Best Taurus Debt Mutual funds 2025 - Guide 2025
Mutual funds have found a fabric of their own in the portfolio of Indian investors particularly as individuals seek low risk and assured products as alternatives to the high-risk equity market. Taurus Mutual Fund is one of the oldest of dozens of asset management companies with a limited, though narrow, collection of offerings. To find the top Taurus debt mutual funds in 2025, everything is discussed in this guide including the characteristics of the funds, their risk, professionals, and comparison of various funds to make a better investment choice.
What Is So Special about Taurus Debt Mutual Funds?
Taurus Mutual Fund has established a reputation of providing debt programs to the conservative investors. These debt funds are involved in government bonds, corporate debentures, money market, and other fixed-income securities. Debt funds of Taurus could provide relatively stable returns and strive to reduce risks including credit default, credit downgrade and fluctuations in interest rates.
Debt mutual funds are appropriate to:
- Those who want to protect their capital and have a stable income.
- Short medium term investment horizon.
- Investors who required the alternative to conventional bank fixed deposits.
Taurus Liquid Fund, Short Term Income Fund in Taaurus., and Taurus Dynamic Income Fund are the main Taurus debt schemes that will be offered in 2025.
Did you know?
The repo rate was adjusted twice in 2024 by the bank of India, and thus debt funds became more appealing to new investors since the interest payouts changed direction towards higher values.
What are the most popular Taurus Debt Funds in 2025?
The Taurus Liquid Fund and Taurus Short Term Income Fund are also the preference of retail and HNI investors in 2025 because they have a diversified portfolio and yield is reasonably competitive. Let’s look in detail at each.
Taurus Liquid Fund
This is a fund that is constructed to get a rapid liquidity and capital protection. The investments have a high proportion of government securities, call money, certificates of deposit, and commercial papers whose residual maturities are up to 91 days.
Key Features or Highlights
- Mean maturity: Less than 90 days
- Reduced interest rate risk and minuscule credit risk.
- Rapid (typically less than 1 day) redemption.
- Appropriate to emergency preparations and keep excess cash as interim.
Pros
- Less volatile than equity or higher-period funds.
- Very liquid in case of urgent funds.
- More efficient taxes on short-term excessive, than on savings deposits.
Cons
- Less potential of generating higher returns than duration funds or riskier credit funds.
- It is not appropriate in defeating longer-term inflation.
Summary of Performance (As of March 2025)
| Fund Name | 1 Year Return (percent) | 3 Year CAGR (percent) | AUM (crore) |
|---|---|---|---|
| Taurus Liquid Fund | 6.4 | 5.7 | [?]380 |
| Average Peer Returns | 6.2 | 5.5 | – |
People also ask
Is Taurus Liquid Fund safe?
Yes, it commits to the short-term instruments of high credit quality where the risks are insignificant. Nevertheless, there are never any chances of market and credit risks being eliminated in mutual funds.
Taurus Short Term Income Fund
This is an open-ended fund expected to yield higher than liquid funds through investment in bonds of slightly longer maturity and a combination of AAA and AA rated bonds.
Key Features or Highlights
- Portfolio maturity of 1-3 years
- Attempt concentration on accrual strategy of consistent returns.
- Less volatile compared to dynamic income funds.
Pros
- Appealing to 1-3 years investment period.
- Moderately consistent returns of average risk.
- Proper selection concerning income seeking or systematic withdrawal plans.
Cons
- Exposure to abrupt changes in interest rate.
- Poorer liquidity than liquid funds.
Summary of Performance (As of March 2025)
| Fund Name | 1 Year Return(s) (percent) | 3 Years CAGR (percent) | AUM (crore) |
|---|---|---|---|
| Taurus Short Term Income Fund | 7.9 | 6.3 | [?]220 |
| Average Peer Returns | 7.3 | 6.1 | – |
Did you know?
Short term funds also experienced renewed inflows in 2023-2024 with the neutral rate policy by RBI lowering volatility and making short-term funds such as Taurus Short Term Income Fund perform better than numerous longer-term funds.
Reasons to consider Taurus Dynamic Income Fund
This is a dynamic debt fund which capitalizes on the changing interest rates by dynamically applying duration and credit exposure and thus the fund managers have a greater discretion to take advantage of opportunities in the market.
Key Features or Highlights
- State and corporate wildest asset determination.
- Active time management (can alternate between long and short)
- Increased potential returns and increased risk.
Pros
- Possibility of excellence in changing rate cycles.
- Appropriate in intelligent investors who have moderate risk take.
Cons
- Increased volatility in less time.
- Performance closely related to the strategy of fund manager.
Performance Snapshot (Mar 2025)
| Fund Name | 1 year returns (percent) | 3 year CAGR (percent) | AUM (crore) |
|---|---|---|---|
| Taurus Dynamic Income Fund | 8.4 | 6.6 | [?]155 |
| Average Peer Returns | 8.0 | 6.2 | – |
People also ask
What is the asset allocation of dynamic funds?
These funds can adjust the amount they allocate to assets depending on the market perspective to structure the portfolio to invest more in short-term or long-term papers depending on the interest rate and credit conditions.
