+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
Talk to our investment specialist
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 ICICI Prudential Regular Savings Fund Growth ₹33.8062
↑ 0.03 ₹5,834 10,000 1.8 3.2 8.1 8.2 9.5 8.83% 1Y 9M 14D 2Y 9M 18D SBI Credit Risk Fund Growth ₹48.1032
↓ 0.00 ₹2,139 5,000 2.3 3.1 6.7 7.6 7.9 8.72% 1Y 7M 24D 2Y 7D Nippon India Credit Risk Fund Growth ₹37.0596
↑ 0.01 ₹1,058 500 2.1 3.1 7.6 8.1 8.9 8.72% 1Y 11M 23D 2Y 4M 28D Aditya Birla Sun Life Credit Risk Fund Growth ₹24.6517
↑ 0.01 ₹1,178 1,000 2.5 7 12.3 12 13.4 8.59% 2Y 14D 2Y 8M 19D Kotak Credit Risk Fund Growth ₹31.0621
↑ 0.01 ₹691 5,000 1.5 2.3 7.4 7.4 9.1 8.57% 2Y 1M 10D 2Y 9M 18D HDFC Low Duration Fund Growth ₹60.4809
↑ 0.01 ₹22,104 5,000 1.7 2.7 6.1 7 7.2 7.77% 11M 10D 2Y 18D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 21 Apr 26 Research Highlights & Commentary of 6 Funds showcased
Commentary ICICI Prudential Regular Savings Fund SBI Credit Risk Fund Nippon India Credit Risk Fund Aditya Birla Sun Life Credit Risk Fund Kotak Credit Risk Fund HDFC Low Duration Fund Point 1 Upper mid AUM (₹5,834 Cr). Upper mid AUM (₹2,139 Cr). Bottom quartile AUM (₹1,058 Cr). Lower mid AUM (₹1,178 Cr). Bottom quartile AUM (₹691 Cr). Highest AUM (₹22,104 Cr). Point 2 Established history (15+ yrs). Established history (21+ yrs). Established history (20+ yrs). Established history (11+ yrs). Established history (15+ yrs). Oldest track record among peers (26 yrs). Point 3 Rating: 1★ (bottom quartile). Top rated. Rating: 2★ (lower mid). Not Rated. Rating: 3★ (upper mid). Rating: 3★ (upper mid). Point 4 Risk profile: Moderate. Risk profile: Moderate. Risk profile: Moderate. Risk profile: Moderate. Risk profile: Moderately Low. Risk profile: Moderately Low. Point 5 1Y return: 8.11% (upper mid). 1Y return: 6.75% (bottom quartile). 1Y return: 7.57% (upper mid). 1Y return: 12.34% (top quartile). 1Y return: 7.42% (lower mid). 1Y return: 6.07% (bottom quartile). Point 6 1M return: 0.99% (upper mid). 1M return: 0.93% (upper mid). 1M return: 0.67% (lower mid). 1M return: 1.30% (top quartile). 1M return: 0.63% (bottom quartile). 1M return: 0.62% (bottom quartile). Point 7 Sharpe: 1.61 (upper mid). Sharpe: 0.99 (lower mid). Sharpe: 1.40 (upper mid). Sharpe: 2.01 (top quartile). Sharpe: 0.92 (bottom quartile). Sharpe: 0.80 (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): 8.83% (top quartile). Yield to maturity (debt): 8.72% (upper mid). Yield to maturity (debt): 8.72% (upper mid). Yield to maturity (debt): 8.59% (lower mid). Yield to maturity (debt): 8.57% (bottom quartile). Yield to maturity (debt): 7.77% (bottom quartile). Point 10 Modified duration: 1.79 yrs (upper mid). Modified duration: 1.65 yrs (upper mid). Modified duration: 1.98 yrs (lower mid). Modified duration: 2.04 yrs (bottom quartile). Modified duration: 2.11 yrs (bottom quartile). Modified duration: 0.95 yrs (top quartile). ICICI Prudential Regular Savings Fund
SBI Credit Risk Fund
Nippon India Credit Risk Fund
Aditya Birla Sun Life Credit Risk Fund
Kotak 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.
