For Quick Alerts
For Daily Alerts

    Best Debt Mutual Funds To Invest In


    Debt mutual funds have the ability to give you superior returns then bank deposits, as they tend to park some money into equities. Some debt funds have predominantly invested heavily into debt, while a portion of money has been earmarked to equity thus giving returns up to 20 per cent in the last one year.

    Best Debt Mutual Funds To Invest In
    Take a look at 5 best debt mutual funds that investors could considering investing in. However, these are purely Gild Funds, which means all or bulk of the money is invested in government securities. These make these investments very very safe.

    SBI Magnum Gilt Fund - Long Term Plan

    This fund has almost all of its money in government securities. In the last one year the fund has given a return of 20 per cent. The 5 year returns from the fund has been close to 10 per cent, which could easily have beaten bank deposits, since mutual fund schemes are also tax efficient.

    One word of caution when investing in the fund is that it would be over stretched to assume that we would get another 20 per cent returns in the next one year, like we have in the past year. The last one year has been pretty extraordinary for all mutual funds schemes.

    L&T Gilt Fund - Investment Plan

    Like SBI Magnum Gilt Fund, L&T Gilt Fund has also been a good performer among debt mutual funds in the country. The scheme has given a return of almost 18 per cent in the last one year. Bulk of the assets are deployed in government owned securities, thus making the fund a safe investment. The 5 year returns are close to 10.10 per cent, making the returns pretty attractive. The net asset value of the quarterly dividend payment plan is Rs 13.40.

    Birla Sun Life Gilt Plus - PF Plan

    You can invest in the Birla Sun Life Gilt Plus with a minimum investment of Rs 1000. The fund has given a return of almost 20 per cent in the last one year, while the three year returns has been close to 12 per cent. The net asset value of the dividend quarterly plan is Rs 10.74.

    Name of Fund Latest NAV 1 Year Returns 3 Year Returns Amount Required
    SBI Magnum Gilt Fund - Long Term Plan Rs 12.87 (dividend quarterly) 21.57% 12.67% Rs 5000
    L&T Gilt Fund - Investment Plan Rs 13.40 (quarterly) 18.40% 13.65% Rs 10,000
    Birla Sun Life Gilt Plus - PF Plan Rs 10.70 (quarterly) 20.87% 11.46% Rs 5000

    Check daily NAV of mutual funds here


    Debt mutual funds, particularly, those that have exposure to government securities can be considered as very safe. The one thing that we would like to advise investors is that returns in the last one year have been extraordinary. Please do not expect similar returns going forward. One can expect returns in the range of 8-10 per cent in the next one year.

    The above mentioned are largely Gilt Funds, which do not have other forms of debt and which have purely invested in government securities.

    Read more about: mutual funds debt mutual funds
    Story first published: Friday, March 20, 2015, 9:17 [IST]
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more