fincash logo SOLUTIONS
EXPLORE FUNDS
CALCULATORS
LOG IN
SIGN UP

Fincash » Mutual Funds » Best Debt Lumpsum Investments

6 Best Debt Mutual Funds for Lump sum Investments 2025

Updated on June 5, 2025 , 47023 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

Ready to Invest?
Talk to our investment specialist
Disclaimer:
By submitting this form I authorize Fincash.com to call/SMS/email me about its products and I accept the terms of Privacy Policy and Terms & Conditions.

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

FundNAVNet Assets (Cr)Min Investment3 MO (%)6 MO (%)1 YR (%)3 YR (%)2024 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
Nippon India Credit Risk Fund Growth ₹34.9945
↑ 0.10
₹1,000 500 3.55.4108.38.38.34%2Y 11D2Y 4M 20D
Kotak Credit Risk Fund Growth ₹29.4595
↑ 0.07
₹709 5,000 3.758.47.17.18.25%2Y 4M 10D3Y
Aditya Birla Sun Life Savings Fund Growth ₹547.154
↑ 0.89
₹17,263 1,000 2.64.38.37.47.97.27%5M 16D6M 14D
IDFC Low Duration Fund Growth ₹38.5683
↑ 0.07
₹6,161 100 2.74.48.27.27.37.23%10M 24D11M 26D
HDFC Low Duration Fund Growth ₹57.7382
↑ 0.14
₹20,033 5,000 2.84.48.37.27.47.21%10M 23D1Y 10M 24D
Nippon India Low Duration Fund Growth ₹3,742.85
↑ 8.06
₹7,513 500 2.84.48.37.17.47.17%11M 6D1Y 2M 20D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 6 Jun 25
*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 6.5% since its launch.  Ranked 21 in Credit Risk category.  Return for 2024 was 8.3% , 2023 was 7.9% and 2022 was 3.9% .

Below is the key information for Nippon India Credit Risk Fund

Nippon India Credit Risk Fund
Growth
Launch Date 8 Jun 05
NAV (06 Jun 25) ₹34.9945 ↑ 0.10   (0.28 %)
Net Assets (Cr) ₹1,000 on 30 Apr 25
Category Debt - Credit Risk
AMC Nippon Life Asset Management Ltd.
Rating
Risk Moderate
Expense Ratio 1.63
Sharpe Ratio 3.13
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 8.34%
Effective Maturity 2 Years 4 Months 20 Days
Modified Duration 2 Years 11 Days

Growth of 10,000 investment over the years.

DateValue
31 May 20₹10,000
31 May 21₹10,992
31 May 22₹12,151
31 May 23₹13,028
31 May 24₹14,011
31 May 25₹15,366

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 ₹209,201.
Net Profit of ₹29,201
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 6 Jun 25

DurationReturns
1 Month 1.2%
3 Month 3.5%
6 Month 5.4%
1 Year 10%
3 Year 8.3%
5 Year 9%
10 Year
15 Year
Since launch 6.5%
Historical performance (Yearly) on absolute basis
YearReturns
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
NameSinceTenure
Kinjal Desai25 May 187.02 Yr.
Sushil Budhia1 Feb 205.33 Yr.

Data below for Nippon India Credit Risk Fund as on 30 Apr 25

Asset Allocation
Asset ClassValue
Cash9.07%
Debt90.65%
Other0.28%
Debt Sector Allocation
SectorValue
Corporate75.62%
Government15.03%
Cash Equivalent9.07%
Credit Quality
RatingValue
A21.54%
AA48.78%
AAA29.68%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.02% Govt Stock 2031
Sovereign Bonds | -
8%₹79 Cr7,500,000
Summit Digitel Infrastructure Limited
Debentures | -
6%₹60 Cr600
Renew Solar Energy (Jharkhand Five) Private Limited
Debentures | -
5%₹49 Cr5,000
Century Textiles And Industries Limited
Debentures | -
5%₹46 Cr4,500
Truhome Finance Ltd. 9.25%
Debentures | -
4%₹41 Cr4,000
Prestige Projects Private Limited 11.75%
Debentures | -
4%₹40 Cr4,000
Sandur Manganese And Iron Ores Limited (The) 11%
Debentures | -
4%₹39 Cr4,000
Bamboo Hotel And Global Centre (Delhi) Private Limited
Debentures | -
4%₹38 Cr3,800
Delhi International Airport Limited
Debentures | -
4%₹36 Cr3,500
Vedanta Limited
Debentures | -
3%₹35 Cr3,500

2. Kotak Credit Risk Fund

(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.

