Wednesday, June 25, 2025
  • Login
Euro Times
No Result
View All Result
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology
Euro Times
No Result
View All Result

These debt mutual funds gave 10-25% returns: Do you have any?

by Kumar Shankar Roy ,BL Research Bureau
December 20, 2022
in Business
Reading Time: 4 mins read
A A
0
Home Business
Share on FacebookShare on Twitter


Debt mutual funds are increasingly being preferred by investors for their higher returns than traditional favourites such as fixed deposts and better tax efficiency. And, calendar year 2022 has been a good one for investors that reposed their faith in debt funds. In terms of category, credit risk funds have topped the chart, followed by fixed maturity schemes, liquid funds, overnight funds. On an individual fund level, the best debt funds of 2022 delivered 10 to 25 per cent returns. At the other end of the spectrum, long duration, gilt and target maturity have been laggards, giving 2-3 per cent returns this year till date.

Date with debt categories

Credit risk funds, for the second straight year, have emerged as the best performers. In 2022 YTD, credit risk funds have delivered in excess of 13 per cent average returns. In 2021, the category average gain was 8.7 per cent.

The returns of other top-performing debt fund categories are standard — with fixed maturity funds (4.59 per cent), liquid funds (4.51 per cent), overnight funds (4.39 per cent). Debt medium duration funds, which was the 2nd best performer in 2021, is on the laggard list. Here is a chart on the best-performing debt MF categories of 2022.

The laggards of 2022 in the debt fund arena include Gilt with 10-yr constant duration funds, Long duration funds, Gilt funds, Target maturity funds, Medium to long duration funds and Corporate bond funds. None of these categories, on an average basis, have been able to generate even 3 per cent return. Many of these categories in fact did very well in 2020, and clocked more than 10 per cent average NAV returns. Dynamic bond funds, Banking and PSU debt funds and Medium duration funds clocked 3-4 per cent average returns in 2022. Here is a chart of the laggards in debt MFs for CY2022.

Do note that category average returns may be influenced by a small section of funds. Average return numbers should serve as a guidepost.

Related Stories
Why you should give debt its due

Taking advantage of opportunities in the debt market calls for an active strategy and here are the ways investors can do it

Best funds in focus

If you look at just year to date best performing debt funds singularly, a lot of segregated portfolios, suspended funds etc. shall come into the picture with amazing return stats due to sudden change in NAVs. These include Nippon India Strategic Debt Segregated Portfolio (up 297 per cent), UTI Credit Risk Segregated Portfolio 2 (also up 297 per cent), Bank of India Credit Risk (up 143 per cent) etc. We have ignored them.

The top-3 best performing debt funds of 2022 are ABSL Medium Term (up 25.64 per cent), UTI Bond (up 10.25 per cent) and DSP Credit Risk (up 9.93 per cent). These funds had generated 7.69 per cent, 9.85 per cent and 3.74 per cent in CY2021. The other top-performing debt MFs of 2022 include ABSL Credit Risk, ABSL Dynamic Bond, ICICI Pru Credit Risk, ICICI Pru ST, Baroda BNP Paribas Credit Risk, ICICI Pru All Seasons Bond and Nippon India Ultra Short Duration. All of these have generated between 5-8 per cent returns YTD. Here is a chart on them.

The laggard debt MFs of 2022, in line with category averages, comprise of gilt funds, funds with good exposure to long duration etc. They have not been able to generate even 2 per cent this year. We have ignored funds such as funds such as ABSL Dynamic Bond Segregated Portfolio 1, ABSL Credit Risk Segregated Portfolio 1 and ABSL Medium Term Segregated Portfolio 1.

Even though dynamic bond funds have the flexibility to change the portfolio positioning as per the evolving market conditions, some dynamic bonds also feature in the laggard list due to possible gilt exposure. Here is a chart on the poor performers of debt MF universe for 2022.

It should be noted that debt is an important part of an individual’s portfolio as it brings stability. Do not look at annual performances and use them as a critical component of your investing decision-making system.

