This CRISIL Rated Debt Fund's Income Plan Has Given 15.46% Absolute SIP Returns In 5 Years

Mutual fund schemes have shown to be a straightforward and successful financial strategy for building long-term wealth. Equity mutual funds, among the several types of Mutual Fund schemes, such as equity funds, debt funds, or a combination of the two, the hybrid funds are best suited for long-term aims.

Debt funds, as the name implies, invest in debt assets, whereas equity is in equity instruments such as stocks. Investors looking for safe investment can park in a debt fund as they are not linked with the equity market and offers good returns. In this article, we have given insights into one debt fund, rated by CRISIL and also outperformed the benchmark.

IDFC Bond Fund - Income Plan - Direct Plan - Growth

This is a Medium to Long Duration Debt fund from the IDFC Mutual Fund. It was launched 21 years ago on 14 July 2000. It is a medium-sized fund of its category. It has worth Rs 571.26 of Asset Under Management (AUM). The Net Asset Value (NAV) declared on 25th May 2022 is Rs 57.3555. The expense ratio of this fund is 1.31%. While its category average is 0.8%. 

It is an open-ended low to moderate risky fund. The fund is rated 5-star by the CRISIL. investment. The benchmark of this fund is NIFTY Medium to Long Duration Debt Index A-III. The fund has outperformed the benchmark. 

Investment starts in this fund with a minimum required amount of Rs 5,000 and Rs 1,000 for additional. To begin investing via SIP, the minimum investment amount required is Rs 100. There is no lock-in period in this fund. However, it charges 1% for excess of 10% of the investment on redemption within 365 days of the investment.

Absolute And Annualised Returns

Lump-Sum Investment Returns

Since its launch, it has delivered 8.09% average annual returns. 

Tenure	Absolute Returns	Annualised Returns
1 Year	0.25%	0.25%
2 Year	4.81%	2.37%
3 Year	20.94%	6.53%
5 Year	35.71%	6.29%
Since Inception	107.72%	8.09%

SIP Returns

In last 1 year, it has given negative returns.

Tenure	Absolute Returns	Annualised Returns
1 Year	-0.99%	-1.84%
2 Year	0.72%	0.70%
3 Year	5.02%	3.21%
5 Year	15.46%	5.69%

Portfolio

Fund has 99.19% investment in Debt of which 99.19% is in Government securities. The fund's credit profile is very high indicating it has lent to borrowers whose quality is excellent. Most funds in this category lend to similar borrowers and hence the risk of default in this fund is the same as in the category. The fund's top holdings are in the Government of India.

Disclaimer

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.