+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 ₹35.944
↑ 0.00 ₹990 500 1.7 4.2 9.3 8.5 8.3 8.28% 1Y 11M 12D 2Y 3M 25D HDFC Low Duration Fund Growth ₹58.9329
↑ 0.01 ₹24,304 5,000 1.4 3.3 7.4 7.3 7.4 6.92% 10M 21D 1Y 9M 29D Kotak Low Duration Fund Growth ₹3,412.16
↑ 0.39 ₹13,644 5,000 1.4 3.2 7.3 7.1 7.3 6.86% 10M 24D 1Y 6M ICICI Prudential Savings Fund Growth ₹555.844
↑ 0.04 ₹27,076 500 1.5 3.5 7.8 7.8 8 6.84% 9M 29D 1Y 8M 26D Nippon India Low Duration Fund Growth ₹3,823.05
↑ 0.50 ₹10,048 500 1.4 3.3 7.5 7.2 7.4 6.81% 10M 20D 1Y 1M 23D Aditya Birla Sun Life Low Duration Fund Growth ₹669.76
↑ 0.02 ₹13,733 1,000 1.3 3.2 7.2 7 7.1 6.81% 9M 29D 1Y 25D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 24 Oct 25 Research Highlights & Commentary of 6 Funds showcased
Commentary Nippon India Credit Risk Fund HDFC Low Duration Fund Kotak Low Duration Fund ICICI Prudential Savings Fund Nippon India Low Duration Fund Aditya Birla Sun Life Low Duration Fund Point 1 Bottom quartile AUM (₹990 Cr). Upper mid AUM (₹24,304 Cr). Lower mid AUM (₹13,644 Cr). Highest AUM (₹27,076 Cr). Bottom quartile AUM (₹10,048 Cr). Upper mid AUM (₹13,733 Cr). Point 2 Established history (20+ yrs). Established history (25+ yrs). Established history (17+ yrs). Established history (23+ yrs). Established history (18+ yrs). Oldest track record among peers (27 yrs). Point 3 Rating: 2★ (bottom quartile). Rating: 3★ (upper mid). Top rated. Rating: 4★ (upper mid). Rating: 3★ (lower mid). Rating: 3★ (bottom quartile). Point 4 Risk profile: Moderate. Risk profile: Moderately Low. Risk profile: Moderate. Risk profile: Moderately Low. Risk profile: Moderately Low. Risk profile: Moderately Low. Point 5 1Y return: 9.27% (top quartile). 1Y return: 7.38% (lower mid). 1Y return: 7.31% (bottom quartile). 1Y return: 7.81% (upper mid). 1Y return: 7.48% (upper mid). 1Y return: 7.17% (bottom quartile). Point 6 1M return: 0.74% (top quartile). 1M return: 0.57% (bottom quartile). 1M return: 0.58% (upper mid). 1M return: 0.57% (lower mid). 1M return: 0.56% (bottom quartile). 1M return: 0.58% (upper mid). Point 7 Sharpe: 2.73 (top quartile). Sharpe: 1.80 (lower mid). Sharpe: 1.71 (bottom quartile). Sharpe: 2.68 (upper mid). Sharpe: 2.32 (upper mid). Sharpe: 1.46 (bottom quartile). 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): 8.28% (top quartile). Yield to maturity (debt): 6.92% (upper mid). Yield to maturity (debt): 6.86% (upper mid). Yield to maturity (debt): 6.84% (lower mid). Yield to maturity (debt): 6.81% (bottom quartile). Yield to maturity (debt): 6.81% (bottom quartile). Point 10 Modified duration: 1.95 yrs (bottom quartile). Modified duration: 0.89 yrs (lower mid). Modified duration: 0.90 yrs (bottom quartile). Modified duration: 0.83 yrs (top quartile). Modified duration: 0.89 yrs (upper mid). Modified duration: 0.83 yrs (upper mid). Nippon India Credit Risk Fund
HDFC Low Duration Fund
Kotak Low Duration Fund
ICICI Prudential Savings Fund
Nippon India Low Duration Fund
Aditya Birla Sun Life 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 (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 ICICI Prudential Flexible Income Plan) To generate income through investments in a range of debt instruments and money market instruments of various maturities with a view to maximizing income while maintaining the optimum balance of yield, safety and liquidity. Research Highlights for ICICI Prudential Savings Fund Below is the key information for ICICI Prudential Savings 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 (Erstwhile Aditya Birla Sun Life Cash Manager) An Open ended Income scheme with the objective to provide income which is consistent with a portfolio through investments in a basket of debt and money market instruments of very short maturities with a view to provide reasonable returns. Research Highlights for Aditya Birla Sun Life Low Duration Fund Below is the key information for Aditya Birla Sun Life 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 (24 Oct 25) ₹35.944 ↑ 0.00 (0.00 %) Net Assets (Cr) ₹990 on 31 Aug 25 Category Debt - Credit Risk AMC Nippon Life Asset Management Ltd. Rating ☆☆ Risk Moderate Expense Ratio 1.46 Sharpe Ratio 2.73 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 8.28% Effective Maturity 2 Years 3 Months 25 Days Modified Duration 1 Year 11 Months 12 Days Growth of 10,000 investment over the years.
