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5 Best Short Duration (Short Term) Debt Funds To Invest In 2023
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 23 - 24
The objective of the Scheme is to provide investors stable returns by investing in fixed income securities. Franklin India Short Term Income Plan - Retail Plan is a Debt - Short term Bond fund was launched on 31 Jan 02. It is a fund with Moderate risk and has given a Below is the key information for Franklin India Short Term Income Plan - Retail Plan Returns up to 1 year are on (Erstwhile Principal Short Term Income Fund) To generate regular income and capital appreciation/ accretion through investment in debt instruments and related securities besides preservation of capital. Principal Short Term Debt Fund is a Debt - Short term Bond fund was launched on 9 May 03. It is a fund with Moderate risk and has given a Below is the key information for Principal Short Term Debt Fund Returns up to 1 year are on To generate steady and reasonable income with low risk and high level of liquidity from a portfolio of money market securities and high quality debt. UTI Short Term Income Fund is a Debt - Short term Bond fund was launched on 19 Sep 07. It is a fund with Moderate risk and has given a Below is the key information for UTI Short Term Income Fund Returns up to 1 year are on (Erstwhile BNP Paribas Short Term Income Fund) The primary objective of the Scheme is to provide income consistent with the prudent risk from a portfolio comprising various debt and money market instruments. However, there can be no assurance that the investment
objective of the Scheme will be achieved. The Scheme / Plan(s) do not guarantee / indicate any returns. BNP Paribas Short Term Fund is a Debt - Short term Bond fund was launched on 13 Sep 04. It is a fund with Moderately Low risk and has given a Below is the key information for BNP Paribas Short Term Fund Returns up to 1 year are on An Open ended Income scheme with the objective to generate regular income by investing primarily in investment grade fixed income securities / money market instruments with short to medium term maturities and across the credit spectrum within the universe of investment grade rating. Aditya Birla Sun Life Short Term Opportunities Fund is a Debt - Short term Bond fund was launched on 9 May 03. It is a fund with Moderate risk and has given a Below is the key information for Aditya Birla Sun Life Short Term Opportunities Fund Returns up to 1 year are on Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2022 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity Franklin India Short Term Income Plan - Retail Plan Growth ₹5,041.18
↑ 0.60 ₹439 2.7 5.1 7.8 10.5 8.6 0% 1Y 3M 25D Principal Short Term Debt Fund Growth ₹38.0828
↑ 0.01 ₹190 2.7 3.8 6.6 7.3 3.5 7.44% 2Y 2M 11D 3Y 2M 8D UTI Short Term Income Fund Growth ₹27.2062
↑ 0.01 ₹2,357 2.5 3.7 6.5 7 3.8 7.7% 1Y 10M 2D 2Y 3M BNP Paribas Short Term Fund Growth ₹25.4771
↓ -0.01 ₹258 0.6 1.3 4.6 6.5 5.16% 1Y 11M 26D 2Y 3M Aditya Birla Sun Life Short Term Opportunities Fund Growth ₹40.7863
↑ 0.00 ₹4,947 2.5 3.7 7 6.4 4.2 7.86% 2Y 29D 2Y 6M 29D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 2 Jun 23 Assets >= 100 Crore & Sorted on 3 Year CAGR Return.
1. Franklin India Short Term Income Plan - Retail Plan
CAGR/Annualized return of 7.9% since its launch. Ranked 19 in Short term Bond category. Return for 2022 was 8.6% , 2021 was 15% and 2020 was -5.3% . Franklin India Short Term Income Plan - Retail Plan
Growth Launch Date 31 Jan 02 NAV (02 Jun 23) ₹5,041.18 ↑ 0.60 (0.01 %) Net Assets (Cr) ₹439 on 15 May 23 Category Debt - Short term Bond AMC Franklin Templeton Asst Mgmt(IND)Pvt Ltd Rating ☆☆ Risk Moderate Expense Ratio 0.04 Sharpe Ratio 0.03 Information Ratio 0.64 Alpha Ratio 0.38 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-1 Years (0.5%),1 Years and above(NIL) Yield to Maturity 0% Effective Maturity 1 Year 3 Months 25 Days Modified Duration Growth of 10,000 investment over the years.
