Debt Mutual Funds: ICICI Direct Recommends These 7 Short & Medium-Term Funds For 2023

ICICI Direct last month on 23 December 2022 in its Mutual Fund Review report picked 7 Debt funds which include 4 Short term and 3 Medium terms. The brokerage recommends these 7 debt funds as their top recommendations for the year 2023.

Top 4 Short-Term Funds Picked By ICICI Direct

Short-duration funds are debt mutual fund schemes with durations of one to three years that invest in debt and money market securities. These funds' investment goal is to generate income through accrual over the instruments in the portfolio of the scheme's maturities.

Short Term Funds
Aditya Birla Sun Life Short Term Fund
HDFC Short Term Debt Fund
ICICI Prudential Short Term Fund
Nippon India Short Term Fund

Top 3 Medium-Term Funds Picked By ICICI Direct

Medium term funds' maturities (3-4 years) are higher than those of long-duration funds but lower than those of short-duration funds. Medium-term funds have maturities that are longer than short-term funds but shorter than long-term funds. The returns from these funds are subject to interest rate change over time due to market fluctuations because a longer investment tenure is involved.

Medium Term Funds
Axis Strategic Bond Fund
HDFC Medium Term Debt Fund
ICICI Prudential Medium Term Bond Fund

Debt Funds

Debt funds are mutual funds that invest in fixed-income instruments that offer capital appreciation. Debt funds are the ideal investment destination for conservative investors. Debt funds' main investment strategy entails placing a large portion of their money in fixed-income securities like corporate bonds, government securities, and others. Compared to equity funds, debt funds offer stability and a safe investment opportunity.

Typically, maturity is used to classify debt. Low, short, medium and long-duration funds are among the terms of the debt fund. Based on tenure and credit, there are numerous debt fund types. There is a debt fund to meet every need of an investor thanks to the numerous types of debt funds available.

Disclaimer

Mutual fund investments are subject to market risk. Read all scheme-related 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.