Best Debt Mutual Funds in India

Best Debt Mutual Funds to Invest in India 2022

By

As per AMFI India, the market size of Debt Mutual funds is Rs. 37.56 Trillion, and it has grown 2 folds compared to 2017 (5 years).

However, it’s hard to analyze the best debt mutual funds to invest in, as every type of debt fund holds its functional features.

Yet, we try to bring a holistic, unbiased analysis based on performance. For example, earlier in one of the articles best mutual funds in India, we ranked top two in every category under 5 parameters.

In such a way, best debt mutual funds also will be ranked on the parameters like,

  • Number of Years in the Market
  • AUM (Asset Under Management) Size
  • 5 Years Performance
  • Performance Since Inception
  • Expense Ratio
  • Risk vs. Category

The minimum criteria are, the fund should have completed a minimum of 5 years in the industry and should have an AUM of more than 1000 Crores.

At the same time, we only compare with direct plans, as direct plans always outperform regular plans.

Best Debt Mutual Funds in India

ICICI Prudential All Season Bond Fund Direct Plan Growth

ICICI Prudential All Season Bond Fund Direct Plan-Growth is one of the top picks under the best Debt Mutual Funds in India. It is of the best mutual funds to invest, as the fund nears 10 years of completion. The fund was started in January 2013, and since its inception, it has had an ultimate performance of  10.38% CAGR. The benchmark index for the fund is CRISIL composite bond fund TRI.

Here are the Stats, why we ranked them as one of the best mutual funds to invest in India

  • AUM (Asset Under Management – Rs. 6512 Crores
  • Expense Ratio – 0.61%
  • 5 Years Performance – 8.53%
  • Percentage of Debt holding – 83.7%
  • Risk vs Category (5 Years)– Moderately Low Risk

ICICI Prudential All Season Bond Fund Direct plan growth has an asset allocation of Debt (83.7%), and Cash (16.3%). The Debt Allocation holds Sovereign (51%), Financials (14.8%), Construction (11%), Others (23.2%).

Other Details of the Fund:

  • Top 5 securities hold 16% of AUM
  • Top 20 securities hold 70% of AUM
  • Exit Load – 1% if redeemed within 1 year, and 0.5% if redeemed between 12 to 18 months.
  • Stamp Duty – 0.005%
  • Minimum SIP – Rs. 100 per month
Pros
  • 5 Years and 3 years Performance is higher than category average.
  • 10.28% returns since Inception, highest among the category
  • 5 years risk ratio is Moderately Low
  • Expense Ratio is 0.61, lowest among the category
  • You can start investing from Rs. 100 per month through SIP
Cons
  • Returns are not on par to equity funds.

Aditya Birla Sun life Securities Fund Direct Plan Growth

Aditya Birla Sun Life Securities Fund Direct Plan-Growth is one of the top picks under the best Debt Mutual Funds in India. It is of the best mutual funds to invest, as the fund nears 10 years of completion. The fund was started in January 2013, and since its inception, it has had an ultimate performance of  9.55% CAGR. The benchmark index for the fund is ICICI Securities Mibex TRI.

Here are the Stats, why we ranked them as one of the best mutual funds to invest in India

  • AUM (Asset Under Management – Rs. 1448.57 Crores
  • Expense Ratio – 0.29%
  • 5 Years Performance – 8.62%
  • Percentage of Debt holding – 100%
  • Risk vs Category (5 Years) – Moderately Low Risk

Aditya Birla Sun life Securities Fund Direct plan growth has an asset allocation of Debt (100%). The Debt Allocation holds Sovereign (91.2%) Others (8.8%).

Other Details of the Fund:

  • Top 5 securities hold 40% of AUM
  • Top 20 securities hold 77% of AUM
  • Exit Load – 1% if redeemed within 1 year, and 0.5% if redeemed between 12 to 18 months.
  • Stamp Duty – 0.005%
  • Minimum SIP – Rs. 1000 per month
Pros
  • 5 Years and 3 years Performance is higher than category average.
  • 9.28% returns since Inception, highest among the category
  • 5 years risk ratio is Low
  • Expense Ratio is 0.29, lowest among the category.
Cons
  • 1 Year return is low compared to category average.

