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
ICICI Prudential Banking And PSU Debt Fund
Debt
Banking and PSU Fund-
₹39,174
-
5.57%
-
5.17%
-
1 / 19
Aditya Birla Sun Life Banking & PSU Debt Fund
Debt
Banking and PSU Fund-
₹38,916
-
5.13%
-
5.17%
-
2 / 19
Kotak Banking And PSU Debt Fund
Debt
Banking and PSU Fund-
₹38,984
-
5.24%
-
5.17%
-
3 / 19
L&T Banking And PSU Debt Fund
Debt
Banking and PSU Fund-
₹38,285
-
4.04%
-
5.17%
-
4 / 19
HDFC Banking And PSU Debt FunD-2014
Debt
Banking and PSU Fund-
₹38,838
-
4.99%
-
5.17%
-
5 / 19
Axis Banking & PSU Debt Fund
Debt
Banking and PSU Fund-
₹38,799
-
4.93%
-
5.17%
-
6 / 19
IDFC Banking & PSU Debt Fund
Debt
Banking and PSU Fund-
₹38,885
-
5.08%
-
5.17%
-
7 / 19
Nippon India Banking & PSU Debt Fund
Debt
Banking and PSU Fund-
₹38,860
-
5.03%
-
5.17%
-
8 / 19
LIC Banking And PSU Debt Fund
Debt
Banking and PSU Fund-
₹38,550
-
4.50%
-
5.17%
-
9 / 19
SBI Banking & PSU Fund
Debt
Banking and PSU Fund-
₹38,571
-
4.53%
-
5.17%
-
10 / 19
DSP Banking And PSU Debt Fund
Debt
Banking and PSU Fund-
₹38,752
-
4.85%
-
5.17%
-
11 / 19
UTI Banking & PSU Debt Fund
Debt
Banking and PSU Fund-
₹40,527
-
7.85%
-
5.17%
-
-
Edelweiss Banking And PSU Debt Fund
Debt
Banking and PSU Fund-
₹39,132
-
5.50%
-
5.17%
-
-
Tata Banking & PSU Debt Fund
Debt
Banking and PSU Fund-
₹38,742
-
4.83%
-
5.17%
-
-
PGIM India Banking & PSU Debt Fund
Debt
Banking and PSU Fund-
₹38,755
-
4.85%
-
5.17%
-
-
Franklin India Banking And PSU Debt Fund
Debt
Banking and PSU Fund-
₹38,757
-
4.85%
-
5.17%
-
-
Sundaram Banking And PSU Debt Fund
Debt
Banking and PSU Fund-
₹38,537
-
4.48%
-
5.17%
-
-
Invesco India Banking & PSU Debt Fund
Debt
Banking and PSU Fund-
₹38,168
-
3.84%
-
5.17%
-
-
Indiabulls Banking & PSU Debt Fund
Debt
Banking and PSU Fund-
₹-
-
-
-
5.17%
-
-