SHARE

  • Copy link
  • Email
  • Facebook
  • Twitter
  • Telegram
  • LinkedIn
  • WhatsApp
  • Reddit

Published on December 20, 2022





Source link

Tags: DebtfundsgaveMutualReturns
Previous Post

The 6-Step Guide to Buying Your FIRST Rental Property

Next Post

Yields rise, Nasdaq futures dip as Japan surprises with wider yield cap

Related Posts

Arisinfra Solutions Listing: Shares make weak debut; lists at 7% discount

Arisinfra Solutions Listing: Shares make weak debut; lists at 7% discount

by zee business
June 25, 2025
0

Arisinfra Options Itemizing: Shares of development and infrastructure options agency ArisInfra Options Ltd made their debut on Indian inventory exchanges immediately,...

Neeraj Chopra Wins Ostrava Golden Spike Meet

Neeraj Chopra Wins Ostrava Golden Spike Meet

by PTI
June 24, 2025
0

Indian javelin throw famous person Neeraj Chopra clinched the title on the Ostrava Golden Spike meet in Czech Republic on...

Home Front Command lifts all restrictions

Home Front Command lifts all restrictions

by Globes correspondent
June 25, 2025
0

Following Tuesday morning's ceasefire, Israelis will probably be allowed to return to work and faculties can reopen Wednesday morning. ...

Govt cancels order to promote Pankaj Dwivedi to ED, Union Bank of India, makes him general manager

Govt cancels order to promote Pankaj Dwivedi to ED, Union Bank of India, makes him general manager

by Euro Times
June 24, 2025
0

 The federal government reverted him to his earlier put up as Basic Supervisor in Punjab & Sind Financial institution. |...

Sebi proposes to limit powers of stock exchange chiefs

Sebi proposes to limit powers of stock exchange chiefs

by Euro Times
June 24, 2025
0

India's markets regulator on Tuesday proposed to extend the board oversight of key trade features, together with those associated to...

Should you buy BSE shares for long term now? Fundamental stock picks and more

Should you buy BSE shares for long term now? Fundamental stock picks and more

by zee business
June 24, 2025
0

Share Market Concepts for Day Buying and selling and for Lengthy Time period: As market contributors scout for contemporary buying and...

Next Post
Yields rise, Nasdaq futures dip as Japan surprises with wider yield cap

Yields rise, Nasdaq futures dip as Japan surprises with wider yield cap

Toko Token Price Prediction – TKO Risks Further 40% Losses –

Toko Token Price Prediction - TKO Risks Further 40% Losses -

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Arisinfra Solutions Listing: Shares make weak debut; lists at 7% discount

Arisinfra Solutions Listing: Shares make weak debut; lists at 7% discount

June 25, 2025
Ethereum Price Targets Upside Break — Will Momentum Carry It Past the Hurdles?

Ethereum Price Targets Upside Break — Will Momentum Carry It Past the Hurdles?

June 25, 2025
Photos show Swiss glaciers’ uncertain future as ‘ambassadors of climate change’

Photos show Swiss glaciers’ uncertain future as ‘ambassadors of climate change’

June 25, 2025
Bunker Buster Blitz: US Claims Iranian Nuclear Sites Obliterated, Intel Reports Say Otherwise

Bunker Buster Blitz: US Claims Iranian Nuclear Sites Obliterated, Intel Reports Say Otherwise

June 25, 2025
Tapper, Todd Maintain Media Is Innocent In Biden Cover-Up

Tapper, Todd Maintain Media Is Innocent In Biden Cover-Up

June 25, 2025
Many Senators Absent From ‘Bipartisan’ Crypto Market Structure Hearing

Many Senators Absent From ‘Bipartisan’ Crypto Market Structure Hearing

June 24, 2025
Euro Times

Get the latest news and follow the coverage of Business & Financial News, Stock Market Updates, Analysis, and more from the trusted sources.

CATEGORIES

  • Business
  • Cryptocurrency
  • Finance
  • Health
  • Investing
  • Markets
  • Politics
  • Stock Market
  • Technology
  • Uncategorized
  • World

LATEST UPDATES

Arisinfra Solutions Listing: Shares make weak debut; lists at 7% discount

Ethereum Price Targets Upside Break — Will Momentum Carry It Past the Hurdles?

  • Disclaimer
  • Privacy Policy
  • DMCA
  • Cookie Privacy Policy
  • Terms and Conditions
  • Contact us

Copyright © 2022 - Euro Times.
Euro Times is not responsible for the content of external sites.

No Result
View All Result
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology

Copyright © 2022 - Euro Times.
Euro Times is not responsible for the content of external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In