Unlike the equity mutual funds or balanced or aggressive hybrid funds, which expose an individual to high volatility due to equity portion, debt mutual funds come with less risk in comparison but it will not be correct to say they are completely risk-free as they do carry market-risk, credit risk and interest rate risk. In case you are satisfied with moderate set of returns from your mutual fund bet and carry low penchant for risk, you can take a dig in this debt mutual fund category:
1. JM Floater Long Term Fund: The ultra short term debt fund with a total assets under management of Rs. 258 crore has outperformed within its category with a 1-year and 3-year return of 7.80% and 8.67%. The net asset value of the fund under growth plan is Rs. 27.85 while it tracks the benchmark CRISIL liquid.
The portfolio of the fund includes a new security from its last portfolio i.e PNB Housing Finance 90 Day 03/05/2018 commercial paper, Shapoorji Palonji Co.CP, while holding in Axis Bank 2018 CD has been increased.
2. Aditya Birla SL Floating Rate Fund- Short Term Plan: The debt liquid fund enjoys AUM of Rs. 8,868 crore as on April 30, 2018. The fund within the category ranks second and has given a return of 7%, 7.48% and 8.21% in last one, three and five years. Return since the launch of the fund has been 8.27%.
The NAV of the fund under the growth plan is Rs. 234.25 while under the dividend plan it isRs. 100.15. The benchmark which the fund tracks to measure the performance is CRISIL Liquid.
The portfolio of the fund comprises new securities IDFC Bank 2018 CD, 8.05% Voafone Mobile services 2018 bond etc.
3. ICICI Prudential Advisor Series Dynamic Accrual Direct Plan: The debt income fund tracks the benchmark CRISIL Composite Bond (70), CRISIL Liquid (30). Since its launch in 2003, the fund has yielded 7.24% return. While over the last one, three and five year timeframe, it has offered a return of 5.8%, 9,09% and 8.44% respectively.
4. Reliance Gilt Securities Direct: As on April 30, the fund has a combined assets under management of Rs. 996 crore and is categorized within the debt gilt medium and long term fund. The NAV of the fund as on May 22 is 24.0182
The fund in the last one-year has provided 3.68% return while in the 3 and 5 years time has reaped a return of 9.24% and 8.85% respectively.
New inclusions in the fund's portfolio include 8.79% GOI 2022 central government loan, 8.15% GOI 2022 central government loan in addition to other previous securities.
5. Baroda Pioneer credit Opportunities Plan B Direct G: With the debt credit opportunities fund type, this fund has offered a good 9.11% return over the last three years. The assets under management total to Rs. 962 crore as on April 30. The NAV of the fund under the growth plan is Rs. 13.46.
The fund's benchmark is Crisil Short term bond and its portfolio comprises Simplex Infrastructure commercial paper, 8.15% Piramal Enterprises 2019 bonds, ARM Infra and Utilities structured obligations etc.
6. SBI Magnum Medium Duration Direct Growth plan: The debt income category of fund has total assets of over Rs. 1000 crore and the expenses charges equate to nearly 1.2%. The fund's benchmark index is CRISIL Composite AA Medium Term Bond. NAV of the fund as on May 22, 2018 is Rs. 30.08 for the growth plan while for the dividend plan it is Rs. 12.77.
Over the last year the fund has offered 5% return while its 3 and 5 years return stand at 8.39% and 9.04% respectively. The fund has upped its holding in 7.16% GOI 2023 central government loan while its holdings into other securities such as Allahabad Bank debenture, Bharti telecom debenture and others have been kept intact.