Kotak Credit Risk Fund is a Debt - Credit Risk fund was launched on 11 May 10. It is a fund with Moderately Low risk and has given a CAGR/Annualized return of 7.4% since its launch.  Ranked 18 in Credit Risk category.  Return for 2024 was 7.1% , 2023 was 6.4% and 2022 was 0.9% .

Below is the key information for Kotak Credit Risk Fund

Kotak Credit Risk Fund
Growth
Launch Date 11 May 10
NAV (06 Jun 25) ₹29.4595 ↑ 0.07   (0.22 %)
Net Assets (Cr) ₹709 on 30 Apr 25
Category Debt - Credit Risk
AMC Kotak Mahindra Asset Management Co Ltd
Rating
Risk Moderately Low
Expense Ratio 1.7
Sharpe Ratio 0.51
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 8.25%
Effective Maturity 3 Years
Modified Duration 2 Years 4 Months 10 Days

Growth of 10,000 investment over the years.

DateValue
31 May 20₹10,000
31 May 21₹10,873
31 May 22₹11,017
31 May 23₹11,602
31 May 24₹12,470
31 May 25₹13,490

Kotak 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 Kotak 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 6 Jun 25

DurationReturns
1 Month 1.3%
3 Month 3.7%
6 Month 5%
1 Year 8.4%
3 Year 7.1%
5 Year 6.2%
10 Year
15 Year
Since launch 7.4%
Historical performance (Yearly) on absolute basis
YearReturns
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
NameSinceTenure
Deepak Agrawal11 May 1015.07 Yr.
Sunit garg1 Nov 222.58 Yr.

Data below for Kotak Credit Risk Fund as on 30 Apr 25

Asset Allocation
Asset ClassValue
Cash8.43%
Equity5.77%
Debt81.95%
Other3.85%
Debt Sector Allocation
SectorValue
Corporate67.63%
Government14.33%
Cash Equivalent8.43%
Credit Quality
RatingValue
A15.39%
AA61.53%
AAA23.08%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.18% Govt Stock 2033
Sovereign Bonds | -
9%₹63 Cr5,965,000
Godrej Industries Limited
Debentures | -
7%₹51 Cr5,000
Tata Projects Ltd.
Debentures | -
7%₹51 Cr5,000
Bamboo Hotel And Global Centre (Delhi) Private Limited
Debentures | -
7%₹50 Cr5,000
Vedanta Limited
Debentures | -
7%₹50 Cr5,000
Century Textiles And Industries Limited
Debentures | -
7%₹46 Cr4,500
Aditya Birla Renewables Limited
Debentures | -
6%₹41 Cr4,000
Indostar Capital Finance Limited
Debentures | -
6%₹40 Cr4,000
Au Small Finance Bank Limited
Debentures | -
4%₹30 Cr30
VAJRA 008 TRUST
Unlisted bonds | -
4%₹26 Cr50

3. Aditya Birla Sun Life Savings Fund

The primary objective of the schemes is to generate regular income through investments in debt and money market instruments. Income maybe generated through the receipt of coupon payments or the purchase and sale of securities in the underlying portfolio. The schemes will under normal market conditions, invest its net assets in fixed income securities, money market instruments, cash and cash equivalents.

Aditya Birla Sun Life Savings Fund is a Debt - Ultrashort Bond fund was launched on 16 Apr 03. It is a fund with Moderately Low risk and has given a CAGR/Annualized return of 7.4% since its launch.  Ranked 6 in Ultrashort Bond category.  Return for 2024 was 7.9% , 2023 was 7.2% and 2022 was 4.8% .

Below is the key information for Aditya Birla Sun Life Savings Fund

Aditya Birla Sun Life Savings Fund
Growth
Launch Date 16 Apr 03
NAV (06 Jun 25) ₹547.154 ↑ 0.89   (0.16 %)
Net Assets (Cr) ₹17,263 on 30 Apr 25
Category Debt - Ultrashort Bond
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk Moderately Low
Expense Ratio 0.54
Sharpe Ratio 2.71
Information Ratio 0
Alpha Ratio 0
Min Investment 1,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 7.27%
Effective Maturity 6 Months 14 Days
Modified Duration 5 Months 16 Days

Growth of 10,000 investment over the years.

