Set up in January 2010, IDBI Asset Management is 66.67% owned by IDBI Bank, while the remaining 33.33% is owned by IDBI Capital Market & Securities Ltd. As of 31st March 2021, this AMC had assets under management (AUM) of Rs.4120 crore.
This AMC presently offers over 20 mutual fund schemes including debt, equity and hybrid categories. This includes the best IDBI debt mutual funds.
A debt mutual fund or a fixed income fund is a particular scheme of mutual fund, which makes investments in fixed-income instruments. This includes corporate debt securities, money market instruments, government and corporate bonds, etc. Investments in such sectors reduce the risk factor significantly for investors. This is a comparatively stable investment avenue for generating wealth.
The top IDBI debt mutual funds generate returns for the investors by making investments in fixed income securities. The investments are made depending on the credit ratings of the securities or based on their maturity periods. Fund managers allocate resources pertaining to the fund sub-type. Usually, there are 16 categories of debt funds premised on those two factors.
There are several benefits of investing in the best IDBI debt mutual fund 2023, including low cost structure, comparatively stable returns, reasonable safety, and relatively high liquidity.
The current mutual fund scheme offering of this AMC includes more than 5 debt fund schemes.
Besides having an idea about the above-mentioned facts regarding the best IDBI debt mutual fund, investors must know about their taxability:
The capital gains generated through the sale of the best IDBI debt mutual funds are applicable for taxation. The taxation rate on capital gains of debt mutual funds is dependent on the holding period.
Long-term Capital Gains Tax: If an investor sells his or her investment of a debt fund after a holding period of 36 months, then capital gains generated from those transactions are termed long-term capital gains or LTCG. These gains are taxed at the LTCG tax rate, which is currently 20% with indexation.
Short-term Capital Gains Tax: If an investor sells the investment of a debt fund at a holding period of less than 36 months, then capital gains generated from those transactions are termed short-term capital gains or STCG. These gains are taxed at the STCG tax rate. For debt mutual funds, this taxation is done according to the tax slab of the individual. For instance, if the taxpayer is eligible for an income tax slab of 20%, then the debt mutual fund would also attract the same rate of 20%.
TDS: Investors must note that there is no tax deducted at source while selling or redeeming these units. Therefore, the AMC releases the entire capital gains to the investor, without any tax deductions from their end.
In addition to this taxability section, investors must consider some other parameters while investing in the best IDBI debt mutual funds.
Risk: The risk factor associated with the best IDBI debt mutual funds is more than that involved with bank fixed deposits because these debt funds are subjected to interest rate risk and credit risk. The bond prices might reduce because of an increase in interest rate. On the other hand, in credit risk, a fund manager might invest in securities that are low credit rated and come with a greater default probability.
Return: Though debt mutual funds invest in fixed income securities, they do not commit guaranteed returns. With an increase in the overall rate of interest in the economy, the NAV of these funds tends to reduce. Therefore, these funds are ideal for a falling rate of interest regime.
Expense ratio: Fund managers of debt funds charge a certain amount of fees from an investor for managing the money. This charged fee is known as the expense ratio.
Experience of a fund manager: The experience of a fund manager in managing debt schemes can be a determining factor as to whether a debt fund scheme would prove to be profitable for an investor or not. Competent fund managers make accurate market predictions and take actions promptly for maximising gains and minimising losses.
Past performance of the fund: Though a fund’s past performance does not indicate probable future outcomes, it can provide valuable insights regarding the market, which can help make informed decisions.
Investing might prove to be a daunting task for first-time investors. However, having basic knowledge about debt mutual funds and referring to this article as a guide would prove to be highly helpful for them in choosing a suitable fund among the best IDBI debt mutual funds.
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| Fund Name | Category | Risk | 1Y Returns | Rating | Fund Size(in Cr) |
|---|---|---|---|---|---|
IDBI Small Cap Fund | Equity | Very High | 24.3% | 3 | ₹160 |
IDBI Liquid Fund | Debt | Low to Moderate | 6.6% | 3 | ₹502 |
IDBI Equity Advantage Fund | Equity | Very High | 19.7% | 2 | ₹484 |
IDBI Hybrid Equity Fund | Hybrid | Very High | 14.4% | 1 | ₹179 |
IDBI Midcap Fund | Equity | Very High | 18.4% | 1 | ₹196 |
IDBI Focused 30 Equity Fund | Equity | Very High | 17.9% | 2 | ₹131 |
IDBI India Top 100 Equity Fund | Equity | Very High | 18.4% | 4 | ₹654 |
IDBI Flexi Cap Fund | Equity | Very High | 16.2% | 3 | ₹382 |
IDBI Short Term Bond Fund | Debt | Low to Moderate | 6.8% | 4 | ₹25 |
IDBI Ultra Short Term Fund | Debt | Low to Moderate | 6.6% | 4 | ₹146 |
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Now let us jump and check about these top 10 mutual fund schemes.