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. Below is the key information for ICICI Prudential Regular Savings 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 (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. Research Highlights for Nippon India Credit Risk Fund Below is the key information for Nippon India 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 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 1. ICICI Prudential Regular Savings Fund
ICICI Prudential Regular Savings Fund
Growth Launch Date 3 Dec 10 NAV (21 Apr 26) ₹33.8062 ↑ 0.03 (0.08 %) Net Assets (Cr) ₹5,834 on 31 Mar 26 Category Debt - Credit Risk AMC ICICI Prudential Asset Management Company Limited Rating ☆ Risk Moderate Expense Ratio 1.43 Sharpe Ratio 1.61 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 8.83% Effective Maturity 2 Years 9 Months 18 Days Modified Duration 1 Year 9 Months 14 Days Growth of 10,000 investment over the years.
Date Value 31 Mar 21 ₹10,000 31 Mar 22 ₹10,671 31 Mar 23 ₹11,225 31 Mar 24 ₹12,123 31 Mar 25 ₹13,125 31 Mar 26 ₹14,181 Returns for ICICI Prudential Regular Savings Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 21 Apr 26 Duration Returns 1 Month 1% 3 Month 1.8% 6 Month 3.2% 1 Year 8.1% 3 Year 8.2% 5 Year 7.4% 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 9.4 Yr. Akhil Kakkar 22 Jan 24 2.19 Yr. Data below for ICICI Prudential Regular Savings Fund as on 31 Mar 26
Asset Allocation
Asset Class Value Cash 16.01% Equity 9.23% Debt 74.36% Other 0.39% Debt Sector Allocation
Sector Value Corporate 65.84% Government 13.35% Cash Equivalent 11.18% Credit Quality
Rating Value A 21.44% AA 57.69% AAA 20.87% Top Securities Holdings / Portfolio
Name Holding Value Quantity Embassy Office Parks REIT (Real Estate)
-, Since 30 Apr 25 | EMBASSY4% ₹240 Cr 5,715,303 Keystone Realtors Limited
Debentures | -4% ₹233 Cr 23,500 Millennia Realtors Private Limited
Debentures | -4% ₹210 Cr 2,100 Vedanta Limited
Debentures | -3% ₹200 Cr 20,000 Adani Enterprises Limited
Debentures | -3% ₹198 Cr 20,000 Jtpm Metal TRaders Limited
Debentures | -3% ₹188 Cr 18,000 Bamboo Hotel And Global Centre (Delhi) Private Limited
Debentures | -3% ₹186 Cr 18,500 Nirma Limited
Debentures | -3% ₹150 Cr 15,000 Sis Limited
Debentures | -2% ₹124 Cr 12,500 Lodha Developers Limited
Debentures | -2% ₹120 Cr 15,000 2. SBI Credit Risk Fund
SBI Credit Risk Fund
Growth Launch Date 19 Jul 04 NAV (21 Apr 26) ₹48.1032 ↓ 0.00 (0.00 %) Net Assets (Cr) ₹2,139 on 31 Mar 26 Category Debt - Credit Risk AMC SBI Funds Management Private Limited Rating ☆☆☆☆ Risk Moderate Expense Ratio 1.55 Sharpe Ratio 0.99 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 8.72% Effective Maturity 2 Years 7 Days Modified Duration 1 Year 7 Months 24 Days Growth of 10,000 investment over the years.
