fincash logo SOLUTIONS
EXPLORE FUNDS
CALCULATORS
LOG IN
SIGN UP

Fincash » Mutual Funds » Best Direct Plans in Debt Funds

Best Direct Plans in Debt Mutual Funds

Updated on September 28, 2023 , 574 views

The mutual fund offers two plans- regular and direct. While regular plans have been in the option for many years, the first direct plan got introduced in the year 2013. But, direct plans are gaining a huge popularity amongst new investors due to its unique features and benefits. Though, currently direct plans are available only through a limited platform, but looking at its demand, many channels are introducing direct plans. Investors who want to invest in Debt fund by opting direct plans, here’s a glimpse of what are direct funds, a brief understanding of debt funds, along with some of the best direct pans debt funds.

Direct-debt-Funds

Why Direct Funds are for you?

Unlike regular funds, direct funds are available through limited channels like from a mutual fund company, RTAs such as Karvy/CAMS, limited third party securities intermediaries, and authorized local representatives of the fund house. Investors who can independently invest and track their investments without a help of an advisor or a mediator can invest in direct plans from the fund house.

In direct funds, there are no expense charges like regular funds. As there are no distributor charges/ transaction chargers, etc., the expense ratio of direct plans is less. This effect on returns too. As the expense ratio of a direct mutual fund is less, the returns it can be slightly higher than regular plans- about 0.5 percent to 1.5 percent higher. This is one of the reasons why investors are opting for direct funds.

Ideally, an investor who has an experience of mutual fund investment and a fair knowledge about Market movements should prefer for direct plans. New investors who aren’t sure about risk appetite and the market should ideally prefer Mutual Funds with regular plans.

Understanding Debt Fund Investment

Debt funds are a type of mutual funds that mainly invest in fixed Income securities like Bonds, government securities, treasury bills, etc. If we look at the classifications of debt funds, they are categorized as per maturities- short, mid and long term period. This gives a Range of options for investors who want to invest in debt funds.

Debt funds are a good option for those who don’t want to take much risk in the investments or one who want to avoid Investing in the highly volatile Equity Funds. These funds provide a regular and steady income, however, the returns are less compared to equity funds.

Types of Debt Funds as per maturity

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 Debt Mutual Funds Direct Plans

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2022 (%)
HDFC Floating Rate Income Fund - Short Term Plan - Direct Growth ₹43.8203
↑ 0.01
₹17,0802.14.37.85.97.14.8
Mahindra Liquid Fund - Direct Growth ₹1,505.11
↑ 0.29
₹6721.73.56.84.75.45
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 22 Aug 23

1. HDFC Floating Rate Income Fund - Short Term Plan - Direct

The investment objective of the scheme is to generate regular income through investment in a portfolio comprising substantially of floating & fixed rate debt & money market instruments swapped for floating rate returns and fixed rate debt securities and money market instruments.

HDFC Floating Rate Income Fund - Short Term Plan - Direct is a Debt - Floating Rate fund was launched on 1 Jan 13. It is a fund with Moderately Low risk and has given a CAGR/Annualized return of 7.8% since its launch.  Return for 2022 was 4.8% , 2021 was 4.4% and 2020 was 9.4% .

Below is the key information for HDFC Floating Rate Income Fund - Short Term Plan - Direct

HDFC Floating Rate Income Fund - Short Term Plan - Direct
Growth
Launch Date 1 Jan 13
NAV (22 Aug 23) ₹43.8203 ↑ 0.01   (0.02 %)
Net Assets (Cr) ₹17,080 on 31 Jul 23
Category Debt - Floating Rate
AMC HDFC Asset Management Company Limited
Rating Not Rated
Risk Moderately Low
Expense Ratio 0.25
Sharpe Ratio 2.32
Information Ratio 0.77
Alpha Ratio 1.22
Min Investment
Min SIP Investment
Exit Load NIL
Yield to Maturity 7.8%
Effective Maturity 3 Years 10 Months 10 Days
Modified Duration 1 Year 1 Month 5 Days

Growth of 10,000 investment over the years.

DateValue
30 Sep 18₹10,000
30 Sep 19₹10,907
30 Sep 20₹11,881
30 Sep 21₹12,617
30 Sep 22₹13,115
30 Sep 23₹14,140

HDFC Floating Rate Income Fund - Short Term Plan - Direct SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹203,125.
Net Profit of ₹23,125
Invest Now

Purchase not allowed

Returns for HDFC Floating Rate Income Fund - Short Term Plan - Direct

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Aug 23

DurationReturns
1 Month 0.7%
3 Month 2.1%
6 Month 4.3%
1 Year 7.8%
3 Year 5.9%
5 Year 7.1%
10 Year
15 Year
Since launch 7.8%
Historical performance (Yearly) on absolute basis
YearReturns
2022 4.8%
2021 4.4%
2020 9.4%
2019 8.7%
2018 7.4%
2017 7%
2016 9.1%
2015 8.9%
2014 9.5%
2013
Fund Manager information for HDFC Floating Rate Income Fund - Short Term Plan - Direct
NameSinceTenure
Shobhit Mehrotra23 Oct 0715.87 Yr.
Vikas Agrawal7 Jan 203.65 Yr.
Dhruv Muchhal22 Jun 230.19 Yr.

