+91-22-489139096 Best Debt Mutual Funds for Lump sum Investments 2026
Debt Mutual Fund schemes in India have grown over the years. As a result, the best performing mutual debt funds in the market keep on changing. There are various rating systems in place to judge a mutual fund scheme, namely CRISIL, Morning Star, ICRA. These systems evaluate a mutual fund in terms of returns, standard deviation, credit quality of securities, rate movement guidance by RBI, etc.
Why To Invest Lump Sum in Debt Mutual Funds?
- Better return than prevailing Fixed Deposit (FD) & Recurring deposit (RD) rates across banks
- Returns are linked to debt markets
- Immediate (T+1) redemption online
- Indexation (Debt Taxation benefits) benefits on returns over three years
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Best Lumpsum Debt Mutual Funds FY 26 - 27
Below are the top ranked funds from Debt Categories primarily funds having AUM > 500 Crore & are in Ultra-short, Corporate bond, Credit Risk, Low Duration sub categories && Having maturity of less than 3 years and providing highest yields.
Fund Selection Methodology used to find 6 funds
Top 6 Lump sum Debt Mutual Funds
Fund NAV Net Assets (Cr) Min Investment 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2025 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity HDFC Credit Risk Debt Fund Growth ₹26.0446
↑ 0.03 ₹7,631 5,000 0.7 3 5.6 7.4 8 8.88% 2Y 4D 2Y 7M 28D SBI Credit Risk Fund Growth ₹49.675
↑ 0.03 ₹2,182 5,000 0.7 3.6 6.4 7.6 7.9 8.86% 2Y 25D 2Y 9M 18D ICICI Prudential Regular Savings Fund Growth ₹34.7895
↑ 0.05 ₹6,320 10,000 0.6 3.1 6.2 8.1 9.5 8.57% 1Y 10M 20D 2Y 11M 19D Kotak Credit Risk Fund Growth ₹31.8827
↑ 0.05 ₹769 5,000 0.6 2.8 5 7.3 9.1 8.43% 1Y 6M 4D 2Y 3M 29D Aditya Birla Sun Life Credit Risk Fund Growth ₹25.4081
↑ 0.02 ₹1,657 1,000 0.7 3.3 10.2 11.9 13.4 8.24% 1Y 7M 10D 2Y 2M 12D HDFC Low Duration Fund Growth ₹61.9914
↑ 0.03 ₹16,513 5,000 0.9 2.5 5.1 6.6 7.2 7.66% 10M 23D 1Y 6M 22D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 30 Oct 26 Research Highlights & Commentary of 6 Funds showcased
Commentary HDFC Credit Risk Debt Fund SBI Credit Risk Fund ICICI Prudential Regular Savings Fund Kotak Credit Risk Fund Aditya Birla Sun Life Credit Risk Fund HDFC Low Duration Fund Point 1 Upper mid AUM (₹7,631 Cr). Lower mid AUM (₹2,182 Cr). Upper mid AUM (₹6,320 Cr). Bottom quartile AUM (₹769 Cr). Bottom quartile AUM (₹1,657 Cr). Highest AUM (₹16,513 Cr). Point 2 Established history (12+ yrs). Established history (22+ yrs). Established history (15+ yrs). Established history (16+ yrs). Established history (11+ yrs). Oldest track record among peers (26 yrs). Point 3 Top rated. Rating: 4★ (upper mid). Rating: 1★ (bottom quartile). Rating: 3★ (upper mid). Not Rated. Rating: 3★ (lower mid). Point 4 Risk profile: Moderate. Risk profile: Moderate. Risk profile: Moderate. Risk profile: Moderately Low. Risk profile: Moderate. Risk profile: Moderately Low. Point 5 1Y return: 5.62% (lower mid). 1Y return: 6.45% (upper mid). 1Y return: 6.15% (upper mid). 1Y return: 4.98% (bottom quartile). 1Y return: 10.20% (top quartile). 1Y return: 5.08% (bottom quartile). Point 6 1M return: -0.10% (upper mid). 1M return: -0.23% (bottom quartile). 1M return: -0.21% (bottom quartile). 1M return: -0.13% (upper mid). 1M return: -0.15% (lower mid). 