Why invest in Debt Mutual Funds?

Mutual funds are not just about equities that provide growth; it is also about bringing stability to your investment portfolio with investments in debt funds. A debt fund is a mutual fund scheme that invests in fixed income instruments, such as bonds, corporate debt securities and money market instruments, which are less volatile compared to equities. Investments in short-term debt funds are suitable for short- to mid-term goals and for investors who want regular income and are risk-averse. Debt funds are liquid with the potential to earn higher returns compared to traditional fixed income instruments.

Different Debt Funds for Different Goals

Time horizon Some Situation where you can consider investing Type of Scheme
Few days to few months Emergency funds, Surplus money, Alternative to savings account, Household expenses PGIM India Overnight Fund:
Park surplus funds and manage short term liquidity for as low as 1 Day,
PGIM India Insta Cash Fund:
Cash Management. Any money over 7 Days
Few months to 1 year House maintenance, New gadgets, Advance tax PGIM India Ultra Short Term Fund:
Investors looking to park their funds for a period over 3 Months,
PGIM India Low Duration Fund:
For money over 6 months. Positioned between Ultra Short and Short Maturity. Accrual Strategy,
PGIM India Short Maturity Fund:
Actively managed Short Maturity Fund with a mix of PSU and Corporate bonds
PGIM India Money Market Fund:
Investors looking to park their funds for 4 to 6 months
1 to 3 Years Car purchase, down-payment for home PGIM India Banking & PSU Debt Fund:
Actively managed fund with 80% allocation to Banking and PSU bonds,
PGIM India Credit Risk Fund (Number of Segregated Portfolios 1):
Accrual fund with medium maturity,
PGIM India Dynamic Bond Fund:
Dynamically managed duration fund investing across the curve by identifying best opportunities on the yield curve
3 to 5+ years Approaching long-term goals like child’s education and retirement PGIM India Premier Bond Fund:
High Quality portfolio investing predominantly in Corporate Bonds. Minimum 80% portfolio allocation will be in Corporate Bonds,
PGIM India Gilt Fund:
Actively managed medium / long duration fund