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5 Best Short Duration (Short Term) Debt Funds To Invest In 2024
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 24 - 25
(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 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 (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 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 Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2023 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity 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 ICICI Prudential Short Term Fund Growth ₹56.7063
↑ 0.05 ₹19,639 2.1 4.1 8.3 6.3 7.4 7.82% 1Y 11M 16D 3Y 9M 14D HDFC Short Term Debt Fund Growth ₹30.1881
↑ 0.03 ₹14,383 2.4 4.5 8.8 6.1 7.1 7.67% 2Y 9M 22D 4Y 1M 6D Aditya Birla Sun Life Short Term Opportunities Fund Growth ₹44.8799
↑ 0.05 ₹8,495 2.3 4.3 8.5 6 6.9 7.75% 2Y 9M 22D 3Y 10M 13D UTI Short Term Income Fund Growth ₹29.9746
↑ 0.03 ₹2,987 2.3 4 8.4 6 6.9 7.74% 2Y 6M 25D 3Y 3M 7D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 11 Mar 22 Assets >= 100 Crore & Sorted on 3 Year CAGR Return.
1. 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 30 Sep 19 ₹10,000 30 Sep 20 ₹10,980 30 Sep 21 ₹11,556 Returns for BNP Paribas Short Term Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 11 Mar 22 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 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 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 2. ICICI Prudential Short Term Fund
CAGR/Annualized return of 7.9% since its launch. Ranked 11 in Short term Bond category. Return for 2023 was 7.4% , 2022 was 4.7% and 2021 was 3.9% . ICICI Prudential Short Term Fund
Growth Launch Date 25 Oct 01 NAV (09 Oct 24) ₹56.7063 ↑ 0.05 (0.10 %) Net Assets (Cr) ₹19,639 on 15 Sep 24 Category Debt - Short term Bond AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆ Risk Moderate Expense Ratio 1.11 Sharpe Ratio 1.01 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load 0-7 Days (0.25%),7 Days and above(NIL) Yield to Maturity 7.82% Effective Maturity 3 Years 9 Months 14 Days Modified Duration 1 Year 11 Months 16 Days Growth of 10,000 investment over the years.
Date Value 30 Sep 19 ₹10,000 30 Sep 20 ₹11,042 30 Sep 21 ₹11,695 30 Sep 22 ₹12,115 30 Sep 23 ₹12,995 30 Sep 24 ₹14,021 Returns for ICICI Prudential Short Term Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 11 Mar 22 Duration Returns 1 Month 0.7% 3 Month 2.1% 6 Month 4.1% 1 Year 8.3% 3 Year 6.3% 5 Year 7% 10 Year 15 Year Since launch 7.9% Historical performance (Yearly) on absolute basis
Year Returns 2023 7.4% 2022 4.7% 2021 3.9% 2020 10.6% 2019 9.7% 2018 5.8% 2017 5.9% 2016 11.1% 2015 8% 2014 11.6% Fund Manager information for ICICI Prudential Short Term Fund
Name Since Tenure Manish Banthia 19 Nov 09 14.79 Yr. Nikhil Kabra 29 Dec 20 3.67 Yr. Data below for ICICI Prudential Short Term Fund as on 15 Sep 24
Asset Allocation
Asset Class Value Cash 17.33% Debt 82.42% Other 0.25% Debt Sector Allocation
Sector Value Corporate 55.08% Government 34.62% Cash Equivalent 10.03% Securitized 0.02% Credit Quality
Rating Value AA 19.96% AAA 80.04% Top Securities Holdings / Portfolio
Name Holding Value Quantity 8.34% Govt Stock 2033
Sovereign Bonds | -8% ₹1,554 Cr 150,908,750
↓ -10,000,000 7.18% Govt Stock 2033
Sovereign Bonds | -6% ₹1,117 Cr 109,662,610
↑ 1,861,550 7.1% Govt Stock 2034
Sovereign Bonds | -6% ₹1,102 Cr 108,456,630 8% Govt Stock 2034
Sovereign Bonds | -5% ₹921 Cr 91,074,740 7.06% Govt Stock 2028
Sovereign Bonds | -3% ₹659 Cr 65,354,250 Small Industries Development Bank Of India
Debentures | -2% ₹369 Cr 37,000 National Bank For Agriculture And Rural Development
Debentures | -2% ₹349 Cr 35,000 HDFC Bank Ltd.
