Dhan Saarthi
Features
Go To Partner
Dhan Saarthi

In-depth fund guides

Liquid fundsNothing maturing beyond 91 daysOvernight fundsOne-day maturities, no exit loadMoney market fundsInstruments maturing within a yearUltra short duration fundsThree to six month durationShort duration fundsOne to three year durationFloater fundsCoupons that move with ratesLow duration fundsSix to twelve month durationCorporate bond funds80%+ in AA+ and above bondsBanking and PSU fundsBank, PSU and PFI debtCredit risk fundsExtra yield for credit riskMedium duration fundsThree to four year durationMedium to long duration fundsFour to seven year durationLong duration fundsDuration above seven yearsDynamic bond fundsDuration set by the managerGilt fundsGovernment securities onlyGilt 10Y constant duration fundsG-secs at a ten-year duration
Dhan Saarthi

Product

Risk ProfilingFinancial Planning ToolsGoal Planning

Resources

Mutual Fund ComparisonBlogs

Company

Download AppContact UsFor partners

Download Dhan Saarthi App

Download on the App StoreGet it on Google Play

Disclaimer: Mutual Fund investments are subject to market risks. Please read all scheme-related documents carefully before investing. Past performance is not indicative of future returns. Investors should make investment decisions at their own discretion, based on their individual risk profile and financial objectives.

Dhan Saarthi is operated by Khazana Fintech Private Limited, an AMFI Registered Mutual Fund Distributor (ARN–325085). The company acts as a distributor of mutual funds and does not provide investment advisory services as defined by SEBI (Investment Advisers) Regulations, 2013.

Khazana Fintech Private Limited does not guarantee any returns and shall not be held liable for any losses arising from investments made through the platform.

© 2026 Khazana Fintech Pvt. Ltd. All rights reserved. AMFI Registered Mutual Fund Distributor | ARN-325085

Terms of Service | Privacy Policy | Cookie Policy | Regulatory Disclosures

We use cookies

We use cookies to help this site function, understand service usage, and support marketing efforts. Cookie Policy ·

  1. Home
  2. Mutual Fund Category
  3. Debt Mutual Funds Fund

Debt Mutual Funds

Debt Mutual Funds invest in fixed-income securities like bonds, debentures, and money market instruments. They aim to provide stable returns and preserve capital by lending to governments, companies, and other entities. These funds are typically less volatile than equities but are still subject to interest rate and credit risk.

Goal: Provide steady income and capital preservation by investing in debt and fixed-income instruments.

Risk: Relatively lower than equity funds, but can be affected by changes in interest rates, credit quality of issuers, and liquidity conditions.

Investment Horizon: Suitable for short to medium-term investors with a time frame of 1 to 3 years.

Top Debt Mutual Funds

Dropdown Icon
1Y
3Y
5Y
Funds
1Y Return
Risk
Expense Ratio
Action
ABSL Savings Retail Gr
ABSL Savings Retail Gr
Moderate Risk
6.20%
Moderate Risk
0.50%
ICICI Pru Money Market Reg Gr
ICICI Pru Money Market Reg Gr
Low to Moderate Risk
6.30%
Low to Moderate Risk
0.33%
ABSL Money Manager Retail Gr
ABSL Money Manager Retail Gr
Moderate Risk
6.06%
Moderate Risk
0.32%
Nippon India Money Market Gr
Nippon India Money Market Gr
Moderate Risk
6.26%
Moderate Risk
0.39%
ABSL Savings Gr
ABSL Savings Gr
Moderate Risk
6.25%
Moderate Risk
0.50%
Franklin India Money Mkt Gr
Franklin India Money Mkt Gr
Low to Moderate Risk
6.36%
Low to Moderate Risk
0.28%
11617181920123
Loading...
01

What are Debt Mutual Funds?

Debt Mutual Funds invest in fixed-income instruments like government securities, corporate bonds, debentures, and money market instruments. Their objective is to provide steady income while preserving capital, with lower volatility than equities.

02

Features of Debt Mutual Funds

  • Stable Returns – Aim to generate predictable income.
  • Lower Volatility – Less affected by market swings compared to equities.
  • Professional Management – Experts manage duration, credit quality, and portfolio mix.
  • Liquidity – Most debt funds allow redemption on business days.
  • Interest Rate Sensitivity – Returns can be impacted by changes in interest rates.

03

Types of Debt Mutual Funds

  • Liquid Funds – Invest in short-term money market instruments for quick access.
  • Ultra Short Duration Funds – Slightly higher returns than liquid funds with short maturity periods.
  • Short/Medium Duration Funds – Invest in bonds with a fixed maturity range.
  • Corporate Bond Funds – Invest mainly in high-rated corporate debt.
  • Gilt Funds – Invest in government securities with minimal credit risk.
  • Credit Risk Funds – Invest in lower-rated papers offering higher yields.

04

Who Should Invest in Debt Mutual Funds?

  • Conservative investors seeking lower risk.
  • Those with short to medium-term goals (1–3 years).
  • Individuals looking for diversification away from equities.
  • Investors needing regular income or better returns than savings accounts/FDs.

Frequently Asked Questions

Clear answers about Debt Mutual Funds

What are Debt Mutual Funds?

Debt Mutual Funds invest in fixed-income instruments like government securities, corporate bonds, debentures, and money market instruments. Their objective is to provide steady income while preserving capital, with lower volatility than equities.

Who should consider Debt Mutual Funds?

Conservative investors seeking lower risk. Those with short to medium-term goals (1–3 years). Individuals looking for diversification away from equities. Investors needing regular income or better returns than savings accounts/FDs.

What are the main features of Debt Mutual Funds?

Stable Returns – Aim to generate predictable income. Lower Volatility – Less affected by market swings compared to equities. Professional Management – Experts manage duration, credit quality, and portfolio mix. Liquidity – Most debt funds allow redemption on business days. Interest Rate Sensitivity – Returns can be impacted by changes in interest rates.

What is the risk and investment horizon for Debt Mutual Funds?

Risk: Relatively lower than equity funds, but can be affected by changes in interest rates, credit quality of issuers, and liquidity conditions. Investment Horizon: Suitable for short to medium-term investors with a time frame of 1 to 3 years.