Mutual fund investing: 7 debt funds delivered maximum returns in the past ten years

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Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) opted to maintain the repo rate at 6.5 per cent, extending a streak of five consecutive meetings with no changes. This decision, as anticipated by analysts, underscores the MPC’s prudent strategy of carefully managing inflationary concerns while concurrently fostering economic growth.

Unchanging interest rates bring positive implications for debt investments. This is because a decrease in interest rates elevates the value of debt securities.

Investors may occasionally neglect debt funds in comparison to equity funds. One factor contributing to this tendency is the simplicity of comprehending equity funds, as monitoring stock price fluctuations on various platforms is straightforward.

Nonetheless, when compared to equities, debt funds typically present lower potential returns in the long run. The relationship between bond prices and returns is inversely linked to interest rates.

Stable or declining interest rates may result in increased bond prices but also potential capital losses. There are various debt funds to invest from, though a lot depends on which parameters you consider before investing in any one or more of them.Name of the debt fund5-year returns (in %)10-year returns (in %)Kotak Low Duration Fund6.847.98Aditya Birla Sun Life Low Duration Fund6.957.83ICICI Prudential Savings Fund6.757.60HDFC Low Duration Fund6.827.54Axis Treasury Advantage Fund6.587.47Nippon India Low Duration Fund6.487.42Baroda BNP Paribas Low Duration Fund6.477.41 To address diverse investment objectives and risk tolerances, a variety of debt funds are accessible: Money market funds: These funds invest in short-term debt instruments such as treasury bills and commercial