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5 Best Short Duration (Short Term) Debt Funds To Invest In 2021
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 21 - 22
(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 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 To generate income through investments in a range of debt and money market instruments of various maturities with a view to maximising income while maintaining the optimum balance of yield, safety and liquidity. ICICI Prudential Short Term Fund is a Debt - Short term Bond fund was launched on 25 Oct 01. It is a fund with Moderate risk and has given a Below is the key information for ICICI Prudential Short Term 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 Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2020 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity HDFC Short Term Debt Fund Growth ₹24.6397
↓ -0.01 ₹17,398 0.5 2 9.5 8.6 11 5.62% 2Y 2M 17D 3Y 2D Aditya Birla Sun Life Short Term Opportunities Fund Growth ₹36.6615
↓ -0.01 ₹7,650 0.6 2 10.7 8.2 11.1 5.47% 1Y 9M 14D 2Y 1M 20D ICICI Prudential Short Term Fund Growth ₹45.9669
↓ 0.00 ₹23,715 0.5 2.2 9.5 8.2 10.6 5.11% 1Y 7M 10D 2Y 4M 24D Axis Short Term Fund Growth ₹23.9452
↓ 0.00 ₹13,355 0.6 1.8 8.5 8.2 10.1 5.02% 1Y 7M 6D 2Y IDFC Bond Fund Short Term Plan Growth ₹44.7418
↓ -0.02 ₹13,582 0.6 1.4 8 8.1 9.7 5% 1Y 10M 24D 2Y 2M 8D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 16 Apr 21 Assets >= 100 Crore & Sorted on 3 Year CAGR Return.
1. HDFC Short Term Debt Fund
CAGR/Annualized return of 8.7% since its launch. Ranked 30 in Short term Bond category. Return for 2020 was 11% , 2019 was 9.7% and 2018 was 7% . HDFC Short Term Debt Fund
Growth Launch Date 25 Jun 10 NAV (16 Apr 21) ₹24.6397 ↓ -0.01 (-0.03 %) Net Assets (Cr) ₹17,398 on 28 Feb 21 Category Debt - Short term Bond AMC HDFC Asset Management Company Limited Rating ☆☆☆ Risk Moderately Low Expense Ratio 0.4 Sharpe Ratio 1.4 Information Ratio 0.28 Alpha Ratio -0.14 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 5.62% Effective Maturity 3 Years 2 Days Modified Duration 2 Years 2 Months 17 Days Growth of 10,000 investment over the years.
Date Value 31 Mar 16 ₹10,000 31 Mar 17 ₹10,889 31 Mar 18 ₹11,607 31 Mar 19 ₹12,494 31 Mar 20 ₹13,705 31 Mar 21 ₹14,871 Returns for HDFC Short Term Debt Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 16 Apr 21 Duration Returns 1 Month 1% 3 Month 0.5% 6 Month 2% 1 Year 9.5% 3 Year 8.6% 5 Year 8.2% 10 Year 15 Year Since launch 8.7% Historical performance (Yearly) on absolute basis
Year Returns 2020 11% 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% Fund Manager information for HDFC Short Term Debt Fund
Name Since Tenure Anil Bamboli 25 Jun 10 10.77 Yr. Anand Laddha 21 Oct 20 0.44 Yr. Data below for HDFC Short Term Debt Fund as on 28 Feb 21
Asset Allocation
Asset Class Value Cash 17.83% Debt 82.17% Debt Sector Allocation
Sector Value Corporate 49.87% Government 32.8% Cash Equivalent 15.71% Securitized 1.62% Credit Quality
Rating Value AA 18.17% AAA 81.83% Top Securities Holdings / Portfolio
Name Holding Value Quantity 5.77% GOI 2030
Sovereign Bonds | -2% ₹370 Cr 38,500,000
↓ -41,000,000 Housing Development Finance Corporation Limited
Debentures | -2% ₹359 Cr 3,500 6.79% Govt Stock 2027
Sovereign Bonds | -2% ₹314 Cr 30,500,000 Housing Development Finance Corporation Limited
Debentures | -2% ₹311 Cr 3,000 Indinfravit Trust
Debentures | -2% ₹293 Cr 2,900 State Bank of India
