+91-22-489139096 Best Debt Mutual Funds for Lump sum Investments 2025
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 25 - 26
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
Fund NAV Net Assets (Cr) Min Investment 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2024 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity Nippon India Credit Risk Fund Growth ₹36.2213
↑ 0.01 ₹1,016 500 1.7 3.6 8.9 8.3 8.3 8.19% 2Y 22D 2Y 5M 1D ICICI Prudential Regular Savings Fund Growth ₹33.108
↑ 0.02 ₹5,930 10,000 2.2 4.1 9.3 8.3 8.5 8.13% 1Y 11M 1D 2Y 11M 23D Kotak Credit Risk Fund Growth ₹30.5377
↑ 0.01 ₹719 5,000 1.7 3.8 8.8 7.5 7.1 7.72% 2Y 2M 12D 2Y 8M 8D HDFC Low Duration Fund Growth ₹59.3961
↑ 0.02 ₹25,757 5,000 1.5 2.8 7.2 7.2 7.4 6.87% 10M 24D 1Y 10M 17D Kotak Low Duration Fund Growth ₹3,436.84
↑ 0.18 ₹15,024 5,000 1.4 2.8 7 7 7.3 6.79% 10M 13D 1Y 3M 29D Nippon India Low Duration Fund Growth ₹3,853.19
↑ 1.05 ₹11,595 500 1.5 2.9 7.2 7.1 7.4 6.78% 11M 2D 1Y 2M 17D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 19 Dec 25 Research Highlights & Commentary of 6 Funds showcased
Commentary Nippon India Credit Risk Fund ICICI Prudential Regular Savings Fund Kotak Credit Risk Fund HDFC Low Duration Fund Kotak Low Duration Fund Nippon India Low Duration Fund Point 1 Bottom quartile AUM (₹1,016 Cr). Lower mid AUM (₹5,930 Cr). Bottom quartile AUM (₹719 Cr). Highest AUM (₹25,757 Cr). Upper mid AUM (₹15,024 Cr). Upper mid AUM (₹11,595 Cr). Point 2 Established history (20+ yrs). Established history (15+ yrs). Established history (15+ yrs). Oldest track record among peers (26 yrs). Established history (17+ yrs). Established history (18+ yrs). Point 3 Rating: 2★ (bottom quartile). Rating: 1★ (bottom quartile). Rating: 3★ (upper mid). Rating: 3★ (upper mid). Top rated. Rating: 3★ (lower mid). Point 4 Risk profile: Moderate. Risk profile: Moderate. Risk profile: Moderately Low. Risk profile: Moderately Low. Risk profile: Moderate. Risk profile: Moderately Low. Point 5 1Y return: 8.93% (upper mid). 1Y return: 9.32% (top quartile). 1Y return: 8.81% (upper mid). 1Y return: 7.20% (bottom quartile). 1Y return: 7.04% (bottom quartile). 1Y return: 7.24% (lower mid). Point 6 1M return: 0.27% (bottom quartile). 1M return: 0.43% (top quartile). 1M return: 0.30% (lower mid). 1M return: 0.33% (upper mid). 1M return: 0.29% (bottom quartile). 1M return: 0.32% (upper mid). Point 7 Sharpe: 3.07 (top quartile). Sharpe: 2.99 (upper mid). Sharpe: 1.92 (bottom quartile). Sharpe: 2.04 (lower mid). Sharpe: 1.86 (bottom quartile). Sharpe: 2.49 (upper mid). 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): 8.19% (top quartile). Yield to maturity (debt): 8.13% (upper mid). Yield to maturity (debt): 7.72% (upper mid). Yield to maturity (debt): 6.87% (lower mid). Yield to maturity (debt): 6.79% (bottom quartile). Yield to maturity (debt): 6.78% (bottom quartile). Point 10 Modified duration: 2.06 yrs (bottom quartile). Modified duration: 1.92 yrs (lower mid). Modified duration: 2.20 yrs (bottom quartile). Modified duration: 0.90 yrs (upper mid). Modified duration: 0.87 yrs (top quartile). Modified duration: 0.92 yrs (upper mid). Nippon India Credit Risk Fund
ICICI Prudential Regular Savings Fund
Kotak Credit Risk Fund
HDFC Low Duration Fund
Kotak Low Duration Fund
Nippon India Low Duration 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. Below is the key information for Nippon India 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 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 HDFC Cash Management Fund - Treasury Advantage Plan) To generate regular income through investment in debt securities and money market instruments. Research Highlights for HDFC Low Duration Fund Below is the key information for HDFC Low Duration 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 (Erstwhile Reliance Money Manager Fund) The investment objective of the Scheme is to generate optimal returns consistent with moderate levels of risk and liquidity by investing in debt securities and money market securities. Research Highlights for Nippon India Low Duration Fund Below is the key information for Nippon India 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 (19 Dec 25) ₹36.2213 ↑ 0.01 (0.02 %) Net Assets (Cr) ₹1,016 on 15 Dec 25 Category Debt - Credit Risk AMC Nippon Life Asset Management Ltd. Rating ☆☆ Risk Moderate Expense Ratio 1.46 Sharpe Ratio 3.07 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 8.19% Effective Maturity 2 Years 5 Months 1 Day Modified Duration 2 Years 22 Days Growth of 10,000 investment over the years.
