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5 Top Performing Debt Mutual Funds You Can Bet On In 2022
A debt fund invests in fixed-income assets such as corporate bonds, government securities, treasury bills, commercial paper, and other money market instruments to generate interest. Debt funds are typically seen as a safer alternative to the stock market's volatility, as debt funds provide lower risk but lower rewards. Debt funds, which are less volatile than equity investments, are one of the greatest investment alternatives for individuals with low-risk tolerance. In this article we have highlighted 5 top performing debt Mutual Fund.
Who Should Invest in the Debt Mutual Funds?
A debt fund invests in fixed-income assets such as corporate bonds, government securities, treasury bills, commercial paper, and other money market instruments to generate interest. The primary rationale for investing in debt funds is to obtain a consistent interest income as well as capital growth.
Best Debt funds that invest in long-term fixed-income assets are known as long-duration funds. It puts its money into debt and money market products with a Macaulay term of more than seven years. According to the SEBI mandate, long-duration funds invest in bonds having an average maturity of more than seven years.
Debt funds are appropriate for risk-averse investors or those who are not ready to take on equity risk. Debt funds increase an investor's wealth while posing little or no risk. Furthermore, these funds try to deliver consistent income.
The primary rationale for investing in debt funds is to obtain a consistent interest income as well as capital growth. Debt instrument issuers pre-determine the interest rate and maturity period you will receive. As a result, they're sometimes referred to as 'fixed-income' securities.
5 Top Performing Debt Mutual Funds
1. Edelweiss Government Securities Fund - Direct Plan
Rated 5 Stars By rating Agency CRISIL
2. IDFC Government Securities Fund - Investment Plan - Direct Plan-Growth
Rated 4 Stars By rating Agency CRISIL
3. Axis Gilt Fund - Direct Plan-Growth
Rated 3 Stars By rating Agency CRISIL
4. ICICI Prudential All Seasons Bond Fund - Direct Plan-Growth
Rated 5 Stars By rating Agency CRISIL
5. SBI Magnum Medium Duration Fund - Direct Plan-Growth
Rated 5 Stars By rating Agency CRISIL
Annualized Returns - Lump-Sum
On the investment of Rs 10,000
| Mutual Fund | 1 Year | 2 Year | 3 Year | 5 Year |
|---|---|---|---|---|
| Edelweiss Government Securities Fund - Direct Plan - Growth | 6.25% | 8.43% | 10.13% | 8.40% |
| IDFC Government Securities Fund - Investment Plan - Direct Plan - Growth | 5.28% | 7.29% | 10.48% | 8.68% |
| Axis Gilt Fund - Direct Plan - Growth | 3.91% | 6.93% | 9.63% | 7.67% |
| ICICI Prudential All Seasons Bond Fund - Direct Plan - Growth | 5.45% | 7.50% | 9.39% | 8.46% |
| SBI Magnum Medium Duration Fund - Direct Plan - Growth | 5.63% | 7.54% | 9.38% | 8.67% |
Absolute Returns- SIP Returns
On the investment of Rs 1,000
| Mutual Fund | 1 Year | 2 Year | 3 Year | 5 Year |
|---|---|---|---|---|
| Edelweiss Government Securities Fund - Direct Plan - Growth | 2.67% | 6.67% | 12.74% | 24.79% |
| IDFC Government Securities Fund - Investment Plan - Direct Plan - Growth | 2.82% | 5.58% | 12.07% | 24.99% |
| Axis Gilt Fund - Direct Plan - Growth | NA | NA | NA | NA |
| ICICI Prudential All Seasons Bond Fund - Direct Plan - Growth | 25.40% | 57.04% | 48.69% | 30.86% |
| SBI Magnum Medium Duration Fund - Direct Plan - Growth | 2.84% | 6.65% | 12.49% | 23.87% |
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