InvestorQ : Give examples of Debt funds which gave 9% p.a. as per the interest rate with liquidity?
Mitali Bhutta made post

Give examples of Debt funds which gave 9% p.a. as per the interest rate with liquidity?

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Riya Dwivedi answered.
12 months ago
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Please note that past returns from a fund are not guaranteed. The performance of debt mutual fund schemes predominantly depends on the interest rate scenario in the economy. Most of the debt or debt-oriented mutual funds tend to outperform in a falling interest rate scenario. However, vice-versa is also true. In the context of the Indian economy, interest rates have been falling for the last year and therefore several debt schemes (especially Long Duration Funds, Gilt Funds, etc.) have generated good returns. However, there is no major scope left for a significant rate reduction in the future and therefore debt investors are recommended to invest in shorter duration debt schemes. Debt mutual funds have a tendency to provide a marginally higher (post-tax) return over the conventional term deposit products.

SchemeAUM (Cr)1Y3Y5Y
SBI Magnum Medium Duration Fund(G)₹ 2,4701189
ICICI Pru Gilt Fund(G)₹ 1,4179.85.88.2
Recommend Schemes (Current Scenario)
IDFC Bond Fund - Short Term Plan(G)₹ 11,7579.57.27.8
ICICI Pru Savings Fund(G)₹ 21,3068.77.68.2
SBI Magnum Ultra Short Duration Fund(G)₹ 12,1927.87.57.7
Axis Banking & PSU Debt Fund(G)₹ 12,80110.38.38.4
Note: Returns as on January 14, 2020
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