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4 Best Performing Accrual Debt Funds 2024
Accrual Funds adopt buy & hold strategy and focuses on delivering better returns compared to Bank fixed deposits. These funds take a credit-risk and invest in slightly lower-rated securities, in order to generate higher yields. Accrual Funds can also make returns from the Capital gains, but this tends to be a small portion of their total returns.
Accrual Funds are an ideal investment options for investors who have a view point about the interest rate movements. Accrual Funds, ideally focuses to earn interest Income in terms of coupon offered by Bonds. These are a type of Debt fund which typically invest in short to medium maturity papers. These papers are of mid-to-high quality, while focusing on holding securities until the maturity.
Accrual funds are not entirely immune to the effects of rising interest rates, especially when the rise is steep and fast, but the impact is far lower than on duration funds.
These funds are suitable for investors who want to earn desire stable returns. But, an investor should have a view on interest rates and should also keenly monitor the fund performances. It is advised to invest in Accrual Funds for least a 1-3-year horizon.
Who Should buy Accrual Funds?
To attain desirable stable returns in accrual funds, one needs to take some level of risk as these funds can minimal Volatility. Nevertheless, accrual fund's strategy is more predictable in returns. So, investors with a conservative appetite can invest this fund. Moreover, to attain good returns, it would be advisable to stay invested for a longer duration in accrual funds.
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Best Performing Accrual Funds to Invest in India FY 24 - 25
The Fund seeks to provide steady income and capital appreciation by investing primarily in corporate debt securities across maturities and ratings. There is no assurance or guarantee that the objectives of the scheme will be realised. IDFC Corporate Bond Fund is a Debt - Corporate Bond fund was launched on 12 Jan 16. It is a fund with Moderate risk and has given a Below is the key information for IDFC Corporate Bond Fund Returns up to 1 year are on (Erstwhile ICICI Prudential Ultra Short Term Plan) ICICI Prudential Ultra Short Term Plan is an open-ended income fund that intends to generate regular income through investments in a basket of debt and money market instruments of very short maturities with a view to providing reasonable returns, while maintaining an optimum balance of safety, liquidity and yield. However, there can be no assurance that the investment objective of the scheme will be realized. ICICI Prudential Corporate Bond Fund is a Debt - Corporate Bond fund was launched on 11 Aug 09. It is a fund with Moderately Low risk and has given a Below is the key information for ICICI Prudential Corporate Bond Fund Returns up to 1 year are on The investment objective of the Scheme is to generate income and capital gains through investments in a portfolio of debt and money market instruments. However, there can be no assurance that the investment objectives of the Scheme will be realized. The Scheme launched hereunder does not guarantee/indicate any returns. BNP Paribas Corporate Bond Fund is a Debt - Corporate Bond fund was launched on 8 Nov 08. It is a fund with Moderate risk and has given a Below is the key information for BNP Paribas Corporate Bond Fund Returns up to 1 year are on (Erstwhile Franklin India Income Builder Account - Plan A) The investment objective of the Scheme is primarily to provide investors Regular income under the Dividend Plan and Capital appreciation under the Growth Plan. Franklin India Corporate Debt Fund is a Debt - Corporate Bond fund was launched on 23 Jun 97. It is a fund with Moderate risk and has given a Below is the key information for Franklin India Corporate Debt Fund Returns up to 1 year are on Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2023 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity IDFC Corporate Bond Fund Growth ₹18.2147
↑ 0.01 ₹14,018 2 4.3 7.6 5.5 6.8 7.36% 3Y 1M 6D 3Y 11M 19D ICICI Prudential Corporate Bond Fund Growth ₹28.2544
↑ 0.01 ₹27,217 1.9 4.2 8.1 6.5 7.6 7.73% 2Y 1M 17D 3Y 7M 20D BNP Paribas Corporate Bond Fund Growth ₹25.9357
↑ 0.00 ₹175 2.1 4.5 8.6 5.4 7 7.22% 3Y 10M 13D 5Y 5M 1D Franklin India Corporate Debt Fund Growth ₹93.3821
↑ 0.03 ₹785 2 4.1 7.7 5.6 6.5 7.56% 2Y 4M 13D 3Y 4M 13D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 7 Nov 24 1. IDFC Corporate Bond Fund
CAGR/Annualized return of 7% since its launch. Return for 2023 was 6.8% , 2022 was 2.6% and 2021 was 3.7% . IDFC Corporate Bond Fund
Growth Launch Date 12 Jan 16 NAV (07 Nov 24) ₹18.2147 ↑ 0.01 (0.03 %) Net Assets (Cr) ₹14,018 on 15 Oct 24 Category Debt - Corporate Bond AMC IDFC Asset Management Company Limited Rating Risk Moderate Expense Ratio 0.61 Sharpe Ratio 0.86 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 7.36% Effective Maturity 3 Years 11 Months 19 Days Modified Duration 3 Years 1 Month 6 Days Growth of 10,000 investment over the years.
