Table of Contents
Top 5 Funds
Best debt funds vary according to the tenor of investment of the investor. Investors need to be clear on their time horizon of investment when selecting the best Debt fund for their investment and also factor in the interest rate scenario.
For investors with a very short holding period, say for a couple of days to a month, Liquid Funds and ultra-short term funds may be relevant. When the time horizon is one to two years then short-term funds may be the desired vehicle. For longer tenors, for more than 3 years, long-term debt funds are the most preferred instruments by investors, especially during falling interest rates. Above all, debt funds have proved to be less risky than equities when looking for short-term investments, however, the volatility of long-term income funds may match that of equities.
As debt funds invest in fixed income instruments like government securities, treasury bills, corporate Bonds, etc., they have the capacity of generating consistent and regular returns over time. However, there are many qualitative and quantitative factors that one needs understand before selecting the best debt funds to invest, viz - AUM, Average Maturity, Taxation, the credit quality of the portfolio, etc. Below we have listed the top 5 best debt funds to invest across the various categories of debt funds - Best Liquid Funds, best ultra short-term funds, best short-term funds, best long-term funds and best Gilt Funds to invest in 2024 - 2025.
Debt funds are considered to be an ideal investment for generating regular income. For example, choosing dividend payout can be an option for regular income.
In debt funds, investors can withdraw required money from the investment at any point in time and can let the remaining money stay invested.
Since debt funds largely invest in government securities, corporate debt and other securities like treasury bills, etc., they are not affected by equity market volatility.
If an investor is planning to achieve short-term Financial goals or invest for short periods then debt funds can be a good option. Liquid funds, ultra short-term funds, and short-term income funds may be the desired options.
In debt funds, investors can generate fixed income every month by starting a Systematic Withdrawal Plan (SWP is a reverse of SIP / STP) to withdraw a fixed amount on a monthly basis. Also, you can change the amount of the SWP when required.
While Investing in debt funds, investors should be cautious about two major risks associated with them- credit risk and interest risk.
A credit risk arises when a company that has issued the debt instruments does not make regular payments. In such cases, it has a major impact on the fund, depending on how much portion the fund has in the portfolio. Hence, it is suggested to be in debt instruments with a rating higher credit rating. An AAA rating is considered to be the highest quality with little or negligible payment Default Risk.
The interest rate risk refers to a change in the bond price due to the change in the prevailing interest rate. When the interest rate rise in the economy the bond prices fall down and vice versa. The higher the maturity of the funds’ portfolio, the more prone it is to the interest rate risk. So in a rising interest rate scenario, it is advisable to go for lower maturity debt funds. And the reverse in a falling interest rate scenario.
Tax implication on debt funds is computed in the following manner-
If the holding period of a debt investment is less than 36 months, then it is classified as a short-term investment and these are taxed as per individual's tax slab.
If the holding period of debt investment is more than 36 months, then it is classified as a long-term investment and is taxed at 20% with an indexation benefit.
Capital Gains | Investment Holding Gains | Taxation |
---|---|---|
Short Term Capital Gains | Less than 36 months | As per individual's tax slab |
Long Term Capital Gains | More than 36 months | 20% with indexation benefits |
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Top Liquid
funds with AUM/Net Assets > 10,000 Crore.
Fund NAV Net Assets (Cr) Min Investment 1 MO (%) 3 MO (%) 6 MO (%) 1 YR (%) 2023 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity Axis Liquid Fund Growth ₹2,682.33
↑ 0.58 ₹22,169 500 0.6 1.9 3.7 7.3 7.1 7.41% 1M 13D 1M 14D Aditya Birla Sun Life Liquid Fund Growth ₹388.294
↑ 0.08 ₹29,764 5,000 0.6 1.9 3.7 7.3 7.1 7.47% 1M 17D 1M 17D ICICI Prudential Liquid Fund Growth ₹356.804
↑ 0.07 ₹35,428 500 0.6 1.9 3.7 7.2 7 7.49% 1M 11D 1M 15D Tata Liquid Fund Growth ₹3,795.78
↑ 0.77 ₹17,463 5,000 0.6 1.8 3.7 7.2 7 7.37% 1M 9D 1M 9D Nippon India Liquid Fund Growth ₹5,883.12
↑ 1.23 ₹25,253 100 0.6 1.9 3.7 7.2 7 7.48% 1M 8D 1M 12D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 3 May 24
Top Ultra Short Bond
funds with AUM/Net Assets > 1,000 Crore.