Date Value 30 Nov 20 ₹10,000 30 Nov 21 ₹11,395 30 Nov 22 ₹11,834 30 Nov 23 ₹12,742 30 Nov 24 ₹13,800 30 Nov 25 ₹15,074 Returns for Nippon India Credit Risk Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 19 Dec 25 Duration Returns 1 Month 0.3% 3 Month 1.7% 6 Month 3.6% 1 Year 8.9% 3 Year 8.3% 5 Year 8.5% 10 Year 15 Year Since launch 6.5% Historical performance (Yearly) on absolute basis
Year Returns 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% 2015 8.8% Fund Manager information for Nippon India Credit Risk Fund
Name Since Tenure Kinjal Desai 25 May 18 7.44 Yr. Sushil Budhia 1 Feb 20 5.75 Yr. Lokesh Maru 5 Sep 25 0.16 Yr. Divya Sharma 5 Sep 25 0.16 Yr. Data below for Nippon India Credit Risk Fund as on 15 Dec 25
Asset Allocation
Asset Class Value Cash 7.88% Debt 91.83% Other 0.29% Debt Sector Allocation
Sector Value Corporate 73.25% Government 18.58% Cash Equivalent 7.88% Credit Quality
Rating Value A 24.36% AA 43.74% AAA 31.91% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.02% Govt Stock 2031
Sovereign Bonds | -8% ₹77 Cr 7,500,000 Renew Solar Energy (Jharkhand Five) Private Limited
Debentures | -5% ₹48 Cr 5,000 Jubilant Bevco Limited
Debentures | -4% ₹43 Cr 4,000 TRuhome Finance Limited
Debentures | -4% ₹41 Cr 4,000 The Sandur Manganese And Iron Ores Limited
Debentures | -4% ₹39 Cr 4,000 Delhi International Airport Limited
Debentures | -4% ₹36 Cr 3,500 Mancherial Repallewada Road Private Limited
Debentures | -4% ₹36 Cr 4,500 Vedanta Limited
Debentures | -3% ₹35 Cr 3,500 Renserv Global Private Limited
Debentures | -3% ₹35 Cr 3,500 Hiranandani Financial Services Private Limited
Debentures | -3% ₹35 Cr 3,500 2. ICICI Prudential Regular Savings Fund
ICICI Prudential Regular Savings Fund
Growth Launch Date 3 Dec 10 NAV (19 Dec 25) ₹33.108 ↑ 0.02 (0.05 %) Net Assets (Cr) ₹5,930 on 15 Dec 25 Category Debt - Credit Risk AMC ICICI Prudential Asset Management Company Limited Rating ☆ Risk Moderate Expense Ratio 1.43 Sharpe Ratio 2.99 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 8.13% Effective Maturity 2 Years 11 Months 23 Days Modified Duration 1 Year 11 Months 1 Day Growth of 10,000 investment over the years.
