Investors in the quest for stable returns often look out for the best debt funds as an alternative to traditional fixed deposits. Besides offering more attractive interest rates, these funds are highly liquid and are managed professionally. Whether you call yourself a conservative investor or want to plan for your retirement, investing in debt funds ensures stable and consistent returns.
In this guide, we are going to explore the top 5 DSP debt mutual funds that have outperformed fixed deposits in recent years. This will help you choose one that fits your investment strategy.
Why Invest in DSP Debt Funds?
If you’re looking for attractive returns compared to fixed deposits without exposing yourself to the risk of the equity market, DSP debt mutual funds are for you.
Professional fund managers take care of the risk quotient in the portfolios of these funds. Besides, the best DSP mutual funds ensure flexibility and liquidity that ensures better access to funds compared to traditional fixed deposits.
Top 5 DSP Debt Funds That Outperformed Fixed Deposits
Now, have a look at the tentative returns you can expect from each of these best debt MF by DSP.
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DSP Credit Risk Fund
The DSP Credit Risk Fund invests in corporate bonds with credit ratings of AA or below. Although this approach is a bit risky, it allows the fund to tap into better opportunities for return. It is ideal for investors with a slightly higher risk tolerance.
- NAV: INR 44.11
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- AUM: INR 193 crore
- Returns: 12.43% in the last 3 years
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DSP Gilt Fund
The objective of the DSP Gilt Fund is to deliver consistent returns to investors. It invests in a diversified portfolio of debt instruments and money market securities. Investors looking for a steady stream of income with moderate risk should go for the DSP Gilt fund.
- NAV: INR 94.90
- AUM: INR 1,016 crore
- Returns: 8.45% in the last 3 years
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DSP Strategic Bond Fund
The DSP Strategic Bond Fund has been designed with a focus on preserving capital and generating income. This fund invests in a mix of government and corporate bonds to provide higher returns compared to fixed deposits.
- NAV: INR 3,339.20
- AUM: INR 966 crore
- Returns: 8.41% in the last 3 years
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DSP Banking and PSU Debt Fund
Primarily, the DSP Banking and PSU Debt Fund invests in debt securities issued by banks and public sector organizations. The fund managers strategically select high-quality and low-risk instruments, which assure stable returns with limited volatility.
- NAV: INR 23.06
- AUM: INR 2,427 crore
- Returns: 6.95% in the last 3 years
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DSP Bond Fund
This mutual fund generates steady income for investors, allocating its assets to high-quality debt securities. If you are a conservative investor looking for consistent returns at lower risk, the DSP Bond Fund will be a stable investment option.
- NAV: INR 80.09
- AUM: INR 380 crore
- Returns: 6.95% in the last 3 years
Conclusion
If you’re looking for a more rewarding yet safe investment avenue compared to traditional fixed deposits, these DSP debt mutual funds are excellent options. All these funds offer potentially higher returns, while you benefit from liquidity and professional management
No lock-in period is involved in the five top debt mutual funds we curated for you in this guide. However, some of these funds come with a nominal exit load, which you can check before investing. Investors can also track the growth of their funds and check out other lucrative investment options from DSP AMC.
