Jagoinvestor

November 18, 2009

List of Best Debt Oriented Mutual Funds for 2009-2010

If you don’t like Equity because you have a lesser risk appetite and  still you want to make better returns , where do you invest ?

The answer is Debt Oriented Mutual funds , In this article we will see What are Debt Oriented Mutual funds , A list of Good mutual funds and what are the returns you should expect from them .

mutual funds

Have a look at List of Best Equity Diversified Mutual Funds. These funds are getting very popular these days as people are not ready to put their money in market for long term because of Market Uncertainty and decreased risk appetite after the recent fall in 2008-2009 .

Hence these Debt Oriented Mutual Funds have become very popular , Read This Article

What are Debt Oriented Mutual Funds ?

Debt Oriented Mutual Funds are those Mutual funds which Invest primarily in Debt products like Debentures , Certificates of deposits from Corporates , Govt Bonds etc , They put a small portion in Equity also (10-40% max) . These funds generally return in range of 10-20% in long term and the downside is limited in these Mutual funds as Debt Component is High.

Please note that even these Funds can give Negative Returns but that happens in Extreme fall downs or very bad times. You should not assume these will always give positive returns. Also You should also concentrate on Long term returns, Dont judge a Mutual fund by Its Short term Returns

Let us see some Stats which will give you more idea about these .

  • In 7 yr time frame Best return is 20%and worst return is 8.09% .
  • In 3 yr time frame Best return is 12.09% and Worst return is -5.87%  .
  • 5 funds are more than 10 yrs old .
  • Most of the Funds do not have an Entry load, but can have exit loads if exited before 2-3 yrs . Some have locking period also , but no tax benefit .

Below is the Chart I created which Shows CAGR return of Top 10 Debt Oriented Mutual Funds (Click to Enlarge)

List of Best Debt Oriented Mutual Funds
List of Best Debt Oriented Mutual Funds

Source : ValueResearchOnline.com

List of Best Debt Oriented Mutual Funds

UTI Mahila Unit Scheme

  • 16%+ return Since Launch, 8 yrs old Fund , Excellent Track Record .
  • This is my Favorite Mutual Fund . Amazing one .. Read a complete review for this Mutual Fund Here

Tata Young Citizens

  • 14 yrs old Fund, Excellent Returns , This is extremely Risky Fund .. Don’t consider this as a Debt Oriented Fund
  • Equity Component is very high at 50% . So I am not sure if this will suit as Debt Oriented Fund .. only people with strong heart should take this .

UTI CRTS 81

  • One of the Best Funds , 28 yrs old fund , Lambi Race ka Ghoda , 13%+ return CAGR which is amazing for any debt oriented fund .
  • Equity Exposure of less than 30% and the worst return ever in 1 time period is -14% , the best is 35-40% in a year .

HDFC Multiple Yield Plan 2005

  • 4 yrs old fund , Extremely low Equity Exposure of less than 15% ,  Average return
  • Looks great for Future performance .

Other Good Funds

  1. Birla Sun Life Asset Allocation Conservative
  2. Templeton India Pension
  3. Unit Linked Insurance Plan ’71

Note : please make sure you read all the other details yourself before you decide on buying , These are just my personal opinion and make sure you are your own decision maker 😉 .

Last year when markets were doing bad , Debt Funds were the best choice of the Investors , However Its not the best time to Invest in pure Debt Funds , but rather invest in Debt Oriented Funds if you are not ready to take high risk.

Look at the following Video which Is not a recent one, but talks about How investors were eager to invest in Debt Funds Last year .

Conclusion

If you don’t have very high Risk Appetite , you can look for alternatives to Debt Oriented Mutual Funds , Its always better to park your funds with these if you want more than 10% return with some amount of Risk .

Please note that These are not equity Diversified funds and hence you should not expect very high returns from these .. If you get around 10-12% from these funds that is more than good . Anything more is wonderful .

Please share your comments. Do you think you will invest in these funds, Are the returns from these Mutual funds are worth looking at them? Any do you know of any other fund which is not covered here? Please leave your comments.

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Abdul Raheem
Abdul Raheem
7 years ago

Sir good afternoon,
I want to invest lampsum amt 8 – 10 lakhs in flexi stp debt fund . After 15 years 2 daughters marriage & my son edn. I want return corpus 1 crore . So plz suggest good stp debt fund otherwise suggest a good way .
Plz give information types stp debt funds . Im new in mutual fund and shares .

