The stock markets are at an enticing low, but no one can say for sure if this is the lowest point they will ever touch. The suddenness and severity of the stock market crash in 2008 surprised everyone. Amid current market conditions it is best to keep investing small sums in the stock market through SIPs in stable and well-performing mutual funds such as debt funds, which are less volatile than equity funds, throughout the equities market fall. The longer it takes for the stock markets to recover, the better for the SIP investor, who will be able to invest more when prices are low.
Baroda BNP Paribas Credit Risk Fund - Direct Plan-Growth
This Credit Risk Fund fund from Baroda BNP Paribas Mutual fund house was launched on 23 January 2015. This fund has Rs 205.16 Crore worth of AUM. The NAV of this fund declared on 19th May 2022 is Rs 18.899. The fund has an expense ratio of 0.85 per cent. While the category average is 0.79 per cent.
The is an open-ended medium-sized fund of its category. This fund is a top-rated credit risk fund, rated 5-star by CRISIL. It is rated moderately high risky for investment. Its benchmark is CRISIL Credit Risk Fund CII Index.
The fund has no lock-in period. However, it charges 1 per cent on redemption excess to 10 per cent of the investment within 365 days. Since its launch, it has delivered 9.08 per cent average annual returns. In 5 year investment, the fund has delivered 7.71 per cent annualised returns and 45 per cent absolute returns.
Fund has 86.08 per cent investment in Debt. Its top holdings are in the Government of India, Tata Power Co. Ltd., Tata Motors Ltd., Godrej Properties Ltd., and Aspire Home Finance Corporation Ltd.
ICICI Prudential Credit Risk Fund - Direct Plan-Growth
This is another credit risk fund on the list, the fund was introduced by the ICICI Prudential Mutual Fund. It is a more than 11 years old fund launched on December 03, 2010. The size of the fund's Asset Under Management or AUM is Rs 8316.77 crore, which is 31.32 per cent investment in the category. NAV or Net Asset Value of this fund dated 18th May 2022 is Rs 27.049.
It is an open-ended medium-sized fund of its category. The fund has been rated 4 star by the CRISIL. However, the fund is moderately high risk for investments. As the fund is a credit risk debt fund, its benchmark is CRISIL Credit Risk Fund CII Index.
It has no applicable lock-in period. However, it charges 1 per cent for redemption within 365 days for units in excess of 10 per cent of the investment. Since its launch, it has delivered 9.07 per cent average annual returns. Whereas, in 5 years, it has offered 8.24 per cent annualised returns, and 48.57 per cent absolute returns.
The fund has an 80.34 per cent investment in Debt. Its top holdings are in the Government of India, Prestige Estates Projects Ltd., Essar Oil Ltd., DME Development Ltd., and Aditya Birla Fashion and Retail Ltd.
Edelweiss Government Securities Fund - Direct Plan-Growth
This is an open-ended gilt fund that invests in government securities. The fund was launched on 13 February 2014 by the Edelweiss Mutual Fund. The size of the AUM of this fund is Rs 112.09 crore. The NAV of this fund declared on 19th May 2022 is Rs 20.4996. The fund has an expense ratio of 0.69 per cent, which is higher than its category average.
It is a medium-sized fund of its category. Also, the fun is rated low to moderate risky on the risk meter. The fund has been rated 5-star by the rating agency CRISIL. There is no lock-in period in this fund. Also, there is Rs 0 exit load by the fund. NIFTY All Duration G-Sec Index is the fund's benchmark. Since its launch, it has delivered 9.07 per cent average annual returns. Whereas, it has delivered 7.98% annualised returns and 46.886 per cent absolute returns in 5 years.
The fund has 77.55 per cent investment in Debt of which 77.55 per cent is in Government securities. The fund's top holdings are in the Reserve Bank of India (RBI), the Government of India, Kerala State, and Gujarat State.
DSP Government Securities Fund - Direct Plan-Growth
This is a 22 years old Gilt fund that invests in Government securities. The fund was launched on September 30, 1999, by the DSP Mutual Fund. It has worth Rs 412.37 crore of AUM. The recently declared NAV as of 19th May 2022 is Rs 79.1576. It has an expense ratio of 0.54 per cent. While the category average expense ratio is 0.57 per cent.
It is an open-ended medium-sized low to moderate risky fund of its category. Also, the is rated 5-star by the mutual fund rating agency CRISIL. The fund has no lock-in period, and there is Rs 0 exit load. Since its launch, it has delivered 8.25 per cent average annual returns. The fund has offered 7.78 per cent annualised returns in 5 years, and 45.45 per cent absolute returns.
Fund has 76.06 per cent investment in Debt of which 76.06 per cent in Government securities. Its top holdings are in the Government of India, and the Reserve Bank of India (RBI).
SBI Magnum Medium Duration Fund - Direct Plan-Growth
This is an 18 years old medium duration debt fund from SBI Mutual Fund. It was launched on 13 November 2013. The fund has Rs 9967.97 Crore of Assets Under Management (AUM) and the Net Asset Value (NAV) as of 19th May 2022 is Rs 43.2488. The expense ratio of the fund is 0.68per cent, which is almost equal to its category average.
The risk level for this fund is categorized as moderately high risk. It is an open-ended medium-sized fund of its category. Rating agency CRISIL has rated the fund 4 star. The fund offers investors the opportunity to generate attractive returns with a moderate degree of liquidity through investments in debt and money market instruments.
In this fund, there is no lock-in period. However, it charges 1.5 per cent for redemption for units in excess of 8 per cent of investment within 365 days of the investments. NIFTY Medium Duration Debt Index C-III is the benchmark of this fund. Since its launch, the fund has delivered 9.28 per cent annual average returns. It has offered 7.94 per cent and 46.56 per cent annualised and absolute returns, respectively.
5 Top Performing Debt Fund SIPs: CRISIL Ratings, Investment Amount, 5-Years SIP Returns
|Debt Funds||CRISIL Rates||Minimum Investment Amount||Minimum SIP Amount||5 Year SIP Returns (Absolute)|
|Baroda BNP Paribas Credit Risk Fund||5 Star||Rs 5,000||Rs 500||25.05%|
|ICICI Prudential Credit Risk Fund||4 Star||Rs 100||Rs 100||22.37%|
|Edelweiss Government Securities Fund||5 Star||Rs 5,000||Rs 500||21.25%|
|DSP Government Securities Fund||5 Star||Rs 5,00||Rs 500||20.53%|
|SBI Magnum Medium Duration Fund||4 Star||Rs 5,000||Rs 500||20.23%|
Mutual fund investments are subject to market risk. Read all scheme related documents, and Terms and Conditions carefully before investing. The above-mentioned information is purely informational and doesn't guarantee any return. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.