These Mutual Funds Offered Better Return Than FDs On 3 Year Investment

Saving is important, whether it's done through FD or Mutual funds. Nowadays, FDs are considered as traditional saving cum investment instrument as it doesn't offer that good return it use to be, as of now, the interest rate on FDs are lowest of its time. Other investment destination has taken over these traditional investment options. These four mutual funds with moderate risk offered a good return, comparatively better than fixed Deposits on 3 years investments. Also, all 4 mutual funds are open-ended funds, which means you can invest any time in this fund.

Fund Overview

ICICI Prudential Short Term Fund -Direct-Growth - The fund has a debt investment of 78.7%, with 26.84% in government securities and 51.9% in extremely low-risk assets. The objective of the scheme is to earn money by investing in a variety of debt and money market instruments while achieving the best possible return, safety, and liquidity. However, there can be no assurance or guarantee that the Scheme's investment goal will be met. Investors seeking an alternative to bank deposits and wishing to invest for a period of one to three years. The fund is rated 3 stars by the CRISIL, rating agency.
 
 Aditya Birla Sun Life Corporate Bond Fund - Direct-Growth - 96.6% of the fund's assets are in debt, with 29.64% in government securities and 67.05% in funds that invest in very low-risk securities. The scheme's investment goal is to create optimal returns while maintaining high liquidity by actively managing the portfolio and investing in High-Quality Debt and Money Market Instruments. Investors who wish to put their money in for a longer period of time yet choose less risky assets than equity funds.

Axis Short Term Direct Fund - Direct-Growth - The fund has an 89% debt exposure, with 23.91% in government securities and 65.09% in extremely low-risk assets. Using a portfolio of debt and money market instruments, to achieve predictable returns with a low-risk strategy while keeping liquidity. Investors seeking an alternative to bank deposits and wishing to invest for a period of one to three years. The fund is rated 3 stars by the CRISIL.

HDFC Short Term Debt - Direct Plan-Growth - The fund has an 83.14% debt investment, with 19.15% in government securities and 63.99% in extremely low-risk assets. Investments in Debt and Money Market Instruments are used to create income and capital appreciation. There is no guarantee that the Scheme's investment goal will be met. Investors seeking an alternative to bank deposits and wishing to invest for a period of one to three years. It is rated 3 stars by the CRISIL rating agency. The risk is low to moderate, which is the lowest among all 4 funds. 

Fund Statistics

Mutual Fund	NAV (As on 17 January 2022)	Fund Size (in Cr)	Expense Ratio
ICICI Prudential Short Term Fund	Rs 50.59	Rs 22,058.81	1.30%
Aditya Birla Sun Life Corporate Bond Fund	Rs 90.12	Rs 19392.24	0.30%
Axis Short Term Direct Fund	Rs 26.41	Rs 13768.05	0.30%
HDFC Short Term Debt	Rs 25.98	Rs 18229.06	0.24%

Fund Returns and Performance

Mutual Fund	1 Y Return	2 Y Return	3 Y Return
ICICI Prudential Short Term Fund	4.54%	7.77%	8.64%
Aditya Birla Sun Life Corporate Bond Fund	4.38%	7.84%	8.45%
Axis Short Term Direct Fund	4.44%	7.35%	8.35%
HDFC Short Term Debt	4.44%	7.63%	8.32%

 

Why Mutual Fund investments are good compared to FDs?

Fixed Deposits are a safe, risk-free, and guaranteed-return investment option, whereas, mutual funds are not. Market risk applies to mutual fund investments. Mutual funds have lock-in periods that vary based on the fund type, but you can quit whenever you choose. Similarly, with a fixed deposit, you can retain your money with a fund for 1-5 years, but early withdrawal may result in a penalty over the capital. Fixed deposits and mutual funds have become popular investment vehicles because they allow investors to increase their money rapidly. However, the advantages of both of these options differ depending on your investing needs. As a result, before deciding where to invest, it's essential to learn everything there is to know about these investing options.

Disclaimer

Mutual fund investments are subject to market risk. Read all scheme-related documents carefully with Terms and conditions before investing. The above-mentioned information is purely informational and taken out from MoneyControl. The Greynium Information Technologies and the author are not liable for any losses caused as a result of a decision based on the article.