Data below for HDFC Floating Rate Income Fund - Short Term Plan - Direct as on 31 Jul 23

Asset Allocation
Asset ClassValue
Cash16.01%
Debt83.99%
Debt Sector Allocation
SectorValue
Corporate47.38%
Government41.63%
Cash Equivalent10.61%
Securitized0.39%
Credit Quality
RatingValue
AA11.46%
AAA88.54%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.93% Govt Stock 2034
Sovereign Bonds | -
13%₹2,401 Cr241,000,000
8.51% Govt Stock 2033
Sovereign Bonds | -
6%₹1,092 Cr107,641,200
↑ 2,500,000
7.879999999999999% Govt Stock 2028
Sovereign Bonds | -
4%₹772 Cr77,500,000
HDFC Bank Limited
Debentures | -
4%₹649 Cr6,500
Power Finance Corporation Ltd.
Debentures | -
3%₹549 Cr5,500
Rural Electrification Corporation Limited
Debentures | -
2%₹424 Cr4,250
Muthoot Finance Limited
Debentures | -
2%₹352 Cr3,500
National Bank For Agriculture And Rural Development
Debentures | -
2%₹349 Cr35,000
Small Industries Development Bank Of India
Debentures | -
2%₹303 Cr30,500
Tmf Holdings Limited
Debentures | -
2%₹302 Cr3,000

2. Mahindra Liquid Fund - Direct

The Scheme seeks to deliver reasonable market related returns with lower risk and higher liquidity through a portfolio of money market and debt instruments. However, there is no assurance that the investment objective of the Scheme will be realized and the Scheme does not assure or guarantee any returns.

Mahindra Liquid Fund - Direct is a Debt - Liquid Fund fund was launched on 4 Jul 16. It is a fund with Low risk and has given a CAGR/Annualized return of 5.9% since its launch.  Return for 2022 was 5% , 2021 was 3.4% and 2020 was 4.4% .

Below is the key information for Mahindra Liquid Fund - Direct

Mahindra Liquid Fund - Direct
Growth
Launch Date 4 Jul 16
NAV (22 Aug 23) ₹1,505.11 ↑ 0.29   (0.02 %)
Net Assets (Cr) ₹672 on 31 Jul 23
Category Debt - Liquid Fund
AMC Mahindra Asset Management Company Pvt. Ltd.
Rating Not Rated
Risk Low
Expense Ratio 0.14
Sharpe Ratio 2.31
Information Ratio -2.08
Alpha Ratio -0.01
Min Investment
Min SIP Investment
Exit Load NIL
Yield to Maturity 6.96%
Effective Maturity 1 Month 5 Days
Modified Duration 1 Month 6 Days

Growth of 10,000 investment over the years.

DateValue
30 Sep 18₹10,000
30 Sep 19₹10,738
30 Sep 20₹11,276
30 Sep 21₹11,655
30 Sep 22₹12,146
30 Sep 23₹12,997

Mahindra Liquid Fund - Direct 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

Purchase not allowed

Returns for Mahindra Liquid Fund - Direct

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Aug 23

DurationReturns
1 Month 0.6%
3 Month 1.7%
6 Month 3.5%
1 Year 6.8%
3 Year 4.7%
5 Year 5.4%
10 Year
15 Year
Since launch 5.9%
Historical performance (Yearly) on absolute basis
YearReturns
2022 5%
2021 3.4%
2020 4.4%
2019 6.9%
2018 7.5%
2017 6.8%
2016
2015
2014
2013
Fund Manager information for Mahindra Liquid Fund - Direct
NameSinceTenure
Rahul Pal4 Jul 167.16 Yr.
Amit Garg8 Jun 203.23 Yr.

Data below for Mahindra Liquid Fund - Direct as on 31 Jul 23

Asset Allocation
Asset ClassValue
Cash100%
Debt Sector Allocation
SectorValue
Cash Equivalent79.52%
Corporate10.24%
Government10.24%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Reverse Repo
CBLO/Reverse Repo | -
17%₹122 Cr1,216,587,165
↑ 612,249,145
182 DTB 22092023
Sovereign Bonds | -
12%₹84 Cr8,400,000
↑ 5,900,000
Indusind Bank Limited
Certificate of Deposit | -
7%₹50 Cr5,000,000
↑ 5,000,000
Shree Cement Limited
Commercial Paper | -
7%₹50 Cr5,000,000
↑ 5,000,000
Bank Of Maharashtra
Certificate of Deposit | -
7%₹50 Cr5,000,000
↑ 5,000,000
08.30 FERT BND 2023
Domestic Bonds | -
3%₹25 Cr2,500,000
↑ 2,500,000
Small Industries Development Bank Of India
Commercial Paper | -
3%₹25 Cr2,500,000
Hinduja Leyland Finance Limited
Commercial Paper | -
3%₹25 Cr2,500,000
Nuvama Wealth Management Limited
Commercial Paper | -
3%₹25 Cr2,500,000
↑ 2,500,000
Hindustan Petroleum Corporation Limited
Debentures | -
3%₹25 Cr2,500,000

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 5, based on 1 reviews.
POST A COMMENT