T Credit Risk Fund
NameSinceTenure
Shriram Ramanathan24 Nov 127.6 Yr.
Jalpan Shah20 Mar 200.28 Yr.

Data below for L&T Credit Risk Fund as on 30 Apr 20

Asset Allocation
Asset ClassValue
Cash14.19%
Debt85.81%
Debt Sector Allocation
SectorValue
Corporate64.51%
Government29.17%
Cash Equivalent6.32%
Credit Quality
RatingValue
A20.97%
AA33.12%
AAA45.9%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Vizag General Cargo Berth Private Limited
Debentures | -
26%₹99 Cr1,000
SP Jammu Udhampur Highway Limited
Debentures | -
11%₹44 Cr449
INDOFIL INDUSTRIES LIMITED
Debentures | -
10%₹38 Cr375
INDOFIL INDUSTRIES LIMITED
Debentures | -
10%₹38 Cr375
Export-Import Bank Of India
Certificate of Deposit | -
8%₹30 Cr3,500
↑ 3,500
GOVT STOCK
Sovereign Bonds | -
7%₹26 Cr2,500,000
↑ 2,500,000
National Bank For Agriculture And Rural Development
Debentures | -
7%₹25 Cr250
↑ 250
5.79% Govt Stock 2030
Sovereign Bonds | -
7%₹25 Cr2,500,000
↑ 2,500,000
(A) Tri Party Repo Dealing System (Treps)/Reverse Repo
CBLO/Reverse Repo | -
5%₹20 Cr
Indostar Capital Finance Limited
Debentures | -
5%₹20 Cr200

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 2019 was 8.6% , 2018 was 5.4% and 2017 was 6.6% .

Below is the key information for HDFC Credit Risk Debt Fund

HDFC Credit Risk Debt Fund
Growth
Launch Date 25 Mar 14
NAV (10 Jul 20) ₹17.1036 ↑ 0.05   (0.32 %)
Net Assets (Cr) ₹8,436 on 30 Apr 20
Category Debt - Credit Risk
AMC HDFC Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 1.64
Sharpe Ratio 1.14
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 10.9%
Effective Maturity 2 Years 9 Months 29 Days
Modified Duration 2 Years 24 Days

Growth of 10,000 investment over the years.

DateValue
30 Jun 15₹10,000
30 Jun 16₹10,970
30 Jun 17₹12,105
30 Jun 18₹12,589
30 Jun 19₹13,570
30 Jun 20₹14,795

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 10 Jul 20

DurationReturns
1 Month 3.5%
3 Month 3.6%
6 Month 5%
1 Year 9.5%
3 Year 7.2%
5 Year 8.3%
10 Year
15 Year
Since launch 8.9%
Historical performance (Yearly) on absolute basis
YearReturns
2019 8.6%
2018 5.4%
2017 6.6%
2016 11%
2015 9%
2014
2013
2012
2011
2010
Fund Manager information for HDFC Credit Risk Debt Fund
NameSinceTenure
Shobhit Mehrotra25 Mar 146.27 Yr.
Chirag Dagli31 Jul 190.92 Yr.

Data below for HDFC Credit Risk Debt Fund as on 30 Apr 20

Asset Allocation
Asset ClassValue
Cash5.19%
Debt94.81%
Debt Sector Allocation
SectorValue
Corporate72.61%
Government21.97%
Cash Equivalent5.19%
Securitized0.24%
Credit Quality
RatingValue
A22.64%
AA42.47%
AAA33.84%
B0.12%
Below B0.93%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
PIPELINE INFRASTRUCTURE PRIVATE LIMITED
Debentures | -
7%₹425 Cr4,200
Indinfravit Trust
Unlisted bonds | -
5%₹353 Cr3,500
Punjab National Bank
Debentures | -
4%₹287 Cr3,000
Power Finance Corporation Ltd.
Debentures | -
4%₹282 Cr2,610
↓ -50
Shriram - City Union Finance Limited
Debentures | -
4%₹257 Cr28,000
Net Current Assets
Net Current Assets | -
4%₹252 Cr
DLF Limited
Debentures | -
4%₹249 Cr2,500
Vedanta Limited
Debentures | -
3%₹218 Cr2,327
Tata Motors Limited
Debentures | -
3%₹199 Cr2,150
↓ -350
Tata Motors Limited
Debentures | -
3%₹185 Cr2,000
↓ -100

5. Axis Credit Risk Fund

(Erstwhile Axis Fixed Income Opportunities Fund)

To generate stable returns by investing in debt & money market instruments across the yield curve & credit spectrum. However, there is no assurance or guarantee that the investment objective of the Scheme will be achieved. The Scheme does not assure or guarantee any returns

Axis Credit Risk Fund is a Debt - Credit Risk fund was launched on 15 Jul 14. It is a fund with Moderate risk and has given a CAGR/Annualized return of 7.5% since its launch.  Ranked 4 in Credit Risk category.  Return for 2019 was 4.4% , 2018 was 5.9% and 2017 was 6.4% .

Below is the key information for Axis Credit Risk Fund

Axis Credit Risk Fund
Growth
Launch Date 15 Jul 14
NAV (10 Jul 20) ₹15.461 ↑ 0.02   (0.12 %)
Net Assets (Cr) ₹802 on 30 Apr 20
Category Debt - Credit Risk
AMC Axis Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 1.73
Sharpe Ratio -0.01
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 10.86%
Effective Maturity 1 Year 9 Months 18 Days
Modified Duration 1 Year 6 Months

Growth of 10,000 investment over the years.

