Best Debt Mutual Funds
Debt funds make investments in securities and fixed-income bonds issued by businesses and the government. These fixed-income securities may include money market instruments, government securities, corporate bonds, and Treasury bills.
The least hazardous mutual funds are debt funds, particularly when contrasted with stocks. When compared to conventional savings products, these funds may provide an investor the opportunity to generate higher returns.
Thus, the least amount of volatility and consistent income are guaranteed to debt fund investors. Check out the top debt funds available on the market in 2025.
List of Debt Mutual Funds in India
| Fund Name | Category | Risk Level | 1Y Return | 3Y Return | AUM (Cr) | Rating |
| HDFC Income Plus Arbitrage Active FoF | FoF | Moderate | 6.50% | 13.30% | ₹2,345 | 5★ |
| Invesco India Credit Risk Fund | Credit Risk | Moderate | 7.60% | 10.50% | ₹161 | 5★ |
| 360 ONE Dynamic Bond Fund | Dynamic Bond | Mod. High | 7.20% | 8.40% | ₹625 | 5★ |
| Franklin India Corporate Debt Fund | Corporate Bond | Moderate | 9.10% | 8.20% | ₹1,350 | 5★ |
| Kotak Floating Rate Fund | Floater | Moderate | 7.90% | 8.20% | ₹3,455 | 5★ |
| Nippon India Dynamic Bond Fund | Dynamic Bond | Moderate | 6.90% | 8.10% | ₹4,084 | 5★ |
| Axis Short Duration Fund | Short Duration | Moderate | 7.60% | 8.00% | ₹11,859 | 5★ |
| ICICI Prudential Corporate Bond Fund | Corporate Bond | Moderate | 7.20% | 7.90% | ₹33,237 | 5★ |
| ICICI Prudential Savings Fund | Low Duration | Low-Mod | 7.40% | 7.80% | ₹31,283 | 5★ |
| Tata Money Market Fund | Money Market | Low-Mod | 7.20% | 7.60% | ₹36,819 | 5★ |
| ICICI Prudential Gilt Fund | Gilt | Moderate | 5.30% | 7.80% | ₹10,023 | 5★ |
| SBI Magnum Medium Duration Fund | Medium Dur. | Mod. High | 8.00% | 8.20% | ₹6,945 | 3★ |
| Fund Name | Category | Risk Level | 1Y Return | 3Y Return | AUM (in Cr) |
| HDFC Income Plus Arbitrage Active FoF | Debt (FoF) | Moderate | 6.50% | 13.30% | ₹2,345 |
| 360 ONE Dynamic Bond Fund | Dynamic Bond | Mod. High | 7.20% | 8.40% | ₹625 |
| ICICI Prudential Short Term Fund | Short Duration | Moderate | 7.70% | 8.20% | ₹22,852 |
| Franklin India Corporate Debt Fund | Corporate Bond | Moderate | 9.10% | 8.20% | ₹1,350 |
| Kotak Floating Rate Fund | Floater | Moderate | 7.90% | 8.20% | ₹3,455 |
| SBI Magnum Medium Duration Fund | Medium Dur. | Mod. High | 8.00% | 8.20% | ₹6,945 |
| Nippon India Dynamic Bond Fund | Dynamic Bond | Moderate | 6.90% | 8.10% | ₹4,084 |
| Axis Short Duration Fund | Short Duration | Moderate | 7.60% | 8.00% | ₹11,859 |
| ICICI Prudential Debt Management Fund | Med-Long Dur. | Mod. High | 8.10% | 8.00% | ₹110 |
| ICICI Prudential Corporate Bond Fund | Corporate Bond | Moderate | 7.20% | 7.90% | ₹33,237 |
| Nippon India Banking & PSU Debt | Banking & PSU | Moderate | 7.70% | 8.00% | – |
| Groww Short Duration Fund | Short Duration | Moderate | 7.50% | 7.50% | ₹94 |
Top Debt fund : Based on Rating:
