Best Debt Mutual Funds outperformed Fixed Deposits
Debt Mutual Funds are MF schemes that invest in fixed income instruments. Like, Corporate and Government Bonds, corporate debt securities, money market instruments, etc. As the market experts reports, debt schemes remain better than equity funds / FDs. As of the current low-interest rates in the bank’s FDs, the Debt schemes generated profitable returns over the last 3 to 5 years.
|Fund Name (Direct-Growth)||1 – Year Returns||3 – Year Returns||5 – Year Returns|
|IDFC Government Securities Investment||9.32%||11.67%||10.18%|
|SBI Multi-Asset Allocation Fund||28.96%||9.25%||9.65%|
|ICICI Prudential Short Term Fund||12.02%||9.14%||9.08%|
|SBI Magnum Medium Duration Fund||11.95%||9.83%||10.37%|
|Kotak Dynamic Bond Fund||11.40%||10.01%||9.68%|
IDFC Government Securities Investment:
IDFC MF has launched a debt scheme. Currently, the scheme has an asset under management of Rs. 1,659 crores. Besides, the net asset value remains Rs. 28.92 as of March 26th, 2021. IDFC Government Securities Investment Plan under Direct-Growth maintains a moderate-risk investment.
As of the reports, the IDFC’s debt scheme launched on January 1st, 2013, with a minimum SIP of Rs. 1,000 and a lump sum investment of Rs. 5,000. Over the 3-years span, the scheme generated up to 11.67% yields and 10.18% in 5-years.
SBI Multi Asset-Allocation Fund:
State Bank’s multi asset-allocation fund remains an open-ended debt scheme. The scheme investments in equities, debt, and gold-related instruments, ETFs. It has an AUM of Rs. 317 crores. As of March 26th, 2021, the scheme has a net asset value of Rs. 34.93.
As of Risk-o-meter, the investment principal is at high-risk with a minimum SIP of Rs. 500 and a lump-sum of Rs. 5,000.
According to the AMFI reports, the SBI Debt Scheme has produced around 9.25% returns in 3-years and 9.65% in 5 years. However, the scheme’s one-year returns stood at 28.96%.
ICICI Prudential Short Term Fund:
ICICI Prudential Short Term Fund under the direct plan with a growth option remains a debt scheme. The scheme performed well than the bank’s fixed deposit. This scheme invests in Macaulay period of between one and three years instruments.
As of the official reports, the scheme has been running since October 25th, 2001. Currently, the scheme maintains an AUM of Rs. 23,715 crores and a NAV of Rs. 48.46.
According to the SID, the scheme has a moderate risk rating. Moreover, the minimum investment amount under SIP remains Rs. 1,000 and the lump-sum investment at Rs. 5,000.
On the other hand, the fund has generated 9.14 and 9.08% returns in 3-years and 5-years, respectively.