Top performing Debt Mutual Funds in India

Mutual funds are distributed amongst equity funds, debt funds, and hybrid funds. Each of the types has different but serve the same purpose of fulfilling the investment needs of the investor. Debt funds provide low capital appreciation by taking into account low-risk return investment avenue. 

Now that other investment products like fixed deposits are looking its charm, you can start investing in mutual funds as it is unaffected by the banking sector. The sooner you start, the higher will be your return this is the reason that mutual funds can really prove to be the best investment options for young professionals. 

You can start with a small amount of Rs. 5,000 in debt funds and increase your investment by 10% annually and then shift to equity funds and earn around Rs. 10 lakhs in just 10 years. Yes, this is possible if you do the investment at the early stage in life. Below are the best debt mutual funds that you can choose from.

Debt Mutual Funds

There are total six types of funds under debt mutual funds and the name are as follows:

Liquid Fund

• Reliance Liquid Fund
• Principal Cash Management Fund
• HDFC Cash Management Fund-Savings Plan
• Reliance Liquid Fund-Treasury Plan
• HDFC Liquid Fund
• Reliance Liquid Fund-Cash Plan
• HDFC Cash Management Fund - Call Plan

Ultra Short term Funds

• Principal Retail Money Manager Fund
• HDFC Floating Rate Income Fund - Short Term Plan - Wholesale Option
• Reliance Money Manager Fund
• DSP BlackRock Ultra Short Term Fund
• Principal Low Duration Fund
• DSP BlackRock Money Manager Fund
• HDFC Cash Management Fund - Treasury Advantage Plan - Retail

Short Term Funds

• HDFC Banking And PSU Debt Fund
• DSP BlackRock Banking & PSU Debt Fund
• HDFC Short Term Opportunities Fund
• Reliance Short Term Fund
• HDFC High-Interest Fund - Short Term Plan
• HDFC Regular Savings Fund
• Principal Short Term Income Fund
• Reliance Rate Fund-Short Term Plan
• HDFC Floating Rate Income Fund - Long Term Plan
• Reliance Medium Term Fund
• DSP BlackRock Short Term Fund

Dynamic Bond Funds

• HDFC High-Interest Fund - Dynamic Plan
• Principal Dynamic Bond Fund
• Reliance Dynamic Bond Fund

Credit Opportunities

• HDFC Corporate Debt Opportunities Fund
• Reliance Bond Fund
• Principal Credit Opportunities Fund
• DSP BlackRock Income Opportunities Fund

Gilt Funds

• DSP BlackRock Constant Maturity 10Y G-Sec Fund
• DSP BlackRock Government Securities Fund
• HDFC Gilt Fund Long Term
• Principal Government Securities Fund
• DSP BlackRock Treasury Bill Fund
• HDFC Gilt Fund Short Term
• Reliance Securities Fund

MIP

• Reliance Banking & PSU Debt Fund
• HDFC Medium Term Opportunities Fund
• Reliance Income Fund
• DSP BlackRock Bond Fund
• HDFC Income Fund
• Principal Debt Savings Fund

Best Debt Mutual Funds

Below are some of the best debt funds that you can choose to start your investment.

SBI Debt Mutual Funds

• SBI Magnum Income Fund
• SBI Dynamic Bond Fund
• SBI Savings Fund
• SBI Magnum Gilt Fund
• SBI Ultra Short Term Debt Fund
• SBI Short Term Debt Fund
• SBI Corporate Bond Fund
• SBI Treasury Advantage Fund
• SBI Pharma Fund

ICICI Debt Mutual Funds

• ICICI Prudential Constant Maturity Gilt Fund
• ICICI Prudential Long Term Plan
• ICICI Prudential Long Term Gilt Fund
• ICICI Prudential Income Opportunities Fund
• ICICI Prudential Gilt Fund Investment Plan PF Option
• ICICI Prudential Income
• ICICI Prudential Banking And PSU Debt Fund
• ICICI Prudential Regular Savings Fund
• ICICI Prudential Ultra Short Term
• ICICI Prudential Dynamic Bond Fund
• ICICI Prudential Short Term Gilt Fund
• ICICI Prudential Short Term
• ICICI Prudential Savings Fund
• ICICI Prudential Flexible Income
• ICICI Prudential Liquid Plan
• ICICI Prudential Corporate Bond Fund
• ICICI Prudential Money Market Fund
• ICICI Prudential Advisor Series - Dynamic Accrual Plan
• ICICI Prudential Gilt Fund Treasury Plan PF Option

Reliance Debt Mutual Funds

• Reliance Corporate Bond Fund
• Reliance Banking & PSU Debt Fund
• Reliance Income Fund
• Reliance Money Manager Fund
• Reliance Short Term Fund
• Reliance Floating Rate Fund-Short Term Plan
• Reliance Liquidity Fund
• Reliance Medium Term Fund
• Reliance Liquid Fund-Treasury Plan
• Reliance Dynamic Bond Fund
• Reliance Liquid Fund-Cash Plan
• Reliance Gilt Securities Fund

DSP BlackRock Debt Mutual Funds

• DSP BlackRock Constant Maturity 10Y G-Sec Fund
• DSP BlackRock Government Securities Fund
• DSP BlackRock BANKING & PSU DEBT FUND
• DSP BlackRock Ultra Short Term Fund
• DSP BlackRock Money Manager Fund
• DSP BlackRock Income Opportunities Fund
• DSP BlackRock Short Term Fund
• DSP BlackRock Treasury Bill Fund

Baroda Pioneer Debt Mutual Funds

• Baroda Pioneer Credit Opportunities Fund - Plan A
• Baroda Pioneer Dynamic Bond Fund - Plan A
• Baroda Pioneer Treasury Advantage Fund - Plan A
• Baroda Pioneer Short Term Bond Fund - Plan A
• Baroda Pioneer Liquid Fund - Plan A
• Baroda Pioneer Gilt Fund - Plan A
• Baroda Pioneer Income Fund - Plan A

Principal Debt Mutual Funds

• Principal Retail Money Manager Fund
• Principal Debt Savings Fund
• Principal Short Term Income Fund
• Principal Low Duration Fund
• Principal Credit Opportunities Fund
• Principal Cash Management Fund

Disclaimer - Mutual Funds are subject to market risks. Please read the scheme related documents carefully before investing.