Which debt fund should I invest in?

Which is best debt fund?

List of Debt Mutual Funds in India

Fund Name Category 1Y Returns
ICICI Prudential Short Term Fund Debt 4.8%
IDFC Banking & PSU Debt Fund Debt 3.9%
SBI Magnum Constant Maturity Fund Debt 3.1%
Aditya Birla Sun Life Corporate Bond Fund Debt 4.4%

Are debt funds good to invest now?

Khandelwal explained, in order to earn higher returns, these funds have taken a higher risk than required by investing in low quality papers. When investing in debt funds, the priority is not to earn high returns but to ensure safety, and may be a 1% to 2% more return as compared to FD or saving accounts.

Which debt fund is best for long term?


Scheme Name Plan 1Y
IDFC Bond Fund – Medium Term Plan – Direct Plan – Growth Direct Plan 3.39%
Medium to Long Duration Fund
IDFC Bond Fund – Income Plan – Direct Plan – Growth Direct Plan 2.31%
Money Market Fund

Which is best SBI Debt Fund?

List of Sbi Mutual Funds in India

Fund Name Category Fund Size(in Cr)
SBI Magnum Ultra Short Duration Fund Debt ₹10,515
SBI Magnum Mid Cap Fund Equity ₹6,588
SBI Magnum Medium Duration Fund Debt ₹11,135
SBI Debt Hybrid Fund Hybrid ₹4,683
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Do debt funds give monthly income?

This monthly income plan falls under the category of the debt-oriented fund in which the money is majorly invested in debt instruments such as government securities, corporate bonds, etc.

What is SBI FMP?

Fixed Maturity Plan (FMP) is a fixed tenure mutual fund scheme that invests its corpus in debt instruments maturing in line with the tenure of the scheme. The tenure of an FMP can vary between a few months to a few years.

Are debt funds tax free?

All forms of income through debt funds are subject to taxation as per the Income Tax Act of 1963. Tax liability on dividend returns of such funds is not levied on investors directly. Dividends received from mutual funds or after April 1, 2020 is taxable in the hands of the investors.

What is the safest bond fund?

The three types of bond funds considered safest are government bond funds, municipal bond funds, and short-term corporate bond funds.

Is SBI Debt fund Safe?

Safety: The mutual fund schemes by SBI are one of the country’s trusted and reliable fund schemes. Variety of Options: Investing in SBI Mutual Fund comes with a broad range of choices, you can invest for a short-term, mid-term and long-term in these schemes offered by the SBI.

What is debt MF?

A debt mutual fund (also known as a fixed-income fund) invests a significant portion of your money in fixed-income securities like government securities, debentures, corporate bonds and other money-market instruments.