Date Value 31 May 18 ₹10,000 31 May 19 ₹10,956 31 May 20 ₹10,161 31 May 21 ₹11,137 31 May 22 ₹12,720 31 May 23 ₹13,694
Purchase not allowed Returns for Franklin India Short Term Income Plan - Retail Plan
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 2 Jun 23 Duration Returns 1 Month 1% 3 Month 2.7% 6 Month 5.1% 1 Year 7.8% 3 Year 10.5% 5 Year 6.5% 10 Year 15 Year Since launch 7.9% Historical performance (Yearly) on absolute basis
Year Returns 2022 8.6% 2021 15% 2020 -5.3% 2019 4.2% 2018 8.8% 2017 8.6% 2016 8.3% 2015 9.1% 2014 11.7% 2013 9% Fund Manager information for Franklin India Short Term Income Plan - Retail Plan
Name Since Tenure Santosh Kamath 31 Jan 02 21.26 Yr. Kunal Agrawal 31 Jan 02 21.26 Yr. Data below for Franklin India Short Term Income Plan - Retail Plan as on 15 May 23
Asset Allocation
Asset Class Value Cash 7.97% Debt 92.03% Debt Sector Allocation
Sector Value Corporate 92.03% Cash Equivalent 7.97% Credit Quality
Rating Value BBB 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Andhra Pradesh Capital Region Development Authority
Debentures | -50% ₹218 Cr 10,648 Andhra Pradesh Capital Region Development Authority
Debentures | -41% ₹180 Cr 8,815 SBI Overnight Fund Dir Gr
Investment Fund | -5% ₹22 Cr 60,712
↑ 11,629 Andhra Pradesh Capital Region Development Authority
Debentures | -2% ₹7 Cr 320
↓ -215 Rivaaz TRade Ventures Private Limited
Debentures | -0% ₹0 Cr 1,000
↑ 1,000 Call, Cash & Other Assets
CBLO | -3% ₹13 Cr 2. Principal Short Term Debt Fund
CAGR/Annualized return of 6.9% since its launch. Ranked 34 in Short term Bond category. Return for 2022 was 3.5% , 2021 was 3.2% and 2020 was 10.3% . Principal Short Term Debt Fund
Growth Launch Date 9 May 03 NAV (02 Jun 23) ₹38.0828 ↑ 0.01 (0.03 %) Net Assets (Cr) ₹190 on 30 Apr 23 Category Debt - Short term Bond AMC Principal Pnb Asset Mgmt. Co. Priv. Ltd. Rating ☆☆☆ Risk Moderate Expense Ratio 1 Sharpe Ratio -0.56 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 2,000 Exit Load NIL Yield to Maturity 7.44% Effective Maturity 3 Years 2 Months 8 Days Modified Duration 2 Years 2 Months 11 Days Growth of 10,000 investment over the years.
Date Value 31 May 18 ₹10,000 31 May 19 ₹10,823 31 May 20 ₹10,137 31 May 21 ₹11,414 31 May 22 ₹11,733 31 May 23 ₹12,492 Returns for Principal Short Term Debt Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 2 Jun 23 Duration Returns 1 Month 0.8% 3 Month 2.7% 6 Month 3.8% 1 Year 6.6% 3 Year 7.3% 5 Year 4.6% 10 Year 15 Year Since launch 6.9% Historical performance (Yearly) on absolute basis
Year Returns 2022 3.5% 2021 3.2% 2020 10.3% 2019 -1.7% 2018 6% 2017 5.7% 2016 9.6% 2015 8.1% 2014 9.9% 2013 7.8% Fund Manager information for Principal Short Term Debt Fund
Name Since Tenure Dwijendra Srivastava 1 Jan 22 1.33 Yr. Sandeep Agarwal 1 Jan 22 1.33 Yr. Data below for Principal Short Term Debt Fund as on 30 Apr 23
Asset Allocation
Asset Class Value Cash 12.32% Debt 87.68% Debt Sector Allocation
Sector Value Corporate 57.54% Government 30.14% Cash Equivalent 12.32% Credit Quality
Rating Value AA 3.73% AAA 96.27% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.38% Govt Stock 2027
Sovereign Bonds | -8% ₹15 Cr 1,500,000 Rural Electrification Corporation Limited
Debentures | -5% ₹10 Cr 1,000 Housing Development Finance Corporation Limited
Debentures | -5% ₹10 Cr 1,000
↑ 1,000 Larsen And Toubro Limited
Debentures | -5% ₹10 Cr 1,000 Power Finance Corporation Ltd.
