According to Value Research data as of July 4, 2026, only four debt mutual fund schemes have generated annualised SIP returns exceeding 10% over the past 10 years. Even when lowering the threshold to 8% returns, just nine schemes qualify for this performance milestone. The findings highlight that while strong returns are easier to find over shorter periods, sustaining them over a decade has proved exceptionally difficult for debt fund investors.
The analysis reveals that three of the four top-performing schemes belong to the Credit Risk Fund category, while the fourth is a Medium Duration Fund. As reported by Value Research, this suggests that funds willing to take relatively higher credit exposure have been the biggest beneficiaries over the past decade. The Bank of India Credit Risk Fund leads with 10.73% annualised SIP returns, followed by DSP Credit Risk Fund at 11.01%, Aditya Birla Sun Life Medium Term Fund at 10.55%, and Aditya Birla Sun Life Credit Risk Fund at 10.33%.
The data shows a clear pattern of declining performance as investment horizons increase. According to Value Research, 35 debt funds generated annualised SIP returns of 8% or more over the past three years, which drops to 22 schemes over five years and further to just nine schemes over a decade. Similarly, while six schemes crossed the 10% mark over three years, only four managed to maintain double-digit annualised SIP returns over 10 years.
The analysis shows remarkable consistency in performance across different time periods. As reported by Value Research, the same five schemes managed annualised SIP returns above 10% over three years: DSP Credit Risk Fund (16.70%), Aditya Birla Sun Life Credit Risk Fund (14.64%), Bank of India Credit Risk Fund (12.88%), HSBC Credit Risk Fund (12.81%), and Aditya Birla Sun Life Medium Term Fund (11.53%). This suggests that sustained performance is far rarer than temporary surges in returns, with the same names appearing repeatedly across different time periods.
