Debt funds that beat FDs
Short-term, corporate bond, banking & PSU and gilt funds that have out-earned a typical 7% bank FD over three years. Since April 2023 debt fund gains are taxed at your slab rate, like FD interest — but tax is due only when you redeem, and there is no TDS.
| # | Fund | |||||
|---|---|---|---|---|---|---|
| 1 | B Gilt · 13+ yrs | ₹1,971 Cr | +7.3% | +8.0% | +6.4% | -4.1% |
| 2 | FT Corporate Bond · 13+ yrs | ₹1,308 Cr | +5.9% | +8.0% | +6.8% | -0.8% |
| 3 |  Dynamic Bond · 13+ yrs | ₹2,409 Cr | +5.0% | +7.8% | +6.5% | -2.4% |
| 4 | B Short Duration · 13+ yrs | ₹8,581 Cr | +5.9% | +7.7% | +6.5% | -1.8% |
| 5 | B Dynamic Bond · 13+ yrs | ₹2,044 Cr | +6.8% | +7.7% | +6.2% | -4.1% |
| 6 |  Short Duration · 13+ yrs | ₹20,798 Cr | +5.9% | +7.7% | +7.1% | -0.7% |
| 7 |  Short Duration · 13+ yrs | ₹8,708 Cr | +5.5% | +7.7% | +6.8% | -0.8% |
| 8 |  Dynamic Bond · 13+ yrs | ₹1,483 Cr | +5.2% | +7.6% | +7.2% | -1.2% |
| 9 | Corporate Bond · 9+ yrs | ₹8,488 Cr | +5.1% | +7.6% | +6.8% | -0.9% |
| 10 |  Short Duration · 13+ yrs | ₹7,199 Cr | +5.3% | +7.6% | +6.7% | -1.2% |
1Y/3Y/5Y are CAGR (annualised). Fund size is average AUM across all plans for June 2026. Worst fall = biggest peak-to-trough drop in the last 5 years.
How this list is built
- Short duration, corporate bond, banking & PSU, money market, gilt and dynamic bond funds
- At least 3 years of history and ₹1,000 Cr fund size
- 3-year CAGR of 7% or more and 3-year volatility under 4%
- Ranked by 3-year CAGR, top 10 shown
- Direct Plan – Growth option only; rules run automatically on the latest AMFI data (last run 6 Oct 2026)
This is a rules-based screen, not a personal recommendation. Past returns do not predict future returns, and a fund that suits one investor may not suit another.
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Mutual fund investments are subject to market risks, read all scheme related documents carefully. Past performance is not indicative of future returns. NAV data: AMFI, via the open TigZig MF NAV API, as of 5 Oct 2026. Fund size: AMFI quarterly average AUM. Holdings: each AMC’s SEBI-mandated monthly portfolio disclosure. Shown for information only — not a recommendation to buy, sell or hold any scheme.