Is it good time to invest in debt mutual fund?

Debt mutual funds are an ideal option for investors looking for safety and the potential for higher returns. Risk: When you invest in fixed deposits, you do so under the assumption that the investment is risk-free. However, this is not the case. There is always the risk of inflation.

What happens to debt funds during recession?

A recession can affect your debt mutual fund in a few ways, depending upon the type of debt mutual fund you have: Interest rate – during a recession Interest rates can fluctuate and affect the returns on your investment.

Can debt funds give negative returns?

Debt funds are giving negative returns due to fluctuations in interest rates. Debt funds of longer maturity are vulnerable to interest rate risk.

Is debt fund linked to market?

Debt funds aim to generate returns for investors by investing their money in avenues like bonds and other fixed-income securities. This means that these funds buy the bonds and earn interest income on the money. Debt funds also do not offer assured returns but have market linked returns which can fluctuate.

Are debt funds safe during market crash?

There won’t be much impact on debt funds if the equity market crashes because the dynamics of the fixed-income market are very different. What has a bearing on debt funds is the general state of the economy and inflation rates. Bonds are hit if interest rates go up. They benefit if interest rates go down.

Are debt mutual funds safe now?

How safe are debt mutual funds in India? Debt funds put money in fixed income securities. It is safer as compared to equity funds which invest in stocks and are subject to the volatility of the stock markets. You may diversify your portfolio with debt funds.

Which category of debt fund gives highest return?

Top 10 Debt Mutual Funds

Fund Name	Category	1Y Returns
Edelweiss Government Securities Fund	Debt	5.6\%
Axis Gilt Fund	Debt	3.8\%
Kotak Dynamic Bond Fund	Debt	4.5\%
SBI Magnum Income Fund	Debt	4.4\%

Which debt fund gives highest return?

The table below shows the best-performing debt funds based on the last 5-year returns:

Mutual fund	5 Yr. Returns	3 Yr. Returns
DSP Healthcare Fund – Direct – Growth	—	33.13\%
ICICI Prudential Multicap Fund – Dividend	14.27\%	15.49\%
Aditya Birla Sun Life CEF – Global Agri Plan – Growth-Direct Plan	9.29\%	13.6\%

Which debt mutual fund is best?

List of Debt Mutual Funds in India

Fund Name	Category	1Y Returns
HDFC Credit Risk Debt Fund	Debt	8.0\%
ICICI Prudential Credit Risk Fund	Debt	7.3\%
SBI Magnum Constant Maturity Fund	Debt	3.6\%
Nippon India Banking & PSU Debt Fund	Debt	4.6\%