1M return: 0.08% (top quartile). Point 7 Sharpe: 0.55 (lower mid). Sharpe: 1.02 (upper mid). Sharpe: 0.97 (upper mid). Sharpe: 0.22 (bottom quartile). Sharpe: 1.61 (top quartile). Sharpe: 0.02 (bottom quartile). Point 8 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: 1.23 (top quartile). Information ratio: 0.00 (bottom quartile). Point 9 Yield to maturity (debt): 8.88% (top quartile). Yield to maturity (debt): 8.86% (upper mid). Yield to maturity (debt): 8.57% (upper mid). Yield to maturity (debt): 8.43% (lower mid). Yield to maturity (debt): 8.24% (bottom quartile). Yield to maturity (debt): 7.66% (bottom quartile). Point 10 Modified duration: 2.01 yrs (bottom quartile). Modified duration: 2.07 yrs (bottom quartile). Modified duration: 1.89 yrs (lower mid). Modified duration: 1.51 yrs (upper mid). Modified duration: 1.61 yrs (upper mid). Modified duration: 0.90 yrs (top quartile). HDFC Credit Risk Debt Fund
SBI Credit Risk Fund
ICICI Prudential Regular Savings Fund
Kotak Credit Risk Fund
Aditya Birla Sun Life Credit Risk Fund
HDFC Low Duration Fund
*List of Debt Mutual Funds having net assets > 500 Crore and Fund have assets under manegement for atleast 3 years.
(Erstwhile HDFC Corporate Debt Opportunities Fund) To generate regular income and capital appreciation by investing predominantly in corporate debt. Below is the key information for HDFC Credit Risk Debt Fund Returns up to 1 year are on (Erstwhile SBI Corporate Bond Fund) The investment objective will be to actively manage a portfolio of good
quality corporate debt as well as Money Market Instruments so as to provide
reasonable returns and liquidity to the Unit holders. However there is no
guarantee or assurance that the investment objective of the scheme will
be achieved. Research Highlights for SBI Credit Risk Fund Below is the key information for SBI Credit Risk Fund Returns up to 1 year are on The fund’s objective is to provide reasonable returns, by maintaining an optimum balance of safety, liquidity and yield, through investments in a basket of debt and money market instruments with a view to delivering consistent performance. However, there can be no assurance that the investment objective of the Scheme will be realized. Research Highlights for ICICI Prudential Regular Savings Fund Below is the key information for ICICI Prudential Regular Savings Fund Returns up to 1 year are on (Erstwhile 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 Aditya Birla Sun Life Corporate Bond Fund) The investment objective of the Scheme is to generate returns by predominantly investing in a portfolio of corporate debt securities with short to medium term maturities across the credit spectrum within the investment grade. The Scheme does not guarantee/indicate any returns. There can be no assurance that the schemes’ objectives will be achieved. Research Highlights for Aditya Birla Sun Life Credit Risk Fund Below is the key information for Aditya Birla Sun Life Credit Risk Fund Returns up to 1 year are on (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 1. HDFC Credit Risk Debt Fund
HDFC Credit Risk Debt Fund
Growth Launch Date 25 Mar 14 NAV (30 Oct 26) ₹26.0446 ↑ 0.03 (0.12 %) Net Assets (Cr) ₹7,631 on 30 Sep 26 Category Debt - Credit Risk AMC HDFC Asset Management Company Limited Rating ☆☆☆☆ Risk Moderate Expense Ratio 1.53 Sharpe Ratio 0.55 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 300 Exit Load 0-12 Months (1%),12-18 Months (0.5%),18 Months and above(NIL) Yield to Maturity 8.88% Effective Maturity 2 Years 7 Months 28 Days Modified Duration 2 Years 4 Days Growth of 10,000 investment over the years.