ICICI Prudential Credit Risk Fund Direct Plan Growth

ICICI Prudential Credit Risk Fund Direct Plan-Growth is one of the top picks under the best Debt Mutual Funds in India. It is of the best mutual funds to invest, as the fund nears 10 years of completion. The fund was started in January 2013, and since its inception, it has had an ultimate performance of  9.28% CAGR. The benchmark index for the fund is CRISIL composite bond fund TRI.

Here are the Stats, why we ranked them as one of the best mutual funds to invest in India

  • AUM (Asset Under Management – Rs. 8436.03 Crores
  • Expense Ratio – 0.87%
  • 5 Years Performance – 8.58%
  • Percentage of Debt holding – 87%
  • Risk vs Category (5 Years) – Low Risk

ICICI Prudential Credit Risk Fund Direct plan growth has an asset allocation of Debt (87.8%), Cash (10.8%), and Equity (2.2%). The Debt Allocation holds Financials (23.8%), Construction (21.1%), Energy (8.3%), Services (7.9%), Sovereign (7.9%) Others (31.2%).

Other Details of the Fund:

  • Top 5 securities hold 16% of AUM
  • Top 20 securities hold 43% of AUM
  • Exit Load – 1% if redeemed within 1 year, and 0.5% if redeemed between 12 to 18 months.
  • Stamp Duty – 0.005%
  • Minimum SIP – Rs. 100 per month
Pros
  • 5 Years and 3 years Performance is higher than category average.
  • 9.28% returns since Inception, highest among the category
  • 5 years risk ratio is Low
  • Expense Ratio is 0.87, considerably low.
  • You can start investing from Rs. 100 per month through SIP
Cons
  • 1 Year return is low compared to category average.

IDFC Government Securities Investment Plan - Direct Growth

IDFC Government Securities Investment Fund Direct Plan-Growth is one of the top picks under the best Debt Mutual Funds in India. It is of the best mutual funds to invest, as the fund nears 10 years of completion. The fund was started in January 2013, and since its inception, it has had an ultimate performance of  9.58% CAGR. The benchmark index for the fund is ICICI Securities Mibex TRI.

Here are the Stats, why we ranked them as one of the best mutual funds to invest in India

  • AUM (Asset Under Management – Rs. 3602.08 Crores
  • Expense Ratio – 0.62%
  • 5 Years Performance – 8.65%
  • Performance Since Inception – 9.58%
  • Percentage of Debt holding – 49%
  • Risk vs Category (5 Years) – Moderately Low Risk

IDFC Government Securities Investment Fund Direct plan growth has an asset allocation of Debt (49%), and Cash (51%). The Debt Allocation holds Sovereign (98.3%), Others (1.7%).

Other Details of the Fund:

  • Top 5 securities hold 64% of AUM
  • Top 20 securities hold 88% of AUM
  • Exit Load – 1% if redeemed within 1 year, and 0.5% if redeemed between 12 to 18 months.
  • Stamp Duty – 0.005%
  • Minimum SIP – Rs. 1000 per month
Pros
  • 5 Years and 3 years Performance is higher than category average.
  • 9.58% returns since Inception.
  • 5 years risk ratio is Moderately Low.
  • The expense Ratio is 0.62, comparatively low than the category average.
Cons

    SBI Magnum GILT Fund Direct Plan Growth

    SBI Magnum GILT Fund Direct Plan-Growth is one of the top picks under the best Debt Mutual Funds in India. It is of the best mutual funds to invest, as the fund nears 10 years of completion. The fund was started in January 2013, and since its inception, it has had an ultimate performance of  9.12% CAGR. The benchmark index for the fund is ICICI Securities Mibex TRI.

    Here are the Stats, why we ranked them as one of the best mutual funds to invest in India

    • AUM (Asset Under Management – Rs. 3602.08 Crores
    • Expense Ratio – 0.47%
    • 5 Years Performance – 8.05%
    • Percentage of Debt holding – 93%
    • Risk vs Category (5 Years) – Moderately Low Risk

    SBI Magnum GILT Fund Fund Direct plan growth has an asset allocation of Debt (93%), and Cash (7%). The Debt Allocation holds Sovereign (65.8%), Financial (22.4%), Others (11.8%).