Date Value 30 Sep 20 ₹10,000 30 Sep 21 ₹11,539 30 Sep 22 ₹11,950 30 Sep 23 ₹12,883 30 Sep 24 ₹13,923 30 Sep 25 ₹15,200 Returns for Nippon India Credit Risk Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Oct 25 Duration Returns 1 Month 0.7% 3 Month 1.7% 6 Month 4.2% 1 Year 9.3% 3 Year 8.5% 5 Year 8.7% 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 7.28 Yr. Sushil Budhia 1 Feb 20 5.59 Yr. Data below for Nippon India Credit Risk Fund as on 31 Aug 25
Asset Allocation
Asset Class Value Cash 9.85% Debt 89.85% Other 0.29% Debt Sector Allocation
Sector Value Corporate 78.38% Government 13.94% Cash Equivalent 7.39% Credit Quality
Rating Value A 25.28% AA 45.65% AAA 29.07% 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% ₹42 Cr 4,000 TRuhome Finance Limited
Debentures | -4% ₹41 Cr 4,000 Mancherial Repallewada Road Private Limited
Debentures | -4% ₹41 Cr 4,500 The Sandur Manganese And Iron Ores Limited
Debentures | -4% ₹39 Cr 4,000 Delhi International Airport Limited
Debentures | -4% ₹36 Cr 3,500 Vedanta Limited
Debentures | -4% ₹35 Cr 3,500 Renserv Global Private Limited
Debentures | -4% ₹35 Cr 3,500 Hiranandani Financial Services Private Limited
Debentures | -4% ₹35 Cr 3,500 2. HDFC Low Duration Fund
HDFC Low Duration Fund
Growth Launch Date 18 Nov 99 NAV (24 Oct 25) ₹58.9329 ↑ 0.01 (0.01 %) Net Assets (Cr) ₹24,304 on 31 Aug 25 Category Debt - Low Duration AMC HDFC Asset Management Company Limited Rating ☆☆☆ Risk Moderately Low Expense Ratio 1.03 Sharpe Ratio 1.8 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 300 Exit Load NIL Yield to Maturity 6.92% Effective Maturity 1 Year 9 Months 29 Days Modified Duration 10 Months 21 Days Growth of 10,000 investment over the years.
