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An analysis of the one-year performance of debt funds for the period ending in June 2024 shows that very few debt funds have managed to outperform their benchmark.
In fact, the number of underperforming schemes outstrips the outperformers in all categories barring the floater funds category.
Let’s look at the one-year report card of the debt fund categories based on their AUM:
Liquid funds
- Bank of India Liquid Fund is the only fund in the liquid category that outperformed its benchmark with 0.04% outperformance in a one-year period
Money market funds
- Out of the 22 schemes in this category, only 4 schemes outperformed the benchmark with a small margin
- Aditya Birla Sun Life Money Manager Fund and Nippon India Money Market Fund are the top two funds that generated alpha of 0.05% and 0.03%, respectively
- Tata Money Market Fund and UTI Money Market Fund are the next two funds in the category
Corporate bond funds
- Of the total 22 schemes, 5 schemes or 23% of the funds in this category managed to beat their benchmark
- Aditya Birla Sun Life Corporate Bond Fund (0.55%) and HDFC Corporate Bond Fund (0.54%) are the top two funds in this category
- Next three funds in this category are ICICI Prudential Corporate Bond Fund, Kotak Corporate Bond Fund and Nippon India Corporate Bond Fund
Short duration funds
- Only two funds in this category managed to outperform its benchmark
- ICICI Prudential Short Term Fund generated excess returns of 0.19%, followed closely by HDFC Short Term Debt Fund with an alpha of 0.18%
Low duration funds
- ICICI Prudential Savings Fund is the only fund in the low duration category that beat its benchmark with an alpha of 0.38%
Ultra-short duration funds
- Not a single fund in this category managed to beat its benchmark
- Aditya Birla Sun Life Savings Fund (-0.14) and Mirae Asset Ultra Short Duration Fund (-0.21) are the two funds with the least underperformance
Overnight Funds
- Of the total 30 schemes in the overnight fund category, only 1 scheme outperformed its benchmark
- Quant Overnight Fund is the only scheme that managed to beat its benchmark with an alpha of 0.35%
Banking and PSU Funds
- In this category, only 4 schemes outperformed the benchmark out of 21 schemes
- ICICI Prudential Banking & PSU Debt Fund and DSP Banking & PSU Debt Fund are top funds that beat their benchmark with alpha of 0.40% and 0.34%, respectively
- Invesco India Banking and PSU Fund (0.13) and Kotak Banking and PSU Debt Fund (0.01) are the next two in the list
Floating Funds
- Of the total 13 schemes in this category, 9 schemes outperformed its benchmark
- DSP Floater Fund and SBI Floating Rate Debt Fund outperformed their respective benchmarks by 1.20% and 1.04%, respectively
- HDFC Floating Rate Debt Fund and Baroda BNP Paribas Floater Fund are the next two in the list with outperformance of 0.68% and 0.59%, respectively
Gilt Funds
- Out of 23 schemes in this category, 5 schemes beat their benchmark
- Bandhan GSF Investment Fund (1.80% outperformance) and DSP Gilt Fund (0.93% outperformance) are the top two funds
- Axis Gilt Fund in the next in the list with outperformance of 0.69%, followed closely by Invesco India Gilt Fund with alpha of 0.66% and Edelweiss Government Securities Fund with outperformance of 0.46%
Click here to see the complete list of scheme performance across categories. Outperformers highlighted in yellow.
