How to Evaluate a Mutual Fund Scheme Performance – Debt
Now that we have had a look at some of the top equity mutual fund schemes, let us understand the performance of debt funds as well.
Debt fund performance can also be measured using similar ratios as equity – alpha, beta, Treynor's ratio, rolling returns, etc. However, while evaluating the performance of debt mutual funds, the time horizon considered will depend on the kind of debt funds.
Here is the top debt mutual fund in India category-wise.
Since liquid funds invest in instruments with a maximum maturity of 91 days, we will consider short time horizons while evaluating their returns. Here are the top 5 direct liquid funds of India with the highest 3-month returns.
Money Market Funds
Since money market funds invest in debt instruments with a maximum maturity of 1-year, we have listed the top 5 money market funds – direct plans based on the highest 1-year returns below:
Dynamic Bond Fund
Dynamic bond funds invest in debt instruments with maturity between 1-5 years. Hence, we have taken 3-year returns for listing the top 5 dynamic bond funds (direct plan).
We have taken 3-year returns for listing the top 5 mutual funds in this category.
Corporate Bond Funds
We have categorized 3-year returns for listing the top 5 corporate bond funds: