Know Everything About Best Debt Funds In India 2021
Published On Feb 22, 2022
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Fixed-income securities such as Treasury Bills and Certificates of Deposit are the primary investments of debt mutual funds. These funds' principal purpose is to generate wealth through interest income and long-term capital appreciation. The underlying assets earn a fixed rate of interest for as long as investors keep their money in the fund. Debt funds are one of the best investment alternatives for people with a low-risk tolerance since they are less volatile than equity investments. Investors, particularly those who are new to investing, may find themselves at a fork in the road when it comes to selecting debt funds that are most suited to their portfolio, financial objectives, and criteria.
Everything You Need to Know About India's Best Debt Funds in 2021
Here's what you should know before investing in a debt fund:
1. ICICI Prudential Multicap Fund
The ICICI Prudential Multicap Fund is a diversified equity fund that invests in big, mid, and small-cap companies. The Scheme aims to profit from a rise in domestic demand as a result of the recovery in the economy. Rs. 5,000 is the minimum application amount. The following are some of the advantages of investing in the ICICI Prudential Multicap Fund:
- The approach focuses on selecting companies from various industries with the potential to become market leaders in the future, generating long-term financial gains.
- The strategy's exposure to mid and small caps provides for more long-term capital gain, while the big cap exposure aims to provide more stable and equitable returns.
- The program is designed for investors who wish to take advantage of India's long-term economic potential and have a 5-year or longer investment horizon.
2. Direct Growth IDBI Credit Risk Fund
IDBI Credit Risk Fund Direct-Growth is a debt fund. This fund was formed on March 3, 2014. The fund's manager is Bhupesh Kalyani. This fund is excellent for safeguarding your assets. There are some Plan's Highlights. Rs. 5000/ 500 as a minimum lump sum/SIP. The following are the most essential parameters:
- The NAV of IDBI Credit Risk Fund Direct-Growth is 16.1188 as of November 21, 2021.
- IDBI Credit Risk Fund Direct-Growth has assets under management (AUM) of 40 crores as of November 21, 2021, which is less than the category average.
- The fund's cost ratio is 0.62 percent.
3. Nippon India Credit Risk Fund
Nippon India Credit Risk Fund Direct Plan-Growth Option is a debt fund. This fund was formed on January 1, 2013. The fund is managed by Kinjal Desai and Sushil Budhia. This fund is excellent for safeguarding your assets. The minimum lump sum/ SIP amount is Rs. 500/ 500. The Plan's Crucial Elements. Consider the following important factors:
- The NAV of the Nippon India Credit Risk Fund Direct Plan-Growth Option is 29.2759 as of November 21, 2021.
- Nippon India Credit Risk Fund Direct Plan-Growth Option had assets under management (AUM) of 1031 crores as of November 21, 2021, which was less than the category average.
- The fund's cost ratio is 1.02 percent.
A debt fund manager invests in the underlying assets mostly based on their credit ratings. A higher credit score indicates that a debt security is more likely to pay interest on schedule and refund the principal when the investment period expires. Aside from that, the fund manager alters his investment strategy in reaction to variations in interest rates. As a consequence, you will have a better grasp of the top debt funds accessible in India after reading this text.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.