Fund Performance: The IDBI Small Cap Fund has given 39.12% annualized returns in the past three years and 16.68% in the last 5 years. The IDBI Small Cap Fund comes under the Equity category of IDBI Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in IDBI Small Cap Fund via lump sum is ₹5,000 and via SIP is ₹500.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹160Cr |
| 1Y Returns | 24.3% |
Fund Performance: The IDBI Liquid Fund has given 4.59% annualized returns in the past three years and 5.38% in the last 5 years. The IDBI Liquid Fund comes under the Debt category of IDBI Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in IDBI Liquid Fund via lump sum is ₹5,000 and via SIP is ₹500.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹502Cr |
| 1Y Returns | 6.6% |
Fund Performance: The IDBI Equity Advantage Fund has given 22.46% annualized returns in the past three years and 11.35% in the last 5 years. The IDBI Equity Advantage Fund comes under the Equity category of IDBI Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in IDBI Equity Advantage Fund via lump sum is ₹500 and via SIP is ₹500.
| Min Investment Amt | ₹500 |
|---|---|
| AUM | ₹484Cr |
| 1Y Returns | 19.7% |
Fund Performance: The IDBI Hybrid Equity Fund has given 15.67% annualized returns in the past three years and 8.19% in the last 5 years. The IDBI Hybrid Equity Fund comes under the Hybrid category of IDBI Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in IDBI Hybrid Equity Fund via lump sum is ₹5,000 and via SIP is ₹500.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹179Cr |
| 1Y Returns | 14.4% |
Fund Performance: The IDBI Midcap Fund has given 25.18% annualized returns in the past three years and 11.17% in the last 5 years. The IDBI Midcap Fund comes under the Equity category of IDBI Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in IDBI Midcap Fund via lump sum is ₹5,000 and via SIP is ₹500.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹196Cr |
| 1Y Returns | 18.4% |
Fund Performance: The IDBI Focused 30 Equity Fund has given 21.06% annualized returns in the past three years and 11.43% in the last 5 years. The IDBI Focused 30 Equity Fund comes under the Equity category of IDBI Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in IDBI Focused 30 Equity Fund via lump sum is ₹5,000 and via SIP is ₹500.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹131Cr |
| 1Y Returns | 17.9% |
Fund Performance: The IDBI India Top 100 Equity Fund has given 23.69% annualized returns in the past three years and 13.98% in the last 5 years. The IDBI India Top 100 Equity Fund comes under the Equity category of IDBI Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in IDBI India Top 100 Equity Fund via lump sum is ₹5,000 and via SIP is ₹500.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹654Cr |
| 1Y Returns | 18.4% |
Fund Performance: The IDBI Flexi Cap Fund has given 24.63% annualized returns in the past three years and 13.5% in the last 5 years. The IDBI Flexi Cap Fund comes under the Equity category of IDBI Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in IDBI Flexi Cap Fund via lump sum is ₹5,000 and via SIP is ₹500.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹382Cr |
| 1Y Returns | 16.2% |
Fund Performance: The IDBI Short Term Bond Fund has given 7.7% annualized returns in the past three years and 6.93% in the last 5 years. The IDBI Short Term Bond Fund comes under the Debt category of IDBI Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in IDBI Short Term Bond Fund via lump sum is ₹5,000 and via SIP is ₹500.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹25Cr |
| 1Y Returns | 6.8% |
Fund Performance: The IDBI Ultra Short Term Fund has given 5.08% annualized returns in the past three years and 5.87% in the last 5 years. The IDBI Ultra Short Term Fund comes under the Debt category of IDBI Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in IDBI Ultra Short Term Fund via lump sum is ₹5,000 and via SIP is ₹500.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹146Cr |
| 1Y Returns | 6.6% |
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