Date Value 31 Oct 19 ₹10,000 31 Oct 20 ₹11,115 31 Oct 21 ₹11,603 31 Oct 22 ₹11,837 31 Oct 23 ₹12,654 31 Oct 24 ₹13,623 Returns for IDFC Corporate Bond Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 7 Nov 24 Duration Returns 1 Month 0.6% 3 Month 2% 6 Month 4.3% 1 Year 7.6% 3 Year 5.5% 5 Year 6.4% 10 Year 15 Year Since launch 7% Historical performance (Yearly) on absolute basis
Year Returns 2023 6.8% 2022 2.6% 2021 3.7% 2020 11.6% 2019 8.5% 2018 6.3% 2017 6.2% 2016 2015 2014 Fund Manager information for IDFC Corporate Bond Fund
Name Since Tenure Suyash Choudhary 28 Jul 21 3.18 Yr. Gautam Kaul 1 Dec 21 2.83 Yr. Brijesh Shah 10 Jun 24 0.31 Yr. Data below for IDFC Corporate Bond Fund as on 15 Oct 24
Asset Allocation
Asset Class Value Cash 3.42% Debt 96.29% Other 0.29% Debt Sector Allocation
Sector Value Government 49.58% Corporate 46.71% Cash Equivalent 3.42% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.18% Govt Stock 2033
Sovereign Bonds | -21% ₹2,872 Cr 280,500,000
↑ 16,000,000 Export-Import Bank of India 7.4%
Domestic Bonds | -8% ₹1,078 Cr 107,350,000
↑ 5,000,000 Bajaj Housing Finance Ltd. 7.78%
Debentures | -7% ₹898 Cr 90,000,000 National Housing Bank
Debentures | -6% ₹867 Cr 86,500,000 Reliance Jio Infocomm Limited
Debentures | -5% ₹643 Cr 66,000,000 National Bank For Agriculture And Rural Development
Debentures | -5% ₹628 Cr 63,000,000
↓ -2,500,000 6.54% Govt Stock 2032
Sovereign Bonds | -4% ₹527 Cr 53,500,000
↓ -9,000,000 Indian Railway Finance Corporation Limited
Debentures | -3% ₹373 Cr 37,500,000 Tata Capital Financial Services Limited
Debentures | -2% ₹250 Cr 25,000,000 Bajaj Housing Finance Limited
Debentures | -2% ₹225 Cr 22,500,000
↑ 5,000,000 2. ICICI Prudential Corporate Bond Fund
CAGR/Annualized return of 7.1% since its launch. Ranked 7 in Corporate Bond category. Return for 2023 was 7.6% , 2022 was 4.5% and 2021 was 4.1% . ICICI Prudential Corporate Bond Fund
Growth Launch Date 11 Aug 09 NAV (07 Nov 24) ₹28.2544 ↑ 0.01 (0.03 %) Net Assets (Cr) ₹27,217 on 15 Oct 24 Category Debt - Corporate Bond AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆ Risk Moderately Low Expense Ratio 0.57 Sharpe Ratio 1.45 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 100 Exit Load NIL Yield to Maturity 7.73% Effective Maturity 3 Years 7 Months 20 Days Modified Duration 2 Years 1 Month 17 Days Growth of 10,000 investment over the years.
