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5 Best Short Duration (Short Term) Debt Funds To Invest In 2019
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 19 - 20
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2018 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity DHFL Pramerica Short Maturity Fund Growth ₹33.2945
↑ 0.00 ₹618 2.2 3.3 5.9 7.5 5.5 10.75% 10M 28D 1Y 1M 28D Aditya Birla Sun Life Short Term Opportunities Fund Growth ₹30.4675
↓ -0.01 ₹3,741 2.1 4 6.8 7.8 6.5 9.2% 1Y 3M 29D 1Y 9M 4D ICICI Prudential Short Term Fund Growth ₹38.0307
↓ -0.02 ₹7,210 2.3 3.7 6.3 7.8 5.8 8.67% 1Y 6M 1Y 10M 20D UTI Short Term Income Fund Growth ₹22.1939
↓ 0.00 ₹8,555 1.8 3.1 6.1 7.4 6 8.49% 1Y 2M 5D 1Y 5M 12D Reliance Short Term Fund Growth ₹34.2292
↓ -0.03 ₹8,236 2.5 3.7 6.1 7.1 5.5 8.68% 1Y 7M 28D 2Y 18D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 18 Feb 19
To generate steady returns with low to medium market risk for investors by investing in a portfolio of short -medium term debt and money market securities. DHFL Pramerica Short Maturity Fund is a Debt - Short term Bond fund was launched on 21 Jan 03. It is a fund with Moderate risk and has given a Below is the key information for DHFL Pramerica Short Maturity 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 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 The primary investment objective of the scheme is to generate stable returns for investors with a short term investment horizon by investing in fixed income
securitites of a short term maturity. Reliance Short Term Fund is a Debt - Short term Bond fund was launched on 18 Dec 02. It is a fund with Moderately Low risk and has given a Below is the key information for Reliance Short Term Fund Returns up to 1 year are on 1. DHFL Pramerica Short Maturity Fund
CAGR/Annualized return of 7.8% since its launch. Ranked 5 in Short term Bond category. Return for 2018 was 5.5% , 2017 was 6.8% and 2016 was 10% . DHFL Pramerica Short Maturity Fund
Growth Launch Date 21 Jan 03 NAV (18 Feb 19) ₹33.2945 ↑ 0.00 (0.01 %) Net Assets (Cr) ₹618 on 31 Jan 19 Category Debt - Short term Bond AMC DHFL Pramerica Asset Managers Private Limited Rating ☆☆☆☆☆ Risk Moderate Expense Ratio 1.45 Sharpe Ratio 1.71 Information Ratio -0.15 Alpha Ratio -0.72 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-6 Months (0.5%),6 Months and above(NIL) Yield to Maturity 10.75% Effective Maturity 1 Year 1 Month 28 Days Modified Duration 10 Months 28 Days Growth of 10,000 investment over the years.
Date Value 31 Jan 14 ₹10,000 31 Jan 15 ₹11,103 31 Jan 16 ₹11,965 31 Jan 17 ₹13,213 31 Jan 18 ₹14,034 31 Jan 19 ₹14,851 Returns for DHFL Pramerica Short Maturity Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 18 Feb 19 Duration Returns 1 Month 0.5% 3 Month 2.2% 6 Month 3.3% 1 Year 5.9% 3 Year 7.5% 5 Year 8.2% 10 Year 15 Year Since launch 7.8% Historical performance (Yearly) on absolute basis
Year Returns 2018 5.5% 2017 6.8% 2016 10% 2015 8.3% 2014 10.6% 2013 8.1% 2012 9.8% 2011 8.9% 2010 4.9% 2009 7.7% Fund Manager information for DHFL Pramerica Short Maturity Fund
Name Since Tenure Kumaresh Ramakrishnan 13 Dec 17 1.13 Yr. Puneet Pal 13 Dec 17 1.13 Yr. Data below for DHFL Pramerica Short Maturity Fund as on 31 Jan 19
Asset Allocation
Asset Class Value Cash 29.72% Debt 70.28% Debt Sector Allocation
Sector Value Corporate 66.07% Cash Equivalent 29.72% Government 4.21% Credit Quality
Rating Value AA 62.09% AAA 37.91% Top Securities Holdings / Portfolio
Name Holding Value Quantity Net Receivables / (Payables)
Net Current Assets | -18% ₹109 Cr Business Broadcast News Holdings Limited