Date Value 31 Oct 21 ₹10,000 31 Oct 22 ₹10,334 31 Oct 23 ₹11,013 31 Oct 24 ₹11,967 31 Oct 25 ₹12,915 31 Oct 26 ₹13,641 Returns for HDFC Credit Risk Debt Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 30 Oct 26 Duration Returns 1 Month -0.1% 3 Month 0.7% 6 Month 3% 1 Year 5.6% 3 Year 7.4% 5 Year 6.4% 10 Year 15 Year Since launch 7.9% Historical performance (Yearly) on absolute basis
Year Returns 2025 8% 2024 8.2% 2023 6.6% 2022 3.7% 2021 7% 2020 10.9% 2019 8.6% 2018 5.4% 2017 6.6% 2016 11% Fund Manager information for HDFC Credit Risk Debt Fund
Name Since Tenure Praveen Jain 7 Mar 26 0.57 Yr. Dhruv Muchhal 22 Jun 23 3.28 Yr. Bhavyesh Divecha 7 Mar 26 0.57 Yr. Data below for HDFC Credit Risk Debt Fund as on 30 Sep 26
Asset Allocation
Asset Class Value Cash 3.9% Equity 6.26% Debt 88.2% Other 1.64% Debt Sector Allocation
Sector Value Corporate 74.67% Government 13.53% Cash Equivalent 3.9% Credit Quality
Rating Value A 2.24% AA 69.14% AAA 28.63% Top Securities Holdings / Portfolio
Name Holding Value Quantity GMR Airports Limited
Debentures | -5% ₹372 Cr 35,000 Nirma Limited
Debentures | -4% ₹300 Cr 30,000 Indus Infra Trust Unit (Financial Services)
Equity, Since 29 Feb 24 | 5441373% ₹240 Cr 18,951,606 Triumph Composites Private Limited
Debentures | -3% ₹237 Cr 24,000 Jubilant Beverages Limited
Debentures | -3% ₹215 Cr 19,190 Aditya Birla Renewables Limited
Debentures | -3% ₹210 Cr 21,000 Bamboo Hotel And Global Centre (Delhi) Private Limited
Debentures | -3% ₹200 Cr 20,000 Jubilant Bevco Limited
Debentures | -3% ₹200 Cr 17,750 Kalpataru Projects International Limited
Debentures | -3% ₹199 Cr 20,000 8.28% Tamilnadu SDL 2028
Sovereign Bonds | -2% ₹178 Cr 17,500,000 2. SBI Credit Risk Fund
SBI Credit Risk Fund
Growth Launch Date 19 Jul 04 NAV (30 Oct 26) ₹49.675 ↑ 0.03 (0.07 %) Net Assets (Cr) ₹2,182 on 30 Sep 26 Category Debt - Credit Risk AMC SBI Funds Management Private Limited Rating ☆☆☆☆ Risk Moderate Expense Ratio 1.54 Sharpe Ratio 1.02 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-12 Months (3%),12-24 Months (1.5%),24-36 Months (0.75%),36 Months and above(NIL) Yield to Maturity 8.86% Effective Maturity 2 Years 9 Months 18 Days Modified Duration 2 Years 25 Days Growth of 10,000 investment over the years.
Date Value 31 Oct 21 ₹10,000 31 Oct 22 ₹10,378 31 Oct 23 ₹11,224 31 Oct 24 ₹12,136 31 Oct 25 ₹13,136 31 Oct 26 ₹13,980 Returns for SBI Credit Risk Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 30 Oct 26 Duration Returns 1 Month -0.2% 3 Month 0.7% 6 Month 3.6% 1 Year 6.4% 3 Year 7.6% 5 Year 6.9% 10 Year 15 Year Since launch 7.5% Historical performance (Yearly) on absolute basis
Year Returns 2025 7.9% 2024 8.1% 2023 8.3% 2022 4.2% 2021 5% 2020 9.8% 2019 6.5% 2018 6.2% 2017 6.9% 2016 10.5% Fund Manager information for SBI Credit Risk Fund
Name Since Tenure Lokesh Mallya 1 Feb 17 9.67 Yr. Prashanth Sridhar 1 Jul 26 0.25 Yr. Data below for SBI Credit Risk Fund as on 30 Sep 26
Asset Allocation
Asset Class Value Cash 4.81% Equity 5.7% Debt 85.88% Other 3.61% Debt Sector Allocation
Sector Value Corporate 73.42% Government 12.45% Cash Equivalent 4.81% Credit Quality
Rating Value A 7.34% AA 73.28% AAA 19.39% Top Securities Holdings / Portfolio
Name Holding Value Quantity H.G. Infra Engineering Limited
Debentures | -5% ₹101 Cr 10,000 Nj Capital Private Limited
Debentures | -5% ₹99 Cr 10,000 TATA Projects Limited
Debentures | -5% ₹99 Cr 10,000 Renew Solar Energy (Jharkhand Five) Private Limited
Debentures | -5% ₹99 Cr 11,000 Jtpm Metal TRaders Limited
Debentures | -4% ₹97 Cr 9,000 Lodha Developers Limited
Debentures | -4% ₹86 Cr 10,000 Renserv Global Private Limited
Debentures | -4% ₹80 Cr 8,000 Jsw Jfe Kalinga Steel Limited
Debentures | -4% ₹78 Cr 7,500 Aditya Birla Renewables Limited
Debentures | -3% ₹75 Cr 7,500 Motilal Oswal Home Finance Limited
Debentures | -3% ₹75 Cr 7,500 3. ICICI Prudential Regular Savings Fund
ICICI Prudential Regular Savings Fund
Growth Launch Date 3 Dec 10 NAV (30 Oct 26) ₹34.7895 ↑ 0.05 (0.14 %) Net Assets (Cr) ₹6,320 on 30 Sep 26 Category Debt - Credit Risk AMC ICICI Prudential Asset Management Company Limited Rating ☆ Risk Moderate Expense Ratio 1.4 Sharpe Ratio 0.97 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 8.57% Effective Maturity 2 Years 11 Months 19 Days Modified Duration 1 Year 10 Months 20 Days Growth of 10,000 investment over the years.