Date Value 31 Mar 21 ₹10,000 31 Mar 22 ₹10,556 31 Mar 23 ₹11,051 31 Mar 24 ₹12,021 31 Mar 25 ₹13,029 31 Mar 26 ₹13,928 Returns for SBI Credit Risk Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 21 Apr 26 Duration Returns 1 Month 0.9% 3 Month 2.3% 6 Month 3.1% 1 Year 6.7% 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 9.16 Yr. Data below for SBI Credit Risk Fund as on 31 Mar 26
Asset Allocation
Asset Class Value Cash 17.84% Equity 4.58% Debt 74.2% Other 3.38% Debt Sector Allocation
Sector Value Corporate 62.99% Cash Equivalent 15.65% Government 13.4% Credit Quality
Rating Value A 18.02% AA 59.04% AAA 22.94% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.02% Govt Stock 2031
Sovereign Bonds | -7% ₹151 Cr 15,000,000 Infopark Properties Limited
Debentures | -5% ₹105 Cr 10,500 Renew Solar Energy (Jharkhand Five) Private Limited
Debentures | -5% ₹101 Cr 11,000 H.G. Infra Engineering Limited
Debentures | -5% ₹99 Cr 10,000 Nj Capital Private Limited
Debentures | -5% ₹99 Cr 10,000 Jtpm Metal TRaders Limited
Debentures | -4% ₹93 Cr 9,000 Renserv Global Private Limited
Debentures | -4% ₹80 Cr 8,000 Avanse Financial Services Limited
Debentures | -4% ₹80 Cr 8,000 Jsw Kalinga Steel Limited
Debentures | -4% ₹75 Cr 7,500
↑ 7,500 Aditya Birla Renewables Limited
Debentures | -4% ₹75 Cr 7,500 3. Nippon India Credit Risk Fund
Nippon India Credit Risk Fund
Growth Launch Date 8 Jun 05 NAV (21 Apr 26) ₹37.0596 ↑ 0.01 (0.02 %) Net Assets (Cr) ₹1,058 on 31 Mar 26 Category Debt - Credit Risk AMC Nippon Life Asset Management Ltd. Rating ☆☆ Risk Moderate Expense Ratio 1.46 Sharpe Ratio 1.4 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 8.72% Effective Maturity 2 Years 4 Months 28 Days Modified Duration 1 Year 11 Months 23 Days Growth of 10,000 investment over the years.
Date Value 31 Mar 21 ₹10,000 31 Mar 22 ₹11,274 31 Mar 23 ₹11,807 31 Mar 24 ₹12,759 31 Mar 25 ₹13,852 31 Mar 26 ₹14,925 Returns for Nippon India Credit Risk Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 21 Apr 26 Duration Returns 1 Month 0.7% 3 Month 2.1% 6 Month 3.1% 1 Year 7.6% 3 Year 8.1% 5 Year 8.5% 10 Year 15 Year Since launch 6.5% Historical performance (Yearly) on absolute basis
Year Returns 2025 8.9% 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% Fund Manager information for Nippon India Credit Risk Fund
Name Since Tenure Kinjal Desai 25 May 18 7.86 Yr. Sushil Budhia 1 Feb 20 6.17 Yr. Amber Singhania 11 Mar 26 0.06 Yr. Data below for Nippon India Credit Risk Fund as on 31 Mar 26
Asset Allocation
Asset Class Value Cash 12.83% Debt 86.88% Other 0.28% Debt Sector Allocation
Sector Value Corporate 74.57% Government 16.98% Cash Equivalent 8.17% Credit Quality
Rating Value A 26.83% AA 36.86% AAA 36.31% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.02% Govt Stock 2031
Sovereign Bonds | -7% ₹75 Cr 7,500,000 Renew Solar Energy (Jharkhand Five) Private Limited
Debentures | -4% ₹46 Cr 5,000 Muthoot Fincorp Limited
Debentures | -4% ₹44 Cr 20,000
↓ -30,000 TRuhome Finance Limited
Debentures | -4% ₹40 Cr 4,000 Navi Finserv Limited
Debentures | -4% ₹40 Cr 40,000 GAursons India Private Limited
Debentures | -4% ₹40 Cr 4,000 Delhi International Airport Limited
Debentures | -3% ₹36 Cr 3,500 Vedanta Limited
Debentures | -3% ₹35 Cr 3,500 Hiranandani Financial Services Private Limited
Debentures | -3% ₹35 Cr 3,500 Auxilo Finserve Private Limited
Debentures | -3% ₹32 Cr 3,200 4. Aditya Birla Sun Life Credit Risk Fund
Aditya Birla Sun Life Credit Risk Fund
Growth Launch Date 17 Apr 15 NAV (21 Apr 26) ₹24.6517 ↑ 0.01 (0.04 %) Net Assets (Cr) ₹1,178 on 31 Mar 26 Category Debt - Credit Risk AMC Birla Sun Life Asset Management Co Ltd Rating Risk Moderate Expense Ratio 1.54 Sharpe Ratio 2.01 Information Ratio 0 Alpha Ratio 0 Min Investment 1,000 Min SIP Investment 100 Exit Load 0-365 Days (1%),365 Days and above(NIL) Yield to Maturity 8.59% Effective Maturity 2 Years 8 Months 19 Days Modified Duration 2 Years 14 Days Growth of 10,000 investment over the years.