Debentures | -2% ₹290 Cr 2,750 State Bank Of India
Debentures | -2% ₹278 Cr 2,800 State Bank of India
Debentures | -1% ₹260 Cr 2,500 Rural Electrification Corporation Limited
Debentures | -1% ₹257 Cr 2,500 Motherson Sumi Systems Limited
Debentures | -1% ₹250 Cr 2,500 2. Aditya Birla Sun Life Short Term Opportunities Fund
CAGR/Annualized return of 7.5% since its launch. Ranked 18 in Short term Bond category. Return for 2020 was 11.1% , 2019 was 8.5% and 2018 was 6.5% . Aditya Birla Sun Life Short Term Opportunities Fund
Growth Launch Date 9 May 03 NAV (16 Apr 21) ₹36.6615 ↓ -0.01 (-0.03 %) Net Assets (Cr) ₹7,650 on 28 Feb 21 Category Debt - Short term Bond AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆☆ Risk Moderate Expense Ratio 1.13 Sharpe Ratio 1.63 Information Ratio -0.12 Alpha Ratio 1.02 Min Investment 1,000 Min SIP Investment 1,000 Exit Load 0-90 Days (0.5%),90 Days and above(NIL) Yield to Maturity 5.47% Effective Maturity 2 Years 1 Month 20 Days Modified Duration 1 Year 9 Months 14 Days Growth of 10,000 investment over the years.
Date Value 31 Mar 16 ₹10,000 31 Mar 17 ₹10,943 31 Mar 18 ₹11,634 31 Mar 19 ₹12,462 31 Mar 20 ₹13,380 31 Mar 21 ₹14,746 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 16 Apr 21 Duration Returns 1 Month 1.1% 3 Month 0.6% 6 Month 2% 1 Year 10.7% 3 Year 8.2% 5 Year 8% 10 Year 15 Year Since launch 7.5% Historical performance (Yearly) on absolute basis
Year Returns 2020 11.1% 2019 8.5% 2018 6.5% 2017 5.6% 2016 11.3% 2015 8.4% 2014 11.3% 2013 10.1% 2012 11.1% 2011 9.5% Fund Manager information for Aditya Birla Sun Life Short Term Opportunities Fund
Name Since Tenure Kaustubh Gupta 11 Sep 14 6.56 Yr. Mohit Sharma 6 Aug 20 0.65 Yr. Data below for Aditya Birla Sun Life Short Term Opportunities Fund as on 28 Feb 21
Asset Allocation
Asset Class Value Cash 17.08% Debt 82.92% Debt Sector Allocation
Sector Value Corporate 54.67% Government 31.79% Cash Equivalent 13.54% Credit Quality
Rating Value A 1.1% AA 20.19% AAA 78.57% Below B 0.13% Top Securities Holdings / Portfolio
Name Holding Value Quantity 8.60% Bihar SDL 2026
Sovereign Bonds | -2% ₹174 Cr 15,887,000 Reliance Industries Limited
Debentures | -2% ₹165 Cr 1,600 8.15% Govt Stock 2026
Sovereign Bonds | -2% ₹159 Cr 14,500,000 State Bank Of India
Debentures | -2% ₹152 Cr 1,500 National Bank For Agriculture And Rural Development
Debentures | -2% ₹150 Cr 1,500 Rural Electrification Corporation Limited
Debentures | -2% ₹142 Cr 1,400 Power Finance Corporation Limited
Debentures | -2% ₹124 Cr 1,200 Cholamandalam Investment And Fin. Co. Ltd
Debentures | -2% ₹124 Cr 1,250 Embassy Office Parks REIT
Debentures | -2% ₹124 Cr 1,250 6.90% Oil Mktg Cos GOI Sb 2026
Domestic Bonds | -1% ₹106 Cr 10,397,000 3. ICICI Prudential Short Term Fund
CAGR/Annualized return of 8.1% since its launch. Ranked 11 in Short term Bond category. Return for 2020 was 10.6% , 2019 was 9.7% and 2018 was 5.8% . ICICI Prudential Short Term Fund
Growth Launch Date 25 Oct 01 NAV (16 Apr 21) ₹45.9669 ↓ 0.00 (-0.01 %) Net Assets (Cr) ₹23,715 on 28 Feb 21 Category Debt - Short term Bond AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆ Risk Moderate Expense Ratio 1.15 Sharpe Ratio 1.6 Information Ratio -0.18 Alpha Ratio 0.38 Min Investment 5,000 Min SIP Investment 1,000 Exit Load 0-7 Days (0.25%),7 Days and above(NIL) Yield to Maturity 5.11% Effective Maturity 2 Years 4 Months 24 Days Modified Duration 1 Year 7 Months 10 Days Growth of 10,000 investment over the years.
