Debt funds are investment funds that primarily invest in fixed-income securities such as government and corporate bonds, treasury bills, and other money market instruments. They aim to provide regular income, capital preservation, and modest capital appreciation. Debt funds are categorized based on the duration of the underlying instruments, ranging from short-term to long-term maturities. They are generally less volatile than equity funds, making them suitable for conservative investors. However, they are still subject to interest rate risk, credit risk, and inflation risk. Here are the Top 7 Debt Mutual funds for investments.
1. HDFC Long Duration Debt Mutual Fund
Category : Long Duration
Mutual Funds investing in long-duration debt instruments aim for higher returns by holding bonds with extended maturities, benefiting from interest rate movements. These funds typically invest in government and corporate bonds, which offer relatively stable income over time. They are sensitive to interest rate changes, with bond prices inversely related to interest rates. Investors seeking long-term income and willing to accept moderate risk may consider these funds.
| Net Assets [ Cr ] | 1 Years Returns [ % ] | Risk Type | Min Investment | Exit Load [ Days ] |
| 3390 | 11.75 | Moderate | 5000 | 0.25 [ 90 ] |
2. UTI Medium to Long Term Duration Mutual Fund
Category : Medium to Long Term
Mutual Funds investing in medium to long-duration debt instruments focus on bonds with maturities ranging from medium to extended terms, balancing yield and interest rate sensitivity. These funds typically include a mix of government and corporate bonds, offering a blend of stability and potential for higher returns. They are moderately affected by interest rate fluctuations, providing a balance between risk and reward. Suitable for investors seeking steady income with a medium to long-term investment horizon.
| Net Assets [ Cr ] | 5 Years Returns [ % ] | Risk Type | Min Investment | Exit Load [ Days ] |
| 301 | 6.8 | Moderate | 500 | Not Applicable |
3. ABSL Medium Term Debt Mutual Fund
Category : Medium Duration
Mutual Funds investing in medium-duration debt instruments focus on bonds with maturities of 3 to 7 years, aiming to balance risk and return. These funds typically invest in government and corporate bonds, providing moderate interest rate sensitivity and steady income. They offer a middle ground between short-term stability and long-term growth potential. Ideal for investors seeking a mix of security and return within a medium-term investment horizon.
| Net Assets [ Cr ] | 5 Years Returns [ % ] | Risk Type | Min Investment | Exit Load [ Days ] |
| 1869 | 9.56% | Moderately High | 1000 | 2 [ 365 ] |
4. Sundaram Short Duration Debt Mutual Fund
Category : Short Duration
Mutual Funds investing in short-duration debt instruments focus on bonds with maturities typically less than 3 years, aiming for stability and low interest rate risk. These funds primarily include government and high-quality corporate bonds, offering consistent but lower returns. They are less sensitive to interest rate changes, making them suitable for conservative investors. Ideal for those seeking capital preservation and liquidity with a short-term investment horizon.
| Net Assets [ Cr ] | 5 Years Returns [ % ] | Risk Type | Min Investment | Exit Load [ Days ] |
| 193 | 8.08 | Moderate | 5000 | Not Applicable |
5. Sundaram Low Duration Debt Mutual Fund
Category: Low Duration
Mutual Funds investing in low-duration debt instruments focus on bonds with very short maturities, often less than 2 years, emphasizing capital preservation and minimal interest rate risk. These funds primarily include high-quality government and corporate bonds, providing steady but modest returns. They are designed to offer high liquidity and low volatility. Ideal for conservative investors seeking stable income with a low-risk, short-term investment approach.
| Net Assets [ Cr ] | 5 Years Returns [ % ] | Risk Type | Min Investment | Exit Load [ Days ] |
| 380 | 7.5 | Moderate | 1000 | Not Applicable |
6. ABSL Liquid Mutual Fund
Category : Liquid
Mutual Funds investing in liquid debt instruments focus on short-term securities, typically with maturities of up to 91 days, ensuring high liquidity and minimal risk. These funds primarily include treasury bills, commercial papers, and other short-term instruments, offering quick access to capital. They provide lower returns compared to longer-duration funds but are ideal for managing short-term cash needs. Suitable for investors seeking capital preservation and quick liquidity.
| Net Assets [ Cr ] | 5 Years Returns [ % ] | Risk Type | Min Investment | Exit Load [ Days ] |
| 51274 | 5.35 | Moderate | 500 | 0.01 [ 1 ] |
Top 7 Hybrid Equity Mutual Funds
7. ABSL Dynamic Bond Mutual Fund
Category : Dynamic Bond
Mutual Funds investing in dynamic bonds actively manage a diversified portfolio of debt instruments, adjusting durations based on interest rate predictions. These funds can shift between short-term and long-term bonds, seeking to maximize returns regardless of market conditions. They offer potential for higher returns but come with increased interest rate risk. Ideal for investors with a higher risk tolerance and a flexible investment strategy.
| Net Assets [ Cr ] | 5 Years Returns [ % ] | Risk Type | Min Investment | Exit Load [ Days ] |
| 1703 | 6.18 | Moderate | 1000 | 0.5 [ 90 ] |
Debt funds are investment funds that primarily invest in fixed-income securities such as government and corporate bonds, treasury bills, and other money market instruments. They aim to provide regular income, capital preservation, and modest capital appreciation. Debt funds are categorized based on the duration of the underlying instruments, ranging from short-term to long-term maturities. They are generally less volatile than equity funds, making them suitable for conservative investors. However, they are still subject to interest rate risk, credit risk, and inflation risk. Here are the Top 7 Debt Mutual funds for investments.