Date Value 31 Oct 21 ₹10,000 31 Oct 22 ₹10,472 31 Oct 23 ₹11,198 31 Oct 24 ₹12,232 31 Oct 25 ₹13,330 31 Oct 26 ₹14,143 Returns for ICICI Prudential Regular Savings Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 30 Oct 26 Duration Returns 1 Month -0.2% 3 Month 0.6% 6 Month 3.1% 1 Year 6.2% 3 Year 8.1% 5 Year 7.2% 10 Year 15 Year Since launch 8.2% Historical performance (Yearly) on absolute basis
Year Returns 2025 9.5% 2024 8.5% 2023 7.2% 2022 5.1% 2021 6.2% 2020 9.8% 2019 9.5% 2018 6.6% 2017 6.8% 2016 9.5% Fund Manager information for ICICI Prudential Regular Savings Fund
Name Since Tenure Manish Banthia 7 Nov 16 9.9 Yr. Akhil Kakkar 22 Jan 24 2.69 Yr. Data below for ICICI Prudential Regular Savings Fund as on 30 Sep 26
Asset Allocation
Asset Class Value Equity 8.97% Debt 91.04% Other 0.38% Debt Sector Allocation
Sector Value Corporate 64.01% Government 27.03% Credit Quality
Rating Value A 8.32% AA 70.2% AAA 21.48% Top Securities Holdings / Portfolio
Name Holding Value Quantity 6.94% Govt Stock 2036
Sovereign Bonds | -5% ₹310 Cr 31,964,800
↑ 10,000,000 Jtpm Metal TRaders Limited
Debentures | -4% ₹275 Cr 25,500 Adani Enterprises Limited
Debentures | -3% ₹199 Cr 20,000 Embassy Office Parks REIT (Real Estate)
-, Since 30 Apr 25 | 5426023% ₹198 Cr 4,560,807
↓ -213,921 TRuhome Finance Limited
Debentures | -3% ₹198 Cr 20,000 Vedanta Aluminium Metal Limited
Debentures | -3% ₹175 Cr 17,500 Nirma Limited
Debentures | -2% ₹150 Cr 15,000 Aavas Financiers Limited
Debentures | -2% ₹149 Cr 15,000 Hiranandani Financial Services Private Limited
Debentures | -2% ₹148 Cr 15,000 Keystone Realtors Limited
Debentures | -2% ₹139 Cr 23,500 4. Kotak Credit Risk Fund
Kotak Credit Risk Fund
Growth Launch Date 11 May 10 NAV (30 Oct 26) ₹31.8827 ↑ 0.05 (0.15 %) Net Assets (Cr) ₹769 on 30 Sep 26 Category Debt - Credit Risk AMC Kotak Mahindra Asset Management Co Ltd Rating ☆☆☆ Risk Moderately Low Expense Ratio 1.71 Sharpe Ratio 0.22 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load 0-1 Years (1%),1 Years and above(NIL) Yield to Maturity 8.43% Effective Maturity 2 Years 3 Months 29 Days Modified Duration 1 Year 6 Months 4 Days Growth of 10,000 investment over the years.