DateValue
30 Jun 15₹10,000
30 Jun 16₹10,935
30 Jun 17₹11,919
30 Jun 18₹12,478
30 Jun 19₹12,940
30 Jun 20₹13,972

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 10 Jul 20

DurationReturns
1 Month 1.8%
3 Month 2.4%
6 Month 3.9%
1 Year 8.2%
3 Year 5.6%
5 Year 7%
10 Year
15 Year
Since launch 7.5%
Historical performance (Yearly) on absolute basis
YearReturns
2019 4.4%
2018 5.9%
2017 6.4%
2016 9.8%
2015 8.7%
2014
2013
2012
2011
2010
Fund Manager information for Axis Credit Risk Fund
NameSinceTenure
Devang Shah15 Jul 145.96 Yr.

Data below for Axis Credit Risk Fund as on 30 Apr 20

Asset Allocation
Asset ClassValue
Cash6.04%
Debt93.96%
Debt Sector Allocation
SectorValue
Corporate68.15%
Government18.53%
Securitized7.27%
Cash Equivalent6.04%
Credit Quality
RatingValue
A14.13%
AA39.68%
AAA46.18%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
GOVT STOCK
Sovereign Bonds | -
8%₹59 Cr5,500,000
↑ 5,500,000
Clearing Corporation Of India Ltd
CBLO | -
7%₹49 Cr
Narmada Wind Energy Private Limited
Debentures | -
5%₹36 Cr400
ESSEL MINING & INDUSTRIES LIMITED
Debentures | -
5%₹35 Cr350
6.19% Govt Stock 2034
Sovereign Bonds | -
5%₹35 Cr3,500,000
↑ 3,500,000
Power Finance Corporation Ltd.
Debentures | -
5%₹35 Cr350
↑ 350
Vedanta Limited
Debentures | -
5%₹33 Cr350
Bahadur Chand Investments Private Limited
Debentures | -
4%₹30 Cr300
MFL SECURITISATION TRUST LXXIX
Unlisted bonds | -
4%₹30 Cr576
EMBASSY OFFICE PARKS REIT
Debentures | -
4%₹29 Cr270
↓ -100

6. Nippon India Ultra Short Duration Fund

(Erstwhile Reliance Liquid Fund - Cash Plan)

The investment objective of the Scheme is to generate optimal returns consistent with moderate levels of risk and high liquidity. Accordingly, investments shall predominantly be made in Debt and Money Market Instruments.

Nippon India Ultra Short Duration Fund is a Debt - Ultrashort Bond fund was launched on 7 Dec 01. It is a fund with Low risk and has given a CAGR/Annualized return of 6% since its launch.  Ranked 62 in Ultrashort Bond category.  Return for 2019 was 0.9% , 2018 was 7.3% and 2017 was 5.8% .

Below is the key information for Nippon India Ultra Short Duration Fund

Nippon India Ultra Short Duration Fund
Growth
Launch Date 7 Dec 01
NAV (10 Jul 20) ₹2,960.99 ↑ 7.62   (0.26 %)
Net Assets (Cr) ₹820 on 30 Apr 20
Category Debt - Ultrashort Bond
AMC Nippon Life Asset Management Ltd.
Rating
Risk Low
Expense Ratio 1.09
Sharpe Ratio -0.48
Information Ratio 0
Alpha Ratio 0
Min Investment 100
Min SIP Investment 100
Exit Load NIL
Yield to Maturity 10.78%
Effective Maturity 9 Months 23 Days
Modified Duration 5 Months 4 Days

Growth of 10,000 investment over the years.

DateValue
30 Jun 15₹10,000
30 Jun 16₹10,732
30 Jun 17₹11,373
30 Jun 18₹12,077
30 Jun 19₹12,734
30 Jun 20₹12,983

Nippon India Ultra Short 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 ₹197,169.
Net Profit of ₹17,169
Invest Now

Returns for Nippon India Ultra Short 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 10 Jul 20

DurationReturns
1 Month 1.2%
3 Month 1.9%
6 Month 2.8%
1 Year 2.2%
3 Year 4.6%
5 Year 5.4%
10 Year
15 Year
Since launch 6%
Historical performance (Yearly) on absolute basis
YearReturns
2019 0.9%
2018 7.3%
2017 5.8%
2016 6.8%
2015 7.6%
2014 8.4%
2013 8.5%
2012 9.2%
2011 9%
2010 4.5%
Fund Manager information for Nippon India Ultra Short Duration Fund
NameSinceTenure
Vivek Sharma1 Oct 136.75 Yr.
Kinjal Desai25 May 182.1 Yr.

Data below for Nippon India Ultra Short Duration Fund as on 30 Apr 20

Asset Allocation
Asset ClassValue
Cash10.19%
Debt89.81%
Debt Sector Allocation
SectorValue
Corporate90.08%
Cash Equivalent10.19%
Credit Quality
RatingValue
A28.04%
AA51.47%
AAA15.96%
BB4.54%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Panchshil Corporate Park Private Limited
Debentures | -
14%₹104 Cr104
Piramal Enterprises Limited
Debentures | -
10%₹75 Cr750
↓ -430
U.P. Power Corporation Limited
Debentures | -
9%₹64 Cr650
↓ -100
CLIX FINANCE INDIA PRIVATE LIMITED
Debentures | -
8%₹60 Cr600
Vedanta Limited
Debentures | -
8%₹55 Cr600
↓ -100
Jhajjar Power Limited
Debentures | -
7%₹50 Cr50
Northern Arc Capital Limited
Debentures | -
7%₹50 Cr500
Net Current Assets
Net Current Assets | -
6%₹43 Cr
Northern Arc Capital Limited
Debentures | -
5%₹35 Cr350
↓ -150
Asirvad Micro Finance Private Limited
Debentures | -
5%₹34 Cr335

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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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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