Best Mahindra Debt Mutual Funds 2025 Full Guide
In the case of investing in debt mutual funds, safety, predictability in returns and reliable fund management are very important. Mahindra Mutual fund, which is a subsidiary of Mahindra Group, has become a favorite brand among the Indian investors seeking to have a stable growth of their investment portfolio in short and medium term. In this article, the author has given a detailed account of the top Mahindra debt mutual funds of 2025, the recent performance, characteristics, advantages, and the comparisons of the mutual funds in the present financial market.
What Are Mahindra Debt Mutual Funds?
Debt mutual funds are funds that mainly use your money in securities that are fixed incomes such as government bonds, corporate debentures, treasury bills, and money market. Mahindra has a number of debt mutual funds that serve different investment tenures, risk preferences and financial objectives of Indian investors.
These are comparatively safer than equity funds, and so very appropriate to the conservative investors or those who need to diversify their portfolio with reduced market volatility.
Why Mahindra Debt Mutual Funds should be considered in 2025?
As the Indian economy is indicative of steady growth and the Reserve Bank of India has a balanced rate policy, debt mutual funds, particularly by renowned fund houses such as Mahindra, have a promising future of providing consistent performance in 2025. They are professional managed funds that can be used by conservative investors, retirees and all those who need regular income opportunities.
Did you know? Many investors have substituted their usual fixed deposits with post tax better and more flexible debt mutual funds in 2025.
The Debt mutual funds are considered the best Mahindra in 2025:
The following are the best performing Mahindra debt funds:
Mahindra Manulife Low Duration Fund.
Key Features or Highlights
- Invests primarily in short term papers of an average of 6 to 12 months of maturity.
- Although relatively low risk in comparison with long duration funds.
- Intended to attract conservative investors to get higher returns than in a savings account.
Pros
- Appropriate in the short-term objectives.
- Lower interest rate risk
- Excellent liquidity and fast redemption.
Cons
- It may yield lower returns than those with longer-duration.
- Unsuitable in tax benefits such as ELSS funds.
Performance Snapshot (2025)
| Parameter | 1 Year Return3 Year CAGR | AUM (Rs Cr)Expense Ratio |
|---|---|---|
| Mahindra Manulife Low Duration Fund | 7.2% 6.7% | 1,040 0.44 per cent. |
Mahindra Manulife Ultra Short Duration Fund.
Key Features or Highlights
- Portfolio maturity of between 3-6 months.
- Appeals to investors seeking short term investment of cash.
- Intends to raise a consistent income and at low risk.
Pros
- Low volatility
- Ideal in short term than liquid.
- Frequent payout option is available.
Cons
- The returns can vary with the amounts of interest rates.
- Not good as a means of creating long-term wealth.
Performance Snapshot (2025)
| Parm | 1 Year Return | 3 Year CAGR | AUM (Rs Cr) | Expense Ratio |
|---|---|---|---|---|
| Mahindra Manulife Ultra Short Duration Fund | 6.5% | 6.2% | 520 | 0.29%. |
Mahindra Manulife Corporate Bond Fund.
Key Features or Highlights
- Invests majorly in AA and more in corporate bonds.
- Appropriate to investors that demand relatively high annualised return with moderate risk.
- Regular income and possibility of better returns.
Pros
- Highly rated portfolio
- Reduced risk of credit because of quality.
- Appealing to medium term objectives.
Cons
- Easy target in the market.
- Average interest rate risks.
Performance Snapshot (2025)
| Parameter | 1 Year Return | 3 Year CAGR | AUM (Rs Cr) | Expense Ratio |
|---|---|---|---|---|
| Mahindra Manulife Corporate Bond Fund | 8.1% | 7.3% | 1320 | 0.37% |
Expert Insight: The strengthening of Tightening of corporate bond laws by SEBI in 2024 has increased the level of fund safety and the funds such as Mahindra Corporate Bond Fund would be even more attractive in 2025.
Mahindra Manulife Liquid Fund.
Key Features or Highlights
- Invests primarily in over night securities and treasury bills.
- To investors who are more concerned with capital preservation and high liquidity.
- No lock-in period
Pros
- On spend-on-the-spot redemption of up to Rs 50,000 a day.
- Low credit risk and extremely low interest rate.
- Applicable in very short terms of investment.
Cons
- The returns tend to be lower than short or medium duration funds.
- Not suitable to the growth-based investors.
Performance Snapshot (2025)
| parameter | 1 Year return | 3 Year CAGR | AUM (Rs Cr) | Expense ratio |
|---|---|---|---|---|
| Mahindra Manulife Liquid Fund | 5.8% | 5.6% | 920 | 0.22% |
Mahindra Manulife Short Term Fund.
Key Features or Highlights
- Equal treatment of medium duration papers (1 to 3 years maturity).
- Appropriate in terms of investment requirement of 1 to 3 years.
- Combination of government and quality corporate bonds.
Pros
- Has goals of superior risk adjusted returns over ultra short and liquid funds.
- Appropriate to those investors having a somewhat higher risk level.
- Possible increase in capital.
Cons
- Performance may be subject to interest rate cycles.
- Not suitable with very short-term parkings.
Performance Snapshot (2025)
| Parameter | 1 Year Return | 3 Year CAGR | AUM (Rs Cr) | Expense Ratio |
|---|---|---|---|---|
| Short Term Fund Mahindra Manulife Short Term Fund | 7.8% | 7.0% | 810 | 0.45% |
Did you know? According to AMFI reports, Mahindra Manulife Short Term Fund has experienced growth in retail SIP accounts by 30 per cent in 2024 indicating trust amongst the common investors.
