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 All Seasons Bond Fund
Debt
Dynamic Bond Fund-
₹39,468
-
6.06%
-
4.65%
-
1 / 27
Kotak Dynamic Bond Fund
Debt
Dynamic Bond Fund-
₹38,673
-
4.70%
-
4.65%
-
2 / 27
SBI - Dynamic Bond Fund
Debt
Dynamic Bond Fund-
₹39,144
-
5.51%
-
4.65%
-
3 / 27
IDFC Dynamic Bond Fund
Debt
Dynamic Bond Fund-
₹38,226
-
3.93%
-
4.65%
-
4 / 27
Axis Dynamic Bond Fund
Debt
Dynamic Bond Fund-
₹38,838
-
4.99%
-
4.65%
-
5 / 27
Aditya Birla Sun Life Dynamic Bond Fund
Debt
Dynamic Bond Fund-
₹39,707
-
6.46%
-
4.65%
-
6 / 27
Nippon India Dynamic Bond Fund
Debt
Dynamic Bond Fund-
₹38,911
-
5.11%
-
4.65%
-
7 / 27
UTI Dynamic Bond Fund
Debt
Dynamic Bond Fund-
₹41,359
-
9.21%
-
4.65%
-
-
Tata Dynamic Bond Fund
Debt
Dynamic Bond Fund-
₹-
-
-
-
4.65%
-
-
IDBI Dynamic Bond Fund
Debt
Dynamic Bond Fund-
₹-
-
-
-
4.65%
-
-
IIFL Dynamic Bond Fund
Debt
Dynamic Bond Fund-
₹39,151
-
5.52%
-
4.65%
-
-
HDFC Dynamic Debt Fund
Debt
Dynamic Bond Fund-
₹39,011
-
5.28%
-
4.65%
-
-
Quantum Dynamic Bond Fund
Debt
Dynamic Bond Fund-
₹39,292
-
5.76%
-
4.65%
-
-
DSP Strategic Bond Fund - InstitUTIonal Plan
Debt
Dynamic Bond Fund-
₹39,015
-
5.29%
-
4.65%
-
-
JM Dynamic Debt Fund
Debt
Dynamic Bond Fund-
₹38,712
-
4.77%
-
4.65%
-
-
Indiabulls Dynamic Bond Fund
Debt
Dynamic Bond Fund-
₹38,285
-
4.03%
-
4.65%
-
-
BNP Paribas Flexi Debt Fund
Debt
Dynamic Bond Fund-
₹38,861
-
5.03%
-
4.65%
-
-
Edelweiss Dynamic Bond Fund
Debt
Dynamic Bond Fund-
₹38,655
-
4.67%
-
4.65%
-
-
PGIM India Dynamic Bond Fund
Debt
Dynamic Bond Fund-
₹38,370
-
4.18%
-
4.65%
-
-