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
Baroda Credit Risk Fund
Debt
Credit Risk Fund-
₹41,581
-
9.59%
-
6.44%
-
-
IDBI Credit Risk Fund
Debt
Credit Risk Fund-
₹40,868
-
8.42%
-
6.44%
-
-
Nippon India Credit Risk Fund
Debt
Credit Risk Fund-
₹40,541
-
7.87%
-
6.44%
-
-
HDFC Credit Risk Debt Fund
Debt
Credit Risk Fund-
₹39,466
-
6.06%
-
6.44%
-
-
UTI Credit Risk Fund
Debt
Credit Risk Fund-
₹41,802
-
9.95%
-
6.44%
-
-
ICICI Prudential Credit Risk Fund
Debt
Credit Risk Fund-
₹39,612
-
6.31%
-
6.44%
-
-
SBI Credit Risk Fund
Debt
Credit Risk Fund-
₹39,750
-
6.54%
-
6.44%
-
-
DSP Credit Risk Fund
Debt
Credit Risk Fund-
₹40,078
-
7.10%
-
6.44%
-
-
L&T Credit Risk Fund
Debt
Credit Risk Fund-
₹39,040
-
5.34%
-
6.44%
-
-
Axis Credit Risk Fund
Debt
Credit Risk Fund-
₹39,318
-
5.81%
-
6.44%
-
-
Principal Credit Risk Fund
Debt
Credit Risk Fund-
₹-
-
-
-
6.44%
-
-
Invesco India Credit Risk Fund
Debt
Credit Risk Fund-
₹39,500
-
6.12%
-
6.44%
-
-
IDFC Credit Risk Fund
Debt
Credit Risk Fund-
₹38,575
-
4.54%
-
6.44%
-
-
Kotak Credit Risk Fund
Debt
Credit Risk Fund-
₹38,213
-
3.91%
-
6.44%
-
-
Mahindra Manulife Credit Risk Fund
Debt
Credit Risk Fund-
₹38,093
-
3.71%
-
6.44%
-
-
PGIM India Credit Risk Fund
Debt
Credit Risk Fund-
₹-
-
-
-
6.44%
-
-
Sundaram Short Term Credit Risk Fund
Debt
Credit Risk Fund-
₹-
-
-
-
6.44%
-
-