Why Debt Funds should be a part of your investment plan
Debt funds are funds that invest in fixed income instruments, such as Money Market Instruments, Corporate Bonds, Government Bonds, etc. Debt funds are considered to be safer compared to equity investments. Debt funds are ideal for investors who prefer regular income, but do not like to take much risk. The risk on debt fund increases as the maturity of instrument increases, hence lower the maturity period lesser the risk on that debt investment. Quality of portfolio also matters a lot in debt fund as this reduced credit risk i.e. risk of default.
- Ideal for those who are risk averse and need liquidity quickly
- Debt funds are funds that invest predominantly in fixed income instruments
- Debt funds are less volatile, therefore they are less risky than equity funds.
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Some of the most invested debt funds are;
- Liquid Fund
- Low Duration Fund
- Banking and PSU Fund
- Corporate Bond Fund
- Dynamic Bond Fund
Fund Returns
- Monthly SIP
- Lumpsum Investment
- 1 Year
- 3 Years
- 5 Years
- 10 Years
Aditya Birla Sun Life Liquid Fund
Debt
Liquid Fund-
₹38,846
-
5.01%
-
2.18%
-
1 / 39
ICICI Prudential Savings Fund
Debt
Low Duration Fund-
₹39,095
-
5.44%
-
4.07%
-
1 / 23
UTI Money Market Fund
Debt
Money Market Fund-
₹39,053
-
5.37%
-
4.95%
-
1 / 20
HDFC Short Term Debt Fund
Debt
Short Duration Fund-
₹38,971
-
5.23%
-
5.34%
-
1 / 26
ICICI Prudential Banking And PSU Debt Fund
Debt
Banking and PSU Fund-
₹39,167
-
5.56%
-
5.04%
-
1 / 19
ICICI Prudential Corporate Bond Fund
Debt
Corporate Bond Fund-
₹39,231
-
5.67%
-
4.97%
-
1 / 17
SBI Magnum Medium Duration Fund
Debt
Medium Duration Fund-
₹39,168
-
5.56%
-
5.71%
-
1 / 14
ICICI Prudential All Seasons Bond Fund
Debt
Dynamic Bond Fund-
₹39,405
-
5.97%
-
4.73%
-
1 / 27
Parag Parikh Liquid Fund
Debt
Liquid Fund-
₹38,638
-
4.65%
-
2.18%
-
2 / 39
ICICI Prudential Ultra Short Term Fund
-
₹38,939
-
5.17%
-
4.49%
-
2 / 25
HDFC Low Duration Fund
Debt
Low Duration Fund-
₹38,872
-
5.06%
-
4.07%
-
2 / 23
Nippon India Money Market Fund
Debt
Money Market Fund-
₹39,069
-
5.39%
-
4.95%
-
2 / 20
ICICI Prudential Short Term Fund
Debt
Short Duration Fund-
₹39,255
-
5.71%
-
5.34%
-
2 / 26
Aditya Birla Sun Life Banking & PSU Debt Fund
Debt
Banking and PSU Fund-
₹38,906
-
5.12%
-
5.04%
-
2 / 19
Aditya Birla Sun Life Corporate Bond Fund
Debt
Corporate Bond Fund-
₹39,119
-
5.48%
-
4.97%
-
2 / 17
HDFC Medium Term Debt Fund
Debt
Medium Duration Fund-
₹39,102
-
5.45%
-
5.71%
-
2 / 14
Kotak Dynamic Bond Fund
Debt
Dynamic Bond Fund-
₹38,623
-
4.63%
-
4.73%
-
2 / 27