Jagoinvestor Admin
Jagoinvestor Admin
Admin
Reply to  Abdul Raheem
7 years ago

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Just check out our Pro membership once and schedule a FREE call with us to know more – http://jagoinvestor.dev.diginnovators.site/pro

Umesh
Umesh
8 years ago

Hi Manish
I have invested around 4.5 lakhs in MFs over a period of 4 years through SIP. Now I would like to invest around 4 lakhs in debt fund for 6-8 years, which can give me better returns than FD. Shall I invest as lump sum or through SIP. Kindly suggest good fund
Regards

Akhilesh
Akhilesh
9 years ago

@Jagoinvestor

Sir I am 22 yes old..I dnt have any knowledge about investments,I went around all Blogs & other sites.I concluded that all the FD ,MIP etc range form 8-12% of growth..
My question is If i invest 50000 Per month what are the methods from which i can get assured returns in range of 3000 -5000 Rs monthly.

Thank you!!

trackback
Investing In Gold In India 2010
9 years ago

[…] List of Best Debt Oriented Mutual Funds in India to Invest – @sunil . Well.. these are good Funds .. No Doubt . the only thing is they are MIP’s , They are not in the category of Debt Oriented Funds … When we say Debt …… […]

Neeraj jain
Neeraj jain
11 years ago

Hi Manish,

I have bought a Kotak Smart advantage plan in Nov 2008 where annual premium is 36000. Now i have complied 4.5 year. the plan says you have to continue for 20 years otherwise you will loss your first year premium. as of now i seen only 4 to 5 % return. can you suggest me what should i do with this policy(surrender,partial withdraw or ACM mode)

KrishnaChaitanya
KrishnaChaitanya
11 years ago

Hi
Pleases help me in Investment plan…
My take home is 40000
Think I have 20 thousand for savings per month after all expenditures.

1).I am investing Rs 1 lac in PPF every year.I started it 2 years back.though it will be useful for children education after 15 years.I want whether is it good option or not keeping inflation in mind?
2).I want to take Debt Funds and Gold ETF to beat the inflation .So please suggest me some good funds and how much i have to invest to get 4lacs/5 lacs every 4 years or 5 years like.

Please do respond

Thanks
KC

mani
mani
11 years ago

i invested 1.25 lacs in ulip , icic pru life time super , now the fund value is 85000/- should i continue??

sandeep
sandeep
11 years ago

thanks sir, but will you advice me which one will be a good one for me.

sandeep
sandeep
12 years ago

i CAN INVEST 10k PER MONTH .

Risk – 50 % i can take.

Advice

Deep
Deep
12 years ago

Hi,

I want to invest in debt fund approx 60,000 and i want to start SIP monthly in equity with Debt fund . Please suggest how is the plan.
Also suggest best debt fund and best equity fund to invest.

Verendra Singh
Verendra Singh
12 years ago

VERENDRA
I want to invest upto 5lac in mutual fund, which one is better for me as i am totally new about MF.which MF will gives me more intrest with security upto 2-3 years period of time ,as i am getting 8% from bank by FD.
pleas suggest some good MF names which gives good intrest with security..

praveen
praveen
12 years ago

i want to invest 4000 per month for 1year which scheme wil give me gud return

SK patil
SK patil
13 years ago

Hi, Manish, I am looking for Debt market investment where it should earn more than bank interest and no risk

Pls. suggest for 1year time and also i am looking for the high liquidity option too.

Rgds
SK patil

Saurabh Kumar
Saurabh Kumar
13 years ago

Hi,
This is a good article. Do you have any analysis or article done on which funds are good to use as an emergency fund parking place? Money which I may need after 3 months or 5 years, but is just parked there better than a bank FD for more than about 8% return.

Saurav Sinha
Saurav Sinha
13 years ago

Are returns in Debt funds taxable on maturity? If yes then whats the rule?

manojkumar
manojkumar
13 years ago

could u please suggest me the portfolio ofbest mutual funds for the coming year, my risk appetite is moderate, planning to do SIP…. thanks manish.

kamaljit ridlon
kamaljit ridlon
13 years ago

Great tp maintain 80:20 ratio in portfolio…we can either invest in Balanced fund or debt oriented fund and stii get more than 8% return..:)

bharavikadiyala
bharavikadiyala
14 years ago

Sir
What are the Debt Funds you are going to invest you personal money. Please suggest me i have at present 14 lacs in my hand and iam a private employee with a lot of job risk.

Manish Awasthi
Manish Awasthi
14 years ago

Can SIP be brought in debt oreinted fund No knowledge about debt So asking……

Sudip
Sudip
14 years ago

I want to invest Rs.500 p.m. Debt oriented SIP, Which one the best and safest ?