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
SBI Magnum Medium Duration Fund
Debt
Medium Duration Fund-
₹39,168
-
5.56%
-
5.71%
-
1 / 14
HDFC Medium Term Debt Fund
Debt
Medium Duration Fund-
₹39,102
-
5.45%
-
5.71%
-
2 / 14
ICICI Prudential Medium Term Bond Fund
Debt
Medium Duration Fund-
₹39,440
-
6.03%
-
5.71%
-
3 / 14
IDFC Bond Fund - Medium Term Plan
Debt
Medium Duration Fund-
₹38,260
-
4.00%
-
5.71%
-
4 / 14
Kotak Medium Term Fund
Debt
Medium Duration Fund-
₹38,817
-
4.96%
-
5.71%
-
5 / 14
Axis Strategic Bond Fund
Debt
Medium Duration Fund-
₹39,412
-
5.98%
-
5.71%
-
6 / 14
Nippon India Strategic Debt Fund
Debt
Medium Duration Fund-
₹40,740
-
8.21%
-
5.71%
-
-
Indiabulls Income Fund
Debt
Medium Duration Fund-
₹-
-
-
-
5.71%
-
-
Tata Medium Term Fund
Debt
Medium Duration Fund-
₹-
-
-
-
5.71%
-
-
L&T Resurgent India Bond Fund
Debt
Medium Duration Fund-
₹39,034
-
5.33%
-
5.71%
-
-
UTI Medium Term Fund
Debt
Medium Duration Fund-
₹39,037
-
5.34%
-
5.71%
-
-
BNP Paribas Medium Term Fund
Debt
Medium Duration Fund-
₹38,734
-
4.82%
-
5.71%
-
-
Sundaram Medium Term Bond Fund
Debt
Medium Duration Fund-
₹37,790
-
3.18%
-
5.71%
-
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