Debentures | -14% ₹84 Cr 8,500,000 Indiabulls Housing Finance Limited
Debentures | -12% ₹75 Cr 7,500,000 Reliance Big Entertainment Private Limited
Debentures | -12% ₹75 Cr 7,500,000 Dewan Housing Finance Corporation Limited
Debentures | -12% ₹74 Cr 7,500,000 Hansdeep Industries & Trading Company Limited
Debentures | -9% ₹56 Cr 6,940,000
↓ -560,000 Reliance Mediaworks Limited
Debentures | -8% ₹49 Cr 5,000,000 Yes Bank Limited
Debentures | -5% ₹29 Cr 3,040,000
↓ -20,000 Union Bank Of India
Debentures | -3% ₹21 Cr 2,150,000 Dewan Housing Finance Corporation Limited
Debentures | -3% ₹19 Cr 2,000,000 2. 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 2018 was 6.5% , 2017 was 5.6% and 2016 was 11.3% . Aditya Birla Sun Life Short Term Opportunities Fund
Growth Launch Date 9 May 03 NAV (18 Feb 19) ₹30.4675 ↓ -0.01 (-0.04 %) Net Assets (Cr) ₹3,741 on 31 Jan 19 Category Debt - Short term Bond AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆☆ Risk Moderate Expense Ratio 1.38 Sharpe Ratio 2.26 Information Ratio 0.2 Alpha Ratio 0.32 Min Investment 1,000 Min SIP Investment 1,000 Exit Load 0-90 Days (0.5%),90 Days and above(NIL) Yield to Maturity 9.2% Effective Maturity 1 Year 9 Months 4 Days Modified Duration 1 Year 3 Months 29 Days Growth of 10,000 investment over the years.
Date Value 31 Jan 14 ₹10,000 31 Jan 15 ₹11,204 31 Jan 16 ₹12,047 31 Jan 17 ₹13,488 31 Jan 18 ₹14,126 31 Jan 19 ₹15,070 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 18 Feb 19 Duration Returns 1 Month 0.2% 3 Month 2.1% 6 Month 4% 1 Year 6.8% 3 Year 7.8% 5 Year 8.5% 10 Year 15 Year Since launch 7.3% Historical performance (Yearly) on absolute basis
Year Returns 2018 6.5% 2017 5.6% 2016 11.3% 2015 8.4% 2014 11.3% 2013 10.1% 2012 11.1% 2011 9.5% 2010 6% 2009 8.1% Fund Manager information for Aditya Birla Sun Life Short Term Opportunities Fund
Name Since Tenure Maneesh Dangi 1 Apr 17 1.59 Yr. Kaustubh Gupta 11 Sep 14 4.14 Yr. Data below for Aditya Birla Sun Life Short Term Opportunities Fund as on 31 Jan 19
Asset Allocation
Asset Class Value Cash 14.89% Debt 85.11% Debt Sector Allocation
Sector Value Corporate 67.26% Cash Equivalent 14.89% Government 14.52% Securitized 3.33% Credit Quality
Rating Value A 8.44% AA 31.88% AAA 58.61% Below B 1.07% Top Securities Holdings / Portfolio
Name Holding Value Quantity ONGC Petro Additions Limited
Debentures | -7% ₹247 Cr 250 Reverse Repo
CBLO/Reverse Repo | -6% ₹220 Cr ADANI PROPERTIES PRIVATE LIMITED
Debentures | -6% ₹207 Cr 200 Indiabulls Housing Finance Limited
Debentures | -4% ₹156 Cr 1,200 Net Receivables / (Payables)
Net Current Assets | -4% ₹141 Cr Tata Motors Limited
Debentures | -3% ₹123 Cr 1,284
↓ -31 Power Finance Corporation Ltd.
Debentures | -3% ₹123 Cr 1,250 LIC Housing Finance Limited
Debentures | -3% ₹120 Cr 1,200
↓ -300 Clearing Corporation Of India Limited
CBLO | -3% ₹103 Cr Punjab National Bank
Debentures | -3% ₹96 Cr 1,000 3. ICICI Prudential Short Term Fund
CAGR/Annualized return of 8% since its launch. Ranked 11 in Short term Bond category. Return for 2018 was 5.8% , 2017 was 5.9% and 2016 was 11.1% . ICICI Prudential Short Term Fund
Growth Launch Date 25 Oct 01 NAV (18 Feb 19) ₹38.0307 ↓ -0.02 (-0.04 %) Net Assets (Cr) ₹7,210 on 31 Jan 19 Category Debt - Short term Bond AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆ Risk Moderate Expense Ratio 1.27 Sharpe Ratio 1.88 Information Ratio 0.09 Alpha Ratio -0.51 Min Investment 5,000 Min SIP Investment 1,000 Exit Load 0-7 Days (0.25%),7 Days and above(NIL) Yield to Maturity 8.67% Effective Maturity 1 Year 10 Months 20 Days Modified Duration 1 Year 6 Months Growth of 10,000 investment over the years.