Date Value 31 Mar 21 ₹10,000 31 Mar 22 ₹10,582 31 Mar 23 ₹11,373 31 Mar 24 ₹12,208 31 Mar 25 ₹14,169 31 Mar 26 ₹15,917 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 21 Apr 26 Duration Returns 1 Month 1.3% 3 Month 2.5% 6 Month 7% 1 Year 12.3% 3 Year 12% 5 Year 9.8% 10 Year 15 Year Since launch 8.5% 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 10.96 Yr. Mohit Sharma 6 Aug 20 5.65 Yr. Data below for Aditya Birla Sun Life Credit Risk Fund as on 31 Mar 26
Asset Allocation
Asset Class Value Cash 10.09% Equity 7.72% Debt 81.43% Other 0.77% Debt Sector Allocation
Sector Value Corporate 60.77% Government 20.66% Cash Equivalent 10.09% Credit Quality
Rating Value A 16.62% AA 54.7% AAA 28.68% Top Securities Holdings / Portfolio
Name Holding Value Quantity GMR Airports Limited
Debentures | -5% ₹54 Cr 5,200 Aditya Birla Real Estate Limited
Debentures | -4% ₹45 Cr 4,500 Jubilant Bevco Limited
Debentures | -4% ₹43 Cr 4,000 6.48% Govt Stock 2035
Sovereign Bonds | -3% ₹40 Cr 4,115,800
↓ -500,000 IKF Finance Limited
Debentures | -3% ₹35 Cr 3,500 Hinduja Leyland Finance Limited
Debentures | -3% ₹34 Cr 3,500 National Bank For Agriculture And Rural Development
Debentures | -3% ₹34 Cr 3,500 Kogta Financial (India) Limited
Debentures | -3% ₹32 Cr 3,250 GAursons India Private Limited
Debentures | -3% ₹32 Cr 3,200 Vedanta Limited
Debentures | -3% ₹30 Cr 3,000 5. Kotak Credit Risk Fund
Kotak Credit Risk Fund
Growth Launch Date 11 May 10 NAV (21 Apr 26) ₹31.0621 ↑ 0.01 (0.04 %) Net Assets (Cr) ₹691 on 31 Mar 26 Category Debt - Credit Risk AMC Kotak Mahindra Asset Management Co Ltd Rating ☆☆☆ Risk Moderately Low Expense Ratio 1.71 Sharpe Ratio 0.92 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 8.57% Effective Maturity 2 Years 9 Months 18 Days Modified Duration 2 Years 1 Month 10 Days Growth of 10,000 investment over the years.
