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5 Best Short Duration (Short Term) Debt Funds To Invest In 2020
Generally, people believe that Mutual Fund investments are for long-term investors. Well, that's not true! There is a category of funds called Short Duration Funds or Short Term Debt fund that allow investors to invest for short-term along with keeping their money accessible. Though there are various Short Duration Funds available in the market, investors are suggested to look for best Short Duration (Short Term) Debt Funds.
The best Short Duration (Short Term) Debt Funds are funds that allow investors to invest for a short term, typically for three years, to earn good returns with less market risk. These funds are highly suitable investors with a low-risk appetite who seek quick returns and a steady flow of income without being affected by the daily changes in the bond markets.
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Best Short Duration Funds or Short Term Debt Funds FY 20 - 21
(Erstwhile HDFC Short Term Opportunities Fund) To generate regular income through investments in Debt/Money Market Instruments and Government Securities with maturities not exceeding 36 months. HDFC Short Term Debt Fund is a Debt - Short term Bond fund was launched on 25 Jun 10. It is a fund with Moderately Low risk and has given a Below is the key information for HDFC Short Term Debt Fund Returns up to 1 year are on To generate stable returns with a low risk strategy while maintaining liquidity through a portfolio comprising of debt and money market instruments. However, there can be no assurance that the investment objective of the scheme will be achieved. Axis Short Term Fund is a Debt - Short term Bond fund was launched on 22 Jan 10. It is a fund with Moderately Low risk and has given a Below is the key information for Axis Short Term Fund Returns up to 1 year are on (Erstwhile IDFC Super Saver Income Fund - Short Term Plan) The primary investment objective of the scheme is to seek to generate stable returns with a low-risk strategy by creating a portfolio that is invested in good quality fixed income & Money Market securities. However, there can be no assurance that the investment objectives of the scheme will be realized. IDFC Bond Fund Short Term Plan is a Debt - Short term Bond fund was launched on 14 Dec 00. It is a fund with Moderately Low risk and has given a Below is the key information for IDFC Bond Fund Short Term Plan Returns up to 1 year are on (Erstwhile L&T Short Term Opportunities Fund) The investment objective of the Scheme is to generate returns for investors with a short-term investment horizon by investing in fixed income securities of shorter term maturity. L&T Short Term Bond Fund is a Debt - Short term Bond fund was launched on 27 Dec 11. It is a fund with Moderately Low risk and has given a Below is the key information for L&T Short Term Bond Fund Returns up to 1 year are on The investment objective of the Scheme is to provide reasonable returns and high level of liquidity by investing in debt instruments such as bonds, debentures and Government securities; and money market Instrument such as treasury
bills,commercial papers, certificates of deposit, including repos in permitted
securities of different maturities, so as to spread the risk across different kinds of
issuers in the debt markets. The Scheme may invest in the call money/termmoney market in terms of RBI guidelines in this respect. To reduce the risk of the portfolio, the Scheme may also use various derivative
and hedging products from time to time, in the manner permitted by SEBI. Subject to the maximum amount permitted from time
to time, the Scheme may invest in offshoresecurities in the manner allowed by
SEBI/RBI, provided such investments are in conformity with the investment objective of the Scheme and the prevailing guidelines
and Regulations. Kotak Bond Short Term is a Debt - Short term Bond fund was launched on 2 May 02. It is a fund with Moderately Low risk and has given a Below is the key information for Kotak Bond Short Term Returns up to 1 year are on Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2019 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity HDFC Short Term Debt Fund Growth ₹23.8381
↑ 0.00 ₹11,138 5 6.6 11.6 8.8 9.7 6.71% 2Y 7M 28D 3Y 5M 16D Axis Short Term Fund Growth ₹23.2531
↑ 0.00 ₹7,170 4.4 6.4 11 8.3 9.8 5.23% 2Y 2Y 4M 24D IDFC Bond Fund Short Term Plan Growth ₹43.5893
↑ 0.00 ₹12,716 4.3 6.1 10.8 8.3 9.7 4.96% 1Y 9M 25D 2Y 29D L&T Short Term Bond Fund Growth ₹20.4089
↑ 0.01 ₹4,694 3.6 6.4 10.7 8.2 9.3 5% 2Y 4M 28D 2Y 11M 19D Kotak Bond Short Term Growth ₹39.9061
↑ 0.01 ₹11,858 4.1 6.2 10.7 8.1 9.6 5.51% 3Y 4D 3Y 9M 7D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 5 Aug 20 Assets >= 100 Crore & Sorted on 3 Year CAGR Return.
