Aditya Birla Sun Life Debt Mutual Funds
Best Mutual Funds 2024
Returns
Sort by
Need Loan Assistance?
Connect with Loan Advisor Now!
Top 10 Amc
Best Debt Mutual Funds
- SBI Magnum Gilt Fund - Growth - Direct Plan
- Axis Credit Risk Fund - Growth - Direct Plan
- HDFC Credit Risk Debt Fund - IDCW - Direct Plan
- Nippon India Income Fund - Bonus - Direct Plan
- UTI Short Duration Fund - Annual IDCW - Direct Plan
- ICICI Prudential Credit Risk Fund - Growth - Direct Plan
- Tata Gilt Securities Fund - IDCW - Direct Plan
- Canara Robeco Gilt Fund - Growth - Direct Plan
- DSP Credit Risk Fund - Growth - Direct Plan
- Mirae Asset Dynamic Bond Fund - Growth - Direct Plan
- Sundaram Ultra Short Duration Fund - Weekly IDCW
- Franklin India Credit Risk Fund - Growth
- L&T Ultra Short Term Fund - Bonus - Direct Plan
- Motilal Oswal Ultra Short Term Fund - Quarterly IDCW - Direct Plan
Investment Objective
Aditya Birla Sun Life Debt Mutual Fund’s investment objective is to offer regular income and capital safety over the short to medium term. Such funds invest in securities generating fixed income, such as government securities, treasury bills, and other money market instruments. Every debt securities hold a defined credit rating issued by a rating agency.
Such ratings are beneficial in measuring the credibility of the issuer concerning the repayment of interest and principal when the fund matures. The fund manager picks the debt securities based on the investment objective and underlying ratings of the mutual fund.
A debt fund investor earns returns via interest income and a gradual increase in the price of the fund over the said period. Nevertheless, the Aditya Birla Sun Life MF Debt fund doesn’t assure that it will achieve the investment objective.
Risks Involved in Aditya Birla Sun Life Debt Mutual Funds
Debt funds are exposed to specific kinds of risks. These mainly consist of the following:
-
- Default/Credit Risk: Such a risk specifically arises when the borrowers of debt instruments invested in the fund either default in principal amount repayment or default in making interest payments.
- Duration/Interest Rate Risk: This kind of risk occurs due to the inverse relation between debt instrument prices and market interest rates. It implies that if the interest rate increases, their prices will fall and vice versa. The longer the investor is invested in the fund, the higher the risk.
Return Potential of Aditya Birla Sun Life Debt Mutual Funds
Returns are typically the result of the risk assessed by investors. As compared to traditional fixed-income investments, Aditya Birla Sun Life MF Debt funds yield higher returns.
As per reports, such funds have delivered around 7% to 10% of average returns for 5 years.
The duration of fund and credit ratings affect the level of returns to greater extents. Low-rated funds such as Credit Risk Funds generate higher returns to requite for the level of risks involved with debt funds.
On the contrary, Corporate Bond Funds categorised as high-rated funds, generate relatively lower returns owing to their low-risk profile. Likewise, Gilt funds — a long-duration fund renders higher returns as compared to short-duration funds.
Nevertheless, Aditya Birla Sun Life MF Debt fund doesn’t offer any assurance of assured returns. Furthermore, the performance of the fund may differ from one period to another.
Who Should Invest in Aditya Birla Sun Life Debt Mutual Fund ?
Aditya Birla Sun Life Debt Mutual Fund is suitable for conservative investors with the following investment objectives:
- Have short-term goals such as vacation planning, buying a car, etc.
- Seeking tax-adjusted returns
- Want capital preservation
Besides, the fund could be beneficial for retirees. It offers tax-efficient regular cash flows through systematic withdrawal plans. Such a fund could also prove advantageous in the diversification of an investor’s portfolio. It will mitigate the overall risk of an investment portfolio.
Aditya Birla Debt Fund can also be used to transfer small amounts at certain intervals to equity funds. Investors willing to invest a lump sum amount in stocks can do so through a systematic transfer plan. By doing so, investors can avail of the benefits of rupee cost averaging.
Things to Consider Before Investing in Aditya Birla Sun Life Debt Mutual Funds
The investor must consider the following parameters before investing in Aditya Birla Sun Life Debt Mutual Fund:
- As an investor, you must gauge the risk-to-reward ratio. It will help you determine the amount you should invest in the fund.
- It is crucial to evaluate the expense ratio of the mutual fund before parking the money in the fund.
- Investors must pick the right debt mutual fund that aligns with their investment objectives.
Tax Levied on Aditya Birla Sun Life Debt Mutual Funds
Aditya Birla Sun Life Debt Mutual Fund is taxable to the degree of redemption gains. Following are their taxability on redemption:
- For investments held for less than 3 years: Such capital gains are short-term gains. Hence, these gains are taxed at regular slab rates relevant to the investor.
- For investments held for more than 3 years: Such capital gains are taxed as long-term gains, and after indexation benefit, these are taxed at a tax rate of 20%.
