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Best Direct Plans in Debt Mutual Funds
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.
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
- Short Term Debt Funds- Overnight funds, Liquid Funds, ultra short term funds, low duration funds
- Medium Term Debt Funds- Short duration funds, medium duration funds, medium to long duration funds
- long term debt funds- Long duration funds
- Bond Oriented Funds- Dynamic Bond Funds, corporate bond funds
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Best Debt Mutual Funds Direct Plans
Fund NAV Net 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 ₹17,080 2.1 4.3 7.8 5.9 7.1 4.8 Mahindra Liquid Fund - Direct Growth ₹1,505.11
↑ 0.29 ₹672 1.7 3.5 6.8 4.7 5.4 5 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 22 Aug 23
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 Below is the key information for HDFC Floating Rate Income Fund - Short Term Plan - Direct Returns up to 1 year are on 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 Below is the key information for Mahindra Liquid Fund - Direct Returns up to 1 year are on 1. HDFC Floating Rate Income Fund - Short Term Plan - Direct
CAGR/Annualized return of 7.8% since its launch. Return for 2022 was 4.8% , 2021 was 4.4% and 2020 was 9.4% . 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 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.
Date Value 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
Purchase not allowed Returns for HDFC Floating Rate Income Fund - Short Term Plan - Direct
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Aug 23 Duration Returns 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
Year Returns 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
Name Since Tenure Shobhit Mehrotra 23 Oct 07 15.87 Yr. Vikas Agrawal 7 Jan 20 3.65 Yr. Dhruv Muchhal 22 Jun 23 0.19 Yr. Data below for HDFC Floating Rate Income Fund - Short Term Plan - Direct as on 31 Jul 23
Asset Allocation
Asset Class Value Cash 16.01% Debt 83.99% Debt Sector Allocation
Sector Value Corporate 47.38% Government 41.63% Cash Equivalent 10.61% Securitized 0.39% Credit Quality
Rating Value AA 11.46% AAA 88.54% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.93% Govt Stock 2034
Sovereign Bonds | -13% ₹2,401 Cr 241,000,000 8.51% Govt Stock 2033
Sovereign Bonds | -6% ₹1,092 Cr 107,641,200
↑ 2,500,000 7.879999999999999% Govt Stock 2028
Sovereign Bonds | -4% ₹772 Cr 77,500,000 HDFC Bank Limited
Debentures | -4% ₹649 Cr 6,500 Power Finance Corporation Ltd.
Debentures | -3% ₹549 Cr 5,500 Rural Electrification Corporation Limited
Debentures | -2% ₹424 Cr 4,250 Muthoot Finance Limited
Debentures | -2% ₹352 Cr 3,500 National Bank For Agriculture And Rural Development
Debentures | -2% ₹349 Cr 35,000 Small Industries Development Bank Of India
Debentures | -2% ₹303 Cr 30,500 Tmf Holdings Limited
Debentures | -2% ₹302 Cr 3,000 2. Mahindra Liquid Fund - Direct
CAGR/Annualized return of 5.9% since its launch. Return for 2022 was 5% , 2021 was 3.4% and 2020 was 4.4% . 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 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.
Date Value 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
Purchase not allowed Returns for Mahindra Liquid Fund - Direct
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Aug 23 Duration Returns 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
Year Returns 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
Name Since Tenure Rahul Pal 4 Jul 16 7.16 Yr. Amit Garg 8 Jun 20 3.23 Yr. Data below for Mahindra Liquid Fund - Direct as on 31 Jul 23
Asset Allocation
Asset Class Value Cash 100% Debt Sector Allocation
Sector Value Cash Equivalent 79.52% Corporate 10.24% Government 10.24% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Reverse Repo
CBLO/Reverse Repo | -17% ₹122 Cr 1,216,587,165
↑ 612,249,145 182 DTB 22092023
Sovereign Bonds | -12% ₹84 Cr 8,400,000
↑ 5,900,000 Indusind Bank Limited
Certificate of Deposit | -7% ₹50 Cr 5,000,000
↑ 5,000,000 Shree Cement Limited
Commercial Paper | -7% ₹50 Cr 5,000,000
↑ 5,000,000 Bank Of Maharashtra
Certificate of Deposit | -7% ₹50 Cr 5,000,000
↑ 5,000,000 08.30 FERT BND 2023
Domestic Bonds | -3% ₹25 Cr 2,500,000
↑ 2,500,000 Small Industries Development Bank Of India
Commercial Paper | -3% ₹25 Cr 2,500,000 Hinduja Leyland Finance Limited
Commercial Paper | -3% ₹25 Cr 2,500,000 Nuvama Wealth Management Limited
Commercial Paper | -3% ₹25 Cr 2,500,000
↑ 2,500,000 Hindustan Petroleum Corporation Limited
Debentures | -3% ₹25 Cr 2,500,000
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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