What is SIP Investment?
SIP (Systematic Investment Plan) is a way to invest in market-linked funds by regularly contributing a fixed amount of money at set intervals.
It is a disciplined approach that helps spread out investment risk and can lead to significant wealth accumulation over time through compounding. Tools like an SIP Return Calculator can help you make your investment decisions smarter.
- Insurance Companies
- Mutual Funds
|
Returns |
| Fund Name |
5 Years |
7 Years |
10 Years |
| Axis Max Life |
28.6% |
21.1% |
|
| Tata AIA Life |
27.04% |
21.38% |
|
| Bajaj Allianz |
20.99% |
12.88% |
|
| HDFC Life |
22.26% |
14.98% |
|
| ICICI Prudential Life |
20.26% |
13.48% |
|
| Birla Sun Life |
22.86% |
14.91% |
|
| PNB MetLife |
21.11% |
16.44% |
|
| Canara HSBC Life |
16.91% |
10.52% |
|
| LIC India |
10.95% |
- |
|
| SBI Life |
17.07% |
12.13% |
|
Fund rating powered by
Last updated: Aug 2025
| |
Returns |
| Fund Name |
3 Years |
5 Years |
10 Years |
| QUANT |
23.92% |
31.48% |
|
| PARAG PARIKH |
20.69% |
26.41% |
|
| EDELWEISS |
22.34% |
24.29% |
|
| KOTAK |
24.64% |
25.01% |
|
| MIRAE ASSET |
19.74% |
24.32% |
|
| PGIM INDIA |
14.75% |
23.39% |
|
| DSP |
18.41% |
22.33% |
|
| CANARA ROBECO |
20.05% |
21.80% |
|
| SUNDARAM |
18.27% |
18.22% |
|
Last updated: August 2025
What are Debt Funds?
Debt funds are a type of market-linked fund that primarily invests in fixed-income securities such as government and corporate bonds, treasury bills, and money market instruments.
These funds aim to provide steady income to investors with relatively lower risk compared to equity funds. The returns from debt funds are generated through interest payments and capital appreciation of the underlying securities.
They are suitable for investors seeking stability and regular income from their investments.
SIP Calculator
Monthly Investment
₹22.4 L
Top Funds with High Returns (Past 7 Years)
17.8%
High Growth Fund
20.21%
India Consumption Fund
14.99%
Accelerator Mid-Cap Fund II
15.24%
Global Equity Index Funds Strategy
12.96%
Opportunities Fund
15.79%
Multiplier
15.26%
Virtue II
10.92%
Equity II Fund
13.97%
Accelerator Fund
11.52%
Pension Dynamic Equity Fund
14.43%
Frontline Equity Fund
12.6%
Equity Pension
11.77%
Equity Top 250 Fund
14.93%
Growth Opportunities Plus Fund
13.69%
Future Apex Fund
13.87%
US Equity Fund
Volatility in Bond Funds
Bond funds have a reputation for being relatively stable investments but still can experience price fluctuations. This volatility is mainly caused by changes in interest rates.
-
Impact of Interest Rates on Bond Funds:
-
Inverse Relationship: Bond prices and interest rates have an inverse relationship. When interest rates rise, existing bonds with lower yields become less attractive, which causes their prices to fall. Conversely, when interest rates drop, the value of older bonds with higher yields goes up.
-
Duration Matters: The sensitivity of a bond fund to interest rate changes depends on its duration. Duration is a measure of a bond's average life, considering its coupon payments and maturity date. Generally, bond funds with longer durations will experience greater price fluctuations when interest rates change.
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Other Factors Influencing Bond Fund Volatility:
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Credit Quality: Bonds issued by borrowers with lower credit ratings (high-yield bonds) are typically more volatile than those from investment-grade issuers. This is because they carry a higher risk of default.
-
Foreign Currency Exposure: Bond funds that invest in bonds denominated in foreign currencies can be impacted by fluctuations in exchange rates.
Should You Do SIP in Debt Funds?
Investing in debt funds through best SIP plans can be a good way to invest in debt funds, even if you are in debt. Let us learn the reasons below:
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Disciplined Investing:
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SIP makes sure you invest a set amount regularly, helping you stick to a saving routine.
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No matter how the market behaves, you keep investing without making quick decisions.
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Rupee Cost Averaging:
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By investing regularly, you buy when prices are high and low, balancing out your overall investment cost.
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This way, you do not have to worry about timing the market perfectly.
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Power of Compounding:
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When you reinvest your earnings along with your initial investment, your money grows faster.
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Even if you are investing in debt funds, compounding helps your savings grow steadily over time.
-
Better Returns:
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Easy Access:
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With debt funds, it is easy to take your money out when you need it.
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Unlike fixed deposits, you can withdraw without facing penalties.
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Tax Benefits:
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If you keep your money in debt funds for more than 3 years, you will pay less tax on your earnings.
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This means you get to keep more of your profits in the long run.