Date Value 30 Nov 20 ₹10,000 30 Nov 21 ₹10,667 30 Nov 22 ₹11,163 30 Nov 23 ₹11,943 30 Nov 24 ₹12,989 30 Nov 25 ₹14,220 Returns for ICICI Prudential Regular Savings Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 19 Dec 25 Duration Returns 1 Month 0.4% 3 Month 2.2% 6 Month 4.1% 1 Year 9.3% 3 Year 8.3% 5 Year 7.2% 10 Year 15 Year Since launch 8.3% Historical performance (Yearly) on absolute basis
Year Returns 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% 2015 9% Fund Manager information for ICICI Prudential Regular Savings Fund
Name Since Tenure Manish Banthia 7 Nov 16 8.99 Yr. Akhil Kakkar 22 Jan 24 1.78 Yr. Data below for ICICI Prudential Regular Savings Fund as on 15 Dec 25
Asset Allocation
Asset Class Value Cash 4.8% Equity 8.51% Debt 86.68% Debt Sector Allocation
Sector Value Corporate 73.37% Government 14.14% Cash Equivalent 3.98% Credit Quality
Rating Value A 21.16% AA 57.37% AAA 21.47% Top Securities Holdings / Portfolio
Name Holding Value Quantity Embassy Office Parks REIT (Real Estate)
-, Since 30 Apr 25 | 5426024% ₹251 Cr 6,030,181 Keystone Realtors Limited
Debentures | -4% ₹236 Cr 23,500 7.1% Govt Stock 2034
Sovereign Bonds | -4% ₹212 Cr 20,517,530 Millennia Realtors Private Limited
Debentures | -4% ₹211 Cr 2,100 Vedanta Limited
Debentures | -3% ₹201 Cr 20,000 Adani Enterprises Limited
Debentures | -3% ₹200 Cr 20,000 Bamboo Hotel And Global Centre (Delhi) Private Limited
Debentures | -3% ₹188 Cr 18,500 Varroc Engineering Limited
Debentures | -3% ₹188 Cr 25,000 Jtpm Metal TRaders Limited
Debentures | -3% ₹185 Cr 18,000 Nirma Limited
Debentures | -3% ₹152 Cr 15,000 3. Kotak Credit Risk Fund
Kotak Credit Risk Fund
Growth Launch Date 11 May 10 NAV (19 Dec 25) ₹30.5377 ↑ 0.01 (0.04 %) Net Assets (Cr) ₹719 on 15 Dec 25 Category Debt - Credit Risk AMC Kotak Mahindra Asset Management Co Ltd Rating ☆☆☆ Risk Moderately Low Expense Ratio 1.71 Sharpe Ratio 1.92 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 7.72% Effective Maturity 2 Years 8 Months 8 Days Modified Duration 2 Years 2 Months 12 Days Growth of 10,000 investment over the years.
Date Value 30 Nov 20 ₹10,000 30 Nov 21 ₹10,598 30 Nov 22 ₹10,662 30 Nov 23 ₹11,323 30 Nov 24 ₹12,177 30 Nov 25 ₹13,273 Returns for Kotak Credit Risk Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 19 Dec 25 Duration Returns 1 Month 0.3% 3 Month 1.7% 6 Month 3.8% 1 Year 8.8% 3 Year 7.5% 5 Year 5.8% 10 Year 15 Year Since launch 7.4% Historical performance (Yearly) on absolute basis
Year Returns 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% 2015 9.1% Fund Manager information for Kotak Credit Risk Fund
Name Since Tenure Deepak Agrawal 11 May 10 15.49 Yr. Vihag Mishra 24 Oct 25 0.02 Yr. Data below for Kotak Credit Risk Fund as on 15 Dec 25
Asset Allocation
Asset Class Value Cash 5.67% Equity 9.25% Debt 84.52% Other 0.56% Debt Sector Allocation
Sector Value Corporate 69.52% Government 15% Cash Equivalent 5.67% Credit Quality
Rating Value A 11.85% AA 58.05% AAA 30.1% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.18% Govt Stock 2033
Sovereign Bonds | -9% ₹62 Cr 5,965,000 Jubilant Bevco Limited
Debentures | -7% ₹53 Cr 500 Bamboo Hotel And Global Centre (Delhi) Private Limited
Debentures | -7% ₹51 Cr 5,000 TATA Projects Limited
Debentures | -7% ₹51 Cr 5,000 Vedanta Limited
Debentures | -7% ₹50 Cr 5,000 Rec Limited
Debentures | -7% ₹50 Cr 5,000 Aditya Birla Real Estate Limited
Debentures | -6% ₹46 Cr 4,500 Aditya Birla Renewables Limited
Debentures | -6% ₹41 Cr 4,000 Au Small Finance Bank Limited
Debentures | -4% ₹30 Cr 30 Embassy Office Parks REIT (Real Estate)
-, Since 30 Apr 25 | 5426024% ₹26 Cr 636,630 4. HDFC Low Duration Fund
HDFC Low Duration Fund
Growth Launch Date 18 Nov 99 NAV (19 Dec 25) ₹59.3961 ↑ 0.02 (0.03 %) Net Assets (Cr) ₹25,757 on 30 Nov 25 Category Debt - Low Duration AMC HDFC Asset Management Company Limited Rating ☆☆☆ Risk Moderately Low Expense Ratio 1.03 Sharpe Ratio 2.04 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 300 Exit Load NIL Yield to Maturity 6.87% Effective Maturity 1 Year 10 Months 17 Days Modified Duration 10 Months 24 Days Growth of 10,000 investment over the years.