Fund NAV Net Assets (Cr) Min Investment 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2023 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity Aditya Birla Sun Life Savings Fund Growth ₹502.17
↑ 0.09 ₹10,748 1,000 2 3.8 7.5 5.8 7.2 7.95% 5M 12D 6M 4D UTI Ultra Short Term Fund Growth ₹3,910.66
↑ 0.92 ₹2,093 5,000 1.9 3.5 7 6.2 6.7 7.91% 6M 1D 6M 13D ICICI Prudential Ultra Short Term Fund Growth ₹25.4822
↑ 0.00 ₹12,180 5,000 2 3.7 7.2 5.6 6.9 8.02% 4M 24D 5M 8D SBI Magnum Ultra Short Duration Fund Growth ₹5,497.43
↑ 1.32 ₹9,018 5,000 1.9 3.6 7.2 5.4 7 7.68% 4M 28D 5M 8D Kotak Savings Fund Growth ₹39.5235
↑ 0.01 ₹12,372 5,000 1.9 3.5 7 5.3 6.8 7.8% 6M 4D 8M 8D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 3 May 24
Fund NAV Net Assets (Cr) Min Investment 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2023 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity Aditya Birla Sun Life Floating Rate Fund - Long Term Growth ₹317.668
↑ 0.05 ₹11,409 1,000 2.1 3.8 7.6 5.9 7.5 7.93% 1Y 25D 2Y 7M 2D ICICI Prudential Floating Interest Fund Growth ₹387.666
↓ 0.00 ₹9,927 5,000 2.3 3.9 8 6 7.7 8.35% 1Y 2M 1D 7Y 1M 6D Nippon India Floating Rate Fund Growth ₹40.9691
↑ 0.01 ₹7,943 5,000 1.9 3.7 7.1 5.5 7.2 7.91% 2Y 5M 23D 3Y 3M 18D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 3 May 24
Fund NAV Net Assets (Cr) Min Investment 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2023 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity Aditya Birla Sun Life Money Manager Fund Growth ₹339.237
↑ 0.09 ₹18,375 1,000 2.1 3.9 7.6 5.8 7.4 7.93% 9M 22D 9M 25D UTI Money Market Fund Growth ₹2,825.43
↑ 0.71 ₹11,680 10,000 2 3.8 7.6 5.8 7.4 7.71% 9M 9D 9M 9D ICICI Prudential Money Market Fund Growth ₹347.823
↑ 0.08 ₹15,509 500 2 3.8 7.5 5.7 7.4 7.77% 6M 13D 6M 30D Kotak Money Market Scheme Growth ₹4,118.25
↑ 0.94 ₹15,868 5,000 2 3.8 7.5 5.8 7.3 7.78% 9M 22D 9M 22D L&T Money Market Fund Growth ₹24.2382
↑ 0.01 ₹1,100 10,000 1.9 3.6 7.1 5.2 6.9 7.68% 7M 18D 8M 5D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 3 May 24
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2023 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity PGIM India Short Maturity Fund Growth ₹39.3202
↓ 0.00 ₹28 1.2 3.1 6.1 4.2 7.18% 1Y 7M 28D 1Y 11M 1D ICICI Prudential Short Term Fund Growth ₹54.6991
↑ 0.02 ₹16,876 1.7 3.7 7.1 5.8 7.4 8.02% 2Y 7M 2D 4Y 9M 4D UTI Short Term Income Fund Growth ₹28.895
↑ 0.02 ₹2,689 1.7 3.9 7 6.9 6.9 7.51% 2Y 5M 8D 3Y 8M 5D Nippon India Short Term Fund Growth ₹47.839
↑ 0.02 ₹5,524 1.6 3.7 6.6 5.2 6.8 7.75% 2Y 8M 5D 3Y 6M Aditya Birla Sun Life Short Term Opportunities Fund Growth ₹43.1957
↑ 0.02 ₹6,767 1.5 3.8 6.6 5.4 6.9 7.87% 2Y 10M 2D 4Y 2M 5D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 29 Sep 23
Top Medium to Long Term Bond
funds with AUM/Net Assets > 500 Crore.
