Quick Answer: Which Debt Mutual Fund Is Best?

What is the best time to invest in debt mutual funds?

Over a 5-year period between April 2015 and May 2020, on an annualized basis, debt mutual funds have provided better returns to investors as compared to equity mutual funds..

Is a safe equity or debt?

SAFEs are neither equity nor debt – they represent a contractual right to future equity, in exchange for which the holder of the SAFE contributes capital to the company. … In addition, SAFEs do not accrue interest.

Which is the safest debt funds in India?

You can add GILT debt mutual fund schemes to your investment portfolio. These debt funds invest in Government of India securities which are 100% sovereign backed and are the most safe instruments.

Which type of debt fund is best?

Top 10 Debt Mutual FundsFund NameCategory1Y ReturnsICICI Prudential Credit Risk FundDebt10.8%LIC MF Banking & PSU Debt FundDebt9.5%Kotak Bond Short Term PlanDebt11.0%Aditya Birla Sun Life Liquid FundDebt4.9%12 more rows

Can you lose all your money in a mutual fund?

All funds carry some level of risk. With mutual funds, you may lose some or all of the money you invest because the securities held by a fund can go down in value. Dividends or interest payments may also change as market conditions change.

Is it good time to invest in debt fund?

Or it could be even short-term fixed deposits with banks. When the interest rates are around or above 8%, the time is good to invest in long duration debt funds. … The interest rate risk always exists in debt investment. Longer the duration or maturity of the debt instrument, the higher the risk.

Which mutual fund is best equity or debt?

Key difference between equity mutual fund and debt mutual fundFeaturesDebt Mutual FundEquity Mutual FundTax Saving optionThere is no option to save taxesYes, you can save taxes by investing upto Rs 150,000 in a year in ELSS mutual funds7 more rows

Is Debt Fund better than FD?

For holding periods of less than three years, debt funds do not enjoy any tax advantage. Capital gains in them are taxed at your slab rate, the same as a bank FD. One minor advantage remains—the tax deducted at source (TDS) is not applicable on short-term gains in debt funds while it is applicable on bank FD interest.

Can debt funds give negative returns?

Rule: Investments in debt funds are safe because they do not have exposure to volatile assets such as equity shares. Exception: When interest rates are rising, long-term debt funds can give negative returns. … The funds holding bonds of long maturities suffered losses, with the average fund losing 7.26 per cent.

Which is the best debt fund to invest in India?

SBI Bluechip Fund.Aditya Birla Sun Life Tax Relief 96.SBI Small Cap Fund.ICICI Prudential Bluechip Fund.Canara Robeco Bluechip Equity Fund.Kotak Emerging Equity Fund.Mirae Asset Tax Saver Fund.Tata India Tax Savings Fund.More items…

Which mutual fund is best for 2020?

Scheme namePercentage (%)SBI Magnum Multicap – G50ICICI Prudential Bluechip Fund – G50Motilal Oswal Multicap 35 Fund – G30Axis Bluechip Fund- G209 more rows•Sep 30, 2020

Is debt mutual fund risk free?

Things to keep in mind when investing in a debt fund now You should keep a tab on risks like credit risk, liquidity risk, interest rate risk, and duration risk when investing in a debt fund. … One thing is now clear to most investors — debt funds are not risk-free.

What is Blue Chip Fund?

A Blue chip fund is a term used to indicate well-established and financially sound companies. Blue chip funds invest in stocks of those companies that have a credible track record with sound financials along with regular dividend payments and profitability over the years.

Should I invest in debt mutual fund?

The simple thumb rule for investing in debt is: when the interest rates are around or below 6%, it is better to invest in debt funds like liquid funds or ultra-short duration funds or low duration funds. Or it could be even short-term fixed deposits with banks. … The interest rate risk always exists in debt investment.

How do I choose a good debt fund?

“If you have an investment horizon of three years, choose a fund with a lower maturity than three years, so that you do not face that volatility,” said Pathak. You can find the average maturity of a debt scheme in its monthly factsheet. Pathak also emphasized on not to look at the past returns.