A DSP debt mutual fund is a popular choice among investors looking to invest in debt funds. This fund invests in debt securities issued by governments, corporations, and other financial institutions. This is a suitable fund for generating regular income and diversifying your investment portfolio. These funds are considered less risky compared to equity funds but not completely risk-free.
In this article, we will cover the top 3 DSP debt funds to help you make an informed decision.
Top 3 DSP Debt Mutual Funds:
If one is interested in investing in DSP debt mutual funds, looking at their historic returns is the best way to find reliable debt funds.
As of August 2024, DSP Strategic Bond Fund, DSP Gilt Fund, and DSP Short-Term Fund are performing very consistently. The performance of these 3 top performing DSP debt mutual funds is discussed below.
1. DSP Strategic Bond Fund
DSP Strategic Bond Fund is a dynamic bond fund with moderate risks. The fund has been operating for 17 years since 2007. As of August 30th, 2024, the DSP Strategic Bond Fund has already delivered a competitive return of 9.01%, making it one of the best debt MF.
This fund’s total AUM was ₹1169.42 crores, and the annual expense ratio is 1.19%. As of August 30th, 2024, the current NAV is ₹3181.
2. DSP Gilt Fund
DSP Gilt Fund has a highly liquid portfolio with a 24-year track record. DSP It has moderate risk with annual returns of 9.44%.
As of July 31st, 2024, this fund’s total AUM was ₹1080.98 crore, and its expense ratio is 1.25%. At present, the NAV of this fund is ₹90.35.
3. DSP Short-Term Fund
DSP Short Term Fund is a short-duration debt fund for which the ideal holding period is 1 year. It has been running since September 9th, 2002. This fund has given an annual return of 7.15% for the past year.
The total AUM of this fund as of July 31st, 2024 was ₹2892.55 crore. The expense ratio of this fund was 0.93% with an NAV of ₹47.57.
DSP Debt Funds vs Peers
Comparing the performance of the top three DSP mutual funds with that of other debt mutual funds will give a better insight into their performance. To get a comprehensive peer comparison, you can consider the following chart:
| Scheme Name | NAV | AUM | 1 Year Return Absolute Return | 3 Year Return Absolute Return |
| DSP Strategic Bond Fund | ₹3185.61 | ₹1169.42 Crore | 9.11% | 19.31% |
| DSP Gilt Fund | ₹90.53 | ₹1080.98 Crore | 9.54% | 19.85% |
| DSP Short-Term Fund | ₹43.54 | ₹2892.55 Crore | 7.19% | 16.11% |
| Kotak Dynamic Bond Fund – Regular Plan-Growth | ₹35.27 | ₹2599.58 Crore | 9.33% | 18.58% |
| Bandhan Dynamic Bond Fund | ₹32.41 | ₹2448.60 Crore | 10.19% | 17.28% |
| 360 ONE Dynamic Bond Fund | ₹20.98 | ₹772.93 Crore | 9.08% | 19.87% |
| Quantum Dynamic Bond Fund | ₹20.10 | ₹101.58 Crore | 9.05% | 21.02% |
| HDFC Dynamic Debt Fund | ₹84.55 | ₹721.17 Crore | 8.57% | 16.04% |
Conclusion:
DSP debt mutual funds is a diversified investment system where the top three performers mentioned above delivered returns above their benchmarks. Despite the market condition in the last year, these funds have provided attractive options with lower risks. However, investors should consider their long-term goals and risk appetite before investing.