Date Value 31 Oct 19 ₹10,000 31 Oct 20 ₹11,051 31 Oct 21 ₹11,566 31 Oct 22 ₹12,025 31 Oct 23 ₹12,911 31 Oct 24 ₹13,958 Returns for ICICI Prudential Corporate Bond Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 7 Nov 24 Duration Returns 1 Month 0.7% 3 Month 1.9% 6 Month 4.2% 1 Year 8.1% 3 Year 6.5% 5 Year 6.9% 10 Year 15 Year Since launch 7.1% Historical performance (Yearly) on absolute basis
Year Returns 2023 7.6% 2022 4.5% 2021 4.1% 2020 10.4% 2019 9.9% 2018 6.4% 2017 6.3% 2016 9.8% 2015 8.8% 2014 9.4% Fund Manager information for ICICI Prudential Corporate Bond Fund
Name Since Tenure Manish Banthia 22 Jan 24 0.69 Yr. Ritesh Lunawat 22 Jan 24 0.69 Yr. Data below for ICICI Prudential Corporate Bond Fund as on 15 Oct 24
Asset Allocation
Asset Class Value Cash 3.97% Debt 95.77% Other 0.26% Debt Sector Allocation
Sector Value Corporate 66% Government 29.94% Cash Equivalent 3.79% Securitized 0.02% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Govt Stock 22092033
Sovereign Bonds | -8% ₹2,215 Cr 215,793,930 7.10%Goi 08/04/2034
Sovereign Bonds | -5% ₹1,387 Cr 135,380,280
↑ 19,583,300 National Bank For Agriculture And Rural Development
Debentures | -3% ₹864 Cr 86,500 Pipeline Infrastructure Private Limited
Debentures | -3% ₹822 Cr 80,500 07.18 Goi 14082033
Sovereign Bonds | -3% ₹684 Cr 66,546,460
↓ -44,583,300 Small Industries Development Bank Of India
Debentures | -2% ₹632 Cr 6,350 Small Industries Development Bank Of India
Debentures | -2% ₹625 Cr 6,250 Bharat Petroleum Corporation Limited
Debentures | -2% ₹591 Cr 59,000 PTC- INDIA UNIVERSAL TRUST AL1-SERIES A3
Unlisted bonds | -2% ₹536 Cr 535
↑ 535 LIC Housing Finance Ltd
Debentures | -2% ₹521 Cr 5,000 3. BNP Paribas Corporate Bond Fund
CAGR/Annualized return of 6.1% since its launch. Ranked 24 in Corporate Bond category. Return for 2023 was 7% , 2022 was 1.6% and 2021 was 2.2% . BNP Paribas Corporate Bond Fund
Growth Launch Date 8 Nov 08 NAV (07 Nov 24) ₹25.9357 ↑ 0.00 (0.02 %) Net Assets (Cr) ₹175 on 30 Sep 24 Category Debt - Corporate Bond AMC BNP Paribas Asset Mgmt India Pvt. Ltd Rating ☆☆☆ Risk Moderate Expense Ratio 0.56 Sharpe Ratio 1.17 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 300 Exit Load 0-12 Months (1%),12-24 Months (0.5%),24-36 Months (0.25%),36 Months and above(NIL) Yield to Maturity 7.22% Effective Maturity 5 Years 5 Months 1 Day Modified Duration 3 Years 10 Months 13 Days Growth of 10,000 investment over the years.
Date Value 31 Oct 19 ₹10,000 31 Oct 20 ₹10,946 31 Oct 21 ₹11,250 31 Oct 22 ₹11,365 31 Oct 23 ₹12,119 31 Oct 24 ₹13,179 Returns for BNP Paribas Corporate Bond Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 7 Nov 24 Duration Returns 1 Month 0.6% 3 Month 2.1% 6 Month 4.5% 1 Year 8.6% 3 Year 5.4% 5 Year 5.7% 10 Year 15 Year Since launch 6.1% Historical performance (Yearly) on absolute basis
Year Returns 2023 7% 2022 1.6% 2021 2.2% 2020 9.9% 2019 0.9% 2018 5.2% 2017 6.7% 2016 10.8% 2015 7.2% 2014 10.8% Fund Manager information for BNP Paribas Corporate Bond Fund
Name Since Tenure Prashant Pimple 10 Jul 24 0.23 Yr. Vikram Pamnani 10 Jul 24 0.23 Yr. Jay Sheth 1 Sep 23 1.08 Yr. Data below for BNP Paribas Corporate Bond Fund as on 30 Sep 24
Asset Allocation
Asset Class Value Cash 8.06% Debt 91.72% Other 0.22% Debt Sector Allocation
Sector Value Government 46.07% Corporate 45.65% Cash Equivalent 8.06% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.10%Goi 08/04/2034
Sovereign Bonds | -12% ₹20 Cr 2,000,000 07.32 Goi 2030
Sovereign Bonds | -7% ₹12 Cr 1,200,000 Indian Railway Finance Corporation Limited
Debentures | -6% ₹11 Cr 110 Export Import Bank Of India
Debentures | -6% ₹11 Cr 100 Hindustan Petroleum Corporation Limited
Debentures | -6% ₹10 Cr 100 Power Finance Corporation Ltd.
