Yields of bond or debt funds primarily depend on the interest rate scenario in the economy. It is recommended to invest in good quality long-term bond funds when the interest rates are at peak and in shorter duration bond funds when the interest rates are at the bottom. Please note here that the value of the bonds rises when interest rates fall and vice-versa. In the context of India, interest rates are close to the bottom are and are not likely to decline significantly during the year 2020. Therefore, it is recommended to invest in shorter duration debt funds. However, investors must evaluate their risk profile and investment horizon before investing in any instrument. I personally recommended debt funds for the year 2020 are:

SchemeAUM1Y3Y5YRiskHolding Period
Axis Banking & PSU Debt Fund(G)₹ 11,51710.78.48.4Moderately LowAt least 1 year
IDFC Bond Fund - Short Term Plan(G)₹ 11,3569.87.37.8Moderately Low1-3 years
SBI Magnum Ultra Short Duration Fund(G)₹ 12,7237.97.57.7Low3-6 months
ICICI Pru Savings Fund(G)₹ 21,9878.87.78.2Moderately Low6-12 months
Returns as on January 2, 2020