The Taurus Debt Funds vs Peers
In choosing a debt mutual fund, one should compare based on performance, consistency, portfolio quality and risk. The table below provides a simplified comparison of the best offerings of Taurus with similar funds provided by other AMCs.
| Fund Name | 1 Yr Return(%) | AUM(cr) | Risk | Minimum Investment |
|---|---|---|---|---|
| Taurus Liquid Fund | 6.4 | 380 | Very Low | [?]5000 |
| HDFC Liquid Fund | 6.2 | 47,000 | Very Low | [?]5000 |
| Taurus Short Term Income | 7.9 | 220 | Low | [?]5000 |
| SBI Short Term Debt | 7.4 | 19,800 | Low | [?]5000 |
| Taurus Dynamic Income | 8.4 | 155 | Moderate | [?]5000 |
| ICICI Dynamic Debt Fund | 8.1 | 1,100 | Moderate | [?]5000 |
The size of assets that Taurus funds have to deal with is generally smaller, which may make them agile, but it also leads to a lack of visibility in comparison to the giants of the industry.
Did you know?
Smaller AUM can sometimes enable a faster realignment of portfolios to debt funds so that a faster response can be made to market changes.
Important Advantages of investing in Taurus Debt Mutual funds.
- Basic plans of conservative or moderate investors.
- Average past results relative to huge funds.
- Concentrate on the quality and compliance of the portfolio.
- Clear fees and low entering/leaving cost (in the case of most debt funds).
People also ask
Will I make a loss in the Taurus debt mutual funds?
Although this risk is very minimal in liquid funds and short-term funds, every single mutual fund is associated with risks, either interest rate risk, credit downgrade risk or extreme liquidity events in the market.
Are there any Risk of Taurus Debt Mutual Funds?
The risks involved with all the debt funds including those of Taurus are not devoid of some risks. These can include:
- Credit Risk: Bond/debt paper issuer default.
- Interest Risk: Changes in rates which cause loss of capital in long-term funds.
- Liquidity Risk: The inability to sell securities in case there is a market occurrence.
These risks are however reduced by the Taurus liquid and short-term funds which is concentrated on the quality government and PSU papers and careful credit scrutiny.
Who Should Take Taurus Debt Mutual Funds.
The right type of investor would be someone that is:
- Professionals, mainly in the service sector, who seek capital security and short to medium returns.
- Retirement funners who want less risk, regular payment or SWP (Systematic Withdrawal Plan).
- Companies that leave excess cash parked to several months up to years.
- Any person who constructs a diversified portfolio which involves debt exposure.
Taxation of Taurus Debt Mutual funds in 2025.
In India (according to Union Budget 2024-25) the treatment of debt funds is now straightforward:
- Capital gains in short term: The tax charged is according to your income slab provided you own less than a 3 year period.
- Long-term capital gains: 20 percent indexed to the extent the investment is greater than 3 years (some new regulations apply in the case of funds which have lower equity exposure).
Indexation also favors long term investors and this makes debt mutual funds more tax efficient as compared to many of the fixed income instruments.
People also ask
Is Taurus debt fund superior to fixed deposits?
Debt funds have the potential of generating slightly higher post-tax returns than most of the FDs, particularly when they are held over 3 years and benefit being taxed at the indexation.
Investment in Taurus Debt Mutual Funds 2025
Investment can be done using the official portal of Taurus mutual fund, which is the leading online mutual fund platform, or through distributors that are registered by SEBI. There is both a lump sum and SIP (Systematic Investment Plan). The minimum investment of most funds is only [?]5,000.
The redemption of the liquid fund is typically made in less than one business day whereas other schemes of debts may take as long as 2-3 days.
TLDR or Quick Recap
- Taurus mutual fund offers well managed Indian invested debt funds in the year 2025.
- Taurus Liquid Fund, Short Term Income Fund and Dynamic Income Fund are major funds.
- Perfectly suited to conserving capital and ensuring consistent income and low to medium risk.
- The funds have either surpassed or recorded similar averages with peer funds in the last few years after the interest rate reductions.
- Before selecting your fund, put into account the investment horizon, tax bracket, and risk appetite.
People also ask questions and answers.
Q1: Best 1 year Taurus debt mutual fund?
A1: The Taurus Liquid Fund would be suitable because of its low volatility and rapid liquidity, which means that it can be invested in the 1-year horizon.
Q2: Emergency funds Can Taurus debt mutual funds be used in emergency funds
A2: Indeed, Taurus Liquid Fund will fit better with emergency funds because the withdrawal requests are normally paid within a short time.
Q3: What is the cost ratio in the Taurus debt funds?
A3: Ratios of expenses range with an average of 0.25 to 1.1 percent which is slightly lower compared to direct plans but more expensive compared to regular plans.
Q4: Good Taurus debt mutual funds against retirees.
A4: Yes, particularly Short Term Income Fund because it can be predicted and the risk is lower.
Q5: The level of safety of Taurus debt mutual funds in comparison with other AMCs.
A5: These are comparably broad on risk scale to major mutual funds since they have a focus on high-quality bonds and risk management.
Q6: Exit loads of Taurus debt mutual funds What is exit loads?
A6: Zero or minimal exit loads are usually charged on liquid (more than 7 days) and overnight funds. Revolving and dynamism funds can have 0-1 percent as short holding amounts.
Q7: Is NRIs able to invest in Taurus debt mutual funds?
A7: Yes, the majority of Taurus debt mutual funds will take NRI applications, on a subject to KYC and other compliance basis.
Sources
- Taurus Mutual Fund Official Website.
- AMFI India
- SEBI Guidelines
- Moneycontrol portal mutual funds.
