Debt funds are very important in providing stability to our investment portfolio. It reduces the risk on our holdings. Many bond schemes have performed very well over the long term. Equity debt funds help retirees tide over inflation. Apart from this, those who are approaching retirement. They can withdraw their investments from the volatile assets and put them in debt mutual funds with comparatively less risk. Here we are giving you a list of debt funds that have given higher returns than the fixed deposits of banks in the last 15 years. In this analysis, we have included only those debt funds which have a minimum track record of 15 years. Let’s take a look at them.
Aditya Birla SL Short Term (ABST)। This fund tops the list. The 5-year average rolling return of this fund has been 8.9 per cent. The fund invests in short term papers which include corporate debt, commercial papers and certificates of deposit.
ICICI Prudential Short Term Fund। This fund also belongs to the short duration category. Its 5-year average rolling return has been 8.6 per cent. More than 80 per cent of its exposure is in the highest rated debt instruments.
HDFC Medium Term Debt Fund- It comes in the medium category of funds with duration. The 5-year average rolling return of this fund has been 8.5 per cent. A quarter of its portfolio is invested in AA/AA bonds.
DFC Bond Fund – Medium Term Plan- It has consistently performed well in the medium duration fund category. The 5-year average rolling return of this fund has been 8.4 per cent.
Nippon India Short Term Fund- This fund was earlier known as Reliance Short Term Fund. It invests at least 90 per cent of its portfolio in the highest rate debt papers. The 5-year average rolling return of this fund has been 8.4 per cent.
Kotak Bond Short Term Fund- It invests only in the highest rated papers. In the last 10 years, the average maturity rate of its portfolio has been 1.1-4 years. The 5-year average rolling return of this fund has been 8.2 per cent.
Please note that we do not recommend investing in these funds. We have only analyzed the risks associated with them and their returns. Take expert advice while making any investment decision.
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