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2023 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity SBI Magnum Income Fund Growth ₹64.1263
↑ 0.05 ₹1,746 1 3.7 6 5.1 7.2 8.04% 5Y 8M 16D 10Y 5M 23D ICICI Prudential Bond Fund Growth ₹36.2251
↑ 0.03 ₹2,937 1.2 4.1 6.6 5.2 7.7 7.42% 5Y 9M 7D 9Y 1M 24D Aditya Birla Sun Life Income Fund Growth ₹113.804
↑ 0.15 ₹1,793 0.9 4.1 5.5 4.9 6.6 7.33% 6Y 6M 29D 10Y 6M 29D Kotak Bond Fund Growth ₹69.7819
↑ 0.10 ₹1,810 0.9 4.2 5.9 4.8 6.8 7.53% 6Y 9M 22D 16Y 7M 6D HDFC Income Fund Growth ₹52.6931
↑ 0.07 ₹771 1.2 4.7 5.7 4 6.1 7.34% 6Y 8M 27D 11Y 4M Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 3 May 24
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2023 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity HDFC Banking and PSU Debt Fund Growth ₹20.9011
↑ 0.01 ₹6,267 1.5 3.6 6.6 5.2 6.8 7.57% 2Y 10M 27D 4Y 17D UTI Banking & PSU Debt Fund Growth ₹19.9445
↑ 0.01 ₹947 1.5 3.6 6.1 7.1 6.7 7.51% 2Y 8M 8D 3Y 2M 19D ICICI Prudential Banking and PSU Debt Fund Growth ₹29.7954
↑ 0.02 ₹8,837 1.8 3.6 7.1 5.8 7.3 7.79% 2Y 11M 26D 5Y 4M 2D DSP BlackRock Banking and PSU Debt Fund Growth ₹21.8181
↑ 0.01 ₹2,376 1.4 4 6.6 5 6.7 7.56% 5Y 1M 28D 8Y 6M 22D Kotak Banking and PSU Debt fund Growth ₹59.3448
↑ 0.04 ₹5,992 1.4 3.6 6.6 5.4 6.8 7.74% 4Y 1M 10D 8Y 9M 22D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 3 May 24
Top Credit Risk
funds with AUM/Net Assets > 500 Crore.
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2023 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity HDFC Credit Risk Debt Fund Growth ₹21.8501
↑ 0.00 ₹8,167 1.6 3.8 6.7 5.9 6.6 8.62% 2Y 1M 19D 3Y 4D SBI Credit Risk Fund Growth ₹41.3598
↑ 0.02 ₹2,506 1.7 3.7 6.7 6.2 8.3 8.49% 2Y 14D 2Y 8M 12D Kotak Credit Risk Fund Growth ₹26.952
↑ 0.00 ₹856 1.5 4.2 7.1 4.6 6.4 8.71% 2Y 5M 5D 3Y 1M 28D L&T Credit Risk Fund Growth ₹26.3205
↑ 0.01 ₹569 1.5 3.2 6.3 5.5 6.5 8.3% 1Y 10M 6D 2Y 8M 5D Nippon India Credit Risk Fund Growth ₹31.5948
↑ 0.01 ₹1,024 1.8 3.8 7.5 8.4 7.9 9.02% 1Y 10M 2D 2Y 2M 16D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 3 May 24
Top Dynamic Bond
funds with AUM/Net Assets > 500 Crore.
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2023 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity SBI Dynamic Bond Fund Growth ₹32.3609
↑ 0.05 ₹3,070 0.8 3.9 6.1 5.3 7.1 7.36% 7Y 4M 6D 14Y 6M HDFC Dynamic Debt Fund Growth ₹81.4621
↑ 0.10 ₹669 1.3 4.2 6.3 6.1 6.7 7.38% 6Y 3M 2D 11Y 2M 10D IDFC Dynamic Bond Fund Growth ₹30.9438
↑ 0.10 ₹2,337 0.3 5.4 6.1 4.4 6.4 7.22% 11Y 6M 22D 27Y 8M 19D Aditya Birla Sun Life Dynamic Bond Fund Growth ₹41.6039
↑ 0.05 ₹1,732 0.9 3.9 6.1 6.2 6.9 7.46% 6Y 6M 7D 10Y 9M 18D Axis Dynamic Bond Fund Growth ₹26.7425
↓ 0.00 ₹1,708 1.5 4.1 6 4.9 6.6 7.5% 4Y 6M 25D 6Y 22D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 3 May 24
Top Corporate Bond
funds with AUM/Net Assets > 500 Crore.