1. HDFC Short Term Debt Fund
CAGR/Annualized return of 9% since its launch. Ranked 30 in Short term Bond category. Return for 2019 was 9.7% , 2018 was 7% and 2017 was 6.5% . HDFC Short Term Debt Fund
Growth Launch Date 25 Jun 10 NAV (05 Aug 20) ₹23.8381 ↑ 0.00 (0.02 %) Net Assets (Cr) ₹11,138 on 30 Jun 20 Category Debt - Short term Bond AMC HDFC Asset Management Company Limited Rating ☆☆☆ Risk Moderately Low Expense Ratio 0.4 Sharpe Ratio 3.84 Information Ratio 0.38 Alpha Ratio -2.39 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 6.71% Effective Maturity 3 Years 5 Months 16 Days Modified Duration 2 Years 7 Months 28 Days Growth of 10,000 investment over the years.
Date Value 31 Jul 15 ₹10,000 31 Jul 16 ₹10,895 31 Jul 17 ₹11,791 31 Jul 18 ₹12,451 31 Jul 19 ₹13,600 31 Jul 20 ₹15,195 Returns for HDFC Short Term Debt Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 5 Aug 20 Duration Returns 1 Month 1.2% 3 Month 5% 6 Month 6.6% 1 Year 11.6% 3 Year 8.8% 5 Year 8.7% 10 Year 15 Year Since launch 9% Historical performance (Yearly) on absolute basis
Year Returns 2019 9.7% 2018 7% 2017 6.5% 2016 9.3% 2015 8.7% 2014 10.4% 2013 8.4% 2012 10.1% 2011 9.2% 2010 Fund Manager information for HDFC Short Term Debt Fund
Name Since Tenure Anil Bamboli 25 Jun 10 10.02 Yr. Chirag Dagli 31 Jul 19 0.92 Yr. Data below for HDFC Short Term Debt Fund as on 30 Jun 20
Asset Allocation
Asset Class Value Cash 9.03% Debt 90.97% Debt Sector Allocation
Sector Value Corporate 59.46% Government 28.76% Cash Equivalent 8.06% Securitized 3.72% Credit Quality
Rating Value A 0.58% AA 14.39% AAA 84.99% Below B 0.05% Top Securities Holdings / Portfolio
Name Holding Value Quantity Treps - Tri-Party Repo
CBLO/Reverse Repo | -4% ₹425 Cr Housing Development Finance Corporation Limited
Debentures | -3% ₹314 Cr 3,000 Indinfravit Trust
Debentures | -3% ₹295 Cr 2,900 State Bank Of India
Debentures | -3% ₹295 Cr 2,750 State Bank Of India
Debentures | -2% ₹257 Cr 2,500 Housing Development Finance Corporation Limited
Debentures | -2% ₹257 Cr 2,500 Rural Electrification Corporation Limited
Debentures | -2% ₹256 Cr 2,500 Mobil Trust Series 10 (PTC of pools from Shriram City Union Finance Ltd.)
Unlisted bonds | -2% ₹230 Cr 5,000,000 Power Finance Corporation Ltd.
Debentures | -2% ₹207 Cr 2,000 Mahanagar Telephone Nigam Limited
Debentures | -2% ₹187 Cr 1,750 2. Axis Short Term Fund
CAGR/Annualized return of 8.3% since its launch. Ranked 26 in Short term Bond category. Return for 2019 was 9.8% , 2018 was 6.3% and 2017 was 5.9% . Axis Short Term Fund
Growth Launch Date 22 Jan 10 NAV (05 Aug 20) ₹23.2531 ↑ 0.00 (0.01 %) Net Assets (Cr) ₹7,170 on 30 Jun 20 Category Debt - Short term Bond AMC Axis Asset Management Company Limited Rating ☆☆☆ Risk Moderately Low Expense Ratio 0.95 Sharpe Ratio 4.43 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 5.23% Effective Maturity 2 Years 4 Months 24 Days Modified Duration 2 Years Growth of 10,000 investment over the years.
