Which is the best debt fund to invest?

Which is the best debt fund?

5. Top 10 Best Debt Mutual Funds in IndiaFund name3-year returnsRatingsSBI Magnum Constant Maturity Fund Regular Growth11.09%4ICICI Prudential Constant Maturity Gilt Growth12%5L&T Triple Ace Bond Fund Growth10.24%4Edelweiss Government Securities Fund Regular Growth10.3%4Ещё 6 строк

Which fund is best to invest in 2020?

SynopsisScheme namePercentage (%)Axis Bluechip Fund – G25ICICI Prudential Bluechip Fund – G15Motilal Oswal Multicap 35 Fund – G10Aditya Birla Sun Life Regular Savings Fund -G50Ещё 7 строк

Are debt funds good to invest?

So risk averse investors seeking capital gains can consider investing in debt funds. Your investments will continue to grow at low but consistent rates, and hence, these funds can be idle for lumpsum investments as well. Debt mutual funds offer great flexibility: You can invest in debt funds via SIP.

Which is better debt fund or fixed deposit?

The returns debt funds provide are lower than their equity-based counterparts or stocks. But, financial experts believe they have the potential to deliver higher returns than FDs – although, that’s subject to how the market is performing. Contrary to popular belief, debt-based MF returns are market-linked.

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Which debt fund gives highest return?

Top 5 Debt Funds to Invest in 2020Fund NameAUM (cr.)3 Year ReturnsSBI Magnum Medium Duration Fund₹ 3,1929.13%Kotak Credit Risk Fund₹ 2,6626.96%ICICI Prudential Ultra Short Term Fund₹ 5,4267.98%Franklin India Liquid Fund₹ 3,5826.99%Ещё 1 строка

Are debt funds tax free?

Long term capital gains upto Rs 1 Lakh is totally tax free. … Tax on debt mutual funds – The minimum holding period for short term capital gains in debt funds is 3 years. Short term capital gains (if the units are sold before three years) in debt mutual funds are taxed as per applicable tax rate of the investor.

What is Blue Chip Fund?

A blue-chip mutual fund is the one that invests in blue-chip stocks or shares, i.e. in well-established companies with excellent overall financial performance. In this article, we will learn more about blue-chip funds, how they work and much more. Origin of Blue Chip.

What are the top 5 mutual funds?

Top 5 Biggest Mutual Funds

  • Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX)
  • Fidelity 500 Index Fund (FXAIX)
  • Vanguard Institutional Index Mutual Fund (VINIX)
  • Fidelity Government Cash Reserves (FDRXX)
  • Vanguard Federal Money Market Fund (VMFXX)

Is Axis Bluechip fund good?

The Axis Bluechip Fund aims to outperform the benchmark with risk lower than the benchmark. Axis Bluechip Fund holds asset class benefits. Equity as an asset class holds the potential to beat inflation and generate long term wealth.

Is it good time to invest in debt fund?

Debt funds will help you park money for short periods of time, say from a month to a year or two years. If you are looking for relatively low risk, stable return investment where you may need the money any time then debt funds can help.

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Is it good time to invest in Gilt Fund?

Therefore, one should consider investing in gilt funds when Inflation is near its peak and the RBI (Reserve Bank of India) is not likely to raise the interest rate immediately. This would ensure there no downward movement in the NAV and hence returns. Any fall in interest rates would add to the returns of the fund.

Is it a good time to invest in long term debt funds?

In short, Drop in Interest Rate will benefit the Long Term Debt Funds the most as they invest in Government of India Bonds and Corporate Bonds of long term maturity. … As i track these funds, Average Maturity of the best performing fund in this category i.e. ICICI Prudential Long Term Fund is now 19 years.

Is there any risk in debt funds?

Investing in debt funds carries various types of risk. These risks include Credit risk, Interest rate risk, Inflation risk, reinvestment risk etc. But the key risks which needs be considered before investing in Debt funds are Credit Risk and Interest Rate Risk; Credit Risk (Default Risk):

Why fixed deposits are not good?

Inflation risk: FD returns at times can be around the same as inflation or even lower than inflation rates leading to wealth erosion for the investor. 4. Interest rate risk: Bank FDs carry the risk of being locked in for a long tenure at low rate of return.

What is the best alternative to fixed deposits?

Alternatives to Fixed Deposits

  • Debt Mutual Funds. Debt mutual funds invest in comparatively secured investment options such as corporate bonds, government securities and money market instruments. …
  • Liquid Funds. …
  • Equity Funds. …
  • Corporate Fixed Deposits. …
  • Fixed Maturity Plans. …
  • Government Bonds.
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