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2023 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity Aditya Birla Sun Life Corporate Bond Fund Growth ₹102.11
↑ 0.05 ₹21,135 1.6 3.9 7.2 5.6 7.3 7.68% 3Y 7M 2D 5Y 6M 14D HDFC Corporate Bond Fund Growth ₹29.4673
↑ 0.01 ₹28,499 1.8 3.9 7.1 5.4 7.2 7.73% 3Y 8D 5Y 2M ICICI Prudential Corporate Bond Fund Growth ₹27.0904
↑ 0.01 ₹26,230 1.8 3.7 7.4 5.9 7.6 7.92% 2Y 3M 14D 4Y 2M 23D Nippon India Prime Debt Fund Growth ₹54.1805
↑ 0.03 ₹2,818 1.6 3.9 6.9 5.8 7.1 7.74% 3Y 1M 20D 4Y 1M 13D Kotak Corporate Bond Fund Standard Growth ₹3,414.58
↑ 2.06 ₹11,584 1.6 3.8 6.8 5.3 6.9 7.77% 3Y 4M 10D 5Y 6M 18D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 3 May 24
Top (Erstwhile DHFL Pramerica Credit Opportunities Fund) The investment objective of the Scheme is to generate income and capital appreciation by investing predominantly in corporate debt. There can be no assurance that the investment objective of the Scheme will be realized. PGIM India Credit Risk Fund is a Debt - Credit Risk fund was launched on 29 Sep 14. It is a fund with Moderate risk and has given a Below is the key information for PGIM India Credit Risk Fund Returns up to 1 year are on (Erstwhile Aditya Birla Sun Life Floating Rate Fund - Short Term) The primary objective of the schemes is to generate regular income through investment in a portfolio comprising substantially of floating rate debt / money market instruments. The schemes may invest a portion of its net assets in fixed rate debt securities and money market instruments. Aditya Birla Sun Life Money Manager Fund is a Debt - Money Market fund was launched on 13 Oct 05. It is a fund with Low risk and has given a Below is the key information for Aditya Birla Sun Life Money Manager Fund Returns up to 1 year are on The primary objective of the schemes is to generate regular income through investments in debt and money market instruments. Income maybe generated through the receipt of coupon payments or the purchase and sale of securities in the underlying portfolio. The schemes will under normal market conditions, invest its net assets in fixed income securities, money market instruments, cash and cash equivalents. Aditya Birla Sun Life Savings Fund is a Debt - Ultrashort Bond fund was launched on 16 Apr 03. It is a fund with Moderately Low risk and has given a Below is the key information for Aditya Birla Sun Life Savings Fund Returns up to 1 year are on (Erstwhile Aditya Birla Sun Life Short Term Fund) An Open-ended income scheme with the objective to generate income and capital appreciation by investing 100% of the corpus in a diversified portfolio of debt and money market securities. Aditya Birla Sun Life Corporate Bond Fund is a Debt - Corporate Bond fund was launched on 3 Mar 97. It is a fund with Moderately Low risk and has given a Below is the key information for Aditya Birla Sun Life Corporate Bond Fund Returns up to 1 year are on (Erstwhile DHFL Pramerica Insta Cash Plus Fund) To generate steady returns along with high liquidity by investing in a portfolio of short-term, high quality money market and debt instruments. PGIM India Insta Cash Fund is a Debt - Liquid Fund fund was launched on 5 Sep 07. It is a fund with Low risk and has given a Below is the key information for PGIM India Insta Cash Fund Returns up to 1 year are on GILT
funds with AUM/Net Assets > 500 Crore.
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2023 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity ICICI Prudential Gilt Fund Growth ₹92.8253
↑ 0.09 ₹4,865 1.4 3.7 7.2 5.9 8.3 7.51% 4Y 11M 5D 9Y 6M 11D Aditya Birla Sun Life Government Securities Fund Growth ₹73.8405
↑ 0.13 ₹1,369 0.6 4.8 6.5 5.1 7.1 7.24% 8Y 5M 1D 15Y 11M 5D SBI Magnum Gilt Fund Growth ₹59.8232
↑ 0.09 ₹7,884 0.9 4.2 6.4 5.7 7.6 7.26% 8Y 15Y 5M 19D UTI Gilt Fund Growth ₹57.0354
↑ 0.09 ₹644 1.1 4.6 6.4 4.9 6.7 6.96% 6Y 4M 10D 9Y 1M 2D Nippon India Gilt Securities Fund Growth ₹34.597
↑ 0.05 ₹1,547 0.8 4.6 5.9 4.6 6.7 7.27% 7Y 4M 13D 11Y 4M 24D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 3 May 24 1. PGIM India Credit Risk Fund
CAGR/Annualized
return of 6.3% since its launch. Ranked 2 in Credit Risk
category. . PGIM India Credit Risk Fund
Growth Launch Date 29 Sep 14 NAV (21 Jan 22) ₹15.5876 ↑ 0.00 (0.01 %) Net Assets (Cr) ₹39 on 31 Dec 21 Category Debt - Credit Risk AMC Pramerica Asset Managers Private Limited Rating ☆☆☆☆☆ Risk Moderate Expense Ratio 1.85 Sharpe Ratio 1.73 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load 0-1 Years (1%),1 Years and above(NIL) Yield to Maturity 5.01% Effective Maturity 7 Months 2 Days Modified Duration 6 Months 14 Days Growth of 10,000 investment over the years.