Date Value 31 Mar 16 ₹10,000 31 Mar 17 ₹11,024 31 Mar 18 ₹11,693 31 Mar 19 ₹12,477 31 Mar 20 ₹13,623 31 Mar 21 ₹14,817 Returns for ICICI Prudential Short Term Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 16 Apr 21 Duration Returns 1 Month 0.9% 3 Month 0.5% 6 Month 2.2% 1 Year 9.5% 3 Year 8.2% 5 Year 8% 10 Year 15 Year Since launch 8.1% Historical performance (Yearly) on absolute basis
Year Returns 2020 10.6% 2019 9.7% 2018 5.8% 2017 5.9% 2016 11.1% 2015 8% 2014 11.6% 2013 7.2% 2012 9.5% 2011 8.7% Fund Manager information for ICICI Prudential Short Term Fund
Name Since Tenure Manish Banthia 19 Nov 09 11.37 Yr. Nikhil Kabra 29 Dec 20 0.25 Yr. Data below for ICICI Prudential Short Term Fund as on 28 Feb 21
Asset Allocation
Asset Class Value Cash 24.83% Debt 75.17% Debt Sector Allocation
Sector Value Corporate 44.22% Government 35.28% Cash Equivalent 19.8% Securitized 0.69% Credit Quality
Rating Value AA 17.72% AAA 82.28% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.94% Govt Stock 2021
Sovereign Bonds | -4% ₹1,004 Cr 99,333,300 182 DTB 19082021
Sovereign Bonds | -4% ₹984 Cr 100,000,000
↑ 100,000,000 6.22% Govt Stock 2035
Sovereign Bonds | -4% ₹957 Cr 101,000,000
↑ 22,000,000 National Bank For Agriculture And Rural Development
Debentures | -4% ₹898 Cr 9,000
↑ 500 Pipeline Infrastructure Private Limited
Debentures | -2% ₹444 Cr 4,129 Housing Development Finance Corporation Limited
Debentures | -2% ₹426 Cr 4,096
↑ 250 6.79% Govt Stock 2027
Sovereign Bonds | -2% ₹422 Cr 41,000,000 GOVT STOCK
Sovereign Bonds | -2% ₹383 Cr 38,000,000 GOI Floating Rate Bond 2024
Sovereign Bonds | -2% ₹381 Cr 38,500,000 Housing Development Finance Corporation Limited
Debentures | -1% ₹328 Cr 3,250
↑ 2,750 4. Axis Short Term Fund
CAGR/Annualized return of 8.1% since its launch. Ranked 26 in Short term Bond category. Return for 2020 was 10.1% , 2019 was 9.8% and 2018 was 6.3% . Axis Short Term Fund
Growth Launch Date 22 Jan 10 NAV (16 Apr 21) ₹23.9452 ↓ 0.00 (0.00 %) Net Assets (Cr) ₹13,355 on 28 Feb 21 Category Debt - Short term Bond AMC Axis Asset Management Company Limited Rating ☆☆☆ Risk Moderately Low Expense Ratio 0.92 Sharpe Ratio 1.64 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 5.02% Effective Maturity 2 Years Modified Duration 1 Year 7 Months 6 Days Growth of 10,000 investment over the years.
