Unlike other financial products debt funds allow investors to withdraw small amount so dividend income on a regular basis
Debt funds are less tax-efficient than equity funds but more efficient than bank deposits. Bank deposits offer very little interest rates and are taxed every year while debt funds offer higher returns and just like equity funds, debt funds are only taxed when the units are sold.
Debt funds offer higher interest rate return than normal bank deposits. Hence, investors can earn a better interest income from investing in these funds for a short period of time
Debt funds are easily redeemable just like equity funds. Unlike other fixed income instruments (like FDs or PPFs), these funds do not come with any lock—in period and have high liquidity.
Debt funds invest majority of the principal amount in financial instruments such as certificates of deposits, debentures, bond papers, t-bills, etc. Thus, instruments do not fluctuate as easily as stocks and are not dependent on market sentiments to generate returns.
AUM: 2,42,183 Cr | NAV: ₹14.9 | Minimum SIP amount: ₹1,000 | 3 Years Returns: 6.8%
AUM: 24,507 Cr | NAV: ₹20.1 | Minimum SIP amount: ₹500 | 3 Years Returns: 10.3%
AUM: 4,84,872 Cr | NAV: ₹32.8 | Minimum SIP amount: ₹100 | 3 Years Returns: 7.3%
AUM: 3,393 Cr | NAV: ₹24.2 | Minimum SIP amount: ₹1,000 | 3 Years Returns: 8.6%
AUM: 4,18,852 Cr | NAV: ₹21.5 | Minimum SIP amount: ₹100 | 3 Years Returns: 7.4%