Date Value 30 Apr 19 ₹10,000 30 Apr 20 ₹9,441 30 Apr 21 ₹10,261 Returns for PGIM India Credit Risk Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 21 Jan 22 Duration Returns 1 Month 0.3% 3 Month 0.6% 6 Month 4.4% 1 Year 8.4% 3 Year 3% 5 Year 4.2% 10 Year 15 Year Since launch 6.3% Historical performance (Yearly) on absolute basis
Year Returns 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Fund Manager information for PGIM India Credit Risk Fund
Name Since Tenure Data below for PGIM India Credit Risk Fund as on 31 Dec 21
Asset Allocation
Asset Class Value Debt Sector Allocation
Sector Value Credit Quality
Rating Value Top Securities Holdings / Portfolio
Name Holding Value Quantity 2. Aditya Birla Sun Life Money Manager Fund
CAGR/Annualized
return of 6.8% since its launch. Ranked 7 in Money Market
category. Return for 2023 was 7.4% , 2022 was 4.8% and 2021 was 3.8% . Aditya Birla Sun Life Money Manager Fund
Growth Launch Date 13 Oct 05 NAV (03 May 24) ₹339.237 ↑ 0.09 (0.03 %) Net Assets (Cr) ₹18,375 on 31 Mar 24 Category Debt - Money Market AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆☆☆ Risk Low Expense Ratio 0.33 Sharpe Ratio 2.18 Information Ratio 0 Alpha Ratio 0 Min Investment 1,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 7.93% Effective Maturity 9 Months 25 Days Modified Duration 9 Months 22 Days Growth of 10,000 investment over the years.
Date Value 30 Apr 19 ₹10,000 30 Apr 20 ₹10,771 30 Apr 21 ₹11,374 30 Apr 22 ₹11,817 30 Apr 23 ₹12,529 30 Apr 24 ₹13,482 Returns for Aditya Birla Sun Life Money Manager Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 21 Jan 22 Duration Returns 1 Month 0.6% 3 Month 2.1% 6 Month 3.9% 1 Year 7.6% 3 Year 5.8% 5 Year 6.2% 10 Year 15 Year Since launch 6.8% Historical performance (Yearly) on absolute basis
Year Returns 2023 7.4% 2022 4.8% 2021 3.8% 2020 6.6% 2019 8% 2018 7.9% 2017 6.8% 2016 7.7% 2015 8.4% 2014 9.2% Fund Manager information for Aditya Birla Sun Life Money Manager Fund
Name Since Tenure Kaustubh Gupta 15 Jul 11 12.72 Yr. Anuj Jain 22 Mar 21 3.03 Yr. Mohit Sharma 1 Apr 17 7.01 Yr. Dhaval Joshi 21 Nov 22 1.36 Yr. Data below for Aditya Birla Sun Life Money Manager Fund as on 31 Mar 24
Asset Allocation
Asset Class Value Cash 67.37% Debt 32.42% Other 0.2% Debt Sector Allocation
Sector Value Corporate 48.34% Cash Equivalent 32.29% Government 19.17% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity India (Republic of)
- | -2% ₹472 Cr 50,000,000 Axis Bank Ltd.
Debentures | -2% ₹472 Cr 10,000 IDFC First Bank Ltd.
Debentures | -2% ₹469 Cr 10,000 07.38% MP Sdl 2025
Sovereign Bonds | -2% ₹466 Cr 46,500,000
↑ 28,000,000 05.80 MH Sdl 2025
Sovereign Bonds | -2% ₹465 Cr 47,000,000 Tata Teleservices Ltd
Debentures | -2% ₹445 Cr 9,500 Small Industries Development Bank of India
Debentures | -2% ₹376 Cr 8,000 HDFC Bank Ltd.
Debentures | -2% ₹329 Cr 7,000
↑ 2,000 Indusind Bank Ltd.
Debentures | -1% ₹284 Cr 6,000 ICICI Bank Ltd.
Debentures | -1% ₹236 Cr 5,000 3. Aditya Birla Sun Life Savings Fund
CAGR/Annualized
return of 7.4% since its launch. Ranked 6 in Ultrashort Bond
category. Return for 2023 was 7.2% , 2022 was 4.8% and 2021 was 3.9% . Aditya Birla Sun Life Savings Fund
Growth Launch Date 16 Apr 03 NAV (03 May 24) ₹502.17 ↑ 0.09 (0.02 %) Net Assets (Cr) ₹10,748 on 31 Mar 24 Category Debt - Ultrashort Bond AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆☆☆ Risk Moderately Low Expense Ratio 0.52 Sharpe Ratio 1.48 Information Ratio 0 Alpha Ratio 0 Min Investment 1,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 7.95% Effective Maturity 6 Months 4 Days Modified Duration 5 Months 12 Days Growth of 10,000 investment over the years.
