New Delhi, June 16 -- While the fixed income space in mutual funds (MFs) offers a whole range of investment options, the returns from schemes haven't been spectacular in recent months. Though most fixed income categories that invest in the Indian debt market have given lacklustre performance, MF schemes that have exposure to US Treasury bonds emerged as the top performer among debt funds on the back of a weak rupee and stable returns from the US debt market.

MFs that invest in international FoFs (Fund of Funds) with direct exposure to US Treasury bonds have gained 5.4% so far in 2026 and 14.4% over the one-year period on a CAGR (Compounded Annual Growth Rate) basis, the best performance in the fixed income category.

Incidentally, there ...