Get your latest Credit Score, FREE
Most Popular on Urban Money
Aditya Other MF Categories
Most Trusted AMC
- Baroda BNP Paribas Mutual Fund
- Canara Robeco Mutual Fund
- L&T Mutual Fund
- DSP Mutual Fund
- Quant Mutual Fund
- Franklin Templeton Mutual Fund
- HDFC Mutual Fund
- HSBC Mutual Fund
- ICICI Prudential Mutual Fund
- JM Financial Mutual Fund
- Kotak Mahindra Mutual Fund
- LIC Mutual Fund
- Invesco Mutual Fund
- Quantum Mutual Fund
- Nippon India Mutual Fund
- SBI Mutual Fund
- Bandhan Mutual Fund
- Sundaram Mutual Fund
- Tata Mutual Fund
- Taurus Mutual Fund
- UTI Mutual Fund
- Mirae Asset Mutual Fund
- Bank of India Mutual Fund
- Edelweiss Mutual Fund
- Axis Mutual Fund
- Navi Mutual Fund
- Motilal Oswal Mutual Fund
- IDBI Mutual Fund
- PGIM India Mutual Fund
- Union Mutual Fund
- 360 ONE Mutual Fund
- Groww Mutual Fund
- PPFAS Mutual Fund
- IL&FS Mutual Fund (IDF)
- Shriram Mutual Fund
- IIFCL Mutual Fund
- Mahindra Manulife Mutual Fund
- WhiteOak Capital Mutual Fund
- ITI Mutual Fund
- Trust Mutual Fund
- NJ Mutual Fund
- Samco Mutual Fund
- Bajaj Finserv Mutual Fund
- Helios Mutual Fund
- Zerodha Mutual Fund
- Old Bridge Mutual Fund
MF Categories
Mutual Funds Calculator
Top 10 Amc Funds
- SBI Equity Mutual Fund
- SBI Hybrid Mutual Fund
- SBI Elss Mutual Fund
- SBI Debt Mutual Fund
- ICICI Equity Mutual Fund
- ICICI Hybrid Mutual Fund
- ICICI Elss Mutual Fund
- ICICI Debt Mutual Fund
- HDFC Equity Mutual Fund
- HDFC Hybrid Mutual Fund
- HDFC Elss Mutual Fund
- HDFC Debt Mutual Fund
- Nippon Equity Mutual Fund
- Nippon Hybrid Mutual Fund
- Nippon Elss Mutual Fund
- Nippon Debt Mutual Fund
- Kotak Equity Mutual Fund
- Kotak Hybrid Mutual Fund
- Kotak Elss Mutual Fund
- Kotak Debt Mutual Fund
- Axis Equity Mutual Fund
- Axis Hybrid Mutual Fund
- Axis Elss Mutual Fund
- Axis Debt Mutual Fund
- Aditya Equity Mutual Fund
- Aditya Hybrid Mutual Fund
- Aditya Elss Mutual Fund
- Aditya Debt Mutual Fund
- UTI Equity Mutual Fund
- UTI Hybrid Mutual Fund
- UTI Elss Mutual Fund
- UTI Debt Mutual Fund
- Bandhan Equity Mutual Fund
- Bandhan Hybrid Mutual Fund
- Bandhan Elss Mutual Fund
- Bandhan Debt Mutual Fund
- Mirae Equity Mutual Fund
- Mirae Hybrid Mutual Fund
- Mirae Elss Mutual Fund
- Mirae Debt Mutual Fund
FAQs About Aditya Birla Sun Life Debt Mutual Funds
How is Aditya Birla Sun Life Debt Mutual Fund doing?
Is Aditya Birla Sun Life Debt Mutual Fund Safe?
Is it good to invest in equity funds?
Mutual Funds Guide
Get in-depth knowledge about all things related to Mutual Funds and your finances
International Mutual Funds
\International mutual funds are hidden gems in investment. These ideally allow you to invest in different countries, empowering you to diversify the portfolio across various economies, currencies, and sectors. Internatio
10 Best SIP Plans for Rs. 1000
The need for disciplined and strategic investment is becoming increasingly apparent as the financial industry develops and changes. Investing in your future has never been easier or more accessible than with the 10 best
How to Invest in SIP
Mutual funds are the new piggy banks. Everyone looking to multiply their wealth via mutual funds ponders over one perennial question – how to invest in a SIP? While it might sound very complex and tedious, it actually is
Best Investment Plan for 1 Year
For those seeking relatively quick returns or managing financial goals within a limited timeframe, mutual funds could make a substantial difference. Mutual funds, essentially pools of money managed by professionals, pro
How to stop a Mutual Fund SIP?
Investing in mutual funds through a Systematic Investment Plan (SIP) is a widely embraced strategy for those looking to gradually build wealth with disciplined and consistent contributions. However, life’s uncertainties
Withdrawing from Mutual Funds
When it comes to managing your investments, mutual funds are a popular choice for those looking to expand their portfolio and earn steady returns. However, there may come a time when you need to withdraw money from your