Ideally, the best time to invest is when interest rates are falling or are expected to decline. This is the time when the bond prices rise, and consequently, the NAV of debt funds also increases. As a result, debt fund investors benefit.
Debt mutual funds invest in various types of debt securities. Investors hunting for debt funds which have topped conventional fixed deposits in terms of returns may consider these 5 funds, which have also offered inflation-beating returns.
Fixed deposit rates vary from bank to bank and also in different time periods. So, a standard annualized rate of 8% p.a. is taken as a benchmark for fixed deposits.
Here’s the list:
1) Aditya Birla Sun Life Medium Term Direct Plan-Growth Fund
The current Net Asset Value (NAV) of the Aditya Birla Sun Life Medium Term Plan – Direct Plan as of May 08, 2023, is Rs 34.72 for growth option. Its trailing returns over different time periods are: 22.08% (1yr), 14.51% (3yr), 8.6% (5yr) and 9.53% (since launch). Whereas, category returns for the same time duration are: 4.25% (1yr), 6.35% (3yr) and 5.69% (5yr). The Assets under management (AUM) is worth Rs 1652.35 crore as on February 28, 2023. The expense ratio of the fund is 0.86% as on February 28, 2023. The minimum investment required is Rs 1000 and minimum additional investment is Rs 1,000. Minimum SIP investment is Rs 1,000.
2) Bank of India Short Term Income Fund Direct-Growth Fund
The current NAV of the Bank of India Short Term Income Fund – Direct Plan as of May 08, 2023, is Rs 24.45 for the growth option. Its trailing returns over different time periods are: 28.27% (1yr), 8.83% (3yr), 4.03% (5yr) and 6.63% (since launch). Whereas, category returns for the same time duration are: 4.71% (1yr), 6.1% (3yr) and 5.81% (5yr). The AUM is worth Rs 72.26 crore as on February 28, 2023. The expense ratio of the fund is 0.98% as on February 28, 2023. The minimum investment required is Rs 5,000 and minimum additional investment is Rs 1,000. Minimum SIP investment is Rs 1,000.
3) Aditya Birla Sun Life Dynamic Bond Retail Fund Direct-Growth Fund
The current NAV of the Aditya Birla Sun Life Dynamic Bond Fund – Direct Plan as of May 08, 2023, is Rs 41.55 for the growth option. Its trailing returns over different time periods are: 7.5% (1yr), 7.97% (3yr), 5.99% (5yr) and 7.53% (since launch). Whereas, category returns for the same time duration are: 3.99% (1yr), 5.53% (3yr) and 6.25% (5yr). The AUM is worth Rs 1,795.01 crore as on February 28, 2023. The expense ratio of the fund is 0.64% for Direct plan as on February 28, 2023. The minimum investment required is Rs 1000 and minimum additional investment is Rs 1,000. Minimum SIP investment is Rs 500.
4) Nippon India Nivesh Lakshya Fund Direct – Growth Fund
The current NAV of the Nippon India Nivesh Lakshya Fund – Direct Plan as of May 08, 2023, is Rs 15.38 for the growth option. Its trailing returns over different time periods are: 5.15% (1yr), 4.9% (3yr) and 8.89% (since launch). Whereas, category returns for the same time duration are: 3.96% (1yr), 4.17% (3yr) and 6.44% (5yr). The AUM worth of Rs 2,949.05 crore as on February 28, 2023. The expense ratio of the fund is 0.25% for direct plan as on Feb 28, 2023. The minimum investment required is Rs 5000 and minimum additional investment is Rs 1,000. Minimum SIP investment is Rs 1,000.
Source: ET Mutual Fund Screener
5) Aditya Birla Sun Life Credit Risk Fund Direct-Growth Fund
The Current NAV of the Aditya Birla Sun Life Credit Risk Fund – Direct Plan as of May 8, 2023, is Rs 18.95 for the growth option. Its trailing returns over different time periods are: 8.66% (1yr), 8.98% (3yr), 7.16% (5yr) and 8.2% (since launch). Whereas, category returns for the same duration are: 12.94% (1yr), 7.34% (3yr) and 4.1% (5yr). The AUM is worth Rs 1,032.2 crore as on February 28, 2023. The expense ratio of the fund is 0.69% for Direct plan as on February 28, 2023. The minimum investment required is Rs 100 and minimum additional investment is Rs 100. Minimum SIP investment is Rs 100.
ETMarkets.comSource: ET Mutual Fund Screener
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