Debentures | -6% ₹10 Cr 1,000 Sundaram Bnp Paribas Home Finance Limited
Debentures | -6% ₹10 Cr 1,000 GAil (India) Limited
Debentures | -6% ₹10 Cr 100 Tata Capital Limited
Debentures | -6% ₹10 Cr 1,000 HDFC Bank Limited
Debentures | -6% ₹10 Cr 100 4. Franklin India Corporate Debt Fund
CAGR/Annualized return of 8.5% since its launch. Ranked 22 in Corporate Bond category. Return for 2023 was 6.5% , 2022 was 3.2% and 2021 was 3.8% . Franklin India Corporate Debt Fund
Growth Launch Date 23 Jun 97 NAV (07 Nov 24) ₹93.3821 ↑ 0.03 (0.03 %) Net Assets (Cr) ₹785 on 30 Sep 24 Category Debt - Corporate Bond AMC Franklin Templeton Asst Mgmt(IND)Pvt Ltd Rating ☆☆ Risk Moderate Expense Ratio 0.77 Sharpe Ratio 0.72 Information Ratio 0 Alpha Ratio 0 Min Investment 10,000 Min SIP Investment 500 Exit Load 0-1 Years (0.5%),1 Years and above(NIL) Yield to Maturity 7.56% Effective Maturity 3 Years 4 Months 13 Days Modified Duration 2 Years 4 Months 13 Days Growth of 10,000 investment over the years.
Date Value 31 Oct 19 ₹10,000 31 Oct 20 ₹10,874 31 Oct 21 ₹11,372 31 Oct 22 ₹11,666 31 Oct 23 ₹12,428 31 Oct 24 ₹13,384 Returns for Franklin India Corporate Debt Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 7 Nov 24 Duration Returns 1 Month 0.7% 3 Month 2% 6 Month 4.1% 1 Year 7.7% 3 Year 5.6% 5 Year 6% 10 Year 15 Year Since launch 8.5% Historical performance (Yearly) on absolute basis
Year Returns 2023 6.5% 2022 3.2% 2021 3.8% 2020 9% 2019 9.2% 2018 7.5% 2017 7.7% 2016 9% 2015 8.4% 2014 13% Fund Manager information for Franklin India Corporate Debt Fund
Name Since Tenure Rahul Goswami 6 Oct 23 0.99 Yr. Anuj Tagra 7 Mar 24 0.57 Yr. Chandni Gupta 7 Mar 24 0.57 Yr. Data below for Franklin India Corporate Debt Fund as on 30 Sep 24
Asset Allocation
Asset Class Value Cash 10.74% Debt 89% Other 0.26% Debt Sector Allocation
Sector Value Corporate 75.14% Government 13.86% Cash Equivalent 10.74% Credit Quality
Rating Value AA 5.69% AAA 94.31% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Home Finance Company Limited
Debentures | -7% ₹52 Cr 5,000 Pipeline Infrastructure Private Limited
Debentures | -7% ₹51 Cr 5,000 Summit Digitel Infrastructure Limited
Debentures | -7% ₹51 Cr 5,000 Sikka Ports And Terminals Limited
Debentures | -6% ₹51 Cr 500 REC Ltd. 0%
Debentures | -6% ₹49 Cr 9,000
↑ 9,000 8% Govt Stock 2034
Sovereign Bonds | -5% ₹36 Cr 3,500,000 Mahindra & Mahindra Financial Services Ltd. 8.25%
Debentures | -3% ₹27 Cr 2,500 Bajaj Finance Limited
Debentures | -3% ₹26 Cr 2,500 National Bank For Agriculture And Rural Development
Debentures | -3% ₹26 Cr 2,500 HDB Financial Services Ltd. 8.04%
Debentures | -3% ₹26 Cr 250
Features of Accural Funds
1. Steady income
As these funds invest their money in companies for a long duration, investors can capitalize on interest income that they generate.
2. Less risk in interest rates
As accrual funds invest in small to mid termed bonds, they are not much affected by the interest rate risks.
3. Credit risk
These funds undertake credit risk by Investing in companies with a weaker credit rating, but more robust business prospects. These funds take credit risk in a believe that the company will do well and improve the Credit Score in the immediate future.
4. Taxation
Taxation of accrual funds is same like debt funds. If the holding period of the fund is less than 36 months, then it is classified as a short-term investment and these are taxed as per individual's tax slab. And, if wish to hold the fund for more than 36 months, then it is classified as a long-term investment and is taxed at 20% with an indexation benefit.
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