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Best Nippon India Debt Mutual Funds

Nippon India Mutual Fund is a joint venture between Nippon Life Insurance, a Japanese company, and India’s Reliance Capital. It began operations in 1995 as Reliance Mutual Fund, thereafter adopting its current name in 2019. Presently, this asset management company is one of the largest fund houses in India in terms of AUM. 

The AMC offers more than 65 mutual fund schemes under various channels. These MFs include hybrid schemes, equity schemes, ETFs, and a number of debt funds, among others.

Debt funds are a type of mutual fund that invests primarily in fixed-income securities. The best Nippon debt mutual funds distribute wealth in an array of money-market instruments. 

Debt instruments include treasury bills, commercial papers, corporate bonds, government securities, and debentures, among others. These come with a pre-decided date of maturity and interest rate.

Moreover, investors earn yields based on the interest generated, which impacts the securities’ market value. As a result, debt MFs are also referred to as fixed-income funds.

Like any other MF investment, investing in the best Nippon debt mutual funds 2022 has its set of benefits and drawbacks, depending upon the kind of scheme. The upsides of these funds include higher liquidity, more flexibility, and stable earnings. Additionally, debt MFs tend to be less volatile than other aggressive investment tools as they invest in fixed-income avenues.

On the flip side, however, debt mutual funds offer lower returns as compared to their equity counterparts.

Nippon India Mutual Fund offers more than 10 schemes under its category of debt funds. These debt fund schemes comprise several long- and short-term options under their investment portfolio.

Factors to Consider Before Investing

Before investing in one of the top Nippon debt mutual funds, it is vital to have a clear understanding of its various aspects. 

Duration: Debt MFs tend to be more sensitive to interest rate movements. In fact, the price of fixed-income securities is inversely related to interest rates. This price sensitivity of these mutual funds is called duration. A fund with a longer duration is more vulnerable to fluctuations in interest rates and vice versa.

Expense ratio: Every mutual fund house levies an annual fee for its portfolio management services. The expense ratio is a percentage of aggregate expenses borne by investors. For example, a debt fund that offers 10% returns with an expense ratio of 1.5% delivers actual returns worth 8.5% to its investors.

Assets under management (AUM): It is the market value of the investments held by a mutual fund house. Therefore, debt MFs with larger assets under management or a higher AUM can stand in a better position to distribute fixed fund expenses across their investors. As a result, a large fund size can indicate a lower expense ratio per investor. 

Credit risk of constituents: Credit rating agencies in India examine the creditworthiness of issuers of fixed-income instruments. They also analyse an issuer’s ability to pay back investors. Premised upon this analysis, debt securities receive a rating. For instance, securities with an ‘AAA’ rating are considered to carry low credit risk. Contrastingly, securities with a ‘C’ rating carry a higher risk of default.

Prevailing interest rate regime: Under a falling interest rate regime, freshly issued bonds are valued lower compared to previously issued ones. Likewise, with a rising interest rate regime in place, the value of freshly issued bonds goes up. And, as debt funds invest in bonds, they usually perform better during a falling interest rate regime. 

Risk appetite: It is necessary to weigh your capacity to digest risks before investing in any fund. Theoretically, debt mutual funds are less prone to market risks. However, they can be vulnerable to inflation, interest rate, and credit risks.

Investment objective: When choosing the best Nippon debt mutual fund for yourself, it is critical to evaluate your investment objectives. Thereafter, you can choose a plan that aligns with your financial goals and the timeframe within which you wish to achieve them.

Taxability

Alongside the above-mentioned parameters, it is also imperative for investors to know the tax treatment of the best Nippon debt mutual funds.

Short-term Capital Gains Tax (STCG tax): If investors sell units of their MF before a holding period of 3 years, the gains are added to their taxable income. Moreover, the applicable tax on a debt MF for less than 3 years depends upon an investor’s income slab. For instance, an investor falling under the 10% tax slab is liable to pay taxes at 10% with 4% cess as STCG tax. 

Long-term Capital Gains Tax (LTCG tax): Debt mutual funds redeemed after a holding period of 3 years are subject to LTCGT. This implies that tax is applicable at a flat rate of 20% on long-term capital gains. Additionally, debt MFs extend indexation benefits to investors, thereby lowering their taxable income. 