Date Value 30 Sep 20 ₹10,000 30 Sep 21 ₹10,494 30 Sep 22 ₹10,848 30 Sep 23 ₹11,603 30 Sep 24 ₹12,433 30 Sep 25 ₹13,364 Returns for HDFC Low Duration Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Oct 25 Duration Returns 1 Month 0.6% 3 Month 1.4% 6 Month 3.3% 1 Year 7.4% 3 Year 7.3% 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 9.85 Yr. Praveen Jain 6 Oct 22 2.91 Yr. Dhruv Muchhal 22 Jun 23 2.2 Yr. Data below for HDFC Low Duration Fund as on 31 Aug 25
Asset Allocation
Asset Class Value Cash 3.18% Debt 96.56% Other 0.26% Debt Sector Allocation
Sector Value Corporate 72.11% Government 22.39% Cash Equivalent 3.18% Securitized 2.06% Credit Quality
Rating Value AA 11.41% AAA 88.59% Top Securities Holdings / Portfolio
Name Holding Value Quantity 6.63% Govt Stock 2031
Sovereign Bonds | -4% ₹1,093 Cr 107,500,000
↑ 2,500,000 7.81% Govt Stock 2033
Sovereign Bonds | -4% ₹1,087 Cr 105,000,000
↑ 5,000,000 Sikka Ports & Terminals Limited
Debentures | -3% ₹744 Cr 7,450 Small Industries Development Bank Of India
Debentures | -3% ₹662 Cr 6,600 Mangalore Refinery And Petrochemicals Limited
Debentures | -3% ₹644 Cr 6,450 Jubilant Beverages Limited
Debentures | -3% ₹622 Cr 59,740 7.11% Govt Stock 2028
Sovereign Bonds | -2% ₹505 Cr 50,000,000 Power Finance Corporation Limited
Debentures | -2% ₹502 Cr 50,000 National Bank For Agriculture And Rural Development
Debentures | -2% ₹431 Cr 42,500 Bajaj Housing Finance Limited
Debentures | -2% ₹407 Cr 40,000 3. Kotak Low Duration Fund
Kotak Low Duration Fund
Growth Launch Date 6 Mar 08 NAV (24 Oct 25) ₹3,412.16 ↑ 0.39 (0.01 %) Net Assets (Cr) ₹13,644 on 31 Aug 25 Category Debt - Low Duration AMC Kotak Mahindra Asset Management Co Ltd Rating ☆☆☆☆ Risk Moderate Expense Ratio 1.17 Sharpe Ratio 1.71 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 6.86% Effective Maturity 1 Year 6 Months Modified Duration 10 Months 24 Days Growth of 10,000 investment over the years.
Date Value 30 Sep 20 ₹10,000 30 Sep 21 ₹10,437 30 Sep 22 ₹10,757 30 Sep 23 ₹11,471 30 Sep 24 ₹12,275 30 Sep 25 ₹13,189 Returns for Kotak Low Duration Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Oct 25 Duration Returns 1 Month 0.6% 3 Month 1.4% 6 Month 3.2% 1 Year 7.3% 3 Year 7.1% 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 10.59 Yr. Sunit Garg 1 Jun 25 0.25 Yr. Data below for Kotak Low Duration Fund as on 31 Aug 25
Asset Allocation
Asset Class Value Cash 10.53% Debt 89.2% Other 0.27% Debt Sector Allocation
Sector Value Corporate 71.13% Government 21.51% Cash Equivalent 5.51% Securitized 1.58% Credit Quality
Rating Value AA 12.12% AAA 87.88% Top Securities Holdings / Portfolio
Name Holding Value Quantity National Bank For Agriculture And Rural Development
Debentures | -5% ₹683 Cr 68,000 7.81% Govt Stock 2033
Sovereign Bonds | -5% ₹682 Cr 65,871,138 Small Industries Development Bank Of India
Debentures | -5% ₹679 Cr 67,500 National Bank For Agriculture And Rural Development
Debentures | -4% ₹482 Cr 47,500 Bajaj Housing Finance Limited
Debentures | -3% ₹405 Cr 40,000 Rec Limited
Debentures | -3% ₹402 Cr 40,000
↓ -7,500 Jamnagar Utilities & Power Private Limited
Debentures | -3% ₹381 Cr 3,830 Bajaj Housing Finance Limited
Debentures | -2% ₹259 Cr 26,000 07.46 MP Sdl 2027
Sovereign Bonds | -2% ₹256 Cr 25,000,000 Rec Limited
Debentures | -2% ₹249 Cr 25,000 4. ICICI Prudential Savings Fund
ICICI Prudential Savings Fund
Growth Launch Date 27 Sep 02 NAV (24 Oct 25) ₹555.844 ↑ 0.04 (0.01 %) Net Assets (Cr) ₹27,076 on 15 Sep 25 Category Debt - Low Duration AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆ Risk Moderately Low Expense Ratio 0.53 Sharpe Ratio 2.68 Information Ratio 0 Alpha Ratio 0 Min Investment 500 Min SIP Investment 100 Exit Load NIL Yield to Maturity 6.84% Effective Maturity 1 Year 8 Months 26 Days Modified Duration 9 Months 29 Days Growth of 10,000 investment over the years.
