What is YTM, for a debt fund?
Every bond a debt fund holds has its own yield to maturity - the annualized return you’d earn holding it until it matures. Roll that up across the whole portfolio (weighted by holding size) and you get the fund’s YTM: a forward-looking estimate, not a backward-looking return like CAGR.
Portfolio YTM = Σ(wi × YTMi)
Real comparison across 6 debt funds
CHART
Portfolio YTM - 6 real debt funds
Holdings-weighted yield to maturity (%), as of the fund's latest disclosed portfolio.
Funds compared: Quantum Liquid Fund - Direct Plan - Growth · Canara Robeco Medium to Long Term Fund - Direct Plan - Growth · Canara Robeco Ultra Short to Short Term Fund - Direct Plan - Growth · Canara Robeco Conservative Hybrid Fund - Direct Plan - Growth · Canara Robeco Short Term Fund - Direct Plan - Growth · Bandhan Liquid Fund - Direct Plan - Growth
Reading the spread
Across these 6 funds, yield to maturity runs from 6.02% (Quantum Liquid Fund - Direct Plan - Growth) to 6.89% (Canara Robeco Short Term Fund - Direct Plan - Growth), a gap of 0.87%. The middle value is 6.68%, with 3 of 6 above it. Neither end is better or worse in itself; the number describes how a fund behaves, and what matters is whether that matches what you want.
How to use it in practice
YTM is the annualised return a bond or debt fund would earn if it held its bonds to maturity and nothing defaulted. Use it as a guide to what a debt fund is likely to earn from its current holdings, and to compare funds of similar duration and credit quality. A higher YTM usually means more risk, either longer maturity or weaker credit.
Common mistakes
YTM is not a promise of your return. Your actual return depends on how rates move, on the fund’s costs and on when you sell. A fund that holds lower-rated bonds shows a higher YTM, but that extra yield is paid for with default risk. Never compare YTM without comparing credit quality and duration.
Frequently asked questions
Is YTM the return I will earn?
No. It is an estimate of the yield from the current holdings if held to maturity. Actual returns depend on interest rate moves, expenses and when you exit.
Why do two debt funds have different YTMs?
Because of different maturities and credit quality. Longer and lower-rated bonds pay more but carry more risk.
How does YTM relate to duration?
They are used together. YTM gives the expected yield, while duration shows how much the NAV could change if interest rates move.
WHAT THIS MEANS FOR YOU A higher YTM usually means the fund is holding longer-duration or lower-credit-quality paper to earn extra yield - check Duration and the fund’s credit quality breakdown alongside this number, not in isolation. YTM is not a guaranteed return - it assumes every bond is held to maturity and reinvested at the same rate.
METHODOLOGY Holdings-weighted average of each bond’s own YTM from the fund’s latest disclosed portfolio. Data: July-2026 disclosure via Punji. Not investment advice.