Debentures | -2% ₹318 Cr 6,500 Muthoot Finance Limited
Debentures | -2% ₹300 Cr 30,000 Small Industries Development Bank Of India
Debentures | -2% ₹300 Cr 3,000 3. HDFC Short Term Debt Fund
CAGR/Annualized return of 8% since its launch. Ranked 30 in Short term Bond category. Return for 2023 was 7.1% , 2022 was 3.5% and 2021 was 3.9% . HDFC Short Term Debt Fund
Growth Launch Date 25 Jun 10 NAV (09 Oct 24) ₹30.1881 ↑ 0.03 (0.11 %) Net Assets (Cr) ₹14,383 on 15 Sep 24 Category Debt - Short term Bond AMC HDFC Asset Management Company Limited Rating ☆☆☆ Risk Moderately Low Expense Ratio 0.71 Sharpe Ratio 1.16 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 300 Exit Load NIL Yield to Maturity 7.67% Effective Maturity 4 Years 1 Month 6 Days Modified Duration 2 Years 9 Months 22 Days Growth of 10,000 investment over the years.
Date Value 30 Sep 19 ₹10,000 30 Sep 20 ₹11,078 30 Sep 21 ₹11,727 30 Sep 22 ₹12,024 30 Sep 23 ₹12,877 30 Sep 24 ₹13,948 Returns for HDFC Short Term Debt Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 11 Mar 22 Duration Returns 1 Month 0.9% 3 Month 2.4% 6 Month 4.5% 1 Year 8.8% 3 Year 6.1% 5 Year 6.9% 10 Year 15 Year Since launch 8% Historical performance (Yearly) on absolute basis
Year Returns 2023 7.1% 2022 3.5% 2021 3.9% 2020 11% 2019 9.7% 2018 7% 2017 6.5% 2016 9.3% 2015 8.7% 2014 10.4% Fund Manager information for HDFC Short Term Debt Fund
Name Since Tenure Anil Bamboli 25 Jun 10 14.19 Yr. Dhruv Muchhal 22 Jun 23 1.19 Yr. Data below for HDFC Short Term Debt Fund as on 15 Sep 24
Asset Allocation
Asset Class Value Cash 8.35% Debt 91.39% Other 0.26% Debt Sector Allocation
Sector Value Corporate 52.62% Government 39.13% Cash Equivalent 7.82% Securitized 0.17% Credit Quality
Rating Value AA 12.87% AAA 87.13% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.18% Govt Stock 2033
Sovereign Bonds | -8% ₹1,095 Cr 107,500,000
↑ 2,000,000 7.72% Govt Stock 2028
Sovereign Bonds | -4% ₹518 Cr 51,500,000 7.26% Govt Stock 2032
Sovereign Bonds | -3% ₹353 Cr 34,500,000 7.1% Govt Stock 2034
Sovereign Bonds | -2% ₹280 Cr 27,500,000 National Bank for Agriculture and Rural Development
Domestic Bonds | -2% ₹252 Cr 25,000 Bajaj Housing Finance Limited
Debentures | -2% ₹252 Cr 25,000 Pipeline Infrastructure Ltd.
Debentures | -2% ₹223 Cr 22,000 TVS Credit Services Limited
Debentures | -1% ₹205 Cr 200 Small Industries Development Bank Of India
Debentures | -1% ₹202 Cr 20,000 Kotak Mahindra Investments Limited
Debentures | -1% ₹201 Cr 20,000 4. 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 2023 was 6.9% , 2022 was 4.2% and 2021 was 3.8% . Aditya Birla Sun Life Short Term Opportunities Fund
Growth Launch Date 9 May 03 NAV (09 Oct 24) ₹44.8799 ↑ 0.05 (0.12 %) Net Assets (Cr) ₹8,495 on 15 Sep 24 Category Debt - Short term Bond AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆☆ Risk Moderate Expense Ratio 1.06 Sharpe Ratio 0.51 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 7.75% Effective Maturity 3 Years 10 Months 13 Days Modified Duration 2 Years 9 Months 22 Days Growth of 10,000 investment over the years.
