Parameters to choose your Debt Fund

1. Average Maturity/Duration: This refers to the length of time until the debt securities held in the fund mature. The average maturity or duration of the fund should match your investment objective. For example, if you are looking for a short-term investment, you should choose a debt fund with a shorter average maturity or duration.

2. Interest Rate Scenario: You should consider the current and expected interest rate scenario when choosing a debt fund. If interest rates are expected to rise, you may want to consider a debt fund with a shorter duration as it will be less impacted by rising interest rates. Conversely, if interest rates are expected to fall, a longer duration fund may be a better option.

3. Current Yield: The current yield of the debt fund is an important parameter to consider as it reflects the income generated by the fund's portfolio. You should compare the current yield of the fund with its peers to determine whether it is offering a competitive yield.

4. Credit Quality of Portfolio: The credit quality of the debt securities held in the fund is another important parameter to consider. You should look for a fund that has a portfolio with high credit quality, as this will reduce the risk of default.

5. Assets Under Management (AUM): The AUM of the fund is an important parameter to consider, as it reflects the size of the fund and its ability to manage liquidity. A larger fund may be better able to manage liquidity risks and may also have lower expense ratios.

Overall, when choosing a debt fund in India, you should consider a combination of these parameters to find the fund that best matches your investment objectives and risk tolerance. It's also important to conduct thorough research on the fund's performance history, management team, and fees before making a decision.