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Debt Mutual Funds, simply schemes that help investors plan for their short-term money requirements, be it short-term goals, like vacation, buying a car or bike, or any unexpected financial emergency!

These funds prominently invest in corporate bonds, government securities, treasury bills, commercial paper, and other money market instruments. They are also considered less risky than equity funds, however, they do yield low returns compared to equity mutual funds.

An investor with a low-risk profile and short-term investment objectives is suggested to invest in Debt mutual funds. For such investors, we have prepared a list of some of the BEST DEBT MUTUAL FUNDS, based on returns, latest Nav, ratings, performance, etc. for your assistance.  

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Kotak Savings Fund

An ultra-short duration category debt mutual fund, run and managed by Kotak Mahindra Mutual Fund House. The fund has 97.59% investment in Debt of which 37.28% is in Government securities, 60.31% in funds invested in very low-risk securities.

The fund size of the scheme is around Rs 12,698 crores and it charges a total expense ratio of around 0.77%. The fund does not charge any exit load.

The objective of the scheme is to generate income through investments in a range of debt and money market instruments while maintaining the optimum balance of yield, safety, and liquidity.  

This fund is best recommended to investors looking to invest money for the short-term and are looking for alternatives to bank accounts or Fixed Deposits.


Axis Liquid Fund

A liquid fund category debt mutual fund, run and managed by Axis Mutual Fund House. The fund has 79.24% investment in Debt of which 24.03% is in Government securities, 52.13% in funds invested in very low-risk securities.

The fund size of the scheme is around Rs 24,318 crores and it charges a total expense ratio of around 0.26%. The fund charges a very small amount as exit load on different redemption conditions like:

  • The fund charges an exit load equal to 0.006999999999999999% of sell value if the fund is sold before 1 day.
  • The fund charges an exit load equal to 0.0065% if the fund is sold before 2 days.
  • The fund charges an exit load equal to 0.006% if the fund is sold before 3 days.
  • The fund charges an exit load equal to 0.0055000000000000005% if the fund is sold before 4 days.
  • The fund charges an exit load equal to 0.005% if the fund is sold before 5 days.
  • The fund charges an exit load equal to 0.0045000000000000005% if the fund is sold before 6 days.

The objective of the scheme is to provide a high level of liquidity with reasonable returns commensurating with low risk through a portfolio of money market and debt securities.

This fund is best recommended to investors looking to invest money for the short-term and are looking for alternatives to bank accounts or Fixed Deposits.


Aditya Birla Sun Life Liquid Fund

A liquid fund category debt mutual fund, run and managed by Aditya Birla Sun Life Mutual Fund House. The fund has 96.63% investment in Debt of which 40.67% is in Government securities, 53.31% in funds invested in very low-risk securities.

The fund size of the scheme is around Rs 28,554 crores and it charges a total expense ratio of around 0.21%. The fund charges a very small amount as exit load on different redemption conditions like:

  • The fund charges an exit load equal to 0.006999999999999999% of sell value if the fund is sold before 1 day.
  • The fund charges an exit load equal to 0.0065% if the fund is sold before 2 days.
  • The fund charges an exit load equal to 0.006% if the fund is sold before 3 days.
  • The fund charges an exit load equal to 0.0055000000000000005% if the fund is sold before 4 days.
  • The fund charges an exit load equal to 0.005% if the fund is sold before 5 days.
  • The fund charges an exit load equal to 0.0045000000000000005% if the fund is sold before 6 days.

The objective of the scheme is to provide reasonable returns at a high level of safety, and liquidity through judicious investments in high-quality debt and money market instruments.

This fund is best recommended to investors looking to invest money for the short-term and are looking for alternatives to bank accounts or Fixed Deposits.


SBI Magnum Ultra Short Duration Fund

An ultra-short-duration category debt mutual fund, run and managed by SBI Mutual Fund House. The fund has 100.49% investment in Debt, out of which 37.11% in Government securities, 63.38% in funds invested in very low-risk securities.

The fund size of the scheme is around Rs 11,007 crores and it charges a total expense ratio of around 0.49%. The fund does not charge any exit load.

The objective of the scheme is to provide investors with an opportunity to generate regular income with a high degree of liquidity through investments in a portfolio comprising predominantly of debt and money market instruments.

This fund is best recommended to investors looking to invest money for the short-term and are looking for alternatives to bank accounts or Fixed Deposits.


To get more details about the fund you can refer to the fund fact sheet or you can get in touch with us. Call us on- 0612-6604453 or mail us at- [email protected].

For any kind of query, you can contact us at Shri Ashutosh Securities Pvt Ltd., we are here to help you in any way possible.


Happy Investing!


(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee to future returns).