Date Value 31 Jan 14 ₹10,000 31 Jan 15 ₹11,230 31 Jan 16 ₹12,055 31 Jan 17 ₹13,434 31 Jan 18 ₹14,149 31 Jan 19 ₹15,021 Returns for ICICI Prudential Short Term Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 18 Feb 19 Duration Returns 1 Month 0.5% 3 Month 2.3% 6 Month 3.7% 1 Year 6.3% 3 Year 7.8% 5 Year 8.5% 10 Year 15 Year Since launch 8% Historical performance (Yearly) on absolute basis
Year Returns 2018 5.8% 2017 5.9% 2016 11.1% 2015 8% 2014 11.6% 2013 7.2% 2012 9.5% 2011 8.7% 2010 4.4% 2009 5.8% Fund Manager information for ICICI Prudential Short Term Fund
Name Since Tenure Manish Banthia 19 Nov 09 8.96 Yr. Data below for ICICI Prudential Short Term Fund as on 31 Jan 19
Asset Allocation
Asset Class Value Cash 9.45% Debt 90.55% Debt Sector Allocation
Sector Value Corporate 61.84% Government 22.63% Cash Equivalent 9.45% Securitized 6.08% Credit Quality
Rating Value AA 17.45% AAA 82.55% Top Securities Holdings / Portfolio
Name Holding Value Quantity Axis Bank Limited
Debentures | -4% ₹319 Cr 3,300 Treps
CBLO/Reverse Repo | -4% ₹260 Cr SANSAR TRUST NOV 2018
Unlisted bonds | -4% ₹255 Cr 1,883 National Bank For Agriculture And Rural Development
Debentures | -3% ₹251 Cr 2,500 TATA MOTORS FINANCE LIMITED
Debentures | -3% ₹251 Cr 2,500 Small Industries Development Bank Of India
Debentures | -3% ₹250 Cr 2,500 Power Finance Corporation Ltd.
Debentures | -3% ₹205 Cr 2,050 NRSS XXIX TRANSMISSION LIMITED
Debentures | -3% ₹201 Cr 2,000 ONGC Mangalore Petrochemicals Limited
Debentures | -3% ₹200 Cr 2,000 Reliance Ports And Terminals Limited
Debentures | -3% ₹198 Cr 1,928 4. UTI Short Term Income Fund
CAGR/Annualized return of 7.2% since its launch. Ranked 10 in Short term Bond category. Return for 2018 was 6% , 2017 was 6.1% and 2016 was 10.1% . UTI Short Term Income Fund
Growth Launch Date 19 Sep 07 NAV (18 Feb 19) ₹22.1939 ↓ 0.00 (-0.01 %) Net Assets (Cr) ₹8,555 on 31 Jan 19 Category Debt - Short term Bond AMC UTI Asset Management Company Ltd Rating ☆☆☆☆ Risk Moderate Expense Ratio 0.98 Sharpe Ratio 2.21 Information Ratio -0.42 Alpha Ratio 0.02 Min Investment 10,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 8.49% Effective Maturity 1 Year 5 Months 12 Days Modified Duration 1 Year 2 Months 5 Days Growth of 10,000 investment over the years.
Date Value 31 Jan 14 ₹10,000 31 Jan 15 ₹11,151 31 Jan 16 ₹12,012 31 Jan 17 ₹13,264 31 Jan 18 ₹13,994 31 Jan 19 ₹14,825 Returns for UTI Short Term Income Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 18 Feb 19 Duration Returns 1 Month 0.3% 3 Month 1.8% 6 Month 3.1% 1 Year 6.1% 3 Year 7.4% 5 Year 8.2% 10 Year 15 Year Since launch 7.2% Historical performance (Yearly) on absolute basis
Year Returns 2018 6% 2017 6.1% 2016 10.1% 2015 8.3% 2014 10.9% 2013 9% 2012 11.2% 2011 10.7% 2010 5.9% 2009 Fund Manager information for UTI Short Term Income Fund
Name Since Tenure Sudhir Agarwal 25 Oct 12 6.02 Yr. Data below for UTI Short Term Income Fund as on 31 Jan 19
Asset Allocation
Asset Class Value Cash 33.22% Debt 60.94% Other 5.84% Debt Sector Allocation
Sector Value Corporate 35.32% Cash Equivalent 31.77% Government 22.84% Securitized 4.23% Credit Quality
Rating Value A 3.92% AA 16.18% AAA 79.9% Top Securities Holdings / Portfolio
Name Holding Value Quantity Net Current Assets
Net Current Assets | -21% ₹1,808 Cr 00 Indiabulls Housing Finance Limited
Debentures | -6% ₹505 Cr 5,050 Mf Units-Uti Treasury Adv Fund-Ins Dir Grow
- | -6% ₹500 Cr 1,949,874
↑ 1,949,874 LARSEN AND TOUBRO LIMITED
Commercial Paper | -5% ₹400 Cr 4,000,000,000
↑ 4,000,000,000 Dewan Housing Finance Corporation Limited
Debentures | -4% ₹363 Cr 4,000,000 Power Finance Corporation Ltd.
