Assets Under Management AUM

4 Best Debt Mutual Funds Highly Rated Better Than PPF

HDFC Credit Risk Debt Fund Direct Growth

HDFC Credit Risk Debt Fund Direct-Growth is a mutual fund issued by HDFC Mutual Fund. The fund’s expense ratio is 1.05%, which is higher than the expense ratio charged by most other credit risk funds. The one-year returns of the HDFC Credit Risk Debt Fund Direct-Growth are 10.85%. The fund currently manages Rs 7,631 crore or assets under management (AUM) and a net asset value of Rs 19.71 as of July 2, 2021. Tata Motors Ltd., Punjab National Bank, IndInfravit Trust, Bharti Hexacom Ltd. and Pipeline Infrastructure (India) Pvt. Ltd. are among the main holdings of the fund. You can start SIP in this fund with a minimum amount of Rs 500. If you redeem units worth more than 15% of your contribution within 12 months, you will be charged 1%, and if you redeem after 12 months. months but within 18 months you will be charged an exit charge of 0.50%.

ICICI Prudential Credit Risk Fund Direct Plan Growth

ICICI Prudential Credit Risk Fund Direct Plan Growth

The recent one-year growth returns of the ICICI Prudential Credit Risk Fund direct plan were 9.35%. According to Value Research, it has delivered an average annual return of 9.48% since its inception. The fund currently has Rs 7,443 crore as assets under management (AUM) and a net asset value of Rs 25.92 as of July 2, 2021. The expense ratio of the fund is 0.89%, which is the same as expense ratio charged by other credit risk funds. . GOI, Adarsh ​​Advisory Services Pvt. Ltd., Prestige Estates Projects Ltd., Indusind Bank Ltd. and Aditya Birla Fashion and Retail Ltd. are among the main holdings of the fund. The minimum SIP can be started with a minimum amount of Rs 500. If more than 10% of the units are redeemed or transferred within one year, an exit charge of 1% is levied.

SBI Magnum Medium Duration Fund Direct Growth

SBI Magnum Medium Duration Fund Direct Growth

This medium-term fund is launched by SBI Mutual Fund. SBI Magnum Medium Duration Fund Direct posted a one-year growth rate of 7.12%. According to Value Research, it has delivered an average annual return of 9.99% since its inception. The fund has a cost ratio of 0.68 percent, which is significantly higher than other mid-term funds in the category. Reserve Bank of India, State Bank of India, Mahindra Rural Housing Finance Ltd., Tata Realty and Infrastructure Ltd. and Indian Bank are among the fund’s top holdings. The fund currently has 9,122 crore rupees as assets under management (AUM) and a net asset value of Rs 42.25 as of July 2, 2021. An exit charge of 1.50% will be imposed on units worth more than 8% of the investment if they are repaid within 12 months. With a minimum investment of Rs 500, one can start a monthly SIP.

ICICI Prudential All Seasons Bond Fund Direct Plan Growth

ICICI Prudential All Seasons Bond Fund Direct Plan Growth

ICICI Prudential All Seasons Bond Fund Direct Plan-Growth is a dynamic bond mutual fund program launched by ICICI Prudential Mutual Fund. ICICI Prudential All Seasons Bond Fund Direct Plan-Growth is a mid-sized bond fund with Rs 5,793 crore as assets under management (AUM) and the current net asset value is Rs 29.77 as of July 2, 2021. Growth returns of ICICI Prudential All The direct plan of the Seasons bond fund over the past year has been 7.10 percent. According to Value Research, it has generated an average annual return of 10.72% since its inception. The State of Uttar Pradesh, the Government of India, Embassy Office Parks REIT, the National Bank for Agriculture and Rural Development and Godrej Industries Ltd. are among the top five holdings of the fund. In the event of redemption in the month following the deposit, an exit fee of 0.25% is charged by the fund.

Best Debt Mutual Funds

Best mutual funds

Here are the Top Performing Debt Mutual Funds rated 5 stars by Value Research.

Debt Fund 1 year of returns 3 years back 5 year returns Evaluation by value search
HDFC Credit Risk Debt Fund Direct Growth 10.85% 9.60% 9.01% 5 stars
ICICI Prudential Credit Risk Fund Direct Plan Growth 9.35% 9.51% 9.22% 5 stars
SBI Magnum Medium Duration Fund Direct Growth 7.12% 10.17% 9.81% 5 stars
ICICI Prudential All Seasons Bond Fund Direct Plan Growth 7.10% 10.10% 9.66% 5 stars
Source: value research
Should we invest?

Should we invest?

If we take a look at the historical returns of debt mutual funds, they have given fairly decent returns and have outperformed not only the PPF but also other debt instruments like tax-saving fixed deposits. Undoubtedly, debt mutual funds are preferred as a safe investment bet over equity mutual funds. But returns are linked to the market and therefore known as a volatile instrument that investors should consider. Therefore, interest rate risk and credit risk are the main factors to consider when investing in top performing debt mutual funds. Cautious investors who do not want to risk their investment by investing in equity funds can choose the debt mutual funds mentioned above as a substitute for PPF, only to achieve higher returns. For risk averse investors, debt mutual funds and PPFs are excellent.

PPF strives to provide secure returns, in the form of interest income and annual capital mix, while debt mutual funds can maximize your investment returns under the current regime of low interest rate. Diversifying your portfolio with debt mutual funds can be a good option if you want to achieve better market-linked returns in a short period of time, while the PPF can be a solid choice for a long investment goal. term.

Warning

Warning

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