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
HDFC Short Term Debt Fund
Debt
Short Duration Fund-
₹39,091
-
5.42%
-
4.97%
-
1 / 26
ICICI Prudential Short Term Fund
Debt
Short Duration Fund-
₹39,418
-
5.97%
-
4.97%
-
2 / 26
Kotak Bond (short Term)
Debt
Short Duration Fund-
₹38,752
-
4.84%
-
4.97%
-
3 / 26
Nippon India Short Term Fund
Debt
Short Duration Fund-
₹38,909
-
5.11%
-
4.97%
-
4 / 26
Axis Short Term Fund
Debt
Short Duration Fund-
₹38,924
-
5.13%
-
4.97%
-
5 / 26
Aditya Birla Sun Life Short Term Fund
Debt
Short Duration Fund-
₹39,120
-
5.47%
-
4.97%
-
6 / 26
IDFC Bond Fund - Short Term Plan
Debt
Short Duration Fund-
₹38,680
-
4.71%
-
4.97%
-
7 / 26
UTI Short Term Income Fund
Debt
Short Duration Fund-
₹39,645
-
6.36%
-
4.97%
-
8 / 26
L&T Short Term Bond Fund
Debt
Short Duration Fund-
₹38,572
-
4.53%
-
4.97%
-
9 / 26
SBI Short Term Debt Fund
Debt
Short Duration Fund-
₹38,851
-
5.01%
-
4.97%
-
10 / 26
Canara Robeco Short Duration Fund
Debt
Short Duration Fund-
₹38,534
-
4.46%
-
4.97%
-
11 / 26
DSP Short Term Fund
Debt
Short Duration Fund-
₹38,699
-
4.75%
-
4.97%
-
12 / 26
Tata Short Term Bond Fund
Debt
Short Duration Fund-
₹38,648
-
4.66%
-
4.97%
-
13 / 26
Invesco India Short Term Fund
Debt
Short Duration Fund-
₹38,410
-
4.25%
-
4.97%
-
14 / 26
BOI AXA Short Term Income Fund
Debt
Short Duration Fund-
₹43,798
-
13.14%
-
4.97%
-
-
IDBI Short Term Bond Fund
Debt
Short Duration Fund-
₹-
-
-
-
4.97%
-
-
BNP Paribas Short Term Fund
Debt
Short Duration Fund-
₹-
-
-
-
4.97%
-
-
Sundaram Short Term Debt Fund
Debt
Short Duration Fund-
₹-
-
-
-
4.97%
-
-
Principal Short Term Debt Fund
Debt
Short Duration Fund-
₹38,913
-
5.11%
-
4.97%
-
-
Baroda Short Term Bond Fund
Debt
Short Duration Fund-
₹38,870
-
5.04%
-
4.97%
-
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