Debt Mutual Funds

The main market where people spend their hard-earned money in hopes of making gains is debt. Debt market is made up of many tools that make it easier to purchase & sell loans in return for interest. Many investors who have lower risk tolerance prefer to purchase debt instruments because they are thought to be less dangerous than equity investments. Nonetheless, returns on debt investments are less than those on equity investments.

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Debt Mutual Funds List

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Search Result - 420 Mutual Funds

Fund Name	Fund Size(Cr.)	3Y	5Y
Aditya Birla SL Credit Risk Fund - Dir Growth Debt Credit Risk Fund	933	9.58%	9.24%	Invest
UTI-Dynamic Bond Fund - Direct Growth Debt Dynamic Bond	555	9.08%	9.05%	Invest
UTI-Medium to Long Duration Fund - Direct Growth Debt Medium to Long Duration Fund	314	8.59%	7.46%	Invest
UTI-Banking & PSU Fund - Direct Growth Debt Banking and PSU Fund	806	8.44%	7.43%	Invest
Invesco India Credit Risk Fund - Direct Growth Debt Credit Risk Fund	142	8.21%	7.57%	Invest
Aditya Birla SL Dynamic Bond Fund - Dir Growth Debt Dynamic Bond	1,702	7.82%	7.86%	Invest
Bank of India Credit Risk Fund - Direct Debt Credit Risk Fund	115	40.03%	10.78%	Invest
Aditya Birla SL Medium Term Plan - Direct Growth Debt Medium Duration Fund	1,981	14.58%	12.07%	Invest
Bank of India Short Term Income - Direct Growth Debt Short Duration Fund	82	14.12%	8.88%	Invest
DSP Credit Risk Fund - Direct Growth Debt Credit Risk Fund	188	11.67%	8.83%	Invest

Fund Name	1Y	Rating	Fund Size
Aditya Birla SL Credit Risk Fund - Dir Growth Debt Credit Risk Fund	9.58% Fund Size - 933 Invest
UTI-Dynamic Bond Fund - Direct Growth Debt Dynamic Bond	9.08% Fund Size - 555 Invest
UTI-Medium to Long Duration Fund - Direct Growth Debt Medium to Long Duration Fund	8.59% Fund Size - 314 Invest
UTI-Banking & PSU Fund - Direct Growth Debt Banking and PSU Fund	8.44% Fund Size - 806 Invest
Invesco India Credit Risk Fund - Direct Growth Debt Credit Risk Fund	8.21% Fund Size - 142 Invest
Aditya Birla SL Dynamic Bond Fund - Dir Growth Debt Dynamic Bond	7.82% Fund Size - 1,702 Invest
Bank of India Credit Risk Fund - Direct Debt Credit Risk Fund	40.03% Fund Size - 115 Invest
Aditya Birla SL Medium Term Plan - Direct Growth Debt Medium Duration Fund	14.58% Fund Size - 1,981 Invest
Bank of India Short Term Income - Direct Growth Debt Short Duration Fund	14.12% Fund Size - 82 Invest
DSP Credit Risk Fund - Direct Growth Debt Credit Risk Fund	11.67% Fund Size - 188 Invest

What are Debt Mutual Funds?

How do Debt Funds work?

Different Types of Debt Mutual Funds

Debt funds can be categorized into following categories according on maturity period:

• Low term Fund: This fund makes investments in debt securities & money market instruments with Macaulay term of six to twelve months.
• Short Duration Fund: This fund makes investments in debt securities & money market instruments with one to three year Macaulay duration.
• Medium Duration Fund: This fund makes investments in debt securities & money market instruments with three- to four-year Macaulay duration.
• Medium to Long Term Fund: This fund allocates assets to debt securities & money market instruments with Macaulay term of four to seven years.
• Long Duration Fund: This fund makes investments in debt securities & money market instruments with longer than seven-year Macaulay duration.
• Liquid Fund: This fund makes investments in money market securities with maximum 91-day maturity. As alternative to savings accounts, liquid funds often provide higher returns on short-term investments.
• Money Market Fund: This type of investment focuses on money market securities with one-year maximum maturity. For investors looking for short-term, low-risk debt instruments, these funds are excellent fit.
• Dynamic Bond Fund: This fund makes investments in debt securities with different maturities according to interest rate regimes. Investors with three to five year investment horizon & moderate risk tolerance should consider these ETFs.
• Corporate Bond Fund: This fund allocates at least 80% of its total assets to highest-rated corporate bonds. If you want to buy premium corporate bonds but have lesser tolerance for risk, these funds are excellent option.
• Banking & PSU Fund: This fund allocates minimum of 808 percent of its total assets to debt securities issued by banks & PSUs (public sector undertakings).
• Gilt Funds: These funds allocate at least 80% of their investible corpus to government securities with range of maturities. Credit risk does not exist with these funds. interest rate risk is substantial, though.
• Credit Risk Fund: this fund allocates at least 65% of its investible corpus to corporate bonds rated lower than best available. As result, these funds have some credit risk but provide marginally higher returns than best-quality bonds.
• Floater Fund: This fund allocates at least 65% of its investible corpus to securities with floating rates. It is not risky to borrow money from these funds.
• Overnight Fund: This fund makes investments in debt instruments with one-day maturity. Because there is very little credit risk & interest rate risk, these funds are regarded as being incredibly safe.
• Ultra-Short Term Fund: This fund allocates assets to debt securities & money market instruments with Macaulay term of three to six months.

Debt Mutual Funds

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Debt Mutual Funds List

Category

Sub Category

Rating

What are Debt Mutual Funds?

How do Debt Funds work?

Different Types of Debt Mutual Funds

Who should invest in debt funds?

Investors wanting Consistent income

Investors who are conservative or new to mutual funds

Investors seeking to buy stocks during bear market

Investors wishing to park short-term funds

Things to consider before investing

Taxation for Debt Funds

FAQs

Are debt funds risk-free?

Which is better FD or debt mutual fund?

Is it good to invest in short-term debt fund?

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