Best Debt Mutual Funds - Invest Online

Debt based mutual funds provide stable but comparatively lower returns with respect to equity instruments. The funds listed below are across categories such as ultra short term, Gilt, short term etc. within the debt class of mutual funds:

*NAV rates as on 26^th August 2015.

SBI Magnum Gilt Fund Long Term: This is an open-ended Gilt medium and long term debt fund. This fund invests predominantly in government securities with average maturities exceeding 3 years. The fund has given returns at 12.02% p.a. over the past 3 years, easily one of the best performing mutual funds in the debt class.

ICICI Prudential Long Term Fund: An open-ended income-based debt fund, this fund offers stable returns through investments in money market and debt instruments, with the aim to provide balance of liquidity, yield and safety. The fund has given returns averaging 11.93% p.a. over the past 3 years.

Birla Sun Life Medium Term Plan: This is an open-ended short term debt fund aimed at generating steady income from investments in money market and debt instruments. The maturity rates are affected by the interest rate prevailing in the country and the portfolio is kept between 1 to 5 years maturity to optimize returns. Returns have averaged 10.33% p.a. over the past 3 years.

Franklin India Ultra Short Bond Fund: This is a debt class ultra short term and open-ended mutual fund. The fund is aimed at providing consistent returns and easy liquidity. It has averaged returns of 9.92% p.a. over the past 3 years, making it one of the best performer in its category.