Date Value 30 Sep 20 ₹10,000 30 Sep 21 ₹10,549 30 Sep 22 ₹10,916 30 Sep 23 ₹11,730 30 Sep 24 ₹12,632 30 Sep 25 ₹13,633 Returns for ICICI Prudential Savings Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Oct 25 Duration Returns 1 Month 0.6% 3 Month 1.5% 6 Month 3.5% 1 Year 7.8% 3 Year 7.8% 5 Year 6.3% 10 Year 15 Year Since launch 7.7% Historical performance (Yearly) on absolute basis
Year Returns 2024 8% 2023 7.6% 2022 4.5% 2021 3.8% 2020 8.6% 2019 8.8% 2018 7.3% 2017 7.1% 2016 9.1% 2015 8.8% Fund Manager information for ICICI Prudential Savings Fund
Name Since Tenure Nikhil Kabra 13 Sep 24 0.97 Yr. Darshil Dedhia 12 Jun 23 2.22 Yr. Data below for ICICI Prudential Savings Fund as on 15 Sep 25
Asset Allocation
Asset Class Value Cash 21.71% Debt 78.03% Other 0.26% Debt Sector Allocation
Sector Value Corporate 66.24% Government 24.45% Cash Equivalent 5.35% Securitized 3.69% Credit Quality
Rating Value AA 12.72% AAA 87.28% Top Securities Holdings / Portfolio
Name Holding Value Quantity National Bank For Agriculture And Rural Development
Debentures | -4% ₹1,125 Cr 111,750 7.81% Govt Stock 2033
Sovereign Bonds | -4% ₹1,111 Cr 107,269,310
↓ -15,916,670 Radhakrishna Securitization Trust **
Unlisted bonds | -3% ₹875 Cr 875
↑ 875 7.11% Govt Stock 2028
Sovereign Bonds | -2% ₹635 Cr 62,841,800
↑ 14,068,200 6.63% Govt Stock 2031
Sovereign Bonds | -2% ₹615 Cr 60,500,000 6.99% Govt Stock 2034
Sovereign Bonds | -2% ₹476 Cr 46,625,930 Small Industries Development Bank Of India
Debentures | -2% ₹448 Cr 44,500 National Bank For Agriculture And Rural Development
Debentures | -2% ₹436 Cr 43,000 National Bank For Agriculture And Rural Development
Debentures | -1% ₹403 Cr 40,000 Small Industries Development Bank Of India
Debentures | -1% ₹352 Cr 35,000 5. Nippon India Low Duration Fund
Nippon India Low Duration Fund
Growth Launch Date 20 Mar 07 NAV (24 Oct 25) ₹3,823.05 ↑ 0.50 (0.01 %) Net Assets (Cr) ₹10,048 on 31 Aug 25 Category Debt - Low Duration AMC Nippon Life Asset Management Ltd. Rating ☆☆☆ Risk Moderately Low Expense Ratio 0.94 Sharpe Ratio 2.32 Information Ratio 0 Alpha Ratio 0 Min Investment 500 Min SIP Investment 100 Exit Load NIL Yield to Maturity 6.81% Effective Maturity 1 Year 1 Month 23 Days Modified Duration 10 Months 20 Days Growth of 10,000 investment over the years.