Date Value 31 Mar 16 ₹10,000 31 Mar 17 ₹10,890 31 Mar 18 ₹11,544 31 Mar 19 ₹12,387 31 Mar 20 ₹13,560 31 Mar 21 ₹14,634 Returns for Axis Short Term Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 16 Apr 21 Duration Returns 1 Month 0.9% 3 Month 0.6% 6 Month 1.8% 1 Year 8.5% 3 Year 8.2% 5 Year 7.8% 10 Year 15 Year Since launch 8.1% Historical performance (Yearly) on absolute basis
Year Returns 2020 10.1% 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% Fund Manager information for Axis Short Term Fund
Name Since Tenure Devang Shah 5 Nov 12 8.41 Yr. Data below for Axis Short Term Fund as on 28 Feb 21
Asset Allocation
Asset Class Value Cash 22.09% Debt 77.91% Debt Sector Allocation
Sector Value Corporate 58.55% Government 28.16% Cash Equivalent 11.85% Securitized 1.45% Credit Quality
Rating Value AA 6.94% AAA 93.06% Top Securities Holdings / Portfolio
Name Holding Value Quantity National Bank For Agriculture And Rural Development
Debentures | -4% ₹499 Cr 5,000
↑ 500 Food Corporation of India
Debentures | -4% ₹480 Cr 4,550 State Bank Of India
Debentures | -3% ₹377 Cr 3,800 7.42% MH SDL 2022
Sovereign Bonds | -2% ₹303 Cr 29,247,500
↓ -2,500,000 National Bank For Agriculture And Rural Development
Debentures | -2% ₹275 Cr 2,750
↑ 2,750 Housing Development Finance Corporation Limited
Debentures | -2% ₹275 Cr 2,680 Reliance Industries Limited
Debentures | -2% ₹249 Cr 2,400
↓ -1,000 Bank of Baroda
Debentures | -2% ₹201 Cr 1,950 364 DTB 25032021
Sovereign Bonds | -1% ₹200 Cr 20,000,000 Tata Capital Financial Services Limited
Debentures | -1% ₹191 Cr 1,500 5. IDFC Bond Fund Short Term Plan
CAGR/Annualized return of 7.6% since its launch. Ranked 47 in Short term Bond category. Return for 2020 was 9.7% , 2019 was 9.7% and 2018 was 6.5% . IDFC Bond Fund Short Term Plan
Growth Launch Date 14 Dec 00 NAV (16 Apr 21) ₹44.7418 ↓ -0.02 (-0.04 %) Net Assets (Cr) ₹13,582 on 28 Feb 21 Category Debt - Short term Bond AMC IDFC Asset Management Company Limited Rating ☆☆ Risk Moderately Low Expense Ratio 0.8 Sharpe Ratio 1.31 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 5% Effective Maturity 2 Years 2 Months 8 Days Modified Duration 1 Year 10 Months 24 Days Growth of 10,000 investment over the years.
Date Value 31 Mar 16 ₹10,000 31 Mar 17 ₹10,823 31 Mar 18 ₹11,465 31 Mar 19 ₹12,345 31 Mar 20 ₹13,472 31 Mar 21 ₹14,485 Returns for IDFC Bond Fund Short Term Plan
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 16 Apr 21 Duration Returns 1 Month 0.9% 3 Month 0.6% 6 Month 1.4% 1 Year 8% 3 Year 8.1% 5 Year 7.6% 10 Year 15 Year Since launch 7.6% Historical performance (Yearly) on absolute basis
Year Returns 2020 9.7% 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% Fund Manager information for IDFC Bond Fund Short Term Plan
Name Since Tenure Suyash Choudhary 11 Mar 11 10.06 Yr. Data below for IDFC Bond Fund Short Term Plan as on 28 Feb 21
Asset Allocation
Asset Class Value Cash 7.01% Debt 92.99% Debt Sector Allocation
Sector Value Government 50.67% Corporate 41.77% Cash Equivalent 7.01% Securitized 0.54% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 5.22% GOI 2025
Sovereign Bonds | -10% ₹1,370 Cr 139,400,000
↓ -500,000 Reliance Industries Limited
Debentures | -7% ₹919 Cr 88,900,000 Indian Railway Finance Corporation Limited
Debentures | -4% ₹484 Cr 45,000,000 Housing Development Finance Corporation Limited
Debentures | -3% ₹436 Cr 42,000,000 Reliance Industries Limited
Debentures | -3% ₹426 Cr 41,000,000 National Bank For Agriculture and Rural Development
Debentures | -3% ₹418 Cr 39,400,000 Power Finance Corporation Limited
Debentures | -3% ₹389 Cr 37,500,000 Indian Railway Finance Corporation Limited
Debentures | -3% ₹374 Cr 36,500,000 LIC Housing Finance Limited
Debentures | -3% ₹345 Cr 34,000,000 8.24% Govt Stock 2027
Sovereign Bonds | -2% ₹323 Cr 29,500,000
↑ 10,500,000
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.
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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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