Best Debt Mutual Funds: Top 5 Debt Funds to Invest in 2024

Mutual funds give people access to a variety of investment options and liquidity. Additionally, the market offers a range of scheme variations, among them, one is a debt mutual fund.

As a reader or investor, you're probably wondering what is debt mutual fund. And what are some best debt mutual funds? You've arrived at the ideal location if you're searching for the best debt mutual funds to invest in. Let's take a brief look at the performance and returns of debt mutual funds. Let's quickly review debt mutual fund returns and performance.

 

What are debt funds?

A debt fund receives revenue via lending to businesses and the government. The borrower type and loan term have an impact on a debt fund's degree of risk.

 

 

Features of debt funds 

• The investment horizon of the debt funds ranges from one day to three years at most.

• They offer greater post-tax returns than FDs when you invest for a minimum of three years. 

• One excellent way to store your emergency money is in liquid debt funds. Without taking on too much risk, you can get higher returns than savings bank accounts.

Debt Funds Types 

 

Best Performing Debt Mutual Funds 

The best debt mutual funds that we have discussed in this blog are listed here, along with their historical returns, net asset value, and other pertinent information. Let's see some top debt mutual funds in India.

 

1. Edelweiss CRISIL IBX 50:50 Gilt Plus SDL- April 2037- Index Fund

Returns Performance- Over the last ten years, this product has produced the highest yield among medium-duration funds.

Return/Risk: This fund generates 20% higher returns for each unit of risk it assumes.

 

Asset Allocation

 

2. Nippon India Nifty G-Sec Jun 2036 Maturity Index Fund Direct

Returns Performance- Out of all the target maturity funds, this one has generated the highest return over the last 12 months.

Return/Risk: For every unit of risk that this fund takes on, its returns increase by 20%.

 

Asset Allocation

 

3. HDFC NIFTY G-Sec Jun 2036 Index Fund Direct-Growth

Returns Performance- Over the past year, this investment has produced the highest return among index funds.

Return/Risk: Underperforming than its category.

 

Asset Allocation

 

4. SBI CRISIL IBX Gilt Index-June 2036 Fund Direct-Growth 

Returns Performance- Among target maturity funds, this fund has generated the highest return over the last two years.

Return/Risk: This asset produces 20% better yields for every unit of chance it takes.

 

Asset Allocation

 

5. Aditya Birla Sun Life Medium Term Plan Direct-Growth 

Returns Performance- This fund has created the best yield among Medium-duration funds over the most recent 10 Years.

Return/Risk: Underperforming than its category.

 

Asset Allocation

 

Conclusion 

Debt mutual funds are flexible, low-risk investments that yield larger returns than fixed deposits or typical savings accounts. It is the perfect investment for both short-term and long-term objectives because of the variety of fund categories accessible. Investors have been looking for top debt mutual funds in India like Edelweiss CRISIL IBX and Nippon India Nifty G-Sec, which have shown remarkable success in the current fiscal year 2024, based on their time horizon and risk tolerance.

Disclaimer 

No buy or sell recommendation. We do NOT encourage/advise/suggest/recommend anyone to involved or invest in a Mutual Funds scheme. Mutual Fund investments are market risk-based activity. 

This information or hierarchy of selected schemes should NOT be taken as recommendation/investment advice/offers/solicitations for the buy or sale of any MF units. Investors should do their research, consult with their financial advisors, and consider their risk tolerance, financial ambitions, and investment goals before financial investments.