Date Value 30 Sep 20 ₹10,000 30 Sep 21 ₹10,485 30 Sep 22 ₹10,844 30 Sep 23 ₹11,567 30 Sep 24 ₹12,399 30 Sep 25 ₹13,339 Returns for Nippon India Low Duration Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Oct 25 Duration Returns 1 Month 0.6% 3 Month 1.4% 6 Month 3.3% 1 Year 7.5% 3 Year 7.2% 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 5.59 Yr. Kinjal Desai 25 May 18 7.28 Yr. Data below for Nippon India Low Duration Fund as on 31 Aug 25
Asset Allocation
Asset Class Value Cash 26.95% Debt 72.81% Other 0.24% Debt Sector Allocation
Sector Value Corporate 65.4% Government 19.79% Cash Equivalent 11.59% Securitized 2.99% Credit Quality
Rating Value AA 13.42% AAA 86.58% Top Securities Holdings / Portfolio
Name Holding Value Quantity 91 Days Tbill Red 23-10-2025
Sovereign Bonds | -2% ₹249 Cr 25,000,000
↑ 25,000,000 TATA Communications Limited
Debentures | -2% ₹202 Cr 20,000 Telangana State Industrial Infrastructure Corporation Limited
Debentures | -2% ₹201 Cr 20,000 Radhakrishna Securitisation Trust**
Unlisted bonds | -2% ₹200 Cr 200
↑ 200 National Bank For Agriculture And Rural Development
Debentures | -2% ₹197 Cr 19,500 Highways Infrastructure Trust
Debentures | -2% ₹171 Cr 1,750 Interise TRust
Debentures | -2% ₹171 Cr 18,000 Aditya Birla Housing Finance Limited
Debentures | -2% ₹170 Cr 17,000 Small Industries Development Bank Of India
Debentures | -2% ₹152 Cr 15,000 Rec Limited
Debentures | -2% ₹151 Cr 15,000 6. Aditya Birla Sun Life Low Duration Fund
Aditya Birla Sun Life Low Duration Fund
Growth Launch Date 14 May 98 NAV (24 Oct 25) ₹669.76 ↑ 0.02 (0.00 %) Net Assets (Cr) ₹13,733 on 31 Aug 25 Category Debt - Low Duration AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆ Risk Moderately Low Expense Ratio 1.21 Sharpe Ratio 1.46 Information Ratio 0 Alpha Ratio 0 Min Investment 1,000 Min SIP Investment 100 Exit Load NIL Yield to Maturity 6.81% Effective Maturity 1 Year 25 Days Modified Duration 9 Months 29 Days Growth of 10,000 investment over the years.
Date Value 30 Sep 20 ₹10,000 30 Sep 21 ₹10,435 30 Sep 22 ₹10,798 30 Sep 23 ₹11,512 30 Sep 24 ₹12,317 30 Sep 25 ₹13,208 Returns for Aditya Birla Sun Life Low Duration Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Oct 25 Duration Returns 1 Month 0.6% 3 Month 1.3% 6 Month 3.2% 1 Year 7.2% 3 Year 7% 5 Year 5.7% 10 Year 15 Year Since launch 7.2% Historical performance (Yearly) on absolute basis
Year Returns 2024 7.1% 2023 6.7% 2022 4.3% 2021 3.5% 2020 7.7% 2019 8.2% 2018 7.2% 2017 6.4% 2016 8.5% 2015 8.1% Fund Manager information for Aditya Birla Sun Life Low Duration Fund
Name Since Tenure Kaustubh Gupta 15 Jul 11 14.14 Yr. Mohit Sharma 1 Apr 17 8.42 Yr. Data below for Aditya Birla Sun Life Low Duration Fund as on 31 Aug 25
Asset Allocation
Asset Class Value Cash 25.55% Debt 74.2% Other 0.26% Debt Sector Allocation
Sector Value Corporate 64.64% Government 21.95% Cash Equivalent 10.09% Securitized 3.06% Credit Quality
Rating Value AA 14.32% AAA 85.68% Top Securities Holdings / Portfolio
Name Holding Value Quantity 07.00 RJ Sdl 2025
Sovereign Bonds | -4% ₹600 Cr 60,000,000 182 Days Tbill Red 29-01-2026
Sovereign Bonds | -4% ₹490 Cr 50,000,000 Jubilant Bevco Limited
Debentures | -3% ₹417 Cr 40,000 91 Days Tbill Red 30-10-2025
Sovereign Bonds | -3% ₹412 Cr 41,500,000 India (Republic of)
- | -3% ₹374 Cr 37,500,000 Rec Limited
Debentures | -3% ₹358 Cr 35,500 National Bank For Agriculture And Rural Development
Debentures | -2% ₹269 Cr 26,500 Indian Railway Finance Corporation Limited
Debentures | -2% ₹268 Cr 27,000 360 One Prime Limited
Debentures | -2% ₹252 Cr 25,000 Small Industries Development Bank Of India
Debentures | -2% ₹251 Cr 25,000
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