Best Debt Funds to invest in 2019

Best Debt Funds to Invest in 2019

Upwardly presents to you the best debt mutual funds for 2019:

Fund NameReturn (1Yr)Return (3Yr)
ICICI Prudential All Seasons Bond Fund6.05%9.42%
SBI Magnum Constant Maturity Fund8.53%9.07%
Franklin India Dynamic Accrual Fund8.52%9.00%
Franklin India Short Term Income Plan8.89%8.56%
Franklin India Credit Risk Fund8.51%8.48%
Franklin India Income Opportunities Fund8.00%8.28%

Here’s the list of top debt funds by Upwardly:

ICICI Prudential All Seasons Bond Fund

The fund is one of the best debt funds in India. It aims to generate income through investing in a range of debt and money market instruments of various duration while maintaining the optimum balance of yield, safety, and liquidity. The fund has an average maturity of 3.49 years. Also, the fund has a YTM of 8.62% and Modified Duration of 2.47. The investment break-up is as follows: Debentures (30.12%), GOI Securities (20.55%), Non-Convertible (15.99%), Repo (13.87%), Bonds/NCDs (4.98%) and Zero Coupon Bonds (4.61%). The fund has outperformed its category over the years consistently. The fund gave 9.48% (annualized) return since its inception in 2009.

SBI Magnum Constant Maturity Fund

The fund aims to provide returns to the investors generated through investments predominantly in Government securities issued by the Central Government and/or State Government such that the Average Maturity of the portfolio is around 10 years. Investment in Central and/or State Government securities are considered to be free of credit risk. However, the aim of the portfolio is to make capital gains by actively managing interest rate risk. The fund has an average maturity of 9.69 years. Also, the fund has a YTM of 7.37% and Modified Duration of 6.49. The investment break-up is as follows: GOI Securities (94.93%), Net Receivables (2.96%) and Repo (2.11%). The fund has outperformed its category over the years consistently. The fund gave 7.91% (annualized) return since its inception in 2000.

Franklin India Dynamic Accrual Fund Growth

This fund is positioned in the dynamic Bond fund category that focuses on investing in fixed income instruments across duration. The fund manager strives to generate high accrual income through exposure to corporate bonds. It further aims to generate capital appreciation by actively managing the fund’s portfolio on interest rate movements. The fund has an average maturity of 2.65 years. Also, the fund has a YTM of 11.01% and Modified Duration of 1.95. The investment break-up is as follows: Debentures (83.78%), Structured Obligation (5.94%), Bonds/Debentures (3.95%), Cash/Net Current Assets (3.66%), Bonds (2.40%) and Non Convertible (0.27%). The fund has outperformed its category over the years consistently. The fund gave 8.97% (annualized) return since its inception in 1997.

Franklin India Short Term Income Plan

The fund aims to provide stable returns by investing in fixed income instruments. Therefore, It invests primarily in short term corporate bonds with a focus on higher interest income. The fund has an average maturity of 2.62 years. Also, the fund has a YTM of 11.04% and Modified Duration of 1.94. The investment break-up is as follows: Debentures (83.26%), Structured Obligation (6.56%), Bonds (4.80%), Cash/Net Current Assets (2.91%), Bonds/Debentures (2.34%) and Non Convertible (0.14%). The fund has outperformed its category over the years consistently. The fund gave 8.39% (annualized) return since its inception in 2002.

Franklin India Credit Risk Fund Growth

This fund is one among the top debt funds. It is positioned as a fixed income fund that seeks to maximize portfolio yield by primarily investing in AA and below rated corporate bonds (excluding AA+ rated corporate bonds). The fund invests predominantly in corporate bonds. It endeavors to provide regular income and capital appreciation. The fund has an average maturity of 2.96 years. Also, the fund has a YTM of 10.98% and Modified Duration of 2.05. The investment break-up is as follows: Debentures (88.18%), Bonds (4.23%), Structured Obligation (3.36%), Cash/Net Current Assets (3.28%), Bonds/Debentures (0.49%) and Non Convertible (0.46%). The fund has outperformed its category over the years consistently. The fund gave 9.62% (annualized) return since its inception in 2011.

Franklin India Income Opportunities Fund

The fund strives to generate higher interest income with a medium portfolio duration. It primarily invests in corporate bonds, and other fixed income securities. The fund has an average maturity of 4.33 years. Also, the fund has a YTM of 10.87% and Modified Duration of 2.97. The investment break-up is as follows: Debentures (83.37%), Bonds/Debentures (9.87%), Cash/Net Current Assets (3.52%), Structured Obligation (1.59%), Bonds (1.04%) and Non Convertible (0.52%). This debt fund has outperformed its category over the years consistently. The fund gave 8.92% (annualized) return since its inception in 2009.

What are Debt Funds?

Debt Funds invest in various debt / fixed income securities like Central and State government securities, money market securities, commercial papers corporate bonds and corporate debentures. Debt Mutual funds are best suited for risk-averse investors. Investors looking for more stable and regular returns for their investments can invest in these type of funds. Also, Long term Capital Gains tax on Debt funds is 20% with indexation benefits. This benefit can be availed by staying invested in these funds for more than 3 years. Therefore, these funds are a much better investment option than Fixed/Recurring Deposits any day. For example, post-tax returns of a 9% yielding investment in FD is 6% and 8.8% for a Debt Mutual Fund.

Start your investments in the best debt funds in India 2019 at www.Upwardly.in

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