Debentures | -5% ₹10 Cr 1,000 Small Industries Development Bank Of India
Debentures | -5% ₹10 Cr 100 ICICI Bank Limited
Debentures | -5% ₹10 Cr 100 6.69% Govt Stock 2024
Sovereign Bonds | -5% ₹10 Cr 1,000,000
↓ -500,000 Chennai Petroleum Corporation Ltd.
Debentures | -5% ₹10 Cr 100 5.22% Govt Stock 2025
Sovereign Bonds | -5% ₹10 Cr 1,000,000 3. UTI Short Term Income Fund
CAGR/Annualized return of 6.6% since its launch. Ranked 10 in Short term Bond category. Return for 2022 was 3.8% , 2021 was 8.4% and 2020 was 10.5% . UTI Short Term Income Fund
Growth Launch Date 19 Sep 07 NAV (02 Jun 23) ₹27.2062 ↑ 0.01 (0.02 %) Net Assets (Cr) ₹2,357 on 30 Apr 23 Category Debt - Short term Bond AMC UTI Asset Management Company Ltd Rating ☆☆☆☆ Risk Moderate Expense Ratio 0.94 Sharpe Ratio -0.57 Information Ratio 0 Alpha Ratio 0 Min Investment 10,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 7.7% Effective Maturity 2 Years 3 Months Modified Duration 1 Year 10 Months 2 Days Growth of 10,000 investment over the years.
Date Value 31 May 18 ₹10,000 31 May 19 ₹10,734 31 May 20 ₹10,507 31 May 21 ₹11,201 31 May 22 ₹12,071 31 May 23 ₹12,850 Returns for UTI Short Term Income Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 2 Jun 23 Duration Returns 1 Month 0.8% 3 Month 2.5% 6 Month 3.7% 1 Year 6.5% 3 Year 7% 5 Year 5.2% 10 Year 15 Year Since launch 6.6% Historical performance (Yearly) on absolute basis
Year Returns 2022 3.8% 2021 8.4% 2020 10.5% 2019 -3.9% 2018 6% 2017 6.1% 2016 10.1% 2015 8.3% 2014 10.9% 2013 9% Fund Manager information for UTI Short Term Income Fund
Name Since Tenure Sudhir Agarwal 25 Oct 12 10.52 Yr. Data below for UTI Short Term Income Fund as on 30 Apr 23
Asset Allocation
Asset Class Value Cash 33.42% Debt 66.58% Debt Sector Allocation
Sector Value Corporate 46.72% Government 31.16% Cash Equivalent 22.12% Credit Quality
Rating Value AA 17.83% AAA 82.17% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.38% Govt Stock 2027
Sovereign Bonds | -18% ₹426 Cr 4,200,000,000
↑ 1,000,000,000 Power Finance Corporation Ltd.
Debentures | -8% ₹203 Cr 20,000 Axis Finance Limited
Debentures | -7% ₹161 Cr 1,600 Rural Electrification Corporation Limited
Debentures | -7% ₹158 Cr 15,500
↓ -5,000 India Grid TRust
Debentures | -3% ₹74 Cr 750 Mahindra Rural Housing Finance Limited
Debentures | -3% ₹69 Cr 700 Can Fin Homes Limited
Debentures | -3% ₹64 Cr 650 TATA Motors Finance Limited
Debentures | -2% ₹59 Cr 600 Shriram Finance Limited
Debentures | -2% ₹50 Cr 500 Housing Development Finance Corporation Limited
Debentures | -2% ₹50 Cr 500 4. BNP Paribas Short Term Fund
CAGR/Annualized return of 5.5% since its launch. Ranked 41 in Short term Bond category. . BNP Paribas Short Term Fund
Growth Launch Date 13 Sep 04 NAV (11 Mar 22) ₹25.4771 ↓ -0.01 (-0.02 %) Net Assets (Cr) ₹258 on 15 Feb 22 Category Debt - Short term Bond AMC BNP Paribas Asset Mgmt India Pvt. Ltd Rating ☆☆☆ Risk Moderately Low Expense Ratio 0.98 Sharpe Ratio 0.07 Information Ratio -0.85 Alpha Ratio -1.04 Min Investment 5,000 Min SIP Investment 300 Exit Load NIL Yield to Maturity 5.16% Effective Maturity 2 Years 3 Months Modified Duration 1 Year 11 Months 26 Days Growth of 10,000 investment over the years.