    Other Details of the Fund:

    • Top 5 securities hold 64% of AUM
    • Top 20 securities hold 88% of AUM
    • Exit Load – 1% if redeemed within 1 year, and 0.5% if redeemed between 12 to 18 months.
    • Stamp Duty – 0.005%
    • Minimum SIP – Rs. 500 per month
    Pros
    • 5 Years and 3 years Performance is higher than category average.
    • 9.12% returns since Inception.
    • 5 years risk ratio is Moderately Low.
    • Expense Ratio is 0.47, comparatively low among the category.
    Cons

      HDFC Credit Risk Debt Fund - Direct Growth Plan

      HDFC Credit Risk Fund Direct Plan-Growth is one of the top picks under the best Debt Mutual Funds in India. It is of the best mutual funds to invest, as the fund has completed 8 years.

      The fund was started in March 2014, and since its inception, it has had an ultimate performance of  9.44% CAGR. The benchmark index for the fund is ICICI Securities Mibex TRI.

      Here are the Stats, why we ranked them as one of the best mutual funds to invest in India

      • AUM (Asset Under Management – Rs. 8984.03 Crores
      • Expense Ratio – 0.85%
      • 5 Years Performance – 8.27%
      • Percentage of Debt holding – 89.5%
      • Risk vs Category (5 Years) – Moderately Low Risk

      HDFC credit risk debt Fund Direct plan growth has an asset allocation of Debt (89.5%), and Cash (10.5%). The Debt Allocation holds  Financial (34.6%), Construction (18.4%), Engineering (12.4%), Automobile (6.2%), and Others (22.4%).

      Other Details of the Fund:

      • Top 5 securities hold 18% of AUM
      • Top 20 securities hold 51% of AUM
      • Exit Load – 1% if redeemed within 1 year, and 0.5% if redeemed between 12 to 18 months.
      • Stamp Duty – 0.005%
      • Minimum SIP – Rs. 300 per month
      Pros
      • 5 Years and 3 years Performance is higher than category average.
      • 9.44% returns since Inception.
      • 5 years risk ratio is Moderately Low.
      Cons
      • Expense Ratio is 0.85%, comparatively higher than category average.

      Kotak Dynamic Bond Fund Direct Growth Plan:

      Kotak Dynamic Bond Fund Direct Plan-Growth is one of the top picks under the best Debt Mutual Funds in India. It is of the best mutual funds to invest, as the fund is nearing 10 years of completion.

      The fund was started in Jan 2013, and since its inception, it has had an ultimate performance of  9.25% CAGR. The benchmark index for the fund is ICICI Securities Mibex TRI.

      Here are the Stats, why we ranked them as one of the best mutual funds to invest in India

      • AUM (Asset Under Management – Rs. 2331.07 Crores
      • Expense Ratio – 0.22%
      • 5 Years Performance – 8.5%
      • Percentage of Debt holding – 87%
      • Risk vs Category (5 Years) – Moderately Low Risk

      Kotak Dynamic Bond Fund Direct plan growth has an asset allocation of Debt (87%), Equity (2.5%) and Cash (10.5%). The Debt Allocation holds  Sovereign (64%), Financial (15.2%), and Others (13.5%).

      Other Details of the Fund:

      • Top 5 securities hold 50% of AUM
      • Top 20 securities hold 86% of AUM
      • Exit Load – Nil
      • Stamp Duty – 0.005%
      • Minimum SIP – Rs. 1000 per month
      Pros
      • 5 Years and 3 years Performance is higher than category average.
      • 9.25% returns since Inception.
      • 5 years risk ratio is Moderately Low.
      • Expense Ratio is 0.22%, comparatively low than category average.
      Cons

        ICICI Prudential Medium Term Bond Fund - Direct Plan - Growth

        ICICI Prudential Medium Term Bond Fund Direct Plan-Growth is one of the top picks under the best Debt Mutual Funds in India. It is of the best mutual funds to invest in, as the fund is nearing 10 years of completion.

        The fund was started in Jan 2013, and since its inception, it has had an ultimate performance of  8.82% CAGR. The benchmark index for the fund is ICICI Securities Mibex TRI.

