5 Top Performing Debt Mutual Funds In 3 Years SIP: CRISIL Rated

Debt Funds are a type of Mutual Fund that earns money by lending money to the government and businesses. The risk level of a Debt Fund is determined by the length of the loan and the kind of borrower. A debt mutual fund puts a large amount of your money into fixed-income assets such as government bonds, debentures, corporate bonds, and other money-market instruments. Debt mutual funds reduce the risk element for investors significantly by investing in such outlets. This is a pretty safe investment option that has the potential to help you build money.

Benefits of Investing in Debt Mutual Funds

We all have short-term goals, like paying off a child's school tuition, setting up a rainy-day fund, or purchasing a present for a loved one. There are a variety of debt funds available depending on your investing horizon, which can range from three months to three years.

Stable income - Debt funds can provide capital growth over time. Although debt funds are less risky than equity funds, their returns are not guaranteed and are susceptible to market risks.

Tax efficiency - If saving money on taxes is a priority, debt mutual funds can be a good option. This is because debt funds are less taxed than traditional investment choices such as fixed deposits (FDs). When you invest in debt funds, you only pay taxes when you redeem them, not before. Even if it's a partial redemption, you just pay tax on the redemption proceeds.

High liquidity - The duration of the exit load varies by the fund, and some funds have no exit load at all. Debt mutual funds, on the other hand, are liquid, and you may withdraw your money at any time throughout the business day.

Stability - Investing in debt funds might help you diversify your portfolio. Investing in equity funds can be risky. This is because the performance of equity funds is closely connected to the stock market's performance. You can diversify your portfolio while lowering overall risk by investing in debt funds.

 

5 Top Performing Debt Fund- Based on 3 Years SIP Returns

UTI Short Term Income Fund - Direct Plan-Growth

It is an open-ended Short Duration mutual fund scheme. It has Rs 3,300 Crores worth of AUM. The fund's current NAV as of 15th March 2022 is Rs 26.6638. Its expense ratio is 0.35%. Its performance is very good among its peers. It has given 7.52% annual average returns. 

Edelweiss Government Securities Fund - Direct Plan-Growth

It is an open-ended Short Duration mutual fund scheme. Fund's AUM is Rs 113.14 Crores. The current NAV of the fund is Rs 20.6567 as of 15th March 2022. Its expense ratio is 0.69%. The fund outperformed the category average return. Its performance is very good among its peers. The fund has delivered 9.38% annual average returns.

Edelweiss Banking and PSU Debt Fund - Direct Plan-Growth

It is an open-ended Short Duration mutual fund scheme. It has Rs 20.4664 Crores worth of AUM. The fund's current NAV as of 15th March 2022 is Rs 433.67. Its expense ratio is 0.69%. Its performance is very good among its peers. Its performance is very good among its peers. It has given 8.78% annual average returns. 

Aditya Birla Sun Life Income Fund - Direct Plan-Growth

It is an open-ended Short Duration mutual fund scheme. It has Rs 108.85 Crores worth of AUM. The fund's current NAV as of 15th March 2022 is Rs 2248.51. Its expense ratio is 0.4%. It has given good returns, better than its category returns. It has given 8.38% annual average returns. 

IDFC Dynamic Bond Fund - Direct Plan-Growth

It is an open-ended Short Duration mutual fund scheme. It has Rs 2769.93 Crores worth of AUM. The fund's current NAV as of 15th March 2022 is Rs 30.314. Its expense ratio is 0.75%. The fund has performed good, better than its peers. It has given 9.05% annual average returns. 

SIP Absolute Returns

Debt Funds	1-Year	2-Year	3-Year	5-Year
UTI Short Term Income Fund - Direct Plan - Growth	4.96%	9.27%	13.44%	17.64%
Edelweiss Government Securities Fund - Direct Plan - Growth	2.11%	5.94%	11.80%	23.96%
Edelweiss Banking and PSU Debt Fund - Direct Plan - Growth	2.42%	5.80%	11.77%	23.76%
Aditya Birla Sun Life Income Fund - Direct Plan - Growth	2.45%	5.87%	11.31%	22.07%
IDFC Dynamic Bond Fund - Direct Plan - Growth	2.50%	5.04%	10.79%	22.35%

Source - Money Control

Disclaimer

Mutual fund investments are subject to market risk. Read all scheme-related documents, and Terms and Conditions carefully before investing. The above-mentioned information is purely informational and doesn't guarantee any return. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.