Is it safe to invest in debt mutual funds?

When should I invest in debt mutual funds?

For a medium-term investor, debt funds like dynamic bond funds are ideal for riding the interest rate volatility. When compared to 5-year bank FDs, debt bond funds offer higher returns. If you are looking to earn a regular income from your investments, then Monthly Income Plans may be a good option.

Is it safe to invest lumpsum in debt mutual funds?

Well no, there is no need for an SIP because this money is meant to be invested in a debt fund where it is fine to invest in lump sum. You can invest in lump sum in any debt fund if you have a lump sum amount at your disposal.

Are debt funds good to invest?

Debt funds are ideal for achieving short term financial goals: Debt funds can be suitable for meeting short term goals . … Debt mutual funds have low risk ratio: Since these funds invest in fixed income securities, investing in debt mutual funds is considered to be far less risky.

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Which debt fund gives highest return?

The table below shows the best-performing debt funds based on the last 5-year returns:

Mutual fund 5 Yr. Returns 3 Yr. Returns
ICICI Prudential Multicap Fund – Dividend 12.46% 15.95%
NIPPON INDIA NIVESH LAKSHYA FUND – Direct Plan – Growth 12.9%
IDFC Government Securities Fund-Constant Maturity Plan-Growth-Direct 9.89% 12.72%

Are debt funds risk free?

It’s true that Debt Funds are less risky compared to Equity Funds but that doesn’t mean Debt Funds guarantee that your money will never face any loss. Debt funds invest in debt and money market securities that are prone to different kind of risk factors as compared to equity funds that invest in stock market.

Which MF is best for lumpsum investment?

5 Best Mutual Funds for Lumpsum Investment for Long Term

Fund NAV 5 Year Return
Edelweiss Fund 52.89 15.41%
BNP Paribas Large-cap Fund 137.8 14.59%
Axis Bluechip 46.07. 17.89%
LIC MF Large Cap Fund 39.43. 13.92%

Which is better debt fund or fixed deposit?

Debt funds are tax-efficient as compared to fixed deposits. The interest from bank fixed deposits are added to your taxable income and taxed as per your income tax bracket. … Debt funds are tax-efficient as compared to bank FDs if you fall in the higher income tax bracket and have an investment horizon above three years.

Is it good time to invest lumpsum in mutual funds?

If you invest a significant amount in a lump sum, then there is always a risk of losing a substantial portion when the market crashes. You also stand to benefit significantly during a market high. With a SIP, your money is spread over time, and only some part of your entire investment will face market volatility.

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Which debt fund is best?

Top 10 Debt Mutual Funds

Fund Name Category 1Y Returns
SBI Magnum Income Fund Debt 6.7%
Kotak Dynamic Bond Fund Debt 6.6%
SBI Magnum Medium Duration Fund Debt 6.8%
ICICI Prudential All Seasons Bond Fund Debt 7.3%

Which is best liquid fund?

The table below shows the top-performing liquid funds based on the past 3 and 5-year returns:

Mutual fund 5 Yr. Returns Min. Investment
ICICI Prudential Money Market Fund – Cash Option 6.58% ₹500
Kotak Money Market Scheme – Direct Plan – Growth 6.58% ₹5000
Kotak Money Market Scheme 6.51% ₹5000
UTI Money Market Fund 6.04% ₹10000

Which is best mutual fund to invest?

Here is the list of top 10 schemes:

  • Axis Bluechip Fund.
  • Mirae Asset Large Cap Fund.
  • Parag Parikh Long Term Equity Fund.
  • Kotak Standard Multicap Fund.
  • Axis Midcap Fund.
  • DSP Midcap Fund.
  • Axis Small Cap Fund.
  • SBI Small Cap Fund.

Do debt funds have lock in period?

Debt funds are very liquid, and can be redeemed easily, usually within one or two working days of placing the redemption request. Unlike bank fixed deposits or recurring deposits, there is no lock-in period.

Do debt funds give monthly income?

Monthly Income Plans ( MIP ) Monthly Income Plans (MIPs) are designed for pensioners or conventional investors who are risk-averse. Over 70% to 80% of the MIP corpus goes in debt funds and the remaining in stocks. However, unlike the name suggests, it is not something that delivers a fixed monthly income.