        Here are the Stats, why we ranked them as one of the best mutual funds to invest in India

        • AUM (Asset Under Management – Rs. 7054.28 Crores
        • Expense Ratio – 0.63%
        • 5 Years Performance – 8.02%
        • Percentage of Debt holding – 86.5%
        • Risk vs Category (5 Years) – Moderately Low Risk

        ICICI Medium Term Bond Fund Direct plan growth has an asset allocation of Debt (86.5%), and Cash (13.5%). The Debt Allocation holds  Sovereign (21.3%), Financial (21%), Construction (15.8%), Services (9.3%), and Others (25.9%).

        Other Details of the Fund:

        • Top 5 securities hold 30% of AUM
        • Top 20 securities hold 55% of AUM
        • Exit Load – 1% exit load if redeemed more than 10% of investment in less than 1 year
        • Stamp Duty – 0.005%
        • Minimum SIP – Rs. 1000 per month
        Pros
        • 5 Years and 3 years Performance is higher than category average.
        • 8.82% returns since Inception.
        • 5 years risk ratio is Moderately Low.
        • Expense Ratio is 0.63%, comparatively low than category average.
        Cons
        • Last 1 year return is low than category average

        Aditya Birla Sun Life Short Term Fund - Direct Plan - Growth

        Aditya Birla Sun Life Short Term Fund Direct Plan-Growth is one of the top picks under the best Debt Mutual Funds in India. It is of the best mutual funds to invest in, as the fund is nearing 10 years of completion.

        The fund was started in Jan 2013, and since its inception, it has had an ultimate performance of  9.03% CAGR. The benchmark index for the fund is ICICI Securities Mibex TRI.

        Here are the Stats, why we ranked them as one of the best mutual funds to invest in India

        • AUM (Asset Under Management – Rs. 9418.17 Crores
        • Expense Ratio – 0.41%
        • 5 Years Performance – 7.94%
        • Percentage of Debt holding – 93.2%
        • Risk vs Category (5 Years) – Moderately Low Risk

        Aditya Birla Sun Life Short Term Fund Direct plan growth has an asset allocation of Debt (93.2%), and Cash (6.8%). The Debt Allocation holds  Financial (57.2%), Sovereign (12.3%), Construction (7.3%), and Others (14.7%).

        Other Details of the Fund:

        • Top 5 securities hold 14% of AUM
        • Top 20 securities hold 35% of AUM
        • Exit Load – NIL
        • Stamp Duty – 0.005%
        • Minimum SIP – Rs. 1000 per month
        Pros
        • 5 Years and 3 years Performance is higher than category average.
        • 9.03% returns since Inception.
        • 5 years risk ratio is Moderately Low.
        • Expense Ratio is 0.41%, comparatively low than category average.
        Cons

          Nippon India Short Term Fund - Direct Plan - Growth

          Nippon India Short Term Fund Direct Plan-Growth is one of the top picks under the best Debt Mutual Funds in India. It is of the best mutual funds to invest in, as the fund is nearing 10 years of completion.

          The fund was started in Jan 2013, and since its inception, it has had an ultimate performance of  8.5% CAGR. The benchmark index for the fund is ICICI Securities Mibex TRI.

          Here are the Stats, why we ranked them as one of the best mutual funds to invest in India

          • AUM (Asset Under Management – Rs. 7957.38 Crores
          • Expense Ratio – 0.35%
          • 5 Years Performance – 7.66%
          • Percentage of Debt holding – 95%
          • Risk vs Category (5 Years) – Moderately Low Risk

          Nippon India Short Term Fund Direct plan growth has an asset allocation of Debt (95%), and Cash (5%). The Debt Allocation holds  Financial (50%), Construction (12.9%), Sovereign (6.3%), and Others (19.6%).

          Other Details of the Fund:

          • Top 5 securities hold 16% of AUM
          • Top 20 securities hold 44% of AUM
          • Exit Load – NIL
          • Stamp Duty – 0.005%
          • Minimum SIP – Rs. 100 per month
          Pros
          • 5 Years and 3 years Performance is higher than category average.
          • 8.5% returns since Inception.
          • 5 years risk ratio is Moderately Low.
          • Expense Ratio is 0.35%, comparatively low than category average.
          Cons

            Related Posts

            Leave a Comment