Date Value 31 Mar 21 ₹10,000 31 Mar 22 ₹10,589 31 Mar 23 ₹10,669 31 Mar 24 ₹11,548 31 Mar 25 ₹12,290 31 Mar 26 ₹13,216 Returns for Kotak Credit Risk Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 21 Apr 26 Duration Returns 1 Month 0.6% 3 Month 1.5% 6 Month 2.3% 1 Year 7.4% 3 Year 7.4% 5 Year 5.8% 10 Year 15 Year Since launch 7.4% 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 15.9 Yr. Vihag Mishra 24 Oct 25 0.44 Yr. Data below for Kotak Credit Risk Fund as on 31 Mar 26
Asset Allocation
Asset Class Value Cash 1.68% Equity 9.83% Debt 87.9% Other 0.6% Debt Sector Allocation
Sector Value Corporate 72.03% Government 15.87% Cash Equivalent 1.68% Credit Quality
Rating Value A 11.43% AA 59.88% AAA 28.69% Top Securities Holdings / Portfolio
Name Holding Value Quantity Jubilant Bevco Limited
Debentures | -8% ₹54 Cr 500 Vedanta 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 Rec Limited
Debentures | -7% ₹49 Cr 5,000 Aditya Birla Real Estate Limited
Debentures | -6% ₹45 Cr 4,500 Karnataka State Development Loans
Sovereign Bonds | -6% ₹45 Cr 4,500,000 Aditya Birla Renewables Limited
Debentures | -6% ₹40 Cr 4,000 Au Small Finance Bank Limited
Debentures | -4% ₹30 Cr 30 Embassy Office Parks REIT (Real Estate)
-, Since 30 Apr 25 | EMBASSY4% ₹27 Cr 636,630 6. HDFC Low Duration Fund
HDFC Low Duration Fund
Growth Launch Date 18 Nov 99 NAV (21 Apr 26) ₹60.4809 ↑ 0.01 (0.01 %) Net Assets (Cr) ₹22,104 on 31 Mar 26 Category Debt - Low Duration AMC HDFC Asset Management Company Limited Rating ☆☆☆ Risk Moderately Low Expense Ratio 1.03 Sharpe Ratio 0.8 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 300 Exit Load NIL Yield to Maturity 7.77% Effective Maturity 2 Years 18 Days Modified Duration 11 Months 10 Days Growth of 10,000 investment over the years.
Date Value 31 Mar 21 ₹10,000 31 Mar 22 ₹10,401 31 Mar 23 ₹10,905 31 Mar 24 ₹11,698 31 Mar 25 ₹12,570 31 Mar 26 ₹13,366 Returns for HDFC Low Duration Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 21 Apr 26 Duration Returns 1 Month 0.6% 3 Month 1.7% 6 Month 2.7% 1 Year 6.1% 3 Year 7% 5 Year 6% 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 10.43 Yr. Praveen Jain 6 Oct 22 3.49 Yr. Dhruv Muchhal 22 Jun 23 2.78 Yr. Data below for HDFC Low Duration Fund as on 31 Mar 26
Asset Allocation
Asset Class Value Cash 1.8% Debt 97.9% Other 0.3% Debt Sector Allocation
Sector Value Corporate 72.63% Government 27.12% Credit Quality
Rating Value AA 13.33% AAA 86.67% Top Securities Holdings / Portfolio
Name Holding Value Quantity Goi Floating Rate Bond 2031
Sovereign Bonds | -6% ₹1,306 Cr 127,000,000
↑ 4,500,000 Goi Floating Rate Bond 2033
Sovereign Bonds | -5% ₹1,040 Cr 100,000,000
↓ -15,000,000 Jubilant Beverages Limited
Debentures | -3% ₹645 Cr 59,740 Small Industries Development Bank Of India
Debentures | -3% ₹633 Cr 63,000 National Bank For Agriculture And Rural Development
Debentures | -3% ₹628 Cr 62,500 National Housing Bank
Debentures | -2% ₹473 Cr 47,100 National Bank For Agriculture And Rural Development
Debentures | -2% ₹472 Cr 47,000 YES Bank Ltd.
Debentures | -2% ₹444 Cr 9,500 Power Finance Corporation Limited
Debentures | -2% ₹420 Cr 42,500 Indian Railway Finance Corporation Limited
Debentures | -2% ₹410 Cr 41,000
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.
How to Invest in Debt Lump Sum Online?
Open Free Investment Account for Lifetime at Fincash.com.
Complete your Registration and KYC Process
Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!
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.
You Might Also Like
AMFI Registration No. 112358 | CIN: U74999MH2016PTC282153
Shepard Technologies Pvt. Ltd. (with ARN code 112358) makes no warranties or representations, express or implied, on products offered through the platform. It accepts no liability for any damages or losses, however caused, in connection with the use of, or on the reliance of its product or related services. Terms and conditions of the website are applicable.
©2026 Shepard Technologies Private Limited. All Rights Reserved
Research Highlights for ICICI Prudential Regular Savings Fund