DateValue
31 May 20₹10,000
31 May 21₹10,553
31 May 22₹10,948
31 May 23₹11,646
31 May 24₹12,512
31 May 25₹13,520

Aditya Birla Sun Life 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 ₹200,132.
Net Profit of ₹20,132
Invest Now

Returns for Aditya Birla Sun Life 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 6 Jun 25

DurationReturns
1 Month 0.9%
3 Month 2.6%
6 Month 4.3%
1 Year 8.3%
3 Year 7.4%
5 Year 6.3%
10 Year
15 Year
Since launch 7.4%
Historical performance (Yearly) on absolute basis
YearReturns
2024 7.9%
2023 7.2%
2022 4.8%
2021 3.9%
2020 7%
2019 8.5%
2018 7.6%
2017 7.2%
2016 9.2%
2015 8.9%
Fund Manager information for Aditya Birla Sun Life Savings Fund
NameSinceTenure
Sunaina Cunha20 Jun 1410.95 Yr.
Kaustubh Gupta15 Jul 1113.89 Yr.
Monika Gandhi22 Mar 214.2 Yr.

Data below for Aditya Birla Sun Life Savings Fund as on 30 Apr 25

Asset Allocation
Asset ClassValue
Cash39.18%
Debt60.56%
Other0.26%
Debt Sector Allocation
SectorValue
Corporate65.93%
Cash Equivalent22.75%
Government11.05%
Credit Quality
RatingValue
AA34.49%
AAA65.51%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Bank of Baroda
Debentures | -
5%₹827 Cr17,000
↑ 17,000
Shriram Finance Company Limited
Debentures | -
4%₹611 Cr60,000
Nirma Limited
Debentures | -
3%₹488 Cr48,500
364 DTB
Sovereign Bonds | -
3%₹475 Cr47,500,000
Small Industries Development Bank of India
Debentures | -
2%₹425 Cr9,000
182 DTB 29082025
Sovereign Bonds | -
2%₹343 Cr35,000,000
National Bank For Agriculture And Rural Development
Debentures | -
2%₹316 Cr3,150
↑ 500
Mankind Pharma Ltd
Debentures | -
2%₹308 Cr30,500
National Bank For Agriculture And Rural Development
Debentures | -
2%₹305 Cr30,000
Avanse Financial Services Ltd 9.40%
Debentures | -
2%₹301 Cr30,000

4. IDFC Low Duration Fund

(Erstwhile IDFC Ultra Short Term Fund)

To offer an investment avenue for short term savings by looking to generate stable returns with a low risk strategy. The scheme will have a portfolio that is invested in good quality debt and money market instruments such that the fund will offer a blend of liquidity with stability of returns. There can be no assurance that the investment objective of the scheme will be realized

IDFC Low Duration Fund is a Debt - Low Duration fund was launched on 17 Jan 06. It is a fund with Moderately Low risk and has given a CAGR/Annualized return of 7.2% since its launch.  Ranked 18 in Low Duration category.  Return for 2024 was 7.3% , 2023 was 6.9% and 2022 was 4% .

Below is the key information for IDFC Low Duration Fund

IDFC Low Duration Fund
Growth
Launch Date 17 Jan 06
NAV (06 Jun 25) ₹38.5683 ↑ 0.07   (0.18 %)
Net Assets (Cr) ₹6,161 on 30 Apr 25
Category Debt - Low Duration
AMC IDFC Asset Management Company Limited
Rating
Risk Moderately Low
Expense Ratio 0.57
Sharpe Ratio 1.96
Information Ratio 0
Alpha Ratio 0
Min Investment 100
Min SIP Investment 100
Exit Load NIL
Yield to Maturity 7.23%
Effective Maturity 11 Months 26 Days
Modified Duration 10 Months 24 Days

Growth of 10,000 investment over the years.

DateValue
31 May 20₹10,000
31 May 21₹10,509
31 May 22₹10,810
31 May 23₹11,493
31 May 24₹12,288
31 May 25₹13,269

IDFC 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 ₹197,169.
Net Profit of ₹17,169
Invest Now

Returns for IDFC 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 6 Jun 25

DurationReturns
1 Month 0.9%
3 Month 2.7%
6 Month 4.4%
1 Year 8.2%
3 Year 7.2%
5 Year 5.9%
10 Year
15 Year
Since launch 7.2%
Historical performance (Yearly) on absolute basis
YearReturns
2024 7.3%
2023 6.9%
2022 4%
2021 3.5%
2020 6.9%
2019 8.3%
2018 7.2%
2017 7%
2016 8.8%
2015 8.7%
Fund Manager information for IDFC Low Duration Fund
NameSinceTenure
Harshal Joshi28 Jul 213.84 Yr.
Brijesh Shah10 Jun 240.97 Yr.

