Best Debt Mutual Funds

Mutual funds offer a wide range of investment opportunities, and among the popular options is the debt mutual fund. These funds are known for their low-risk nature and steady returns, making them ideal for both short and long-term financial goals. If you’re exploring the best debt mutual funds to invest in 2024, you’re in the right place. Here’s an overview of the top-performing debt mutual funds in India:

What Are Debt Funds?

Debt funds invest in fixed-income securities like bonds, government securities, and corporate debt. The returns are influenced by the type of borrower and the loan’s duration.

Key Features of Debt Funds:

• Investment horizon ranges from 1 day to 3 years.

• Higher post-tax returns than Fixed Deposits if held for more than 3 years.

• Liquid debt funds are excellent for storing emergency funds with better returns than savings accounts.

Best Debt Mutual Funds 2024:

1. Edelweiss CRISIL IBX 50:50 Gilt Plus SDL (April 2037 Index Fund)

   • Return: 12.09% (1 Year)

   • Expense Ratio: 0.3%

   • Min. Investment: ₹5000

   • Risk: Moderate

2. Nippon India Nifty G-Sec (June 2036 Maturity Index Fund Direct)

   • Return: 12.02% (1 Year)

   • Expense Ratio: 0.2%

   • Min. Investment: ₹1000

   • Risk: Moderate

3. HDFC Nifty G-Sec (June 2036 Index Fund Direct-Growth)

   • Return: 12.02% (1 Year)

   • Expense Ratio: 0.2%

   • Min. Investment: ₹1000

   • Risk: Moderate

4. SBI CRISIL IBX Gilt Index (June 2036 Fund Direct-Growth)

   • Return: 11.89% (1 Year)

   • Expense Ratio: 0.28%

   • Min. Investment: ₹5000

   • Risk: Moderate

5. Aditya Birla Sun Life Medium Term Plan (Direct-Growth)

   • Return: 63.49% (1 Year)

   • Expense Ratio: 0.85%

   • Min. Investment: ₹1000

   • Risk: Moderate

Conclusion

Debt mutual funds are a secure and efficient way to generate better returns compared to traditional savings methods. With options like Edelweiss CRISIL IBX and Nippon India Nifty G-Sec, investors can find debt funds that align with their financial goals