Date Value 30 Nov 20 ₹10,000 30 Nov 21 ₹10,400 30 Nov 22 ₹10,795 30 Nov 23 ₹11,547 30 Nov 24 ₹12,404 30 Nov 25 ₹13,318 Returns for HDFC Low Duration Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 19 Dec 25 Duration Returns 1 Month 0.3% 3 Month 1.5% 6 Month 2.8% 1 Year 7.2% 3 Year 7.2% 5 Year 5.9% 10 Year 15 Year Since launch 7.1% Historical performance (Yearly) on absolute basis
Year Returns 2024 7.4% 2023 7% 2022 4.1% 2021 3.7% 2020 8.1% 2019 8% 2018 6.5% 2017 6.4% 2016 8.6% 2015 7.7% Fund Manager information for HDFC Low Duration Fund
Name Since Tenure Anupam Joshi 27 Oct 15 10.02 Yr. Praveen Jain 6 Oct 22 3.07 Yr. Dhruv Muchhal 22 Jun 23 2.36 Yr. Data below for HDFC Low Duration Fund as on 30 Nov 25
Asset Allocation
Asset Class Value Cash 4.75% Debt 95% Other 0.25% Debt Sector Allocation
Sector Value Corporate 66.85% Government 25.86% Cash Equivalent 4.75% Securitized 2.29% Credit Quality
Rating Value AA 13.49% AAA 86.51% Top Securities Holdings / Portfolio
Name Holding Value Quantity 6.63% Govt Stock 2031
Sovereign Bonds | -5% ₹1,266 Cr 124,500,000
↑ 5,500,000 6.82% Govt Stock 2033
Sovereign Bonds | -4% ₹1,131 Cr 109,500,000
↓ -500,000 Sikka Ports & Terminals Limited
Debentures | -3% ₹770 Cr 7,700 Mangalore Refinery And Petrochemicals Limited
Debentures | -3% ₹730 Cr 7,300 Jubilant Beverages Limited
Debentures | -2% ₹634 Cr 59,740 National Bank For Agriculture And Rural Development
Debentures | -2% ₹634 Cr 62,500 Rec Limited
Debentures | -2% ₹522 Cr 52,000
↑ 5,000 6.22% Govt Stock 2028
Sovereign Bonds | -2% ₹505 Cr 50,000,000 Power Finance Corporation Limited
Debentures | -2% ₹502 Cr 50,000 National Housing Bank
Debentures | -2% ₹427 Cr 42,500 5. Kotak Low Duration Fund
Kotak Low Duration Fund
Growth Launch Date 6 Mar 08 NAV (19 Dec 25) ₹3,436.84 ↑ 0.18 (0.01 %) Net Assets (Cr) ₹15,024 on 30 Nov 25 Category Debt - Low Duration AMC Kotak Mahindra Asset Management Co Ltd Rating ☆☆☆☆ Risk Moderate Expense Ratio 1.17 Sharpe Ratio 1.86 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 6.79% Effective Maturity 1 Year 3 Months 29 Days Modified Duration 10 Months 13 Days Growth of 10,000 investment over the years.