Date Value 30 Apr 19 ₹10,000 30 Apr 20 ₹10,739 30 Apr 21 ₹11,439 30 Apr 22 ₹11,902 30 Apr 23 ₹12,581 30 Apr 24 ₹13,526 Returns for Aditya Birla Sun Life Savings Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 21 Jan 22 Duration Returns 1 Month 0.6% 3 Month 2% 6 Month 3.8% 1 Year 7.5% 3 Year 5.8% 5 Year 6.2% 10 Year 15 Year Since launch 7.4% Historical performance (Yearly) on absolute basis
Year Returns 2023 7.2% 2022 4.8% 2021 3.9% 2020 7% 2019 8.5% 2018 7.6% 2017 7.2% 2016 9.2% 2015 8.9% 2014 9.7% Fund Manager information for Aditya Birla Sun Life Savings Fund
Name Since Tenure Sunaina Cunha 20 Jun 14 9.79 Yr. Kaustubh Gupta 15 Jul 11 12.72 Yr. Monika Gandhi 22 Mar 21 3.03 Yr. Dhaval Joshi 21 Nov 22 1.36 Yr. Data below for Aditya Birla Sun Life Savings Fund as on 31 Mar 24
Asset Allocation
Asset Class Value Cash 38.02% Debt 61.65% Other 0.32% Debt Sector Allocation
Sector Value Corporate 63.67% Cash Equivalent 21.04% Government 14.84% Securitized 0.12% Credit Quality
Rating Value AA 29.33% AAA 70.67% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Limited
Debentures | -5% ₹598 Cr 6,000 Nirma Limited
Debentures | -4% ₹500 Cr 50,000 Tata Realty And Infrastructure Limited
Debentures | -3% ₹361 Cr 36,000 Bharti Telecom Limited
Debentures | -3% ₹325 Cr 3,250 Small Industries Development Bank of India 7.68%
Debentures | -3% ₹325 Cr 32,500
↑ 32,500 Bajaj Housing Finance Ltd. 8%
Debentures | -3% ₹300 Cr 30,000 Nirma Limited 8.3%
Debentures | -2% ₹250 Cr 25,000 Cholamandalam Investment And Finance Company Limited
Debentures | -2% ₹249 Cr 2,500 HDFC Bank Limited
Debentures | -2% ₹244 Cr 2,450 National Bank For Agriculture And Rural Development
Debentures | -2% ₹244 Cr 2,500 4. Aditya Birla Sun Life Corporate Bond Fund
CAGR/Annualized
return of 8.9% since its launch. Ranked 1 in Corporate Bond
category. Return for 2023 was 7.3% , 2022 was 4.1% and 2021 was 4% . Aditya Birla Sun Life Corporate Bond Fund
Growth Launch Date 3 Mar 97 NAV (03 May 24) ₹102.11 ↑ 0.05 (0.05 %) Net Assets (Cr) ₹21,135 on 31 Mar 24 Category Debt - Corporate Bond AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆☆☆ Risk Moderately Low Expense Ratio 0.47 Sharpe Ratio 1.14 Information Ratio 0 Alpha Ratio 0 Min Investment 1,000 Min SIP Investment 100 Exit Load NIL Yield to Maturity 7.68% Effective Maturity 5 Years 6 Months 14 Days Modified Duration 3 Years 7 Months 2 Days Growth of 10,000 investment over the years.
