|Mutual fund||5 Yr. Returns||3 Yr. Returns|
|ICICI Prudential Constant Maturity Gilt Fund – Direct Plan – Growth||9.12%||11.35%|
|DSP Government Securities Fund – Direct Plan – Growth||8.75%||11.2%|
|ICICI Prudential Constant Maturity Gilt Fund||8.91%||11.14%|
Which type of debt fund is best?
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.
Are debt funds good to invest now?
Debt funds put money in fixed income securities. It is safer as compared to equity funds which invest in stocks and are subject to the volatility of the stock markets. … Long-term debt funds may give negative returns when interest rates are rising. Short-term debt funds offer a lower return when interest rates fall.
Which debt fund is best for monthly income?
Best Monthly Income Funds (MIPs) to Invest in 2021
|HDFC Hybrid Debt Fund||-2.04||5.06|
|ICICI Prudential MIP 25||4.7||7.7|
|ICICI Prudential Monthly Income Plan||5.5||9.1|
|Invesco India Regular Savings Fund||5.7||6.9|
Are debt funds tax free?
Long term capital gains upto Rs 1 Lakh is totally tax free. … Short term capital gains (if the units are sold before three years) in debt mutual funds are taxed as per applicable tax rate of the investor. Therefore, if your tax rate is 30% then short term capital gains tax on debt fund is 30% + 4% cess.
Which is better liquid fund or debt fund?
The returns in case of liquid funds are considered to be stable as they generate stable returns. However, in other debt funds, the returns are considered to fluctuate depending on the interest rate movements in the country.
Is it good time to invest in debt funds 2021?
While yields at short-end remained well anchored due to surplus liquidity, yields of benchmark 3-, 5- and 15-year government securities increased between 45 and 60 basis points. … However, yield of benchmark 10-year government bond, which is under RBI’s watch, is up by around 25 basis points as on March 23, 2021.
Why are debt funds offering negative returns?
Exception: When interest rates are rising, long-term debt funds can give negative returns. This is because the value of long-term bonds with low interest rates goes down in the secondary bond market when rates rise.
What is the best alternative to fixed deposits?
Debt Mutual Fund. Debt Mutual funds are considered low-risk investment instruments as these funds majorly invest in fixed-income security instruments like bonds, debentures, Government securities, T-bills, etc. You can expect a slightly better return than bank FDs in Debt funds if you hold it for a long period.
What is difference between hybrid fund and balanced fund?
BALANCED ADVANTAGE FUNDS (BAF)
Invests in debt and equities. Combines stocks, debt and arbitrage in one portfolio. Hybrid funds aim for capital appreciation in the long-run and regular income in the short-run through a balance of debt and equity. less risky as compared with plain vanilla balanced fund.
Which is better SIP or lump sum?
Lump-sum investments are most beneficial when you invest during a market low. However, with SIPs, you have the chance to enter during different market cycles. Investors do not have to watch market movements as closely as they would for lump-sum investments.
How do debt funds make money?
Debt funds aim to generate returns for investors by investing their money in avenues like bonds and other fixed-income securities. This means that these funds buy the bonds and earn interest income on the money. The yields that mutual fund investors receive is based on this.
How is debt funds taxed?
Long-term capital gains offered by a debt fund is taxed at a flat rate of 20%. This special rate of taxation is irrespective of the income tax slab rate of the inventors. Also, tax long-term capital gains tax is calculated after indexation, which helps investors to reduce their tax liability to a great extent.