Date Value 30 Nov 20 ₹10,000 30 Nov 21 ₹10,354 30 Nov 22 ₹10,728 30 Nov 23 ₹11,435 30 Nov 24 ₹12,272 30 Nov 25 ₹13,164 Returns for Kotak Low Duration Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 19 Dec 25 Duration Returns 1 Month 0.3% 3 Month 1.4% 6 Month 2.8% 1 Year 7% 3 Year 7% 5 Year 5.7% 10 Year 15 Year Since launch 7.2% Historical performance (Yearly) on absolute basis
Year Returns 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% 2015 9.3% Fund Manager information for Kotak Low Duration Fund
Name Since Tenure Deepak Agrawal 31 Jan 15 10.76 Yr. Dharmesh Thakkar 24 Oct 25 0.02 Yr. Data below for Kotak Low Duration Fund as on 30 Nov 25
Asset Allocation
Asset Class Value Cash 16.57% Debt 83.19% Other 0.24% Debt Sector Allocation
Sector Value Corporate 63.91% Government 21.51% Cash Equivalent 12.17% Securitized 2.17% Credit Quality
Rating Value AA 14.72% AAA 85.28% Top Securities Holdings / Portfolio
Name Holding Value Quantity Small Industries Development Bank Of India
Debentures | -4% ₹679 Cr 67,500 National Bank For Agriculture And Rural Development
Debentures | -3% ₹482 Cr 47,500 National Bank For Agriculture And Rural Development
Debentures | -3% ₹457 Cr 45,000
↑ 45,000 6.82% Govt Stock 2033
Sovereign Bonds | -3% ₹446 Cr 43,148,779 Jtpm Metal TRaders Limited
Debentures | -3% ₹409 Cr 40,000 Bajaj Housing Finance Limited
Debentures | -3% ₹406 Cr 40,000 Rec Limited
Debentures | -3% ₹401 Cr 40,000 Jamnagar Utilities & Power Private Limited
Debentures | -2% ₹382 Cr 3,830 182 Days Treasury Bill 08/05/2026 Tb
Sovereign Bonds | -2% ₹365 Cr 37,500,000
↑ 37,500,000 Bajaj Housing Finance Limited
Debentures | -2% ₹260 Cr 26,000 6. Nippon India Low Duration Fund
Nippon India Low Duration Fund
Growth Launch Date 20 Mar 07 NAV (19 Dec 25) ₹3,853.19 ↑ 1.05 (0.03 %) Net Assets (Cr) ₹11,595 on 15 Dec 25 Category Debt - Low Duration AMC Nippon Life Asset Management Ltd. Rating ☆☆☆ Risk Moderately Low Expense Ratio 0.94 Sharpe Ratio 2.49 Information Ratio 0 Alpha Ratio 0 Min Investment 500 Min SIP Investment 100 Exit Load NIL Yield to Maturity 6.78% Effective Maturity 1 Year 2 Months 17 Days Modified Duration 11 Months 2 Days Growth of 10,000 investment over the years.
Date Value 30 Nov 20 ₹10,000 30 Nov 21 ₹10,414 30 Nov 22 ₹10,821 30 Nov 23 ₹11,542 30 Nov 24 ₹12,394 30 Nov 25 ₹13,320 Returns for Nippon India Low Duration Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 19 Dec 25 Duration Returns 1 Month 0.3% 3 Month 1.5% 6 Month 2.9% 1 Year 7.2% 3 Year 7.1% 5 Year 5.9% 10 Year 15 Year Since launch 7.5% Historical performance (Yearly) on absolute basis
Year Returns 2024 7.4% 2023 6.7% 2022 4.2% 2021 4.1% 2020 7.3% 2019 7% 2018 7.4% 2017 6.6% 2016 8.5% 2015 8.4% Fund Manager information for Nippon India Low Duration Fund
Name Since Tenure Vivek Sharma 1 Feb 20 5.75 Yr. Kinjal Desai 25 May 18 7.44 Yr. Lokesh Maru 5 Sep 25 0.16 Yr. Divya Sharma 5 Sep 25 0.16 Yr. Data below for Nippon India Low Duration Fund as on 15 Dec 25
Asset Allocation
Asset Class Value Cash 30.93% Debt 68.87% Other 0.2% Debt Sector Allocation
Sector Value Corporate 58.16% Government 20.09% Cash Equivalent 19.02% Securitized 2.53% Credit Quality
Rating Value AA 13.84% AAA 86.16% Top Securities Holdings / Portfolio
Name Holding Value Quantity National Bank For Agriculture And Rural Development
Debentures | -3% ₹309 Cr 30,500
↑ 11,000 RADHAKRISHNA SECURITISATION TRUST
Unlisted bonds | -2% ₹202 Cr 200 Telangana State Industrial Infrastructure Corporation Limited
Debentures | -2% ₹202 Cr 20,000 TATA Communications Limited
Debentures | -2% ₹201 Cr 20,000 Poonawalla Fincorp Limited
Debentures | -2% ₹200 Cr 20,000 364 DTB 18122025
Sovereign Bonds | -2% ₹189 Cr 19,000,000 Power Finance Corporation Limited
Debentures | -1% ₹175 Cr 17,500 India (Republic of)
- | -1% ₹173 Cr 17,500,000
↑ 17,500,000 Vertis Infrastructure Trust
Debentures | -1% ₹170 Cr 1,750 Aditya Birla Housing Finance Limited
Debentures | -1% ₹170 Cr 17,000
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