What is the Mahindra Debt Funds Performance Compared to Competitors
| Fund Category | Mahindra 1 Yr Return | Peer Average 1 Yr | Mahindra Expense Ratio | Peer Average Expense. |
|---|---|---|---|---|
| Low Duration Fund | 7.2% | 6.9% | 0.44% | 0.45% |
| Ultra Short | 6.5% | 6.3% | 0.29% | 0.30% |
| Corporate Bond | 8.1% | 7.8% | 0.37% | 0.38% |
| Liquid Fund | 5.8% | 5.6% | 0.22% | 0.23% |
| Short Term | 7.8% | 7.5% | 0.45% | 0.47% |
The funds of Mahindra tend to provide competitive returns at slightly lower or equal expense ratios than those of the industry with efficient management of the funds.
Mahindra Debt Funds: Is it safe to invest in Mahindra Debt Funds in 2025
Mahindra funds comply with the SEBI standards and are more interested in quality papers with reduced risk of default. Frequent disclosure of the portfolio provides transparency to the investors. Nevertheless, market and interest rate trends can affect returns, just like any other mutual fund. You must always match your investment horizon with a fund.
Frequently Asked
Is it prudent to invest in the Mahindra debts funds to meet short-term financial requirements?
Absolutely. Liquid and ultra short duration funds of Mahindra are designed to manage short time cash excess and outsmart savings accounts and capital risk is low.
Who needs to invest in Mahindra Debt Mutual Funds.
- Investors that are conservative and aim at protecting their capital.
- Older adults or people looking to get regular income (retirees).
- Professional employees with short- to medium-term objectives.
- Persons wishing to put money in other areas than pure equity or fixed deposits.
- Dealing with intermittent cash flows: businesses or self-employed.
Expert Tip: Liquid and ultra-short-term funds can be the most effective in short-term objectives (not more than 1 year), whereas 2-3 year objectives could be effective with the help of corporate bond or short-term funds.
What Are the principal advantages of Mahindra Debt Mutual Funds?
- Liquidity is higher than bank deposits.
- Regular risk assessment through professional management.
- Choices between growth and regular income plans.
- None of the TDS transferred to a demat deducted on withdrawal (except in some cases)
- The holding period of above 3 years is tax efficient because of LTCG with indexation benefits (according to 2024-25 regulations).
Threats and weaknesses of Mahindra Debt Mutual Funds.
- Interest rate risks: Securities change value with the change in the interest rates.
- Credit risk: Minimal, but could occur in the event of investing in the lower rated papers with certain funds.
- The objective is capital protection and constant income, which is not ideal in case of very high growth expectations.
- Some funds have exit loads/penalties on early redemption.
The Best Mahindra Debt Fund to choose.
These factors are best determined before investing:
- Investment horizon of short, medium or long term.
- Risk profile and income requirements.
- Previous performance of a fund, however, do not rely solely on historic figures.
- Policies of expense ratio and exit load.
- Track record and risk controls of fund manager.
Frequently Asked
Q: Should Mahindra debt funds be utilized on the basis of emergency funds?
A: Yes, particularly the Mahindra Liquid Fund and Ultra Short Duration Fund, as they are more liquid and less volatile, and therefore is prudent to have an emergency corpus.
Investing in Mahindra Debt Mutual Funds in 2025.
- Go to the Mahindra mutual fund official website or use the popular online platforms such as Zerodha Coin, Groww or Paytm Money.
- Fully KYC (unless done) and interlink PAN and Aadhaar.
- Select lumpsum or SIP mode depending on your cash flow.
- Choose Growth or IDCW (Income Distribution cum Capital Withdrawal) option depending on your requirement.
- Monitor your returns after some time and re-examine depending on goal variation or interest rates.
Did you know? By March 2025, Mahindra Mutual Fund has 70 percent of all new retail investments being digital onboarded, and this has simplified the process of new investors.
Quick Recap TLDR
- In 2025, Mahindra Debt Mutual Funds will be competitive and investor friendly.
- Select Low Duration, Ultra short, corporate bond, liquid or short term funds depending on your time horizon and riskiness.
- Either the returns and expense ratios are equal or it is better than that of the industry peers.
- Best used in capital preservation, liquidity and consistent returns in short to medium terms.
- Never invest without going over your fund quality and needs.
People Also Ask
Q1: Are Mahindra debt mutual funds safe.
A1: Mahindra debt funds are invested in good quality fixed income papers and adhere to the guidelines of SEBI. The returns are not assured but the risk is minimal as compared to the equity funds, particularly those of short and liquid investment.
Q2: What is the performance of the Mahindra debt funds in 2025?
A2: According to the performance of the Mahindra debt funds as of 2025, the majority of funds have been performing on the average of their peers over 0.2 to 0.4 percent with high credit quality and low expense ratios.
Q3: Is it possible to take money at will at Mahindra debt mutual funds?
A3: Yes, the majority of Mahindra debt mutual funds, in particular, Liquid and Ultra Short Duration funds, can provide flexible withdrawal. There might be exit load on some of the funds redeemed before the stipulated time.
Q4: Who is fund manager of Mahindra Manulife debt funds?
A4: The Mahindra Manulife debt funds are run by professionals who have a track record of managing fixed income assets, fund manager information is updated on the AMC web site on a regular basis.
Q5: Better of 1 year Mahindra Low Duration or Ultra Short Duration Fund?
A5: Ultra Short Duration Fund is advisable on investment of up to 6 months. At a horizon of around 1 year, Low Duration Fund possibly has a bit higher returns and risk in manageable levels.
Q6: Mahindra Debt funds good SIP.
A6: Yes, the Mahindra debt funds regular SIPs are ideal to park excess funds, emergency corpus or short-term goal planning.
Sources
- Mahindra Manulife Official Website of Mutual Fund.
- Midcap Fund Mahindra Moneycontrol Ratings.
- AMFI India