Date Value 31 Jul 15 ₹10,000 31 Jul 16 ₹10,896 31 Jul 17 ₹11,793 31 Jul 18 ₹12,348 31 Jul 19 ₹13,512 31 Jul 20 ₹15,010 Returns for Axis Short Term Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 5 Aug 20 Duration Returns 1 Month 0.9% 3 Month 4.4% 6 Month 6.4% 1 Year 11% 3 Year 8.3% 5 Year 8.5% 10 Year 15 Year Since launch 8.3% Historical performance (Yearly) on absolute basis
Year Returns 2019 9.8% 2018 6.3% 2017 5.9% 2016 9.6% 2015 8.1% 2014 10% 2013 7.3% 2012 10.1% 2011 9.2% 2010 Fund Manager information for Axis Short Term Fund
Name Since Tenure Devang Shah 5 Nov 12 7.66 Yr. Data below for Axis Short Term Fund as on 30 Jun 20
Asset Allocation
Asset Class Value Cash 17.71% Debt 82.29% Debt Sector Allocation
Sector Value Corporate 54.82% Government 31.48% Cash Equivalent 11.8% Securitized 1.9% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity GOVT STOCK
Sovereign Bonds | -6% ₹400 Cr 37,000,000
↑ 17,500,000 Clearing Corporation Of India Ltd
CBLO | -5% ₹347 Cr National Bank For Agriculture And Rural Development
Debentures | -3% ₹222 Cr 2,150
↑ 2,150 7.26% Govt Stock 2029
Sovereign Bonds | -3% ₹206 Cr 19,150,000
↑ 12,500,000 INDIA GRID TRUST
Debentures | -3% ₹188 Cr 1,840 National Highways Authority Of India
Debentures | -2% ₹157 Cr 1,500 182 DTB 19112020
Sovereign Bonds | -2% ₹148 Cr 15,000,000
↑ 15,000,000 SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA
Debentures | -2% ₹144 Cr 1,400 Hdb Financial Services Limited
Debentures | -2% ₹139 Cr 1,350 LIC Housing Finance Limited
Debentures | -2% ₹119 Cr 1,140 3. IDFC Bond Fund Short Term Plan
CAGR/Annualized return of 7.8% since its launch. Ranked 47 in Short term Bond category. Return for 2019 was 9.7% , 2018 was 6.5% and 2017 was 5.9% . IDFC Bond Fund Short Term Plan
Growth Launch Date 14 Dec 00 NAV (05 Aug 20) ₹43.5893 ↑ 0.00 (0.01 %) Net Assets (Cr) ₹12,716 on 30 Jun 20 Category Debt - Short term Bond AMC IDFC Asset Management Company Limited Rating ☆☆ Risk Moderately Low Expense Ratio 0.79 Sharpe Ratio 4.18 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 4.96% Effective Maturity 2 Years 29 Days Modified Duration 1 Year 9 Months 25 Days Growth of 10,000 investment over the years.
Date Value 31 Jul 15 ₹10,000 31 Jul 16 ₹10,866 31 Jul 17 ₹11,705 31 Jul 18 ₹12,230 31 Jul 19 ₹13,411 31 Jul 20 ₹14,880 Returns for IDFC Bond Fund Short Term Plan
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 5 Aug 20 Duration Returns 1 Month 0.7% 3 Month 4.3% 6 Month 6.1% 1 Year 10.8% 3 Year 8.3% 5 Year 8.3% 10 Year 15 Year Since launch 7.8% Historical performance (Yearly) on absolute basis
Year Returns 2019 9.7% 2018 6.5% 2017 5.9% 2016 8.8% 2015 8.1% 2014 10.1% 2013 7.6% 2012 9.3% 2011 9.2% 2010 3.7% Fund Manager information for IDFC Bond Fund Short Term Plan
Name Since Tenure Suyash Choudhary 11 Mar 11 9.31 Yr. Data below for IDFC Bond Fund Short Term Plan as on 30 Jun 20
Asset Allocation
Asset Class Value Cash 8.26% Debt 91.74% Debt Sector Allocation
Sector Value Corporate 55.31% Government 37.54% Cash Equivalent 6.52% Securitized 0.64% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Reliance Industries Limited
Debentures | -7% ₹869 Cr 84,000,000 INDIAN RAILWAY FINANCE CORPORATION LIMITED
Debentures | -4% ₹495 Cr 45,000,000 Reliance Industries Limited
