Debt mutual funds are investment vehicles that provide a tool for fund selection, portfolio tracking, and learning [6b610c44]. They offer information on the credit quality and bond maturity profile of the funds, allowing users to understand the credit and interest rate risks associated with different funds [6b610c44]. One important development in the field of debt mutual funds is the introduction of the Potential Risk Class (PRC) matrix by SEBI in India [03b392f1]. The PRC matrix is a framework that measures the maximum level of risk a fund can take [03b392f1]. It consists of a 3x3 grid that reveals the credit quality of the fund based on the maximum interest rate risk and maximum credit risk [03b392f1]. Each debt scheme is placed in one of the grids in the PRC matrix, helping investors choose the right debt fund [03b392f1]. It is suggested that SEBI should instruct asset management companies (AMCs) to provide more visibility and educate investors about the PRC matrix [03b392f1]. Users of the debt and hybrid mutual fund screener are advised to verify the data with the fund factsheet downloaded from the AMC site [6b610c44]. The screener does not provide personalized investment advice and the user is responsible for any gains or losses in their investments [6b610c44].
Banking & PSU Debt Funds are a sub-category of debt mutual funds that predominantly invest in top-rated corporate debt instruments issued by Banks, Public Sector Undertaking (PSUs), Public Financial Institutions (PFIs), Municipal bonds, and other such securities [158c003f]. These funds are moderately sensitive to interest rates and potentially benefit from regular coupon payouts on bonds [158c003f]. The primary investment objective of Banking & PSU Debt Funds is to generate reasonable returns while maintaining an optimal balance of yield, safety, and liquidity [158c003f]. The article recommends three top-performing Banking & PSU Debt Funds for 2024: ICICI Prudential Banking & PSU Debt Fund, Bandhan Banking & PSU Debt Fund, and HDFC Banking & PSU Debt Fund [158c003f]. It provides information about the portfolio characteristics, average maturity, and fund managers of each fund [158c003f]. The article also highlights the importance of considering credit risk and interest rate risk when investing in these funds [158c003f]. It mentions the tax implications for Indian residents and NRIs investing in debt mutual funds [158c003f]. The author advises investors to make informed decisions based on their risk appetite and investment horizon [158c003f].
In a recent article by Fortune India, the best-performing debt funds in different categories are discussed [33b81ae9]. Ultra-short duration funds, such as Nippon India Money Market Gr, had rolling returns of 4.89% and maintained a conservative duration of 120-180 days [33b81ae9]. Short-duration funds, like ICICI Pru Banking & PSU Debt Gr, benefited from strong economic fundamentals and focusing on yield to maturity (YTM)-accrual based strategies [33b81ae9]. Long-duration funds, such as ICICI Pru All Seasons Bond, delivered 5.10% rolling returns and had flexibility in terms of duration and asset types [33b81ae9]. Corporate bond funds, like ICICI Pru Corporate Bond Gr, posted average returns of 5.93% and invested in floating rate bonds [33b81ae9]. The article also mentions the top performers in each category and their strategies [33b81ae9].