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 Savings Fund
Debt
Low Duration Fund-
₹39,459
-
6.04%
-
3.93%
-
1 / 23
HDFC Low Duration Fund
Debt
Low Duration Fund-
₹39,155
-
5.53%
-
3.93%
-
2 / 23
Axis Treasury Advantage Fund
Debt
Low Duration Fund-
₹39,143
-
5.51%
-
3.93%
-
3 / 23
Aditya Birla Sun Life Low Duration Fund
Debt
Low Duration Fund-
₹39,020
-
5.30%
-
3.93%
-
4 / 23
IDFC Low Duration Fund
Debt
Low Duration Fund-
₹39,001
-
5.26%
-
3.93%
-
5 / 23
Kotak Low Duration Fund Standard
Debt
Low Duration Fund-
₹38,966
-
5.20%
-
3.93%
-
6 / 23
Canara Robeco Savings Fund
Debt
Low Duration Fund-
₹39,001
-
5.26%
-
3.93%
-
7 / 23
SBI Magnum Low Duration Fund
Debt
Low Duration Fund-
₹38,924
-
5.13%
-
3.93%
-
8 / 23
Nippon India Low Duration Fund
Debt
Low Duration Fund-
₹39,047
-
5.34%
-
3.93%
-
9 / 23
Invesco India Treasury Advantage Fund
Debt
Low Duration Fund-
₹38,971
-
5.21%
-
3.93%
-
10 / 23
DSP Low Duration Fund
Debt
Low Duration Fund-
₹39,037
-
5.33%
-
3.93%
-
11 / 23
UTI Treasury Advantage Fund
Debt
Low Duration Fund-
₹39,883
-
6.76%
-
3.93%
-
12 / 23
Mirae Asset Savings Fund
Debt
Low Duration Fund-
₹38,859
-
5.02%
-
3.93%
-
13 / 23
Tata Treasury Advantage Fund
Debt
Low Duration Fund-
₹39,018
-
5.29%
-
3.93%
-
14 / 23
LIC Savings Fund
Debt
Low Duration Fund-
₹38,855
-
5.01%
-
3.93%
-
15 / 23
Sundaram Low Duration Fund
Debt
Low Duration Fund-
₹-
-
-
-
3.93%
-
-
L&T Low Duration Fund
Debt
Low Duration Fund-
₹39,045
-
5.34%
-
3.93%
-
-
BNP Paribas Low Duration Fund
Debt
Low Duration Fund-
₹38,868
-
5.04%
-
3.93%
-
-
Principal Low Duration Fund
Debt
Low Duration Fund-
₹38,873
-
5.05%
-
3.93%
-
-
Mahindra Manulife Low Duration Fund
Debt
Low Duration Fund-
₹38,855
-
5.01%
-
3.93%
-
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