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An analysis done by Cafemutual of one-year performance of debt funds for the one-year period ending in March 2024 reveals that majority of debt funds did not beat their benchmark.
However, in a few categories like dynamic bond funds and floater funds, couple of schemes did well. In fact, both these categories delivered healthy returns in the one-year period.
Let’s look at the one-year performance of debt fund categories based on their AUM:
Corporate Bond Fund
- HDFC Corporate Bond Fund was the only scheme in this category that outperformed its benchmark with marginal alpha of 0.01% in one-year period
Low Duration Fund
- ICICI Prudential Savings Fund was the only scheme in low duration fund category beating its benchmark by 0.23% in one-year period
Banking and PSU Debt Fund
- Not a single scheme in banking and PSU fund category managed to beat benchmark in one-year period
- HDFC Banking and PSU Debt Fund, Sundaram Banking & PSU Fund and Franklin India Banking & PSU Debt Fund have the least underperformance rate of -0.09%, -0.19% and -0.29%, respectively
Floater Fund
- Of the 12 schemes in this category, 6 schemes outperformed their benchmark
- DSP Floater Fund, SBI Floating Rate Debt Fund and ICICI Prudential Floating Interest Fund were the top three funds with alpha of 0.94%, 0.58% and 0.40%, respectively
Gilt Fund
- Only 4 out of 24 schemes outperformed their benchmark
- DSP Gilt Fund and Bandhan GSF Investment Fund were the top two funds which generated alpha of 0.69% each
- Axis Gilt Fund and Invesco India Gilt Fund were the next two funds with alpha of 0.12% and 0.01%, respectively
Dynamic Bond Fund
- Of the 22 schemes, 7 schemes outperformed their benchmark in one-year period
- DSP Strategic Bond Fund, Bandhan Dynamic Bond Fund and Quantum Dynamic Bond Fund were the top three funds
Medium Duration Fund
- Only Axis Strategic Bond Fund generated alpha (0.17%) under this category
Long Duration
- Of the total 7 schemes, 3 schemes managed to outperform
- SBI Long Duration Fund, Nippon India Nivesh Lakshya Fund and HDFC Long Duration Debt Fund were the three funds which generated alpha of 1.25%, 0.57% and 0.13%, respectively
Medium to Long Duration Fund
- ICICI Prudential Bond Fund is the only scheme that managed to generate alpha of 0.26%
Gilt 10-Year Duration fund
- No fund under this category managed to beat their benchmark
- Bandhan Government Securities Fund Constant Maturity Plan (-0.02%), ICICI Prudential Constant Maturity Gilt Fund (-0.20%) and DSP 10Y G-Sec Fund (-0.22%) have the least underperformance rate
Click here to see the complete report. Outperformers marked in yellow.
