Looking to invest in debt mutual funds but confused on which fund to invest in for better returns? Below are some of the top performing debt funds in India that can assure returns that are attractive to you.
Mutual funds investment has become a popular craze these days. This really is because it helps people make investments that are smaller in a systematic way that could accrue higher yields in future. Debt mutual funds are almost always alluring when interest rates are trending down, as they produce good returns even though there are various kinds of mutual funds available. Additionally, it is now considerably easier for investors to purchase mutual funds with the launch of investment services that are online. Let’s have a look at the top performing debt funds in 2016.
Franklin India Ultra Short Bond Fund
This is an open ended income fund and provides a variety of high liquidity and regular income by purchasing money market instruments and short term debt.
Using a credit rating of (ICRA) A1+mfs, this fund provides a higher degree of safety in terms of timely receipt of payments. The fund is suitable for investors with the investment horizon of up to 3 months who favor accrual established debt products.
It’s recommended to hold your cash in this fund for a minimum of one year and anticipate to get about 7-8% return.
ICICI Prudential Long Term Fund – Routine Strategy
This open-ended income fund aims at producing regular income.
It is certainly one of the most popular debt mutual funds for investors who look at debt allotment to get a medium to long term investment horizon. The fund endeavors to create accrual returns with reduced mark-to-market risk.
Having an objective to build capital appreciation and regular income, this open-ended income plan is the best option for investment in today’s explosive market conditions. It has got the flexibility to move into short-term/long term tools based upon the fund manager’s outlook on rates of interest.
This fund that is dynamic is well suited for those investors who wish to invest in bond funds, but tend not to desire to time the markets.
BSL Medium Term Plan
Birla Sun Life Medium Term Plan is perfect for investors who look for higher yields within the debt class, with additional dangers. It’s usually an income fund which aims to optimize returns by carefully investing included and determining credit chances that are mispriced in medium term securities in the market.
The minimal investment for this fund is Rs.5,000. Hence, the best investment period for this fund is 2 to 3 years.