Data below for IDFC Low Duration Fund as on 30 Apr 25

Asset Allocation
Asset ClassValue
Cash40.72%
Debt59.02%
Other0.26%
Debt Sector Allocation
SectorValue
Corporate60.38%
Government22.01%
Cash Equivalent17.35%
Credit Quality
RatingValue
AA4.98%
AAA95.02%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
National Bank For Agriculture And Rural Development
Debentures | -
4%₹228 Cr22,500,000
National Bank For Agriculture And Rural Development
Debentures | -
4%₹226 Cr22,500,000
↑ 22,500,000
Bank of Baroda
Debentures | -
3%₹219 Cr22,500,000
↑ 12,500,000
Bajaj Housing Finance Ltd. 7.14%
Debentures | -
3%₹200 Cr20,000,000
↑ 20,000,000
Bajaj Housing Finance Limited
Debentures | -
3%₹190 Cr18,900,000
Small Industries Development Bank Of India
Debentures | -
3%₹175 Cr17,500,000
↑ 5,000,000
National Bank For Agriculture And Rural Development
Debentures | -
3%₹160 Cr16,000,000
HDFC Bank Limited
Debentures | -
2%₹150 Cr15,000,000
LIC Housing Finance Ltd
Debentures | -
2%₹149 Cr15,000,000
Bajaj Finance Limited
Debentures | -
2%₹126 Cr12,500,000
↓ -5,000,000

5. HDFC Low Duration Fund

(Erstwhile HDFC Cash Management Fund - Treasury Advantage Plan)

To generate regular income through investment in debt securities and money market instruments.

HDFC Low Duration Fund is a Debt - Low Duration fund was launched on 18 Nov 99. It is a fund with Moderately Low risk and has given a CAGR/Annualized return of 7.1% since its launch.  Return for 2024 was 7.4% , 2023 was 7% and 2022 was 4.1% .

Below is the key information for HDFC Low Duration Fund

HDFC Low Duration Fund
Growth
Launch Date 18 Nov 99
NAV (06 Jun 25) ₹57.7382 ↑ 0.14   (0.24 %)
Net Assets (Cr) ₹20,033 on 30 Apr 25
Category Debt - Low Duration
AMC HDFC Asset Management Company Limited
Rating
Risk Moderately Low
Expense Ratio 1.03
Sharpe Ratio 1.53
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 300
Exit Load NIL
Yield to Maturity 7.21%
Effective Maturity 1 Year 10 Months 24 Days
Modified Duration 10 Months 23 Days

Growth of 10,000 investment over the years.

DateValue
31 May 20₹10,000
31 May 21₹10,642
31 May 22₹10,979
31 May 23₹11,665
31 May 24₹12,495
31 May 25₹13,493

HDFC Low Duration Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹200,132.
Net Profit of ₹20,132
Invest Now

Returns for HDFC 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 6 Jun 25

DurationReturns
1 Month 1%
3 Month 2.8%
6 Month 4.4%
1 Year 8.3%
3 Year 7.2%
5 Year 6.2%
10 Year
15 Year
Since launch 7.1%
Historical performance (Yearly) on absolute basis
YearReturns
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
NameSinceTenure
Anupam Joshi27 Oct 159.6 Yr.
Praveen Jain6 Oct 222.65 Yr.
Dhruv Muchhal22 Jun 231.94 Yr.

Data below for HDFC Low Duration Fund as on 30 Apr 25

Asset Allocation
Asset ClassValue
Cash8.88%
Debt90.87%
Other0.25%
Debt Sector Allocation
SectorValue
Corporate73.04%
Government20.88%
Cash Equivalent5.83%
Credit Quality
RatingValue
AA9.21%
AAA90.79%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.81% Govt Stock 2033
Sovereign Bonds | -
5%₹1,039 Cr100,000,000
7.59% Govt Stock 2031
Sovereign Bonds | -
4%₹920 Cr90,000,000
↑ 5,000,000
Sikka Ports & Terminals Limited
Debentures | -
3%₹694 Cr6,950
Mangalore Refinery And Petrochemicals Limited
Debentures | -
3%₹642 Cr6,450
Punjab National Bank
Domestic Bonds | -
2%₹497 Cr10,500
Bajaj Housing Finance Limited
Debentures | -
2%₹408 Cr40,000
Aditya Birla Renewables Limited
Debentures | -
2%₹407 Cr40,000
National Bank For Agriculture And Rural Development
Debentures | -
2%₹376 Cr3,750
Jamnagar Utilities & Power Private Limited
Debentures | -
2%₹373 Cr3,750
↑ 3,000
National Bank For Agriculture And Rural Development
Debentures | -
2%₹358 Cr35,500

6. Nippon India Low Duration Fund

(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.

