India, Aug. 21 -- Debt mutual funds have become quite popular in India, where investors are looking for alternatives to access safe returns with comparatively reduced risk to equities. These funds have outperformed their benchmark index based on SIP XIRR returns over a 5-year period and are of credit risk, dynamic bonds, medium terms, and arbitrage funds. Each of these top five mutual funds has a different expense ratio, different fund size, and investment strategies, which allow investors various options to fit with their investment goal.

1. Bank of India Credit Risk Fund - Direct Growth 5-Year SIP XIRR: 22.01% AUM: rs 105.6 Crores as on 31-07-2025 Expense Ratio: 1.1% NAV: rs 12.58 as on 18-08-2025 Minimum Lump Sum: rs 5,000 Minimum SIP...