Debt Mutual Funds India
Explore the full range of debt mutual funds available in India, from ultra-safe overnight and liquid funds to higher-yielding corporate bond and gilt funds. This page lets you compare funds across key metrics like NAV, returns over multiple time periods, expense ratio, and AUM. Debt funds play an important role in portfolio diversification by providing stability and regular income to balance out equity volatility. Whether you need a place to park emergency funds or want to build a fixed-income allocation, you can filter and sort to find the right debt fund for your needs and risk tolerance.
218 funds found
Frequently Asked Questions
What are debt mutual funds?
Debt mutual funds invest in fixed-income securities like government bonds, corporate bonds, treasury bills, and money market instruments. They aim to generate steady returns with lower volatility compared to equity funds. Different categories — liquid, short duration, corporate bond, gilt — offer varying levels of risk and return based on the maturity and credit quality of their holdings. They are generally suitable for conservative investors or as a parking place for short-term surplus funds.
How are debt fund returns taxed in India?
For debt mutual funds purchased after April 2023, gains are added to your income and taxed at your applicable slab rate, regardless of the holding period. This is a significant change from the earlier long-term capital gains treatment that offered indexation benefits. Despite the tax change, debt funds still offer advantages like professional management, diversification, and better post-tax returns than fixed deposits for investors in lower tax brackets.
Are debt mutual funds safe?
Debt funds carry lower risk than equity funds but are not risk-free. The main risks are credit risk (the possibility of a bond issuer defaulting) and interest rate risk (bond prices fall when interest rates rise). Liquid funds and overnight funds carry the least risk, while credit risk funds and long duration funds can be more volatile. Always check the fund's portfolio quality and duration before investing.
Frequently Asked Questions
What is NAV in a mutual fund?
NAV, or Net Asset Value, is the per-unit price of a mutual fund scheme. It is calculated as the total value of the fund's assets minus its liabilities, divided by the number of outstanding units. Fund houses declare NAV at the end of each business day based on closing prices, and AMFI publishes it. When you invest, you are allotted units at the applicable NAV.
How do I start a SIP in mutual funds in India?
To start a SIP you first complete your KYC, which is mandatory under SEBI rules. You then choose a scheme, decide a monthly amount — often as low as Rs 500 — and set an auto-debit mandate from your bank. On your chosen date each month, units are bought at the prevailing NAV. You can invest directly through an AMC or via a distributor platform.
What is the expense ratio and why does it matter?
The expense ratio is the annual fee a fund charges to manage your money, expressed as a percentage of assets. It covers fund management, administration and distribution costs, and is deducted from the NAV. SEBI caps expense ratios by fund size and type. A lower ratio means more of the return stays with you, which is why direct plans, with no distributor commission, cost less than regular plans.
Are ELSS mutual funds good for tax saving?
ELSS (Equity Linked Savings Scheme) funds qualify for deduction under Section 80C of the Income Tax Act, up to Rs 1.5 lakh a year in the old tax regime. They carry the shortest lock-in among 80C options at just three years and invest mainly in equities, offering growth potential. Returns are market-linked, and gains above Rs 1.25 lakh a year are taxed as long-term capital gains.