TDS: When investing in the best Nippon debt mutual funds, investors must note that tax deducted at source does not apply to debt MFs. 

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List of Nippon Mutual Funds in India

Fund NameCategoryRisk1Y ReturnsRatingFund Size(in Cr)
Nippon India Small Cap FundEquityVery High8.8%4₹18,675
Nippon India Gilt Securities FundDebtLow to Moderate1.3%3₹1,182
Nippon India Large Cap FundEquityVery High7.5%2₹10,930
Nippon India Tax Saver (ELSS) FundEquityVery High3.7%1₹11,235
Nippon India Liquid FundDebtModerate3.7%3₹26,190
Nippon India Equity Hybrid FundHybridVery High0.6%1₹2,960
Nippon India Low Duration FundDebtModerate4.1%4₹9,544
Nippon India Pharma FundEquityVery High-13.4%₹4,516
Nippon India US Equity Opportunities FundEquityVery High-12.3%₹524
Nippon India Growth FundEquityVery High6.1%4₹11,629
Nippon India Short Term FundDebtModerate3.5%5₹7,861
Nippon India Gilt Securities FundDebtLow to Moderate1.3%3₹1,182
Nippon India Index FundOtherVery High2.2%4₹285
Nippon India Banking & Financial Services FundEquityVery High-0.9%2₹3,213
Nippon India Focused Equity FundEquityVery High5.5%3₹5,644
View All

Let's have a closer look

Now let us jump and check about these top 10 mutual fund schemes.

Nippon India Small Cap Fund Direct Growth

Fund Performance: The Nippon India Small Cap Fund has given 26.31% annualized returns in the past three years and 17.2% in the last 5 years. The Nippon India Small Cap Fund belongs to the Equity category of Nippon India Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Nippon India Small Cap Fund via lump sum is ₹5,000 and via SIP is ₹100.

Min Investment Amt₹5,000
AUM₹18,675Cr
1Y Returns8.8%

Nippon India Gilt Securities Fund Direct Growth

Fund Performance: The Nippon India Gilt Securities Fund has given 6.3% annualized returns in the past three years and 7.04% in the last 5 years. The Nippon India Gilt Securities Fund belongs to the Debt category of Nippon India Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Nippon India Gilt Securities Fund via lump sum is ₹5,000 and via SIP is ₹100.

Min Investment Amt₹5,000
AUM₹1,182Cr
1Y Returns1.3%

Nippon India Large Cap Fund Direct Growth

Fund Performance: The Nippon India Large Cap Fund has given 10.22% annualized returns in the past three years and 10.87% in the last 5 years. The Nippon India Large Cap Fund belongs to the Equity category of Nippon India Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Nippon India Large Cap Fund via lump sum is ₹100 and via SIP is ₹100.

Min Investment Amt₹100
AUM₹10,930Cr
1Y Returns7.5%

Nippon India Tax Saver (ELSS) Fund Direct Growth

Fund Performance: The Nippon India Tax Saver (ELSS) Fund has given 8.29% annualized returns in the past three years and 4.68% in the last 5 years. The Nippon India Tax Saver (ELSS) Fund belongs to the Equity category of Nippon India Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Nippon India Tax Saver (ELSS) Fund via lump sum is ₹500 and via SIP is ₹500.

Min Investment Amt₹500
AUM₹11,235Cr
1Y Returns3.7%

Nippon India Liquid Fund Direct Growth

Fund Performance: The Nippon India Liquid Fund has given 4.22% annualized returns in the past three years and 5.45% in the last 5 years. The Nippon India Liquid Fund belongs to the Debt category of Nippon India Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Nippon India Liquid Fund via lump sum is ₹100 and via SIP is ₹100.

Min Investment Amt₹100
AUM₹26,190Cr
1Y Returns3.7%

Nippon India Equity Hybrid Fund Direct Growth

Fund Performance: The Nippon India Equity Hybrid Fund has given 5.05% annualized returns in the past three years and 5.19% in the last 5 years. The Nippon India Equity Hybrid Fund belongs to the Hybrid category of Nippon India Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Nippon India Equity Hybrid Fund via lump sum is ₹500 and via SIP is ₹100.