Debentures | -4% ₹310 Cr 3,100 NRSS XXIX TRANSMISSION LIMITED
Debentures | -4% ₹301 Cr 3,000 7.17% Govt Stock 2028
Sovereign Bonds | -3% ₹289 Cr 2,950,000,000
↓ -5,300,000,000 Punjab National Bank
Debentures | -3% ₹245 Cr 2,550 Rural Electrification Corporation Limited
Debentures | -3% ₹239 Cr 2,415 5. Reliance Short Term Fund
CAGR/Annualized return of 7.9% since its launch. Ranked 17 in Short term Bond category. Return for 2018 was 5.5% , 2017 was 5.7% and 2016 was 9.8% . Reliance Short Term Fund
Growth Launch Date 18 Dec 02 NAV (18 Feb 19) ₹34.2292 ↓ -0.03 (-0.07 %) Net Assets (Cr) ₹8,236 on 31 Jan 19 Category Debt - Short term Bond AMC Reliance Nippon Life Asset Management Ltd. Rating ☆☆☆☆ Risk Moderately Low Expense Ratio 1.12 Sharpe Ratio 1.43 Information Ratio -1.04 Alpha Ratio -1.46 Min Investment 5,000 Min SIP Investment 100 Exit Load NIL Yield to Maturity 8.68% Effective Maturity 2 Years 18 Days Modified Duration 1 Year 7 Months 28 Days Growth of 10,000 investment over the years.
Date Value 31 Jan 14 ₹10,000 31 Jan 15 ₹11,202 31 Jan 16 ₹12,036 31 Jan 17 ₹13,266 31 Jan 18 ₹13,934 31 Jan 19 ₹14,750 Returns for Reliance Short Term Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 18 Feb 19 Duration Returns 1 Month 0.5% 3 Month 2.5% 6 Month 3.7% 1 Year 6.1% 3 Year 7.1% 5 Year 8.1% 10 Year 15 Year Since launch 7.9% Historical performance (Yearly) on absolute basis
Year Returns 2018 5.5% 2017 5.7% 2016 9.8% 2015 8.1% 2014 11.3% 2013 7.5% 2012 9.8% 2011 7.9% 2010 5% 2009 8.9% Fund Manager information for Reliance Short Term Fund
Name Since Tenure Prashant Pimple 10 Jan 06 12.82 Yr. Kinjal Desai 25 May 18 0.44 Yr. Data below for Reliance Short Term Fund as on 31 Jan 19
Asset Allocation
Asset Class Value Cash 17.72% Debt 82.27% Other 0.01% Debt Sector Allocation
Sector Value Corporate 61.82% Government 17.76% Cash Equivalent 13.82% Securitized 6.59% Credit Quality
Rating Value AA 14.49% AAA 85.51% Top Securities Holdings / Portfolio
Name Holding Value Quantity Reliance Industries Limited
Debentures | -5% ₹407 Cr 4,150
↓ -150 Housing Development Finance Corporation Limited
Debentures | -4% ₹350 Cr 3,500
↑ 3,500 GOVT STOCK
Sovereign Bonds | -3% ₹276 Cr 27,500,000
↑ 27,500,000 State Bank Of India
Debentures | -3% ₹256 Cr 2,515
↑ 50 Net Current Assets
Net Current Assets | -3% ₹254 Cr Muthoot Finance Limited
Debentures | -3% ₹248 Cr 2,571,098
↓ -37,000 HDB Financial Services Limited
Debentures | -3% ₹246 Cr 2,500 Panchshil Corporate Park Private Limited
Debentures | -3% ₹222 Cr 225
↓ -150 Axis Bank Limited
Debentures | -3% ₹221 Cr 2,287
↓ -10 PNB Housing Finance Limited
Debentures | -2% ₹197 Cr 2,000
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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