Debt Mutual Funds in India
Updated June 2026 · 2,339 active funds · data from AMFI NAVs
Debt mutual funds lend your money to borrowers - governments, banks, public-sector bodies and companies - and pass on the interest as returns. They sit at the lower-risk end of the mutual fund spectrum, prioritising capital stability and predictable income over the high growth (and high swings) of equity. Under SEBI's 2017 categorization circular, the debt category splits into 16 precisely defined sub-types, ordered mainly by how long the underlying bonds take to mature: from Overnight funds (1-day paper) and Liquid funds (up to 91 days) at the ultra-safe end, through Short, Medium and Long Duration funds, up to Gilt and Dynamic Bond funds that can carry meaningful interest-rate risk. Others - Corporate Bond, Credit Risk, Banking and PSU, Floater - are defined by what they hold or the credit quality they target rather than by duration alone. Returns are typically lower than equity but steadier, and the main risks are interest-rate movements and credit defaults. FindMF computes every fund's trailing returns and risk metrics directly from AMFI-published NAVs using a disclosed methodology.
Who it suits: Investors who want steadier, income-oriented returns - for parking cash, short-to-medium goals, or balancing an equity-heavy portfolio.
52% of the 448 funds here with a computed alpha beat their benchmark over the measured window (positive alpha). Past performance is not indicative; this is analysis, not advice.
| # | Scheme | 1Y | 3Y | 5Y | Sharpe | Max DD | TER | AUM |
|---|---|---|---|---|---|---|---|---|
| 1 | DSP Credit Risk Fund DSP | +9.87% | +16.59% | +12.99% | 0.83 | -1.8% | 0.41% | ₹219 Cr |
| 2 | Aditya Birla Sun Life Credit Risk Fund Aditya Birla Sun Life | +12.50% | +12.86% | +10.69% | 1.16 | -0.8% | 0.79% | ₹1.2K Cr |
| 3 | HSBC Credit Risk Fund HSBC | +6.06% | +11.77% | - | 0.57 | -0.4% | 0.96% | ₹493 Cr |
| 4 | Aditya Birla Sun Life Medium Term Aditya Birla Sun Life | +8.62% | +10.43% | +12.59% | 0.69 | -1.0% | 0.81% | ₹3.0K Cr |
| 5 | BANK OF INDIA Credit Risk Fund Bank of India | +17.21% | +9.98% | - | - | - | 1.15% | ₹106 Cr |
| 6 | Invesco India Credit Risk Fund Invesco | +7.49% | +9.54% | +8.28% | 0.36 | -1.0% | 0.28% | ₹159 Cr |
| 7 | Nippon India Credit Risk Fund Nippon India | +7.98% | +8.95% | +9.12% | 0.59 | -1.2% | 0.70% | ₹1.0K Cr |
| 8 | ICICI Prudential Credit Risk Fund ICICI Prudential | +7.86% | +8.91% | +7.84% | 0.59 | -0.8% | 0.73% | ₹5.9K Cr |
| 9 | Kotak Medium Term Fund Kotak Mahindra | +6.81% | +8.75% | +7.39% | 0.08 | -1.5% | 0.67% | ₹2.0K Cr |
| 10 | Nippon India Fixed Maturity Plan - XLV - Series 5 Nippon India | +7.70% | +8.75% | - | - | -0.2% | 0.09% | ₹239 Cr |
| 11 | Axis Credit Risk Fund Axis | +7.85% | +8.59% | +7.54% | 0.23 | -0.9% | 0.82% | ₹362 Cr |
| 12 | Nippon India Credit Risk Fund - Institutional Nippon India | +7.96% | +8.45% | +8.58% | 0.43 | -1.2% | - | - |
| 13 | TRUSTMF FIXED MATURITY PLAN - SERIES II (1196 DAYS) Trust | +7.02% | +8.41% | - | 0.77 | -1.6% | 0.48% | ₹64 Cr |
| 14 | Kotak Credit Risk Fund Kotak Mahindra | +7.20% | +8.38% | +6.63% | -0.32 | -3.1% | 0.81% | ₹704 Cr |
| 15 | Baroda BNP Paribas Credit Risk Fund Baroda BNP Paribas | +6.86% | +8.38% | +9.22% | 0.52 | -0.8% | 0.85% | ₹184 Cr |
| 16 | Franklin India Floating Rate Fund Franklin Templeton | +6.03% | +8.30% | +7.08% | -0.22 | -0.5% | 0.28% | ₹306 Cr |
| 17 | Nippon India Medium Duration Fund Nippon India | +8.07% | +8.26% | +9.48% | 0.33 | -1.6% | 0.50% | ₹139 Cr |
| 18 | ICICI Prudential Floating Interest Fund ICICI Prudential | +6.66% | +8.26% | +7.16% | -0.08 | -0.9% | 0.30% | ₹7.3K Cr |
| 19 | ICICI Prudential Medium Term Bond Fund ICICI Prudential | +6.88% | +8.26% | +7.27% | 0.02 | -1.2% | 0.73% | ₹5.7K Cr |
| 20 | SBI CREDIT RISK FUND SBI | +7.19% | +8.26% | +7.53% | 0.20 | -0.7% | 0.91% | ₹2.2K Cr |
Ranked by trailing return (3Y where available, else 1Y) on funds with at least one year of history. Returns, Sharpe, drawdown and TER are computed independently from AMFI NAVs - see methodology. No paid placement.
Frequently asked questions
How are debt funds taxed in India?
For units purchased on or after 1 April 2023, debt funds (and any fund holding less than 35% in equity) have their entire capital gain taxed at your income-tax slab rate, regardless of how long you hold - there is no separate long-term rate and no indexation benefit. This applies across nearly all debt sub-categories, from Liquid to Gilt. Always confirm current rules with a tax professional, as legislation changes.
Are debt funds risk-free?
No. Even the safest debt funds carry two risks: interest-rate risk (bond prices fall when rates rise, which hurts longer-duration funds more) and credit risk (a borrower may default or be downgraded). Overnight and Liquid funds minimise both; Long Duration, Gilt and Credit Risk funds carry more. FindMF shows volatility and drawdown computed from AMFI NAVs so you can compare how much each fund has actually fluctuated.
How does FindMF calculate the numbers shown for debt funds?
All trailing returns (1M to 5Y, since-inception) and risk metrics (volatility, Sharpe, max drawdown) are computed from daily NAVs published by AMFI, using the always-Growth performance variant and the formulas disclosed on our methodology page. We are independent and take no commissions - figures are descriptive, not recommendations. Benchmark-relative metrics like alpha and beta are shown only where we have ingested the relevant index series.