Greeting To Our Readers!
Debt Mutual Funds, simply a financial tool that helps investors achieve their short-term money requirement, without derailing their long-term investments!
These funds invest in fixed income instruments like government securities, treasury bills, corporate Bonds, thus they are considered as a less risky investment tool. Although they yield less than equity mutual funds they retain the capacity of generating consistent and regular returns over time.
They are taken as the best tool for generating regular income with low risk. Also, investors investing in debt funds can anytime withdraw the required money from their debt investment.
These funds are best suggested to investors who are looking for a place to park their money for short prominently for capital protection.
Well, if you are looking for a fund to park your money for a term or short-term money requirement, then end your research at Debt funds, and plan your investment in the same.
Below, we are discussing some of the best Debt Mutual Funds where one can plan their investments, do have a look!
Kotak Savings Fund
An ultra-short duration fund category debt mutual fund, run and managed by Kotak Mahindra Mutual Fund House. The fund has 94.66% investment in Debt of which 36.29% is in Government securities, 58.37% in funds invested in very low-risk securities.
The fund size (Asset Under Management) of the scheme is around Rs 11,873 crores and it charges a total expense ratio of around 0.77%. The fund has no exit load charge.
The prime objective of the fund is to generate returns through investments in debt and money market instruments to reduce the interest rate risk.
Axis Liquid Fund
A liquid fund category debt mutual fund, run and managed Axis Mutual Fund House. The fund has 42.18% investment in Debt, out of which 42.18% is in Government securities.
The fund size (Asset Under Management) of the scheme is around Rs 26,451 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 prime objective of the fund is to provide a high level of liquidity with reasonable returns commensurating with low risk through a portfolio of money market and debt securities.
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 88.06% investment in Debt of which 13.92% is in Government securities, 74.12% in funds invested in very low-risk securities.
The fund size (Asset Under Management) of the scheme is around Rs 27,111 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 a longer duration but prefers less risky assets compared to equity funds.
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).