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An analysis of performance of debt funds across 7 categories shows that majority of actively managed debt funds did not beat their respective benchmark in the 1-year period ending on June 2023.
We have analysed one-year performance of banking and PSU funds, corporate bond funds, credit risk funds, dynamic bond funds, floater funds and gilt funds.
Surprisingly, not a single fund in credit risk fund and gilt fund with 10-Y constant term funds has outperformed its benchmark.
Let us look at the report card of debt funds based on their 1-year performance as on June 2023:
Banking and PSU Funds
Of the 22 banking and PSU funds, 2 funds have managed to outperform their benchmark in 1-year period. These funds are Edelweiss Banking and PSU Debt Fund and ICICI Prudential Banking & PSU Debt Fund.
Corporate Bond Fund
Only 1 scheme, ICICI Prudential Corporate Bond Fund in this category has outperformed its benchmark by delivering excess returns of 28 bps over the last 1-year period ending on June 2023. The rest i.e. 19 out of 20 schemes underperformed their benchmark.
Credit Risk Fund
All the 15 funds in this category have underperformed their benchmark. In fact, the underperformance is up to over 4% in a few schemes.
Dynamic Bond Fund
Our analysis shows that of the total 22 schemes, 2 schemes - Aditya Birla Sun Life Dynamic Bond Fund and Nippon India Dynamic Bond Fund have outperformed their respective benchmark by 1.14% and 0.12%, respectively.
Floater funds
2 out of 12 floater funds have beaten their benchmark in 1-year period. ICICI Prudential Floating Interest Fund and HDFC Floating Rate Debt Fund are the top performers in their category.
Gilt Funds
The sole scheme that surpassed its benchmark among the 22 schemes in this category is ICICI Prudential Gilt Fund.
Gilt with 10 y constant duration
While not a single funds have beaten their respective benchmarks, the underperformance in this category is marginal as it ranges between 24 bps and 52 bps.
Click here to see the complete list of funds. Outperformers marked in yellow.