Min Investment Amt₹500
AUM₹2,960Cr
1Y Returns0.6%

Nippon India Low Duration Fund Direct Growth

Fund Performance: The Nippon India Low Duration Fund has given 6.48% annualized returns in the past three years and 6.57% in the last 5 years. The Nippon India Low Duration Fund belongs to the Debt category of Nippon India Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Nippon India Low Duration Fund via lump sum is ₹500 and via SIP is ₹100.

Min Investment Amt₹500
AUM₹9,544Cr
1Y Returns4.1%

Nippon India Pharma Fund Direct Growth

Fund Performance: The Nippon India Pharma Fund has given 23.6% annualized returns in the past three years and 16.4% in the last 5 years. The Nippon India Pharma Fund belongs to the Equity category of Nippon India Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Nippon India Pharma Fund via lump sum is ₹5,000 and via SIP is ₹100.

Min Investment Amt₹5,000
AUM₹4,516Cr
1Y Returns-13.4%

Nippon India US Equity Opportunities Fund Direct Growth

Fund Performance: The Nippon India US Equity Opportunities Fund has given 12.93% annualized returns in the past three years and 15.16% in the last 5 years. The Nippon India US Equity Opportunities Fund belongs to the Equity category of Nippon India Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Nippon India US Equity Opportunities Fund via lump sum is ₹100 and via SIP is ₹100.

Min Investment Amt₹100
AUM₹524Cr
1Y Returns-12.3%

Nippon India Growth Fund Direct Growth

Fund Performance: The Nippon India Growth Fund has given 18.8% annualized returns in the past three years and 13.56% in the last 5 years. The Nippon India Growth Fund belongs to the Equity category of Nippon India Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Nippon India Growth Fund via lump sum is ₹100 and via SIP is ₹100.

Min Investment Amt₹100
AUM₹11,629Cr
1Y Returns6.1%

Nippon India Short Term Fund Direct Growth

Fund Performance: The Nippon India Short Term Fund has given 7.22% annualized returns in the past three years and 7.01% in the last 5 years. The Nippon India Short Term Fund belongs to the Debt category of Nippon India Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Nippon India Short Term Fund via lump sum is ₹100 and via SIP is ₹100.

Min Investment Amt₹100
AUM₹7,861Cr
1Y Returns3.5%

Nippon India Gilt Securities Fund Direct Defined Maturity Date Growth

Fund Performance: The Nippon India Gilt Securities Fund has given 6.3% annualized returns in the past three years and 7.04% in the last 5 years. The Nippon India Gilt Securities Fund belongs to the Debt category of Nippon India Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Nippon India Gilt Securities Fund via lump sum is ₹5,000 and via SIP is ₹100.

Min Investment Amt₹5,000
AUM₹1,182Cr
1Y Returns1.3%

Nippon India Index Fund S&P BSE Sensex Plan Direct Growth

Fund Performance: The Nippon India Index Fund has given 11.1% annualized returns in the past three years and 12.32% in the last 5 years. The Nippon India Index Fund belongs to the Other category of Nippon India Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Nippon India Index Fund via lump sum is ₹5,000 and via SIP is ₹100.

Min Investment Amt₹5,000
AUM₹285Cr
1Y Returns2.2%

Nippon India Banking & Financial Services Fund Direct Growth

Fund Performance: The Nippon India Banking & Financial Services Fund has given 3.64% annualized returns in the past three years and 6.43% in the last 5 years. The Nippon India Banking & Financial Services Fund belongs to the Equity category of Nippon India Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Nippon India Banking & Financial Services Fund via lump sum is ₹5,000 and via SIP is ₹100.

Min Investment Amt₹5,000
AUM₹3,213Cr
1Y Returns-0.9%

Nippon India Focused Equity Fund Direct Growth

Fund Performance: The Nippon India Focused Equity Fund has given 15.17% annualized returns in the past three years and 11.38% in the last 5 years. The Nippon India Focused Equity Fund belongs to the Equity category of Nippon India Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Nippon India Focused Equity Fund via lump sum is ₹5,000 and via SIP is ₹100.

Min Investment Amt₹5,000
AUM₹5,644Cr
1Y Returns5.5%

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