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.
-
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 Ultra Short Term Fund
-
₹39,152
-
5.52%
-
4.64%
-
2 / 25
Aditya Birla Sun Life Savings Fund
-
₹39,270
-
5.72%
-
4.64%
-
3 / 25
SBI Magnum Ultra Short Duration Fund
-
₹39,071
-
5.38%
-
4.64%
-
4 / 25
Nippon India Ultra Short Duration Fund
-
₹39,506
-
6.12%
-
4.64%
-
9 / 25
IDFC Ultra Short Term Fund
-
₹39,072
-
5.39%
-
4.64%
-
10 / 25
Tata Ultra Short Term Fund
-
₹38,833
-
4.98%
-
4.64%
-
12 / 25
Baroda Ultra Short Duration Fund
-
₹39,287
-
5.75%
-
4.64%
-
-
Mahindra Manulife Ultra Short Term Fund
-
₹39,031
-
5.31%
-
4.64%
-
-
PGIM India Ultra Short Term Fund
-
₹38,903
-
5.10%
-
4.64%
-
-
BOI AXA Ultra Short Duration Fund
-
₹38,866
-
5.03%
-
4.64%
-
-
Invesco India Ultra Short Term Fund
-
₹38,875
-
5.05%
-
4.64%
-
-