Best L&T Debt Mutual Funds

L&T Mutual Fund offers a bouquet of mutual fund schemes for investors of various investing ideologies. It is one of the pioneering asset management companies of India that has made a mark of its own in the financial industry. L&T Investment Management Limited is the Asset Management Company for all L&T Mutual Fund schemes.

The fund was launched on 3rd January 1997 and as of June 2018, it has an asset under management of Rs.71118.29 crores. Being a well-known brand in India, this AMC maintains a reputation to giving consistent returns to investors and has funds performing brilliantly across different categories.

Over the last twenty one years, this fund has put investor needs to the forefront and will continue to do so in the future as well.

Equity Savings Fund typically invests the total capital in three segments- pure equity, arbitrage and debt funds. Generally, one-third of the total capital in pure equity, one-third in debt funds and the balance in arbitrage funds. However, the composition varies from fund to fund. The equity component can vary from 20-40% approx and depends on the type of mutual fund.

These funds outperform debt funds over taxation and treated as equity funds for taxation. If sold before a year, short term capital gains are taxed at 15% and if sold after a year, no tax is levied on the gains.

Purpose: Invest here for your longer duration to get higher returns than debt funds.

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.

Top 10 Lt Mutual Funds

Fund NameCategoryRisk1Y ReturnsRatingFund Size(in Cr)
Franklin India Ultra Short Bond FundDebtModerate7.8%5star15,135
SBI Magnum Constant Maturity FundDebtModerately Low6.5%4star332
Indiabulls Ultra Short Term FundDebtModerately Low7.0%4star304
Aditya Birla Sun Life Floating Rate FundDebtModerately Low6.8%4star5,332
IDFC Government Securities Fund - PF PlanDebtModerate2.4%4star101
Kotak Savings FundDebtModerately Low7.1%4star7,112
IDFC Government Securities Fund Investment PlanDebtModerate3.3%4star400
SBI Magnum Gilt FundDebtModerate2.0%4star1,690
ICICI Prudential Gilt Fund - Investment Plan - PF OptionDebtModerate4.0%4star860
ICICI Prudential Short Term Gilt FundDebtModerate4.0%4star146
Aditya Birla Sun Life Government Securities FundDebtModerate2.4%4star158
ICICI Prudential Corporate Bond FundDebtModerate5.4%4star5,280
ICICI Prudential Ultra Short Term FundDebtModerate7.2%4star2,689
Reliance Gilt Securities FundDebtModerate4.4%4star867
Reliance Gilt Securities FundDebtModerate4.4%4star867
View All Top 10 Lt Mutual Funds

Let's have a closer look

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

Franklin India Ultra Short Bond Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Ultra Short Duration segment and provided 8.8% annualized returns in the last 3 years. In the last 1 year, it gave 7.85% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.85% 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: Sachin Padwal-Desai, Pallab Roy

Launch Date31 Dec 2012
Min Investment Amt10,000
Groww Rating5star
AUM15,135Cr
1Y Returns7.8%

SBI Magnum Constant Maturity Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Gilt segment and provided 9.04% annualized returns in the last 3 years. In the last 1 year, it gave 6.5% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 6.5% 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: Dinesh Ahuja

Launch Date1 Jan 2013
Min Investment Amt5,000
Groww Rating4star
AUM332Cr
1Y Returns6.5%

Indiabulls Ultra Short Term Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Ultra Short Duration segment and provided 8.08% annualized returns in the last 3 years. In the last 1 year, it gave 7.04% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.04% 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: Malay Shah

Launch Date31 Dec 2012
Min Investment Amt500
Groww Rating4star
AUM304Cr
1Y Returns7.0%

Aditya Birla Sun Life Floating Rate Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Floater segment and provided 8.06% annualized returns in the last 3 years. In the last 1 year, it gave 6.79% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 6.79% 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

Launch Date31 Dec 2012
Min Investment Amt1,000
Groww Rating4star
AUM5,332Cr
1Y Returns6.8%

IDFC Government Securities Fund - Investment Plan - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Gilt segment and provided 7.86% annualized returns in the last 3 years. In the last 1 year, it gave 2.44% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 2.44% 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: Suyash Choudhary

Launch Date31 Dec 2012
Min Investment Amt100
Groww Rating4star
AUM101Cr
1Y Returns2.4%

Kotak Savings Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Ultra Short Duration segment and provided 7.68% annualized returns in the last 3 years. In the last 1 year, it gave 7.07% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.07% 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: Deepak Agrawal

Launch Date30 Dec 2012
Min Investment Amt5,000
Groww Rating4star
AUM7,112Cr
1Y Returns7.1%

IDFC Government Securities Fund Investment Plan - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Gilt segment and provided 7.41% annualized returns in the last 3 years. In the last 1 year, it gave 3.28% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 3.28% 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: Suyash Choudhary

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating4star
AUM400Cr
1Y Returns3.3%

SBI Magnum Constant Maturity Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Gilt segment and provided 7.8% annualized returns in the last 3 years. In the last 1 year, it gave 2.01% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 2.01% 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: Dinesh Ahuja

Launch Date1 Jan 2013
Min Investment Amt5,000
Groww Rating4star
AUM1,690Cr
1Y Returns2.0%

ICICI Prudential Gilt Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Gilt segment and provided 8.78% annualized returns in the last 3 years. In the last 1 year, it gave 4.04% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 4.04% 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: Manish Banthia, Anuj Tagra

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating4star
AUM860Cr
1Y Returns4.0%

ICICI Prudential Gilt Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Gilt segment and provided 8.01% annualized returns in the last 3 years. In the last 1 year, it gave 4% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 4% 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, Anuj Tagra

Launch Date1 Jan 2013
Min Investment Amt5,000
Groww Rating4star
AUM146Cr
1Y Returns4.0%

Aditya Birla Sun Life Government Securities Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Gilt segment and provided 8.19% annualized returns in the last 3 years. In the last 1 year, it gave 2.35% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 2.35% 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: Pranay Sinha, Ashish Kela

Launch Date31 Dec 2012
Min Investment Amt1,000
Groww Rating4star
AUM158Cr
1Y Returns2.4%

ICICI Prudential Corporate Bond Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Corporate Bond segment and provided 7.64% annualized returns in the last 3 years. In the last 1 year, it gave 5.39% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 5.39% 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, Chandni Gupta

Launch Date1 Jan 2013
Min Investment Amt5,000
Groww Rating4star
AUM5,280Cr
1Y Returns5.4%

ICICI Prudential Ultra Short Term Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Ultra Short Duration segment and provided 8.89% annualized returns in the last 3 years. In the last 1 year, it gave 7.2% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.2% 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: Rajat Chandak, Manish Banthia, Ritesh Lunawat

Launch Date9 Jan 2013
Min Investment Amt5,000
Groww Rating4star
AUM2,689Cr
1Y Returns7.2%

Reliance Gilt Securities Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Gilt segment and provided 9.35% annualized returns in the last 3 years. In the last 1 year, it gave 4.43% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 4.43% 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: Prashant R.Pimple

Launch Date22 Jul 2013
Min Investment Amt5,000
Groww Rating4star
AUM867Cr
1Y Returns4.4%

Reliance Gilt Securities Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Gilt segment and provided 9.16% annualized returns in the last 3 years. In the last 1 year, it gave 4.43% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 4.43% 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: Prashant R.Pimple

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating4star
AUM867Cr
1Y Returns4.4%

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What does investing in L&T Debt Mutual Funds actually mean?

Suppose a mutual fund invests in ten stocks and total current market value of these stocks is 1.1 Crore. Out of this, the AMC deducts say, 0.1 Crore for operating the fund (this is known as the expense ratio). So the net value is 1 crore. Now the AMC will divide this 1 Crore into say, 10,000 parts. These parts are known as units. The cost of one unit is 1Cr/10,000 = Rs. 1000. This is known as the Net Asset Value (NAV) of the mutual fund. Suppose the AMC has set a minimum investment requirement of Rs. 500. Then if you pay Rs. 500, you will get 0.5 units of the fund. Remember that the cost of one unit is the cost when you made the purchase. Suppose after one year, the NAV has fallen to Rs. 700 per unit and you wish to exit the fund (also known as redemption), then you sell your 0.5 units back to the AMC and get 0.5 x Rs. 700 = Rs. 350 back. Yes, you invested Rs. 500 and got back Rs. 350 – a loss of 150 over a year. The point is, that you buy units at current NAV and sell units (fully or partially) at current NAV. This is what investing in mutual fund actually means.

How to invest in L&T Mutual Funds on Groww?

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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Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.
Past performance is not indicative of future returns. Please consider your specific investment requirements, risk tolerance, investment goal, time frame, risk and reward balance and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs.
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