Date Value 31 May 18 ₹10,000 31 May 19 ₹10,849 31 May 20 ₹11,672 31 May 21 ₹12,478 Returns for BNP Paribas Short Term Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 2 Jun 23 Duration Returns 1 Month 0.2% 3 Month 0.6% 6 Month 1.3% 1 Year 4.6% 3 Year 6.5% 5 Year 6.6% 10 Year 15 Year Since launch 5.5% Historical performance (Yearly) on absolute basis
Year Returns 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Fund Manager information for BNP Paribas Short Term Fund
Name Since Tenure Data below for BNP Paribas Short Term Fund as on 15 Feb 22
Asset Allocation
Asset Class Value Debt Sector Allocation
Sector Value Credit Quality
Rating Value Top Securities Holdings / Portfolio
Name Holding Value Quantity 5. Aditya Birla Sun Life Short Term Opportunities Fund
CAGR/Annualized return of 7.3% since its launch. Ranked 18 in Short term Bond category. Return for 2022 was 4.2% , 2021 was 3.8% and 2020 was 11.1% . Aditya Birla Sun Life Short Term Opportunities Fund
Growth Launch Date 9 May 03 NAV (02 Jun 23) ₹40.7863 ↑ 0.00 (0.01 %) Net Assets (Cr) ₹4,947 on 30 Apr 23 Category Debt - Short term Bond AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆☆ Risk Moderate Expense Ratio 1.11 Sharpe Ratio -0.22 Information Ratio 0 Alpha Ratio 0 Min Investment 1,000 Min SIP Investment 1,000 Exit Load 0-90 Days (0.5%),90 Days and above(NIL) Yield to Maturity 7.86% Effective Maturity 2 Years 6 Months 29 Days Modified Duration 2 Years 29 Days Growth of 10,000 investment over the years.
Date Value 31 May 18 ₹10,000 31 May 19 ₹10,896 31 May 20 ₹11,761 31 May 21 ₹12,842 31 May 22 ₹13,251 31 May 23 ₹14,145 Returns for Aditya Birla Sun Life Short Term Opportunities Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 2 Jun 23 Duration Returns 1 Month 0.7% 3 Month 2.5% 6 Month 3.7% 1 Year 7% 3 Year 6.4% 5 Year 7.2% 10 Year 15 Year Since launch 7.3% Historical performance (Yearly) on absolute basis
Year Returns 2022 4.2% 2021 3.8% 2020 11.1% 2019 8.5% 2018 6.5% 2017 5.6% 2016 11.3% 2015 8.4% 2014 11.3% 2013 10.1% Fund Manager information for Aditya Birla Sun Life Short Term Opportunities Fund
Name Since Tenure Kaustubh Gupta 11 Sep 14 8.64 Yr. Mohit Sharma 6 Aug 20 2.73 Yr. Dhaval Joshi 21 Nov 22 0.44 Yr. Data below for Aditya Birla Sun Life Short Term Opportunities Fund as on 30 Apr 23
Asset Allocation
Asset Class Value Cash 11.27% Debt 88.73% Debt Sector Allocation
Sector Value Corporate 54.89% Government 34.36% Cash Equivalent 7.54% Securitized 3.21% Credit Quality
Rating Value AA 19.96% AAA 80.04% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.26% Govt Stock 2032
Sovereign Bonds | -6% ₹340 Cr 33,511,700 National Bank For Agriculture And Rural Development
Debentures | -6% ₹302 Cr 30,000 Power Finance Corporation Ltd.
Debentures | -3% ₹151 Cr 15,000 National Bank For Agriculture And Rural Development
Debentures | -3% ₹150 Cr 15,000 Housing Development Finance Corporation Ltd
Debentures | -3% ₹149 Cr 1,500 7.26% Govt Stock 2033
Sovereign Bonds | -3% ₹143 Cr 14,000,000
↑ 14,000,000 Shriram Finance Limited
Debentures | -3% ₹140 Cr 1,400 Bajaj Housing Finance Limited
Debentures | -3% ₹138 Cr 1,400 Sundew Properties Limited
Debentures | -2% ₹100 Cr 1,020 Bharti Telecom Limited
Debentures | -2% ₹100 Cr 1,000
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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