Date Value 31 Oct 21 ₹10,000 31 Oct 22 ₹10,058 31 Oct 23 ₹10,651 31 Oct 24 ₹11,512 31 Oct 25 ₹12,527 31 Oct 26 ₹13,150 Returns for Kotak Credit Risk Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 30 Oct 26 Duration Returns 1 Month -0.1% 3 Month 0.6% 6 Month 2.8% 1 Year 5% 3 Year 7.3% 5 Year 5.6% 10 Year 15 Year Since launch 7.3% Historical performance (Yearly) on absolute basis
Year Returns 2025 9.1% 2024 7.1% 2023 6.4% 2022 0.9% 2021 5.3% 2020 6.6% 2019 9% 2018 6.2% 2017 6.6% 2016 10.4% Fund Manager information for Kotak Credit Risk Fund
Name Since Tenure Deepak Agrawal 11 May 10 16.4 Yr. Vihag Mishra 24 Oct 25 0.93 Yr. Data below for Kotak Credit Risk Fund as on 30 Sep 26
Asset Allocation
Asset Class Value Cash 13.17% Equity 7.93% Debt 78.34% Other 0.55% Debt Sector Allocation
Sector Value Corporate 71.94% Cash Equivalent 13.17% Government 6.41% Credit Quality
Rating Value A 10.8% AA 76.5% AAA 12.7% Top Securities Holdings / Portfolio
Name Holding Value Quantity Jubilant Bevco Limited
Debentures | -7% ₹56 Cr 500 Vedanta Aluminium Metal Limited
Debentures | -7% ₹50 Cr 5,000 Bamboo Hotel And Global Centre (Delhi) Private Limited
Debentures | -7% ₹50 Cr 5,000 TATA Projects Limited
Debentures | -7% ₹50 Cr 5,000 Muthoot Finance Limited
Debentures | -7% ₹50 Cr 5,000 Aditya Birla Real Estate Limited
Debentures | -6% ₹44 Cr 4,500 Aditya Birla Renewables Limited
Debentures | -5% ₹40 Cr 4,000 Indus Infra Trust Unit (Financial Services)
Equity, Since 15 Nov 25 | 5441374% ₹33 Cr 2,617,503
↓ -106,902 Au Small Finance Bank Limited
Debentures | -4% ₹30 Cr 30 360 One Prime Limited
Debentures | -3% ₹25 Cr 2,500 5. Aditya Birla Sun Life Credit Risk Fund
Aditya Birla Sun Life Credit Risk Fund
Growth Launch Date 17 Apr 15 NAV (30 Oct 26) ₹25.4081 ↑ 0.02 (0.09 %) Net Assets (Cr) ₹1,657 on 30 Sep 26 Category Debt - Credit Risk AMC Birla Sun Life Asset Management Co Ltd Rating Risk Moderate Expense Ratio 1.59 Sharpe Ratio 1.61 Information Ratio 1.23 Alpha Ratio 4.78 Min Investment 1,000 Min SIP Investment 100 Exit Load 0-365 Days (1%),365 Days and above(NIL) Yield to Maturity 8.24% Effective Maturity 2 Years 2 Months 12 Days Modified Duration 1 Year 7 Months 10 Days Growth of 10,000 investment over the years.