Date Value 30 Apr 19 ₹10,000 30 Apr 20 ₹11,000 30 Apr 21 ₹12,048 30 Apr 22 ₹12,530 30 Apr 23 ₹13,235 30 Apr 24 ₹14,187 Returns for Aditya Birla Sun Life Corporate Bond Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 21 Jan 22 Duration Returns 1 Month 0.4% 3 Month 1.6% 6 Month 3.9% 1 Year 7.2% 3 Year 5.6% 5 Year 7.3% 10 Year 15 Year Since launch 8.9% Historical performance (Yearly) on absolute basis
Year Returns 2023 7.3% 2022 4.1% 2021 4% 2020 11.9% 2019 9.6% 2018 7% 2017 6.5% 2016 10.2% 2015 8.9% 2014 10.9% Fund Manager information for Aditya Birla Sun Life Corporate Bond Fund
Name Since Tenure Kaustubh Gupta 12 Apr 21 2.97 Yr. Dhaval Joshi 21 Nov 22 1.36 Yr. Data below for Aditya Birla Sun Life Corporate Bond Fund as on 31 Mar 24
Asset Allocation
Asset Class Value Cash 3.09% Debt 96.67% Other 0.24% Debt Sector Allocation
Sector Value Corporate 52.23% Government 43.59% Cash Equivalent 3.09% Securitized 0.86% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.18% Govt Stock 2037
Sovereign Bonds | -10% ₹2,074 Cr 207,824,100
↑ 20,500,000 7.18% Govt Stock 2033
Sovereign Bonds | -7% ₹1,465 Cr 146,500,000
↑ 18,000,000 7.26% Govt Stock 2033
Sovereign Bonds | -4% ₹905 Cr 90,089,300
↓ -22,000,000 7.32% Govt Stock 2030
Sovereign Bonds | -3% ₹725 Cr 72,000,000 8.1% Govt Stock 2034
Sovereign Bonds | -3% ₹667 Cr 66,637,700 National Bank For Agriculture And Rural Development
Debentures | -3% ₹652 Cr 6,550 Small Industries Development Bank Of India
Debentures | -3% ₹544 Cr 54,550 HDFC Bank Limited
Debentures | -2% ₹426 Cr 42,500 Power Finance Corp Ltd. 7.6%
Debentures | -2% ₹400 Cr 40,000 National Bank For Agriculture And Rural Development
Debentures | -2% ₹397 Cr 4,000 5. PGIM India Insta Cash Fund
CAGR/Annualized
return of 7.1% since its launch. Ranked 4 in Liquid Fund
category. Return for 2023 was 7% , 2022 was 4.8% and 2021 was 3.3% . PGIM India Insta Cash Fund
Growth Launch Date 5 Sep 07 NAV (03 May 24) ₹313.702 ↑ 0.06 (0.02 %) Net Assets (Cr) ₹304 on 31 Mar 24 Category Debt - Liquid Fund AMC Pramerica Asset Managers Private Limited Rating ☆☆☆☆☆ Risk Low Expense Ratio 0.26 Sharpe Ratio 1.08 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 7.14% Effective Maturity 23 Days Modified Duration 21 Days Growth of 10,000 investment over the years.
Date Value 30 Apr 19 ₹10,000 30 Apr 20 ₹10,603 30 Apr 21 ₹10,967 30 Apr 22 ₹11,340 30 Apr 23 ₹12,013 30 Apr 24 ₹12,880 Returns for PGIM India Insta Cash Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 21 Jan 22 Duration Returns 1 Month 0.6% 3 Month 1.8% 6 Month 3.6% 1 Year 7.2% 3 Year 5.5% 5 Year 5.2% 10 Year 15 Year Since launch 7.1% Historical performance (Yearly) on absolute basis
Year Returns 2023 7% 2022 4.8% 2021 3.3% 2020 4.2% 2019 6.7% 2018 7.4% 2017 6.7% 2016 7.7% 2015 8.4% 2014 9.1% Fund Manager information for PGIM India Insta Cash Fund
Name Since Tenure Bhupesh Kalyani 13 Sep 22 1.55 Yr. Puneet Pal 16 Jul 22 1.71 Yr. Data below for PGIM India Insta Cash Fund as on 31 Mar 24
Asset Allocation
Asset Class Value Cash 99.52% Other 0.48% Debt Sector Allocation
Sector Value Cash Equivalent 70.29% Corporate 22.28% Government 6.96% Credit Quality
Rating Value AA 7.06% AAA 92.94% Top Securities Holdings / Portfolio
Name Holding Value Quantity Clearing Corporation Of India Ltd.
CBLO/Reverse Repo | -15% ₹62 Cr Net Receivables / (Payables)
CBLO | -6% -₹25 Cr Shriram Finance Limited
Debentures | -6% ₹25 Cr 2,500,000 Reliance Retail Ventures Limited
Commercial Paper | -6% ₹25 Cr 2,500,000
↑ 2,500,000 Tata Capital Housing Finance Limited
Commercial Paper | -6% ₹25 Cr 2,500,000 Bank of Baroda
Debentures | -6% ₹25 Cr 2,500,000 Indian Bank
Domestic Bonds | -6% ₹25 Cr 2,500,000 Small Industries Development Bank Of India
Certificate of Deposit | -6% ₹25 Cr 2,500,000 Union Bank Of India
Certificate of Deposit | -6% ₹25 Cr 2,500,000 India (Republic of)
- | -6% ₹25 Cr 2,500,000
In order to select the best debt funds you wish to invest in, it is necessary to consider some of the important parameters such as average maturity, credit quality, AUM, expense ratio, tax implication., etc. Let's have an in-depth look-
Average maturity is an essential parameter in debt funds that is sometimes overlooked by investors, who tend to invest for a long period without considering the risks involved. Investors need to decide their debt fund investment based on its maturity period, Matching the time period of investment with the maturity period of the debt fund is a good way to ensure you don't end up taking unnecessary risk. Thus, it is advisable to know the average maturity of a debt fund, before investing, in order to aim for optimum risk returns in debt funds. Looking at the average maturity (duration is a similar factor) is important, for example, a liquid fund may have an average maturity of a couple of days to maybe a month, this would mean it is a great option for an investor who is looking to invest money for a couple of days. Similarly, if you are looking at the time frame of one-year Investment plan then, a short-term debt fund can be ideal.
