Let us first understand Low Duration Debt Mutual Funds. Individuals and Institutions raise debt when they need money, and pay interest based on the interest rate and duration of the debt. The interest rates can fluctuate based on the economic scenario.
Two most important factors in this transaction are:
I. The credibility of individual or institution who has raised debt
II. The time and duration of the debt is raised
Examples of debt: Fixed deposits by Banks, Debt raised by government, Fixed deposits by companies
These funds invest in short term (one year) bonds. If you are saving for very short-term goals like a vacation or buying an automobile, then this category is ideal for gains within one year. It is also an excellent resort to park your money until you decide where to invest or spend next. Returns are taxed as per your income tax slab if sold before three years and have negligible tax post that period.
Purpose: Invest here for your short term goals like a vacation, buying a bike, jewelry or expensive gadget.
| Fund Name | Category | Risk | 1Y Returns | Rating | Fund Size(in Cr) | |
|---|---|---|---|---|---|---|
| Kotak Low Duration Fund | Debt | Moderate | 7.4% | 5star | ₹4,592 | |
| ICICI Prudential Savings Plan | Debt | Moderately Low | 7.0% | 4star | ₹15,817 | |
| Aditya Birla Sun Life Low Duration | Debt | Moderately Low | 7.5% | 4star | ₹7,788 | |
| Principal Low Duration Fund | Debt | Moderately Low | 6.3% | 4star | ₹735 | |
| SBI Magnum Low Duration Fund | Debt | Moderately Low | 7.2% | 3star | ₹6,615 | |
| L&T Low Duration Fund | Debt | Moderate | 6.2% | 3star | ₹1,309 | |
| UTI Treasury Advantage Fund | Debt | Moderately Low | 6.8% | 3star | ₹8,024 | |
| Sundaram Low Duration Fund | Debt | Moderately Low | 7.1% | 3star | ₹1,226 | |
| IDFC Low Duration Fund | Debt | Moderately Low | 6.8% | 3star | ₹3,186 | |
| Mirae Asset Savings Fund | Debt | Moderately Low | 6.6% | 2star | ₹382 | |
| Reliance Low Duration Fund | Debt | Moderately Low | 7.0% | 2star | ₹11,347 | |
| Tata Treasury Advantage Fund | Debt | Moderately Low | 7.0% | 2star | ₹2,872 | |
| LIC MF Savings Fund | Debt | Moderately Low | 7.1% | 2star | ₹1,613 | |
| Invesco India Treasury Advantage Fund | Debt | Moderately Low | 6.6% | 2star | ₹1,112 | |
| JM Low Duration Fund | Debt | Moderately Low | 6.4% | 2star | ₹435 | |
| View All Top 10 Low Duration Mutual Funds |
Now let us jump and check about these top 10 mutual fund schemes.
Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 8.55% annualized returns in the last 3 years. In the last 1 year, it gave 7.41% returns.
Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.41% returns in the last 1 year. Groww rated this fund as 5 Star. This is one of the best Debt mutual fund in India.
Fund Manager: Deepak Agrawal
| Launch Date | 31 Dec 2012 |
|---|---|
| Min Investment Amt | ₹5,000 |
| Groww Rating | 5star |
| AUM | ₹4,592Cr |
| 1Y Returns | 7.4% |
Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 7.85% annualized returns in the last 3 years. In the last 1 year, it gave 7.03% returns.
Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.03% returns in the last 1 year. Groww rated this fund as 4 Star. This is one of the best Debt mutual fund in India.
Fund Manager: Rahul Goswami, Rohan Maru
| Launch Date | 31 Dec 2012 |
|---|---|
| Min Investment Amt | ₹500 |
| Groww Rating | 4star |
| AUM | ₹15,817Cr |
| 1Y Returns | 7.0% |
Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 8.06% annualized returns in the last 3 years. In the last 1 year, it gave 7.51% returns.
Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.51% returns in the last 1 year. Groww rated this fund as 4 Star. This is one of the best Debt mutual fund in India.
Fund Manager: Kaustubh Gupta, Mohit Sharma
| Launch Date | 31 Dec 2012 |
|---|---|
| Min Investment Amt | ₹500 |
| Groww Rating | 4star |
| AUM | ₹7,788Cr |
| 1Y Returns | 7.5% |
Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 7.84% annualized returns in the last 3 years. In the last 1 year, it gave 6.28% returns.
Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 6.28% returns in the last 1 year. Groww rated this fund as 4 Star. This is one of the best Debt mutual fund in India.
Fund Manager: Pankaj Jain
| Launch Date | 31 Dec 2012 |
|---|---|
| Min Investment Amt | ₹5,000 |
| Groww Rating | 4star |
| AUM | ₹735Cr |
| 1Y Returns | 6.3% |
Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 7.48% annualized returns in the last 3 years. In the last 1 year, it gave 7.16% returns.
Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.16% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Debt mutual fund in India.
Fund Manager: Rajiv Radhakrishnan
| Launch Date | 31 Dec 2012 |
|---|---|
| Min Investment Amt | ₹5,000 |
| Groww Rating | 3star |
| AUM | ₹6,615Cr |
| 1Y Returns | 7.2% |
Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 8.4% annualized returns in the last 3 years. In the last 1 year, it gave 6.18% returns.
Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 6.18% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Debt mutual fund in India.
Fund Manager: Shriram Ramanathan, Vikas Garg
| Launch Date | 31 Dec 2012 |
|---|---|
| Min Investment Amt | ₹10,000 |
| Groww Rating | 3star |
| AUM | ₹1,309Cr |
| 1Y Returns | 6.2% |
Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 7.79% annualized returns in the last 3 years. In the last 1 year, it gave 6.85% returns.
Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 6.85% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Debt mutual fund in India.
Fund Manager: Sudhir Agrawal
| Launch Date | 31 Dec 2012 |
|---|---|
| Min Investment Amt | ₹10,000 |
| Groww Rating | 3star |
| AUM | ₹8,024Cr |
| 1Y Returns | 6.8% |
Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 7.73% annualized returns in the last 3 years. In the last 1 year, it gave 7.1% returns.
Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.1% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Debt mutual fund in India.
Fund Manager: Dwijendra Srivastava, Siddharth Chaudhary
| Launch Date | 1 Jan 2013 |
|---|---|
| Min Investment Amt | ₹1,000 |
| Groww Rating | 3star |
| AUM | ₹1,226Cr |
| 1Y Returns | 7.1% |
Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 7.73% annualized returns in the last 3 years. In the last 1 year, it gave 6.83% returns.
Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 6.83% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Debt mutual fund in India.
Fund Manager: Anurag Mittal
| Launch Date | 31 Dec 2012 |
|---|---|
| Min Investment Amt | ₹100 |
| Groww Rating | 3star |
| AUM | ₹3,186Cr |
| 1Y Returns | 6.8% |
Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 7.07% annualized returns in the last 3 years. In the last 1 year, it gave 6.56% returns.
Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 6.56% returns in the last 1 year. Groww rated this fund as 2 Star. This is one of the best Debt mutual fund in India.
Fund Manager: Mahendra Jajoo
| Launch Date | 31 Dec 2012 |
|---|---|
| Min Investment Amt | ₹5,000 |
| Groww Rating | 2star |
| AUM | ₹382Cr |
| 1Y Returns | 6.6% |
Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 7.7% annualized returns in the last 3 years. In the last 1 year, it gave 6.95% returns.
Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 6.95% returns in the last 1 year. Groww rated this fund as 2 Star. This is one of the best Debt mutual fund in India.
Fund Manager: Amit Tripathi, Anju Chajjer
| Launch Date | 31 Dec 2012 |
|---|---|
| Min Investment Amt | ₹500 |
| Groww Rating | 2star |
| AUM | ₹11,347Cr |
| 1Y Returns | 7.0% |
Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 7.68% annualized returns in the last 3 years. In the last 1 year, it gave 7.02% returns.
Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.02% returns in the last 1 year. Groww rated this fund as 2 Star. This is one of the best Debt mutual fund in India.
Fund Manager: Dheeraj Singh
| Launch Date | 31 Dec 2012 |
|---|---|
| Min Investment Amt | ₹5,000 |
| Groww Rating | 2star |
| AUM | ₹2,872Cr |
| 1Y Returns | 7.0% |
Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 7.95% annualized returns in the last 3 years. In the last 1 year, it gave 7.13% returns.
Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.13% returns in the last 1 year. Groww rated this fund as 2 Star. This is one of the best Debt mutual fund in India.
Fund Manager: Rahul Singh
| Launch Date | 1 Jan 2013 |
|---|---|
| Min Investment Amt | ₹5,000 |
| Groww Rating | 2star |
| AUM | ₹1,613Cr |
| 1Y Returns | 7.1% |
Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 7.56% annualized returns in the last 3 years. In the last 1 year, it gave 6.61% returns.
Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 6.61% returns in the last 1 year. Groww rated this fund as 2 Star. This is one of the best Debt mutual fund in India.
Fund Manager: Krishna Venkat Cheemalpati, Nitish Sikand
| Launch Date | 31 Dec 2012 |
|---|---|
| Min Investment Amt | ₹5,000 |
| Groww Rating | 2star |
| AUM | ₹1,112Cr |
| 1Y Returns | 6.6% |
Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 7.63% annualized returns in the last 3 years. In the last 1 year, it gave 6.4% returns.
Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 6.4% returns in the last 1 year. Groww rated this fund as 2 Star. This is one of the best Debt mutual fund in India.
Fund Manager: Vikas Agarwal
| Launch Date | 1 Jan 2013 |
|---|---|
| Min Investment Amt | ₹5,000 |
| Groww Rating | 2star |
| AUM | ₹435Cr |
| 1Y Returns | 6.4% |
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Debt funds are mutual funds investing in such debt instruments. They are of different kinds depending on the kind of debt instruments they invest in. Higher the credit rating of the debtor, lesser the chance of default and hence lesser the risk is – however, returns for such instruments can be lower. Lower the duration of the debt, lesser the probability of interest rate fluctuation and hence lesser the uncertainty of returns.
Asset management companies (or AMCs or fund houses) create mutual funds. All AMCs will have to be approved by the government body, Securities and Exchange Board of India (SEBI). All mutual funds have to be whetted by SEBI before it is open for the public to invest.
One of the best ways to hedge against the small-cap volatility is to adopt a phased approach, also known as Systematic Investment Plan (SIP) approach. We are sure that you must be aware of SIP and its benefits. Buying in small quantity but buying regularly provides you with faster growth. On Groww.in, all transactions to and from AMC is done via BSE. When you decide to invest in a large cap mutual fund of your choice, you choose that mutual fund on the website and click ‘invest’. Following that, you are redirected to the BSE page where you make the payment. BSE then directs your money to the AMC managing your mutual fund. To be assured at your end, you can visit the individual AMC website after the payment. You would be able to see all your purchased units against your folio number.
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