Date Value 31 Oct 21 ₹10,000 31 Oct 22 ₹10,658 31 Oct 23 ₹11,393 31 Oct 24 ₹12,786 31 Oct 25 ₹14,488 31 Oct 26 ₹15,968 Returns for Aditya Birla Sun Life Credit Risk Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 30 Oct 26 Duration Returns 1 Month -0.1% 3 Month 0.7% 6 Month 3.3% 1 Year 10.2% 3 Year 11.9% 5 Year 9.8% 10 Year 15 Year Since launch 8.4% Historical performance (Yearly) on absolute basis
Year Returns 2025 13.4% 2024 11.9% 2023 6.9% 2022 7.1% 2021 6.4% 2020 9.4% 2019 2.1% 2018 6.6% 2017 8.1% 2016 10.3% Fund Manager information for Aditya Birla Sun Life Credit Risk Fund
Name Since Tenure Sunaina Cunha 17 Apr 15 11.47 Yr. Mohit Sharma 6 Aug 20 6.16 Yr. Data below for Aditya Birla Sun Life Credit Risk Fund as on 30 Sep 26
Asset Allocation
Asset Class Value Cash 8.68% Equity 6.93% Debt 84.03% Other 0.35% Debt Sector Allocation
Sector Value Corporate 71.6% Government 12.43% Cash Equivalent 8.68% Credit Quality
Rating Value A 4.5% AA 69.04% AAA 26.46% Top Securities Holdings / Portfolio
Name Holding Value Quantity Rec Limited
Debentures | -6% ₹99 Cr 10,000
↑ 5,000 SK Finance Limited
Debentures | -5% ₹92 Cr 9,300 Eris Lifesciences Limited
Debentures | -5% ₹79 Cr 7,900
↑ 500 Jubilant Bevco Limited
Debentures | -4% ₹73 Cr 6,500 6.94% Govt Stock 2036
Sovereign Bonds | -4% ₹73 Cr 7,500,000
↑ 2,000,000 Jtpm Metal TRaders Limited
Debentures | -4% ₹63 Cr 5,877 Adani Airport Holdings Limited
Debentures | -3% ₹59 Cr 6,000 National Bank For Agriculture And Rural Development
Debentures | -3% ₹58 Cr 6,000
↑ 6,000 GMR Airports Limited
Debentures | -3% ₹55 Cr 5,200 Small Industries Development Bank Of India
Debentures | -3% ₹49 Cr 5,000 6. HDFC Low Duration Fund
HDFC Low Duration Fund
Growth Launch Date 18 Nov 99 NAV (30 Oct 26) ₹61.9914 ↑ 0.03 (0.04 %) Net Assets (Cr) ₹16,513 on 30 Sep 26 Category Debt - Low Duration AMC HDFC Asset Management Company Limited Rating ☆☆☆ Risk Moderately Low Expense Ratio 1.04 Sharpe Ratio 0.02 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 300 Exit Load NIL Yield to Maturity 7.66% Effective Maturity 1 Year 6 Months 22 Days Modified Duration 10 Months 23 Days Growth of 10,000 investment over the years.
Date Value 31 Oct 21 ₹10,000 31 Oct 22 ₹10,352 31 Oct 23 ₹11,078 31 Oct 24 ₹11,902 31 Oct 25 ₹12,780 31 Oct 26 ₹13,426 Returns for HDFC Low Duration Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 30 Oct 26 Duration Returns 1 Month 0.1% 3 Month 0.9% 6 Month 2.5% 1 Year 5.1% 3 Year 6.6% 5 Year 6.1% 10 Year 15 Year Since launch 7% Historical performance (Yearly) on absolute basis
Year Returns 2025 7.2% 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% Fund Manager information for HDFC Low Duration Fund
Name Since Tenure Anupam Joshi 27 Oct 15 10.93 Yr. Praveen Jain 6 Oct 22 3.99 Yr. Dhruv Muchhal 22 Jun 23 3.28 Yr. Data below for HDFC Low Duration Fund as on 30 Sep 26
Asset Allocation
Asset Class Value Cash 6.71% Debt 92.83% Other 0.46% Debt Sector Allocation
Sector Value Corporate 72.88% Government 22.3% Cash Equivalent 4.35% Credit Quality
Rating Value AA 14.35% AAA 85.65% Top Securities Holdings / Portfolio
Name Holding Value Quantity Small Industries Development Bank Of India
Debentures | -6% ₹889 Cr 89,000
↓ -2,500 6.17% Govt Stock 2028
Sovereign Bonds | -5% ₹780 Cr 77,500,000 Jubilant Beverages Limited
Debentures | -4% ₹670 Cr 59,740 National Bank For Agriculture And Rural Development
Debentures | -4% ₹641 Cr 64,500 6.75% Govt Stock 2033
Sovereign Bonds | -3% ₹518 Cr 50,000,000 National Housing Bank
Debentures | -3% ₹421 Cr 42,100
↓ -5,000 Power Finance Corporation Limited
Debentures | -2% ₹349 Cr 3,500 RADHAKRISHNA SECURITISATION TRUST
Unlisted bonds | -2% ₹333 Cr 350 Bajaj Housing Finance Limited
Debentures | -2% ₹325 Cr 32,500
↓ -5,000 Jtpm Metal TRaders Limited
Debentures | -2% ₹324 Cr 30,000
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 HDFC Credit Risk Debt Fund