Best Debt Mutual Fund to Invest ….!!

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Best Debt Mutual Fund to Invest

What is a debt mutual fund 

Debt Mutual Fund mainly invests in a mix of debt or fixed income securities such as Treasury bills, securities and Corporate Bonds. It is similar to giving loans to the issuing entity.   

How does debt fund work? 

Debt Mutual funds are mutual fund which invests mainly in debt securities and fixed income securities like treasury bills, government securities, corporate bonds.  A security rating signifies that whether the issuer will fulfill its obligations. The fund manager chooses the fund depending upon the credit quality instrument. 

What type of investor invests in the debt fund?

Investor who wants to diversify the portfolio without taking any much risk should invest in debt fund. Diversification of portfolio will help you in securing better returns and less risk. The debt mutual fund provides consistent returns between 7% to 8%. 

How to invest in the debt mutual Fund 

To invest in debt mutual Fund, an investor needs to follow these simple procedures:  

  • Sign in at Gulaq account. 
  • Enter all your credentials regarding the amount of investment and period of investment. 
  •  Make your E-kyc process start in less than 60 seconds. 
  •  Invest in your debt mutual fund from the list of funds. 

 Top Performing Debt Mutual Fund. 

Here is the list of Top performing debt mutual funds in term of returns.  

  •  Reliance Prime Debt Fund Direct- Dividend  
  • Reliance Strategic Debt Fund Direct-Dividend 
  • JM Dynamic Debt Fund Direct-Growth 
  • Edelweiss Banking and PSU Debt Fund Direct-Growth 

Disclaimer (The data and source are taken from Paytm) 

What are the different types of debt mutual fund?

There are various types of debt mutual fund, depending upon the time range.  

  • Short Term Debt Fund 
  • Medium Term Debt Fund 

Depending upon the maturity period, here is a classification of debt mutual fund: 

What are the things to consider before investing in the Debt mutual fund?

The things to consider before investing in the debt mutual fund: 

  • Risk  

 Risk is the most important things before investing in the debt mutual fund. The debt fund suffers from the credit risk and the interest risk. In scenario of credit risk, the fund manager may invest in lower credit securities, which have a high chance of default. But in the case of a rise in the interest rate, there will be an impact on returns. 

  • Return 

For every investor return matters the most. Some investor wants to take more risk with their investment to get more returns. On an average, they give returns between 7% to 8%.  

  • Investment Horizon 

In any investment, Investment horizon or the time plays an important role. The general believe is that the larger the investment horizon better will be the result. If you are investing for 3 months to 1 year, then it’s better to invest in liquid funds.  

  • Financial goals.  

Debt mutual funds are good for the salaried or middle-class people to meet the short-term financial goals. It is also a good option for the retired people.  


*Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.


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