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 Corporate Bond Fund
Debt
Corporate Bond Fund-
₹39,231
-
5.67%
-
4.97%
-
1 / 17
Aditya Birla Sun Life Corporate Bond Fund
Debt
Corporate Bond Fund-
₹39,119
-
5.48%
-
4.97%
-
2 / 17
Kotak Corporate Bond Fund Standard
Debt
Corporate Bond Fund-
₹38,907
-
5.12%
-
4.97%
-
3 / 17
Invesco India Corporate Bond Fund
Debt
Corporate Bond Fund-
₹38,610
-
4.61%
-
4.97%
-
4 / 17
IDFC Corporate Bond Fund
Debt
Corporate Bond Fund-
₹38,515
-
4.44%
-
4.97%
-
5 / 17
UTI Corporate Bond Fund
Debt
Corporate Bond Fund-
₹38,799
-
4.93%
-
4.97%
-
6 / 17
DSP Corporate Bond Fund
Debt
Corporate Bond Fund-
₹38,406
-
4.25%
-
4.97%
-
7 / 17
HDFC Corporate Bond Fund
Debt
Corporate Bond Fund-
₹38,974
-
5.23%
-
4.97%
-
8 / 17
Axis Corporate Debt Fund
Debt
Corporate Bond Fund-
₹38,943
-
5.18%
-
4.97%
-
9 / 17
Sundaram Corporate Bond Fund
Debt
Corporate Bond Fund-
₹38,687
-
4.74%
-
4.97%
-
10 / 17
L&T Triple Ace Bond Fund
Debt
Corporate Bond Fund-
₹38,840
-
5.00%
-
4.97%
-
11 / 17
Nippon India Corporate Bond Fund
Debt
Corporate Bond Fund-
₹39,357
-
5.89%
-
4.97%
-
-
Franklin India Corporate Debt FunD- Plan A
Debt
Corporate Bond Fund-
₹38,740
-
4.83%
-
4.97%
-
-
PGIM India Premier Bond Fund
Debt
Corporate Bond Fund-
₹38,799
-
4.93%
-
4.97%
-
-
Canara Robeco Corporate Bond Fund
Debt
Corporate Bond Fund-
₹38,437
-
4.31%
-
4.97%
-
-
BNP Paribas Corporate Bond Fund
Debt
Corporate Bond Fund-
₹38,432
-
4.30%
-
4.97%
-
-
Edelweiss Corporate Bond Fund
Debt
Corporate Bond Fund-
₹-
-
-
-
4.97%
-
-