Understanding the market environment is very important in debt funds which are affected by interest rates and its fluctuations. When the interest rate rises in the economy, the bond price falls and vice-versa. Also, during the time when the interest rates rise, new bonds are issued in the market with a higher yield than the older bonds, making those older bonds of lower value. Therefore, investors are more attracted towards newer bonds in the market and also a re-pricing of older bonds takes place. In case a debt fund is having an exposure to such "older bonds" then when the interest rates rise, the NAV of the debt fund would be impacted negatively. Furthermore, as debt funds are exposed to interest rate fluctuations, it disturbs the prices of the underlying bonds in the fund portfolio. For instance, long-term debt funds are at a higher risk during times of rising interest rates. During this time making a short-term investment plan will lower your interest rate risks.
If one has good knowledge of interest rates and can monitor the same, one can even take advantage of this. In a falling interest rate market, long-term debt funds would be a good choice. However, during the times of rising interest rates then it would be wise to be in funds with shorter average maturities like short-term funds, Ultra Short Term fund or even liquid funds.
The yield is a measure of the interest income generated by the bonds in the portfolio. Funds that invest in debt or bonds that have a higher coupon rate (or yield) would have a higher overall portfolio yield. The yield to maturity(ytm) of a debt mutual fund indicates the running yield of the fund. When comparing debt funds on the basis of YTM, one should also look at that fact that how is the extra yield being generated. Is this at the cost of as lower portfolio quality? Investing in not so good quality instruments has its own issues. You don't want to end up investing in a debt fund which has such bonds or securities that may Default later on. So, always look at the portfolio yield and balance it off with the credit quality.
In order to invest in best debt funds, checking the credit quality of the bonds and debt securities is an essential parameter. Bonds are assigned a credit rating by various agencies based on their ability to pay the money back. A bond with AAA rating is considered to be the best credit rating and also implies a safe and secure investment. If one truly wants safety and considers this as the paramount parameter in selecting the best debt fund, then getting into a fund with very high-quality debt instruments (AAA or AA+) may be the desired option.
This is the foremost parameter to consider while choosing the best debt funds. AUM is the total amount invested in a particular scheme by all investors. Since, most Mutual Funds’ total AUM is invested in debt funds, investors need to select scheme assets that have a considerable AUM. Being in a fund which has a large exposure to corporates may be risky, since their withdrawals may be large which may affect the overall fund performance.
An important factor to be considered in debt funds is its expense ratio. A higher expense ratio creates a larger impact on the funds’ performance. For example, liquid funds have the lowest expense ratios which are up to 50 bps (BPS is a unit to measure interest rates wherein one bps is equal to 1/100th of 1%) whereas, other debt funds could charge up to 150 bps. So to make a choice between one debt mutual fund, it is important to consider the management fee or the fund running expense.
Debt funds offer the benefit of long-term capital gains (more than 3 years) with indexation benefits. And the short term capital gains (less than 3 years) is taxed at 30%.
Debt Fund aims to earn optimal returns by maintaining a diversified portfolio of various types of securities. You can expect them to perform in a predictable manner. It is because of this reason, that debt funds are popular among conservative investors.
Debt funds are further divided into various categories like liquid funds, Monthly Income Plan (MIP), fixed maturity plans (FMP), Dynamic Bond Funds, income funds, credit opportunities funds, GILT funds, short-term funds and ultra short-term funds.
Debt funds are basically exposed to interest rate risk, credit risk, and liquidity risk. The fund value may fluctuate due to the overall interest rate movements. There’s a risk of default in the payment of interest and principal by the issuer. Liquidity risk happens when the fund manager is unable to sell the underlying security due to lack of demand.
Debt funds charge an expense ratio to manage your money. Till now SEBI had mandated the upper limit of expense ratio to be 2.25% (Might change time to time with regulations.).
An investment of 3 months to 1 year would be ideal for liquid funds. If you have a longer horizon of say 2 to 3 years, you may go for short-term bond funds.
Debt funds can be used to achieve a variety of goals like earning additional income or for purpose of liquidity.
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Debt funds are one of the best ways to invest your money and generate income on a regular basis by choosing the relevant product matching your risk profile. So, investors looking to generate steady income or take advantage of the debt markets, can consider the above best debt funds for 2024 - 2025 and start investing!_
The article is nice and informative but it could be in more simple words because lot of people have much less knowledge in such sector