What is YTM in debt mutual funds?

Yield to Maturity (YTM) is the annualized return the fund would generate if it held all its underlying bonds until they matured, assuming no defaults and reinvestment at the same rate.

How do interest rate cuts benefit debt funds?

When interest rates fall, the prices of existing bonds (with higher old rates) rise. This leads to capital appreciation and an increase in the NAV of debt mutual funds.

What is Modified Duration?

It is a formula that expresses the measurable change in the value of a security in response to a change in interest rates. A higher duration means higher sensitivity to rate changes.

Debt Fund Return Estimator

Project potential returns from debt mutual funds based on YTM, modified duration, and interest rate outlooks.

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Documentation

Quick Summary: Debt Fund Return Estimator

Debt fund returns are primarily driven by two factors: Yield to Maturity (YTM) and capital gains/losses from interest rate movements. A 1% fall in market interest rates typically leads to a percentage gain in the fund roughly equal to its 'Modified Duration'. This tool helps you estimate future ROI based on the current RBI rate cycle and the fund's portfolio characteristics in India.

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Regulatory Disclaimer

Last verified May 2026

Statutory Disclosure

Nature:Calculator platform and is NOT a SEBI-registered Investment Adviser. All calculations are indicative.

Risk:"Investments in securities market are subject to market risks. Read all related documents carefully before investing."

Consult a SEBI-registered IA or CA for personalised advice.

9 out of 10 traders in F&O incurred net losses (SEBI 2023). Tax estimates based on IT Act 2025. Trezoriq is not liable for financial decisions based on results.