Debentures | -3% ₹430 Cr 41,000,000 NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Debentures | -3% ₹425 Cr 39,400,000 Housing Development Finance Corporation Limited
Debentures | -3% ₹413 Cr 39,500,000 Power Finance Corporation Limited
Debentures | -3% ₹395 Cr 37,500,000 NTPC Limited
Debentures | -3% ₹392 Cr 37,000,000 Net Current Assets
Net Current Assets | -3% ₹344 Cr LIC Housing Finance Limited
Debentures | -3% ₹332 Cr 32,500,000 Small Industries Development Bank Of India
Debentures | -2% ₹314 Cr 29,450,000 4. L&T Short Term Bond Fund
CAGR/Annualized return of 8.6% since its launch. Ranked 50 in Short term Bond category. Return for 2019 was 9.3% , 2018 was 6.5% and 2017 was 5.8% . L&T Short Term Bond Fund
Growth Launch Date 27 Dec 11 NAV (05 Aug 20) ₹20.4089 ↑ 0.01 (0.04 %) Net Assets (Cr) ₹4,694 on 30 Jun 20 Category Debt - Short term Bond AMC L&T Investment Management Ltd Rating ☆☆ Risk Moderately Low Expense Ratio 0.78 Sharpe Ratio 4.98 Information Ratio 0 Alpha Ratio 0 Min Investment 10,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 5% Effective Maturity 2 Years 11 Months 19 Days Modified Duration 2 Years 4 Months 28 Days Growth of 10,000 investment over the years.
Date Value 31 Jul 15 ₹10,000 31 Jul 16 ₹10,855 31 Jul 17 ₹11,697 31 Jul 18 ₹12,270 31 Jul 19 ₹13,392 31 Jul 20 ₹14,844 Returns for L&T Short Term Bond Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 5 Aug 20 Duration Returns 1 Month 0.7% 3 Month 3.6% 6 Month 6.4% 1 Year 10.7% 3 Year 8.2% 5 Year 8.2% 10 Year 15 Year Since launch 8.6% Historical performance (Yearly) on absolute basis
Year Returns 2019 9.3% 2018 6.5% 2017 5.8% 2016 8.7% 2015 8.2% 2014 10.4% 2013 8.1% 2012 10% 2011 2010 Fund Manager information for L&T Short Term Bond Fund
Name Since Tenure Shriram Ramanathan 30 May 16 4.09 Yr. Jalpan Shah 30 May 16 4.09 Yr. Data below for L&T Short Term Bond Fund as on 30 Jun 20
Asset Allocation
Asset Class Value Cash 5.82% Debt 94.18% Debt Sector Allocation
Sector Value Government 66.62% Corporate 24.78% Cash Equivalent 5.82% Securitized 2.77% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.72% GS 2025
Sovereign Bonds | -8% ₹388 Cr 35,127,600
↑ 127,600 GOVT STOCK
Sovereign Bonds | -7% ₹325 Cr 30,000,000
↑ 5,000,000 Indian Oil Corporation Limited
Debentures | -6% ₹259 Cr 2,500 NTPC Limited
Debentures | -5% ₹228 Cr 2,150 NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Debentures | -5% ₹228 Cr 2,110 7.35% Govt Stock 2024
Sovereign Bonds | -5% ₹217 Cr 20,000,000 National Highways Authority Of India
Debentures | -4% ₹184 Cr 1,750
↑ 250 Indian Railway Finance Corporation Limited
Debentures | -4% ₹182 Cr 1,750 7.59% Govt Stock 2026
Sovereign Bonds | -4% ₹165 Cr 15,000,000
↑ 15,000,000 National Highways Authority Of India
Debentures | -3% ₹156 Cr 1,500 5. Kotak Bond Short Term
CAGR/Annualized return of 7.9% since its launch. Ranked 42 in Short term Bond category. Return for 2019 was 9.6% , 2018 was 6.3% and 2017 was 5.4% . Kotak Bond Short Term
Growth Launch Date 2 May 02 NAV (05 Aug 20) ₹39.9061 ↑ 0.01 (0.03 %) Net Assets (Cr) ₹11,858 on 30 Jun 20 Category Debt - Short term Bond AMC Kotak Mahindra Asset Management Co Ltd Rating ☆☆☆ Risk Moderately Low Expense Ratio 0.39 Sharpe Ratio 4.47 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 5.51% Effective Maturity 3 Years 9 Months 7 Days Modified Duration 3 Years 4 Days Growth of 10,000 investment over the years.
