Debt Funds vs Fixed Deposits

Debt Fund
Pre-Tax Return Investment Amount Redeemed / Maturity Amount Total Interest / Profit Amount Annual Interest / Return (%)
Fixed Deposit 100000 107,101 7,101 7.08
HDFC Dynamic Debt Fund - Growth Option 100000 106,418 6,418 6.4
Post Tax Return Pre-tax Interest / Profit Amount Capital Gains Tax Indexed Amount Income / Capital Gains Tax Post Tax Interest / Profit Amount
Fixed Deposit 7,101 Not Applicable Not Applicable 2,130 4,970
HDFC Dynamic Debt Fund - Growth Option 6,418 Short Term Not Applicable 1,925 4,492

Note:

1. The Fixed deposit interest rate is based on historical State Bank of India Fixed deposit rates for different deposit terms.

2. Short Term in case of debt funds is defined as less than or equal to 3 years.

3. Long Term in case of debt funds is defined as more than 3 years.

4. Short term gain formula:

Short term capital gain = Amount realised - Amount invested

Short term capital gain tax = Short term capital gain * Tax rate of the investor

5. Long term gain formula:

Indexed cost of acquisition = Amount invested * (Index in Year of redemption / Index in year of investment)

Long term capital gain = Amount realised - Indexed Cost of Acquisition

Long term capital gain tax = Long term capital gain (post indexation) @ 20%

Top Performing Debt Mutual Funds
Scheme Name Launch Date Expense Ratio (%) 1-Year Ret (%) 2-Yrs Ret (%) 3-Yrs Ret (%) 5-Yrs Ret (%) 10-Yrs Ret (%) Since Launch Ret (%)
DSP Strategic Bond Fund - Regular Plan - Growth 09-05-2007 1.25 7.7 6.23 5.08 6.98 7.6 6.76
360 ONE Dynamic Bond Fund - Regular Plan - Growth Option 24-06-2013 0.52 7.28 6.13 6.04 6.42 7.4 6.69
Quantum Dynamic Bond Fund - Regular Plan Growth Option 05-04-2017 0.96 7.0 6.98 5.56 7.08 - 6.59
ICICI Prudential All Seasons Bond Fund - Growth 01-05-2009 1.31 6.93 6.96 5.81 7.57 8.81 8.35
Kotak Dynamic Bond Fund Regular Plan Growth 26-05-2008 1.31 6.88 5.73 5.12 6.88 7.83 7.94
Nippon India Dynamic Bond Fund-Growth Plan-Growth Option 05-11-2004 0.71 6.47 6.11 4.86 6.45 7.27 6.4
Axis Dynamic Bond Fund - Regular Plan - Growth Option 01-04-2011 0.57 6.45 6.22 4.96 7.21 7.84 7.85
HDFC Dynamic Debt Fund - Growth Option 28-04-1997 0.85 6.42 5.81 6.15 6.41 6.94 8.06
SBI Dynamic Bond Fund - Regular Plan - Growth 10-02-2004 1.45 6.38 6.78 5.17 7.18 7.85 5.96
UTI Dynamic Bond Fund - Regular Plan - Growth Option 23-06-2010 1.56 6.31 9.52 9.88 6.31 7.24 7.72
HSBC Dynamic Bond Fund - Regular Growth 01-01-2013 0.78 6.13 5.68 4.56 6.08 7.45 5.7
PGIM India Dynamic Bond Fund - Growth Option 12-01-2012 1.64 6.12 5.47 4.38 6.06 7.52 7.3
Aditya Birla Sun Life Dynamic Bond Fund - Growth - Regular Plan 27-09-2004 1.23 6.11 7.4 6.13 5.65 6.86 7.53
BANDHAN Dynamic Bond Fund - Regular Plan B - Growth 01-12-2008 1.64 6.07 5.32 4.3 6.77 7.67 7.57
ITI Dynamic Bond Fund - Regular Plan - Growth Option 14-07-2021 1.19 6.01 5.48 - - - 4.81
Baroda BNP Paribas Dynamic Bond Fund - Regular Plan - Growth Option 01-01-2013 1.69 5.9 6.24 4.66 5.7 6.93 7.13
Mahindra Manulife Dynamic Bond Fund - Regular Plan - Growth 01-08-2018 1.57 5.63 5.18 3.6 4.38 - 4.62
Mirae Asset Dynamic Bond Fund-Regular Plan Growth 05-03-2017 1.09 5.57 4.95 3.79 6.05 - 5.6
JM Dynamic Bond Fund (Regular) - Growth Option 25-06-2003 0.98 5.56 5.67 4.84 5.27 6.68 6.53
Union Dynamic Bond Fund - Growth Option 13-02-2012 1.52 5.54 5.27 3.82 5.95 6.4 6.3
Canara Robeco Dynamic Bond Fund - Regular Plan - Growth Option 29-05-2009 1.75 5.16 5.28 4.04 5.62 6.88 6.86
Groww Dynamic Bond Fund (formerly known as Indiabulls Dynamic Bond Fund) - Regular Plan - Growth option 30-11-2018 1.4518 5.02 4.87 4.32 5.49 - 5.68