Debt Mutual Funds
Debt mutual funds invest in fixed-income securities like bonds and money market instruments, aiming for stability and regular income.
Types of
Debt Mutual Funds
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Debt Mutual Funds
Discover stable debt funds for steady, predictable returns.
| Name | Fund Size | Expense Ratio | 3Y Returns |
|---|---|---|---|
 Fixed Income|Moderately High | ₹549 Cr | 0.34% | 7.8% |
Fixed Income|Low to Moderate | ₹529 Cr | 0.23% | 6.7% |
Fixed Income|Low | ₹358 Cr | 0.13% | — |
 Aditya Birla Sun Life US Treasury 1-3 Year Bond ETFs FoF Fixed Income|Very High | ₹66 Cr | 0.13% | — |
Aditya Birla Sun Life US Treasury 3-10 Year Bond ETFs FoF Fixed Income|Very High | ₹130 Cr | 0.12% | — |
 Franklin India Corporate Debt Fund Fixed Income|Low to Moderate | ₹1,409 Cr | 0.26% | 7.8% |
Franklin India Government Securities Fund Fixed Income|Low to Moderate | ₹145 Cr | 0.64% | 6.2% |
Fixed Income|Low to Moderate | ₹4,811 Cr | 0.14% | 7.0% |
Franklin India Money Market Fund Fixed Income|Low to Moderate | ₹3,887 Cr | 0.14% | 7.3% |
 Fixed Income|Moderate | ₹44 Cr | 0.7% | 5.4% |
FAQs
What is a debt mutual fund?
A debt mutual fund invests in fixed-income securities like government bonds, corporate bonds, and money market instruments, aiming to generate stable, predictable returns with lower volatility than equity.
Are debt funds safer than equity funds?
Generally yes — debt funds are less volatile since they invest in fixed-income instruments rather than stocks. However, they still carry interest rate risk and credit risk depending on the fund category.
What is duration risk in debt funds?
Duration risk refers to how sensitive a fund's returns are to interest rate changes. Longer-duration funds see bigger price swings when rates move, while shorter-duration and overnight funds are far more stable.
How are debt mutual funds taxed?
As per current Indian tax rules, gains from debt mutual funds are taxed as per your income tax slab, regardless of the holding period, following changes introduced from April 2023 onward.
Who should invest in debt funds?
Debt funds suit investors looking for capital preservation, short-to-medium term goals, or a lower-risk complement to equity holdings in their portfolio.
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