Saturday, May 13, 2023
HomeMutual FundAre there any debt index funds in India?

Are there any debt index funds in India?

A subscriber to our YouTube channel writes, “Do we have any debt fund like benchmark Nifty 50 Index fund for 7-10 years period. I just want to follow only one fund. Of course, the major chunk is EPF, PPF, and ESOP. This is to build slowly in debt space for a future 25% allocation”.

“I simplified my equity portfolio to Nifty 50 with ICICI Pru N50 Index Fund for retirement with 25-30% allocation for the past 3-4 years to avoid FM risk, ER & easy maintenance—super simple & no headache. I’m 49, already close to my FIRE. But still working in the corporate world to keep me busy for 4-5 years.”

Learning that you have simplified your equity portfolio with index funds is fantastic. There are two types of debt-based passive funds in India. (1) Target Maturity Funds, which would buy and hold an index portfolio and hold it until maturity, thereby reducing interest rate risk at the time of withdrawal. The credit risk in funds is also relatively low as they typically invest in gilts and state development loans. For more information, refer to FAQ: Target Maturity Debt Mutual Funds.

(2) There are also open-ended passive debts. Most of them are ETFs, and to our knowledge, there is only one open-ended index fund – the recently launched Edelweiss Short Duration Index Fund. This is their list as of 17h Feb 2023.

List of debt index funds in India (open-ended)

  1. Edelweiss CRISIL IBX 50:50 Gilt Plus SDL Short Duration Index Fund
  2. ICICI Pru Nifty 10 yr Benchmark G-Sec ETF
  3. ICICI Pru Nifty 5 yr Benchmark G-SEC ETF
  4. ICICI Pru S&P BSE Liquid Rate ETF
  5. Kotak Nifty 1D Rate Liquid ETF
  6. LIC MF Nifty 8-13 yr G-Sec ETF
  7. Motilal Oswal Nifty 5 Year Benchmark G-Sec ETF
  8. Nippon India ETF Nifty 1D Rate Liquid BeES
  9. Nippon India ETF Nifty 5 yr Benchmark G-Sec
  10. Nippon India ETF Nifty 8-13 yr G-Sec Long Term Gilt
  11. SBI Nifty 10 yr Benchmark G-Sec ETF

We are not sure why you want to invest in a passive debt fund for only 7-10 years. If this is part of your retirement portfolio, the investment can continue even after retirement.

If you are planning for a goal other than retirement that is 7-10 years away and want a passive debt fund option, you can consider a target maturity fund that matures a little before your goal deadline.

If you are looking for a passive debt fund for retirement that you can hold on to during the withdrawal stage, then Edelweiss CRISIL IBX 50:50 Gilt Plus SDL Short Duration Index Fund may be considered. Read our fund review and appreciate the pros and cons before investing.

Do share this article with your friends using the buttons below.

🔥Enjoy massive discounts on our courses and robo-advisory tool! 🔥

Use our Robo-advisory Excel Tool for a start-to-finish financial plan! More than 1000 investors and advisors use this!

New Tool! => Track your mutual funds and stocks investments with this Google Sheet!

  • Follow us on Google News.
  • Do you have a comment about the above article? Reach out to us on Twitter: @freefincal or @pattufreefincal
  • Join our YouTube Community and explore more than 1000 videos!
  • Have a question? Subscribe to our newsletter with this form.
  • Hit ‘reply’ to any email from us! We do not offer personalized investment advice. We can write a detailed article without mentioning your name if you have a generic question.

Get free money management solutions delivered to your mailbox! Subscribe to get posts via email!

Explore the site! Search among our 2000+ articles for information and insight!

About The Author

Pattabiraman editor freefincalDr M. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. He has over nine years of experience publishing news analysis, research and financial product development. Connect with him via Twitter or Linkedin, or YouTube. Pattabiraman has co-authored three print books: (1) You can be rich too with goal-based investing (CNBC TV18) for DIY investors. (2) Gamechanger for young earners. (3) Chinchu Gets a Superpower! for kids. He has also written seven other free e-books on various money management topics. He is a patron and co-founder of “Fee-only India,” an organisation promoting unbiased, commission-free investment advice.

Our flagship course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! More than 3000 investors and advisors are part of our exclusive community! Get clarity on how to plan for your goals and achieve the necessary corpus no matter what the market condition is!! Watch the first lecture for free!  One-time payment! No recurring fees! Life-long access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence.

Our new course!  Increase your income by getting people to pay for your skills! More than 700 salaried employees, entrepreneurs and financial advisors are part of our exclusive community! Learn how to get people to pay for your skills! Whether you are a professional or small business owner who wants more clients via online visibility or a salaried person wanting a side income or passive income, we will show you how to achieve this by showcasing your skills and building a community that trusts you and pays you! (watch 1st lecture for free). One-time payment! No recurring fees! Life-long access to videos!   

Our new book for kids: “Chinchu gets a superpower!” is now available!

Both boy and girl version covers of Chinchu gets a superpower
Both boy and girl version covers of Chinchu gets a superpower.

Most investor problems can be traced to a lack of informed decision-making. We have all made bad decisions and money mistakes when we started earning and spent years undoing these mistakes. Why should our children go through the same pain? What is this book about? As parents, what would it be if we had to groom one ability in our children that is key not only to money management and investing but to any aspect of life? My answer: Sound Decision Making. So in this book, we meet Chinchu, who is about to turn 10. What he wants for his birthday and how his parents plan for it and teach him several key ideas of decision making and money management is the narrative. What readers say!

Feedback from a young reader after reading Chinchu gets a Superpower (small version)
Feedback from a young reader after reading Chinchu gets a Superpower!

Must-read book even for adults! This is something that every parent should teach their kids right from their young age. The importance of money management and decision making based on their wants and needs. Very nicely written in simple terms. – Arun.

Buy the book: Chinchu gets a superpower for your child!

How to profit from content writing: Our new ebook for those interested in getting side income via content writing. It is available at a 50% discount for Rs. 500 only!

Want to check if the market is overvalued or undervalued? Use our market valuation tool (it will work with any index!), or you buy the new Tactical Buy/Sell timing tool!

We publish monthly mutual fund screeners and momentum, low volatility stock screeners.

About freefincal & its content policy Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on mutual funds, stocks, investing, retirement and personal finance developments. We do so without conflict of interest and bias. Follow us on Google News. Freefincal serves more than three million readers a year (5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified from credible and knowledgeable sources before publication. Freefincal does not publish any paid articles, promotions, PR, satire or opinions without data. All opinions presented will only be inferences backed by verifiable, reproducible evidence/data. Contact information: letters {at} freefincal {dot} com (sponsored posts or paid collaborations will not be entertained)

Connect with us on social media

Our publications

You Can Be Rich Too with Goal-Based Investing

You can be rich too with goal based investingPublished by CNBC TV18, this book is meant to help you ask the right questions and seek the correct answers, and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now.

Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want Gamechanger: Forget Start-ups, Join Corporate and Still Live the Rich Life you wantThis book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at a low cost! Get it or gift it to a young earner.

Your Ultimate Guide to Travel

Travel-Training-Kit-Cover-new This is an in-depth dive analysis into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, and how travelling slowly is better financially and psychologically with links to the web pages and hand-holding at every step. Get the pdf for Rs 300 (instant download)




Please enter your comment!
Please enter your name here

- Advertisment -
Google search engine

Most Popular

Recent Comments