Date Value 30 Sep 19 ₹10,000 30 Sep 20 ₹11,000 30 Sep 21 ₹11,633 30 Sep 22 ₹12,016 30 Sep 23 ₹12,814 30 Sep 24 ₹13,839 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 11 Mar 22 Duration Returns 1 Month 0.9% 3 Month 2.3% 6 Month 4.3% 1 Year 8.5% 3 Year 6% 5 Year 6.7% 10 Year 15 Year Since launch 7.3% Historical performance (Yearly) on absolute basis
Year Returns 2023 6.9% 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% Fund Manager information for Aditya Birla Sun Life Short Term Opportunities Fund
Name Since Tenure Kaustubh Gupta 11 Sep 14 9.98 Yr. Mohit Sharma 6 Aug 20 4.07 Yr. Dhaval Joshi 21 Nov 22 1.78 Yr. Data below for Aditya Birla Sun Life Short Term Opportunities Fund as on 15 Sep 24
Asset Allocation
Asset Class Value Cash 8.36% Debt 91.39% Other 0.24% Debt Sector Allocation
Sector Value Corporate 52.7% Government 39.77% Cash Equivalent 5.51% Securitized 1.77% Credit Quality
Rating Value AA 15.74% AAA 84.26% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.18% Govt Stock 2033
Sovereign Bonds | -14% ₹1,126 Cr 110,500,000 7.26% Govt Stock 2033
Sovereign Bonds | -4% ₹348 Cr 34,000,000
↓ -2,500,000 National Bank For Agriculture And Rural Development
Debentures | -4% ₹301 Cr 30,000 Small Industries Development Bank of India 7.68%
Debentures | -3% ₹235 Cr 23,500 National Bank For Agriculture And Rural Development
Debentures | -3% ₹225 Cr 22,500 Bajaj Housing Finance Limited
Debentures | -2% ₹201 Cr 20,000 Bharti Telecom Limited
Debentures | -2% ₹190 Cr 1,900 Small Industries Development Bank Of India
Debentures | -2% ₹185 Cr 1,850 7.18% Govt Stock 2037
Sovereign Bonds | -2% ₹174 Cr 17,000,000 Bharti Telecom Limited
Debentures | -2% ₹151 Cr 15,000 5. UTI Short Term Income Fund
CAGR/Annualized return of 6.6% since its launch. Ranked 10 in Short term Bond category. Return for 2023 was 6.9% , 2022 was 3.8% and 2021 was 8.4% . UTI Short Term Income Fund
Growth Launch Date 19 Sep 07 NAV (09 Oct 24) ₹29.9746 ↑ 0.03 (0.11 %) Net Assets (Cr) ₹2,987 on 31 Aug 24 Category Debt - Short term Bond AMC UTI Asset Management Company Ltd Rating ☆☆☆☆ Risk Moderate Expense Ratio 0.94 Sharpe Ratio 0.69 Information Ratio 0 Alpha Ratio 0 Min Investment 10,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 7.74% Effective Maturity 3 Years 3 Months 7 Days Modified Duration 2 Years 6 Months 25 Days Growth of 10,000 investment over the years.
Date Value 30 Sep 19 ₹10,000 30 Sep 20 ₹11,041 30 Sep 21 ₹12,125 30 Sep 22 ₹12,498 30 Sep 23 ₹13,339 30 Sep 24 ₹14,414 Returns for UTI Short Term Income Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 11 Mar 22 Duration Returns 1 Month 0.8% 3 Month 2.3% 6 Month 4% 1 Year 8.4% 3 Year 6% 5 Year 7.6% 10 Year 15 Year Since launch 6.6% Historical performance (Yearly) on absolute basis
Year Returns 2023 6.9% 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% Fund Manager information for UTI Short Term Income Fund
Name Since Tenure Sudhir Agarwal 25 Oct 12 11.86 Yr. Data below for UTI Short Term Income Fund as on 31 Aug 24
Asset Allocation
Asset Class Value Cash 5.08% Debt 94.69% Other 0.23% Debt Sector Allocation
Sector Value Corporate 70.17% Government 24.52% Cash Equivalent 5.08% Credit Quality
Rating Value AA 5.88% AAA 94.12% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.04% Govt Stock 2029
Sovereign Bonds | -8% ₹237 Cr 2,350,000,000 National Bank For Agriculture And Rural Development
Debentures | -8% ₹226 Cr 22,500 National Housing Bank
Debentures | -7% ₹211 Cr 21,000 Small Industries Development Bank of India
Debentures | -7% ₹201 Cr 20,000 LIC Housing Finance Limited
Debentures | -6% ₹176 Cr 1,750 Power Finance Corp Ltd.
Debentures | -6% ₹175 Cr 17,500 7.37% Govt Stock 2028
Sovereign Bonds | -6% ₹168 Cr 1,650,000,000
↓ -500,000,000 Union Bank of India
Domestic Bonds | -5% ₹144 Cr 1,500,000,000
↓ -500,000,000 Bajaj Finance Limited
Debentures | -3% ₹100 Cr 10,000 Kotak Mahindra Prime Limited
Debentures | -3% ₹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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