Markets have been tumultuous last year with the macro factors going haywire.
India had to bear the brunt of trade wars, oil prices, fed rate hikes, NBFC crisis and what not. The equity market had hardly given any returns. Going forward, general elections fall in May 2019, which again is an invitation for volatility.
In this article, we will discuss the five best funds to invest for a duration of one year.
Now, since we are talking about a one-year duration, we have selected only debt funds, as they are low in risk and more stable.
Let’s begin!
| Fund Name | 1Y | 3Y | 5Y | Expense Ratio | Turnover Ratio | Category | Risk |
|---|---|---|---|---|---|---|---|
| SBI Magnum Constant Maturity Fund Direct Growth | 16.59% | 10.81% | 11.13% | 0.34% | NA | Debt
(Gilt) |
Moderately Low |
| Kotak Low Duration Fund Direct Growth | 8.92% | 8.45% | 9.17% | 0.32% | NA | Debt
(Low Duration) |
Moderate |
| Franklin India Short term Income Plan Direct Growth | 8.79% | 9.15% | 9.57% | 0.68% | NA | Debt
(Short Duration) |
Moderate |
| Reliance Prime Debt Fund Direct Growth | 8.44% | 7.76% | 8.46% | 0.31% | NA | Debt
(Corporate Bond) |
Moderate |
| Franklin India Corporate Debt Fund Direct Growth | 10.86% | 9.17% | 9.56% | 0.32% | NA | Debt
(Corporate Bond) |
Moderate |
In this article
5 Best Funds to Invest For One Year – Details
1.SBI Magnum Constant Maturity Fund – Direct – Growth
Launched in 2013, this fund has consistently beaten its benchmark. By looking at the table below, we can see three-fold benefits if we put our money now into the fund.
Firstly, the SIP amount is as low as INR 500, therefore not a hit on the pockets. Second, the expense ratio is reasonable at 0.32%.
Key Information
| Launch Date | 02 – Jan – 2013 |
| AUM (Size) | 354 crores |
| Minimum SIP | 500 |
| Minimum for First Investment | 5000 |
| Performance w.r.t its benchmark | Has beaten the benchmark CCIL All Sovereign Bond – TRI over consistent periods of time |
| Age of the fund | 6 years |
| Expense Ratio | 0.32% |
| Total Securities | 3 |
| Exit Load | Nil |
| Type | Debt Gilt |
| Fund Manager | Dinesh Ahuja |
Investment Objective
The investment objective of the fund is to generate risk-free returns by investing in a portfolio of securities. These securities are issued and guaranteed by the State and Central Government.
Holding Analysis
2.Kotak Low Duration Fund – Direct – Growth
If we refer to the table below, we can look at how Kotak Low Duration Fund has beaten its benchmark CCIL T Bill Liquidity Weight.
If we are in a tussle because of the market going southwards and would like to garner risk-free returns, Kotak Low Duration Fund is one of the best we can look for.
The expense ratio of this fund is as low as 0.31%.
Returns Comparison
| Particulars | 1-Year returns | 3-Year returns | 5-Year returns |
| Kotak Low Duration Fund – Direct – Growth | 8.30% | 8.60% | 9.20% |
| CCIL T Bill Liquidity Weight (Benchmark) | 4.26% | 4.29% | 4.78% |
Key Information
| Launch Date | 01 – Jan – 2013 |
| AUM (Size) | 4,434 crores |
| Minimum SIP | 1000 |
| Minimum for First Investment | 5000 |
| Performance w.r.t its benchmark | Has beaten the benchmark CCIL T Bill Liquidity Weight over consistent periods of time |
| Age of the fund | 6 years |
| Expense Ratio | 0.31% |
| Total Securities | 67 |
| Exit Load | NIL |
| Type | Debt Low Duration |
| Fund Manager | Deepak Agrawal |
Investment Objective
The primary objective of the fund is to generate stable income from a portfolio comprising of short and medium-term debt and other money market securities. (However, the scheme does not guarantee assured returns)
Holding Analysis
3.Franklin India STIP – Direct – Growth
Launched in 2013, this 5 stars rated fund has provided great returns to investors. It has also consistently beaten its benchmark
With a reasonable amount of SIP at INR 500 and expense ratio at 0.77%, investors can look to invest in this scheme for a time horizon of one year.
Key Information
| Launch Date | 01 – Jan – 2013 |
| AUM (Size) | 11,960 crores |
| Minimum SIP | 500 |
| Minimum for First Investment | 5000 |
| Performance w.r.t its benchmark | Has beaten the benchmark CCIL T Bill Liquidity Weight over consistent periods of time |
| Age of the fund | 6 years |
| Expense Ratio | 0.77% |
| Total Securities | 131 |
| Exit Load | Exit Load is 0.5% if redeemed between 0 Year to 1 Year |
| Type | Debt Short Duration |
| Fund Manager | Santosh Kamath, Kunal Agrawal |
Investment Objective
The investment objective of the fund is to generate stable returns by investing in short term fixed income securities.
Holding Analysis
4.Reliance Prime Debt Fund – Direct – Growth
This fund has a reasonable AUM as compared to other funds in the same category. Therefore, it can grow even further in the coming years.
The expense ratio of the scheme is very low at just 0.34%;
The minimum SIP amount for the scheme is INR 100, therefore, any and every retail investor can easily invest in the scheme.
Key Information
| Launch Date | 01 – Jan – 2013 |
| AUM (Size) | 3,388 crores |
| Minimum SIP | 100 |
| Minimum for First Investment | 1000 |
| Performance w.r.t its benchmark | Has beaten the benchmark VR Bond over consistent periods of time |
| Age of the fund | 6 years |
| Expense Ratio | 0.34% |
| Total Securities | 48 |
| Exit Load | NIL |
| Type | Debt Corporate Bond |
| Fund Manager | Amit Tripathi, Anju Chajjer |
Investment Objective
The objective of the fund is to provide regular income and constant capital appreciation.
Holding Analysis
5.Franklin India Corporate Debt Fund – Direct – Growth
This fund is preferred by investors as it has a low expense ratio of 0.32% and a low AUM.
This fund is excellent if you want to invest in a fund which can you decent returns and shield you from market volatility.
The fund has consistently beaten the returns provided by its benchmark VR Bond.
Key Information
| Launch Date | 01 – Jan – 2013 |
| AUM (Size) | 832 crores |
| Minimum SIP | 500 |
| Minimum for First Investment | 1000 |
| Performance w.r.t its benchmark | Has beaten the benchmark VR Bond over consistent periods of time |
| Age of the fund | 6 years |
| Expense Ratio | 0.32% |
| Total Securities | 50 |
| Exit Load | NIL |
| Type | Debt Corporate Bond |
| Fund Manager | Santosh Kamath, Sumit Gupta |
Investment Objective
The investment objective of the fund is to generate regular income to the investors primarily through investments in fixed income securities.
Holding Analysis
Conclusion
If you have idle money and want to invest for a short amount of time, or if you just want to attain stable returns by taking low risk, you can opt for these 5 funds.
Happy Investing!
Disclaimer: The views expressed in this post are that of the author and not those of Groww
