6 debt funds for consideration

A look at the range of returns shows a wide gap. Select wisely.

A list of funds from the Medium Duration and Medium-to-Long Duration categories that our analysts looked at this year. The funds have been listed according to their 3-year return as on September 1, 2020.

Before you invest in debt funds, we suggest you read What debt funds are not and How to build a debt portfolio.

SBI Magnum Income Fund: Disciplined investment process and experienced leadership.

  • Category: Medium to Long Duration
  • Credit Quality: High
  • Interest Rate Sensitivity: Moderate
  • Fund Analyst: Nehal Meshram
  • Rating of Analyst: Neutral
  • Date of Analysis: May 2020
  • 3-year return: 8.23%
  • 5-year return: 9.17%
  • Fund Manager: Dinesh Ahuja
  • Read the Brief Analyst Note

IDFC Bond Fund – Medium Term Plan: A compelling and relatively safe investment option.

  • Category: Medium Duration
  • Credit Quality: High
  • Interest Rate Sensitivity: Moderate
  • Fund Analyst: Himanshu Srivastava
  • Rating of Analyst: Bronze
  • Date of Analysis: July 2020
  • 3-year return: 7.8%
  • 5-year return: 8.18%
  • Fund Manager: Suyash Choudhary
  • Read the Brief Analyst Note

IDFC Bond Fund – Income Plan: A competent fund manager and a robust investment approach.

  • Category: Medium to Long Duration
  • Credit Quality: High
  • Interest Rate Sensitivity: Extensive
  • Fund Analyst: Himanshu Srivastava
  • Rating of Analyst: Neutral
  • Date of Analysis: July 2020
  • 3-year return: 7.59%
  • 5-year return: 8.56%
  • Fund Manager: Suyash Choudhary
  • Read the Brief Analyst Note

Aditya Birla Sun Life Income Fund: An income strategy focused on active duration calls.

  • Category: Medium to Long Duration
  • Credit Quality: High
  • Interest Rate Sensitivity: Moderate
  • Fund Analyst: Kavitha Krishnan
  • Rating of Analyst: Neutral
  • Date of Analysis: July 2020
  • 3-year return: 7.49%
  • 5-year return: 8.42%
  • Fund Manager: Pranay Sinha
  • Read the Brief Analyst Note

Aditya Birla Sun Life Medium Term Plan: Massive redemptions have had a resultant impact on the fund’s liquidity.

  • Category: Medium Duration
  • Credit Quality: High
  • Interest Rate Sensitivity: Moderate
  • Fund Analyst: Kavitha Krishnan
  • Rating of Analyst: Neutral
  • Date of Analysis: May 2020
  • 3-year return: 1.95%
  • 5-year return: 5.07%
  • Fund Manager: Maneesh Dangi
  • Read the Brief Analyst Note

UTI Bond Fund: Conservative stance and lacklustre showing. 

  • Category: Medium to Long Duration
  • Credit Quality: Low
  • Interest Rate Sensitivity: Extensive
  • Fund Analyst: Kavitha Krishnan
  • Rating of Analyst: Neutral
  • Date of Analysis: May 2020
  • 3-year return: -1.40%
  • 5-year return: 3.21%
  • Fund Manager: Amandeep Singh Chopra
  • Read the Brief Analyst Note

© 2020 Morningstar. All rights reserved. The Morningstar name is a registered trademark of Morningstar, Inc. in India and other jurisdictions. Research on securities, referred to for the purpose of this document as “Investment Research”, is issued by Morningstar Investment Adviser India Private Limited, which is registered with SEBI as an Investment Adviser (Registration number INA000001357), providing investment advice and research, and as a Portfolio Manager (Registration number INP000006156). For the complete disclaimers, click here.

Source: Morningstar India Website