Best Debt Mutual Funds to Invest in India 2024

January 5, 2024

Table of Contents

As per AMFI India, the market size of Debt Mutual funds is Rs. 37.56 Trillion, and it has grown 2fold 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 the top two in every category under 5 parameters.

In such a way, the 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, that 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 one of the best mutual funds to invest in, 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 the 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%), and 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 among the best Debt Mutual Funds in India. It is one of the best mutual funds to invest in, 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%) and 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 in, 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 the 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 one of the best mutual funds to invest in, 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 one of the best mutual funds to invest in, 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%).

Check out our article on the SBI Magnum Mid Cap Fund.

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 one of the best mutual funds to invest in, 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 one 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 9.25% 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 one 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 one 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