Nippon India Low Duration Fund is a Debt - Low Duration fund was launched on 20 Mar 07. It is a fund with Moderately Low risk and has given a CAGR/Annualized return of 7.5% since its launch.  Ranked 31 in Low Duration category.  Return for 2024 was 7.4% , 2023 was 6.7% and 2022 was 4.2% .

Below is the key information for Nippon India Low Duration Fund

Nippon India Low Duration Fund
Growth
Launch Date 20 Mar 07
NAV (06 Jun 25) ₹3,742.85 ↑ 8.06   (0.22 %)
Net Assets (Cr) ₹7,513 on 30 Apr 25
Category Debt - Low Duration
AMC Nippon Life Asset Management Ltd.
Rating
Risk Moderately Low
Expense Ratio 0.94
Sharpe Ratio 1.87
Information Ratio 0
Alpha Ratio 0
Min Investment 500
Min SIP Investment 100
Exit Load NIL
Yield to Maturity 7.17%
Effective Maturity 1 Year 2 Months 20 Days
Modified Duration 11 Months 6 Days

Growth of 10,000 investment over the years.

DateValue
31 May 20₹10,000
31 May 21₹10,615
31 May 22₹10,967
31 May 23₹11,634
31 May 24₹12,427
31 May 25₹13,420

Nippon India Low Duration Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹200,132.
Net Profit of ₹20,132
Invest Now

Returns for Nippon 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 6 Jun 25

DurationReturns
1 Month 1%
3 Month 2.8%
6 Month 4.4%
1 Year 8.3%
3 Year 7.1%
5 Year 6.1%
10 Year
15 Year
Since launch 7.5%
Historical performance (Yearly) on absolute basis
YearReturns
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
NameSinceTenure
Vivek Sharma1 Feb 205.33 Yr.
Kinjal Desai25 May 187.02 Yr.

Data below for Nippon India Low Duration Fund as on 30 Apr 25

Asset Allocation
Asset ClassValue
Cash35.38%
Debt64.32%
Other0.3%
Debt Sector Allocation
SectorValue
Corporate67.75%
Government19.17%
Cash Equivalent12.78%
Credit Quality
RatingValue
AA13.96%
AAA86.04%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
9.35% Telangana State Industrial Infrastructure Corporation Limited
Debentures | -
3%₹203 Cr20,000
Indinfravit Trust
Debentures | -
2%₹173 Cr18,000
Highways Infrastructure Trust
Debentures | -
2%₹172 Cr1,750
182 DTB 12062025
Sovereign Bonds | -
2%₹169 Cr17,000,000
Ncd Small Industries Development Bank Of India
Debentures | -
2%₹153 Cr15,000
Rec Limited
Debentures | -
2%₹152 Cr15,000
↓ -500
NAOMI 05 2024
Unlisted bonds | -
2%₹150 Cr10,000
National Bank For Agriculture And Rural Development
Debentures | -
2%₹146 Cr14,500
↓ -5,000
Hinduja Leyland Finance Limited
Debentures | -
2%₹143 Cr14,000
Shriram Finance Limited
Debentures | -
2%₹136 Cr13,500

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!

    Get Started

FAQs

1. How do debt fund managers identify which is high-quality security?

A: Debt fund managers have their techniques for evaluating each bond and assessing the debtor's chances of defaulting to pay the bond. Usually, the higher the credit rating lesser is the chance for the creditor defaulting.

2. Why is debt mutual funds low-risk?

A: Debt mutual funds deal with securities and bonds along other money market instruments. The chances of these instruments failing are usually less, and hence, your investment will remain secure, thereby making debt mutual funds low-risk investments.

3. Do fund managers invest in low-quality securities?

A: Yes, sometimes fund managers do invest in low-quality securities if chances of good ROI exist. However, this will be a calculated risk taken by your fund manager and only if the portfolio of investment already has stable, high-quality securities.

4. Is there any short-term debt mutual fund?

A: Yes, if you opt for a Liquid Fund in which investments are made in money market instruments that have a maturity of 91 days, then you can realize your investment in a matter of three months. This is a short-term investment that you can undertake to get a better understanding of debt mutual funds.

5. Can I invest long-term in a debt mutual fund?

A: Yes, you can invest long-term in debt mutual funds. For example, suppose you invest in the Nippon India Credit Risk Fund or the ICICI Prudential Regular Savings Fund. In that case, it is better that you hold your investment at least for one year, 5 months, and 19 days and 2 years, one month, and 2 days respectively, to get maximum ROI. But you can keep investing beyond that for 3 years.

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
How helpful was this page ?
Rated 4.4, based on 7 reviews.
POST A COMMENT