Which debt fund gives highest return in India?
Best Performing Debt Mutual Funds
| Scheme Name | Expense Ratio | 1Y Return |
|---|---|---|
| Nippon India Strategic Debt Fund | 1.4% | 15.93% p.a. |
| UTI Treasury Advantage Fund | 0.28% | 8.74% p.a. |
| UTI Banking & PSU Debt Fund | 0.18% | 8.42% p.a. |
| UTI Short-term Income Fund | 0.35% | 8.33% p.a. |
Which debt fund gives highest return?
The table below shows the best-performing debt funds based on the last 5-year returns:
| Mutual fund | 5 Yr. Returns | 3 Yr. Returns |
|---|---|---|
| ICICI Prudential India Opportunities Fund Direct Plan Growth | — | 20.98% |
| Aditya Birla Sun Life CEF – Global Agri Plan – Growth-Direct Plan | 14.09% | 19.87% |
| ICICI Prudential Multicap Fund – Dividend | 8.65% | 11.5% |
How much return we get in debt fund?
While there are no guarantees, the returns are usually in an expected range. Hence, low-risk investors find them ideal. Debt funds are also available for: Short-term investors (3-12 months) – Rather than keeping your funds in a regular savings account, you can invest in liquid funds which offer 7-9% returns.
Is it a good time to buy debt funds in India?
Any time is a good time to invest in debt/ liquid funds. As the name itself suggests, these funds do not hold any equity in it and therefore, no need to check market levels / volatility etc.
Is debt fund better than FD?
Debt funds are tax-efficient as compared to fixed deposits. The interest from bank fixed deposits are added to your taxable income and taxed as per your income tax bracket. The capital gains after holding debt funds for a time period under three years are called short-term capital gains (STCG).
Are debt funds good for long term?
Long Term Debt Funds- A Plan for Long Term Investment Investors should invest in long term debt funds if they have an investment time frame of more than 3 years. Also, this fund is only suitable for investors who are willing to take some level of risk in the investment.
Do debt funds have exit load?
While debt mutual funds have no lock-in periods, some of the funds carry an exit load which is a charge deducted at source for early withdrawals. The exit load period varies from fund to fund while some funds have nil exit load as well.
Do debt funds give monthly income?
The approach of monthly income scheme is primarily debt-oriented as over 70% – 80% of its fund goes into debt funds, while the remainder goes into stock options. This is done with an aim to earn steady returns and capitalise on the investment whenever possible through equity exposure.
Is Debt Fund better than FD?
Is it OK to invest in debt funds now?
We recommend goal-based investing to readers who are starting out small. For short-term goals that need to be achieved in five years, investors should opt for bank deposits and debt funds. For long-term goals, you can opt for equity schemes.
Can debt funds give negative returns?
Long-term debt funds may give negative returns when interest rates are rising. Short-term debt funds offer a lower return when interest rates fall. Credit risk funds invest your money in bonds of a lower rating. You may lose money if the bond-issuer defaults on principal and interest repayments.
Which type of debt fund is best?
For a medium-term investor, debt funds like dynamic bond funds are ideal for riding the interest rate volatility. When compared to 5-year bank FDs, debt bond funds offer higher returns. If you are looking to earn a regular income from your investments, then Monthly Income Plans may be a good option.