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 105,095 5,095 5.09
HDFC Dynamic Debt Fund - Growth Option 100000 101,227 1,227 1.23
Post Tax Return Pre-tax Interest / Profit Amount Capital Gains Tax Indexed Amount Income / Capital Gains Tax Post Tax Interest / Profit Amount
Fixed Deposit 5,095 Not Applicable Not Applicable 1,528 3,566
HDFC Dynamic Debt Fund - Growth Option 1,227 Short Term Not Applicable 368 859

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 (%)
UTI Dynamic Bond Fund - Regular Plan - Growth Option 23-06-2010 1.56 9.6 10.39 8.75 5.2 7.6 7.86
Aditya Birla Sun Life Dynamic Bond Fund - Growth - Regular Plan 27-09-2004 1.18 5.82 5.66 6.68 4.81 7.04 7.61
Aditya Birla Sun Life Dynamic Bond Fund-Discipline Advantage Plan-Growth 30-03-2009 1.18 5.82 5.65 6.67 4.8 7.03 7.31
SBI Dynamic Bond Fund - Regular Plan - Growth 10-02-2004 1.64 4.29 3.18 5.65 6.64 7.66 5.91
Quantum Dynamic Bond Fund - Regular Plan Growth Option 01-04-2017 0.73 4.15 4.02 5.87 6.26 - 6.48
ICICI Prudential All Seasons Bond Fund - Growth 01-05-2009 1.38 4.12 4.45 6.97 7.24 9.31 8.48
JM Dynamic Bond Fund (Regular) - Growth Option 25-06-2003 0.98 3.91 3.48 4.85 5.67 7.01 6.58
IIFL Dynamic Bond Fund - Regular Plan - Growth Option 24-06-2013 0.52 3.36 4.65 5.77 6.0 - 6.61
ITI Dynamic Bond Fund - Regular Plan - Growth Option 05-07-2021 1.2 3.33 - - - - 3.81
Edelweiss Money Market Fund - Regular Plan - Growth Option 27-06-2008 0.98 3.22 3.03 4.07 5.99 6.68 6.24
Indiabulls Dynamic Bond Fund - Regular Plan - Growth option 30-11-2018 0.74 2.49 3.07 4.43 - - 5.76
Canara Robeco Dynamic Bond Fund - Regular Plan - Growth Option 29-05-2009 1.75 2.48 1.99 4.35 5.02 7.25 6.98
PGIM India Dynamic Bond Fund - Growth Option 12-01-2012 1.58 2.17 2.49 4.6 5.99 7.37 7.45
Kotak Dynamic Bond Fund Regular Plan Growth 26-05-2008 1.3 2.14 3.04 5.65 6.99 8.17 8.07
Axis Dynamic Bond Fund - Regular Plan - Growth Option 01-04-2011 0.66 1.8 3.09 6.05 6.96 7.81 7.99
IDBI Dynamic Bond Fund Growth 21-02-2012 1.17 1.73 3.7 5.6 5.06 5.55 5.81
Nippon India Dynamic Bond Fund-Growth Plan-Growth Option 05-11-2004 0.69 1.41 2.71 5.18 5.57 7.25 6.36
HDFC Dynamic Debt Fund - Growth Option 28-04-1997 1.75 1.23 4.78 5.94 4.86 6.99 8.15
Mirae Asset Dynamic Bond Fund-Regular Plan Growth 05-03-2017 1.11 1.14 1.96 4.59 5.72 - 5.56
DSP Strategic Bond Fund - Regular Plan - Growth 09-05-2007 1.14 1.12 2.05 5.33 6.26 7.53 6.66
IDFC Dynamic Bond Fund - Regular Plan B - Growth 01-12-2008 1.62 0.92 1.72 5.22 6.34 7.71 7.66
Mahindra Manulife Dynamic Bond Yojana - Regular Plan - Growth 01-08-2018 1.61 0.66 1.78 3.03 - - 4.21
Baroda BNP Paribas Dynamic Bond Fund - Regular Plan - Growth Option 01-01-2013 1.69 - - - - - 3.02
Baroda BNP Paribas Dynamic Bond Fund-Defunct Plan - Growth Option 01-01-2013 0.0 - - - - - 3.17
Union Dynamic Bond Fund - Growth Option 13-02-2012 1.51 -0.1 1.35 4.25 5.26 6.18 6.33