Date Value 31 Jul 15 ₹10,000 31 Jul 16 ₹10,897 31 Jul 17 ₹11,768 31 Jul 18 ₹12,277 31 Jul 19 ₹13,443 31 Jul 20 ₹14,881 Returns for Kotak Bond Short Term
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 5 Aug 20 Duration Returns 1 Month 0.9% 3 Month 4.1% 6 Month 6.2% 1 Year 10.7% 3 Year 8.1% 5 Year 8.3% 10 Year 15 Year Since launch 7.9% Historical performance (Yearly) on absolute basis
Year Returns 2019 9.6% 2018 6.3% 2017 5.4% 2016 9.7% 2015 8% 2014 10.2% 2013 7.3% 2012 9.7% 2011 8.2% 2010 4% Fund Manager information for Kotak Bond Short Term
Name Since Tenure Deepak Agrawal 14 Apr 08 12.22 Yr. Data below for Kotak Bond Short Term as on 30 Jun 20
Asset Allocation
Asset Class Value Debt 104.36% Debt Sector Allocation
Sector Value Government 53.34% Corporate 48.32% Securitized 2.7% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Net Current Assets/(Liabilities)
Net Current Assets | -14% -₹1,673 Cr 7.59% Govt Stock 2026
Sovereign Bonds | -9% ₹1,015 Cr 92,500,000
↑ 48,500,000 Triparty Repo
CBLO/Reverse Repo | -6% ₹703 Cr LIC Housing Finance Limited
Debentures | -4% ₹506 Cr 4,850
↑ 1,700 GOVT STOCK
Sovereign Bonds | -4% ₹495 Cr 48,000,000
↑ 40,500,000 GOVT STOCK
Sovereign Bonds | -4% ₹440 Cr 40,500,000
↑ 500,000 GOVT STOCK
Sovereign Bonds | -3% ₹411 Cr 38,000,000
↑ 8,000,000 Reverse Repo #
CBLO/Reverse Repo | -3% ₹404 Cr Housing Development Finance Corporation Limited
Debentures | -3% ₹330 Cr 3,250
↑ 3,250 07.82 AS SDL 2024
Sovereign Bonds | -3% ₹321 Cr 29,600,000
Why Invest In Best Short Duration Debt Funds?
Given the short term nature of these investments, Short Duration (Short Term) Debt Funds do not offer very high returns like Equity Funds. However, there are certainly several reasons that ensure Investing in the best Short Duration (Short Term) Debt funds is totally worth to consider. Some of those include-
Short Duration (Short Term) debt funds are a highly suitable option for investors who are willing to make investments that have a slightly higher maturity than liquid & ultra short term debt funds but on the same hand are not very risky.
Being a short term investment, this fund is highly suitable for those who want to park their idle cash for 1-3 years to earn better returns than fixed income investment options like FDs.
As per the analysis, short term bond funds offer a better rate of return in accordance with the risk involved as compared to long term Bonds. Short Duration Funds are less sensitive to the rising Inflation than other intermediate and long term debt funds.
Lastly, the Short Duration (Short Term) debt funds are highly liquid, meaning that the investors can have an easy access to their cash. However, some schemes under this category do charge an exit load if the investment is redeemed in a very short duration (mostly 1 month to 6 months). So, it is always suggested to invest in best Short Duration Debt Funds wisely.
How to Invest in Short Duration Debt Funds Online?
Open Free Investment Account for Lifetime at Fincash.com.
Complete your Registration and KYC Process
Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!
Conclusion
Investors can tweak their investment portfolios as per their risk profile. As the bond market offers the advantage of falling interest rates, one can earn better returns by increasing the duration o the investment. This is where Short Duration (Short Term) Debt Funds come in. These funds invest in debt market to offer long term returns over the duration of 2-3 years. So, invest in best Short Duration Funds today!
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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