1. HDFC Long Duration Debt Mutual Fund
Category : Long Duration
Mutual Funds investing in long-duration debt instruments aim for higher returns by holding bonds with extended maturities, benefiting from interest rate movements. These funds typically invest in government and corporate bonds, which offer relatively stable income over time. They are sensitive to interest rate changes, with bond prices inversely related to interest rates. Investors seeking long-term income and willing to accept moderate risk may consider these funds.
| Net Assets [ Cr ] | 1 Years Returns [ % ] | Risk Type | Min Investment | Exit Load [ Days ] |
| 3390 | 11.75 | Moderate | 5000 | 0.25 [ 90 ] |
2. UTI Medium to Long Term Duration Mutual Fund
Category : Medium to Long Term
Mutual Funds investing in medium to long-duration debt instruments focus on bonds with maturities ranging from medium to extended terms, balancing yield and interest rate sensitivity. These funds typically include a mix of government and corporate bonds, offering a blend of stability and potential for higher returns. They are moderately affected by interest rate fluctuations, providing a balance between risk and reward. Suitable for investors seeking steady income with a medium to long-term investment horizon.
| Net Assets [ Cr ] | 5 Years Returns [ % ] | Risk Type | Min Investment | Exit Load [ Days ] |
| 301 | 6.8 | Moderate | 500 | Not Applicable |
3. ABSL Medium Term Debt Mutual Fund
Category : Medium Duration
Mutual Funds investing in medium-duration debt instruments focus on bonds with maturities of 3 to 7 years, aiming to balance risk and return. These funds typically invest in government and corporate bonds, providing moderate interest rate sensitivity and steady income. They offer a middle ground between short-term stability and long-term growth potential. Ideal for investors seeking a mix of security and return within a medium-term investment horizon.
| Net Assets [ Cr ] | 5 Years Returns [ % ] | Risk Type | Min Investment | Exit Load [ Days ] |
| 1869 | 9.56% | Moderately High | 1000 | 2 [ 365 ] |
4. Sundaram Short Duration Debt Mutual Fund
Category : Short Duration
Mutual Funds investing in short-duration debt instruments focus on bonds with maturities typically less than 3 years, aiming for stability and low interest rate risk. These funds primarily include government and high-quality corporate bonds, offering consistent but lower returns. They are less sensitive to interest rate changes, making them suitable for conservative investors. Ideal for those seeking capital preservation and liquidity with a short-term investment horizon.
| Net Assets [ Cr ] | 5 Years Returns [ % ] | Risk Type | Min Investment | Exit Load [ Days ] |
| 193 | 8.08 | Moderate | 5000 | Not Applicable |
5. Sundaram Low Duration Debt Mutual Fund
Category: Low Duration
Mutual Funds investing in low-duration debt instruments focus on bonds with very short maturities, often less than 2 years, emphasizing capital preservation and minimal interest rate risk. These funds primarily include high-quality government and corporate bonds, providing steady but modest returns. They are designed to offer high liquidity and low volatility. Ideal for conservative investors seeking stable income with a low-risk, short-term investment approach.
| Net Assets [ Cr ] | 5 Years Returns [ % ] | Risk Type | Min Investment | Exit Load [ Days ] |
| 380 | 7.5 | Moderate | 1000 | Not Applicable |
6. ABSL Liquid Mutual Fund
Category : Liquid
Mutual Funds investing in liquid debt instruments focus on short-term securities, typically with maturities of up to 91 days, ensuring high liquidity and minimal risk. These funds primarily include treasury bills, commercial papers, and other short-term instruments, offering quick access to capital. They provide lower returns compared to longer-duration funds but are ideal for managing short-term cash needs. Suitable for investors seeking capital preservation and quick liquidity.
| Net Assets [ Cr ] | 5 Years Returns [ % ] | Risk Type | Min Investment | Exit Load [ Days ] |
| 51274 | 5.35 | Moderate | 500 | 0.01 [ 1 ] |
Top 7 Hybrid Equity Mutual Funds
7. ABSL Dynamic Bond Mutual Fund
Category : Dynamic Bond
Mutual Funds investing in dynamic bonds actively manage a diversified portfolio of debt instruments, adjusting durations based on interest rate predictions. These funds can shift between short-term and long-term bonds, seeking to maximize returns regardless of market conditions. They offer potential for higher returns but come with increased interest rate risk. Ideal for investors with a higher risk tolerance and a flexible investment strategy.
| Net Assets [ Cr ] | 5 Years Returns [ % ] | Risk Type | Min Investment | Exit Load [ Days ] |
| 1703 | 6.18 | Moderate | 1000 | 0.5 [ 90 ] |