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5 Best Short Duration (Short Term) Debt Mutual Funds 2019

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5 Best Short Duration (Short Term) Debt Funds To Invest In 2019

Updated on February 17, 2019 , 830 views

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

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)2018 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
DHFL Pramerica Short Maturity Fund Growth ₹33.2945
↑ 0.00
₹6182.23.35.97.55.510.75%10M 28D1Y 1M 28D
Aditya Birla Sun Life Short Term Opportunities Fund Growth ₹30.4675
↓ -0.01
₹3,7412.146.87.86.59.2%1Y 3M 29D1Y 9M 4D
ICICI Prudential Short Term Fund Growth ₹38.0307
↓ -0.02
₹7,2102.33.76.37.85.88.67%1Y 6M1Y 10M 20D
UTI Short Term Income Fund Growth ₹22.1939
↓ 0.00
₹8,5551.83.16.17.468.49%1Y 2M 5D1Y 5M 12D
Reliance Short Term Fund Growth ₹34.2292
↓ -0.03
₹8,2362.53.76.17.15.58.68%1Y 7M 28D2Y 18D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 18 Feb 19

1. DHFL Pramerica Short Maturity Fund

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 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% .

Below is the key information for DHFL Pramerica Short Maturity Fund

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.

DateValue
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

DHFL Pramerica Short Maturity Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹206,148.
Net Profit of ₹26,148
Invest Now

Returns for DHFL Pramerica Short Maturity Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 18 Feb 19

DurationReturns
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
YearReturns
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
NameSinceTenure
Kumaresh Ramakrishnan13 Dec 171.13 Yr.
Puneet Pal13 Dec 171.13 Yr.

Data below for DHFL Pramerica Short Maturity Fund as on 31 Jan 19

Asset Allocation
Asset ClassValue
Cash29.72%
Debt70.28%
Debt Sector Allocation
SectorValue
Corporate66.07%
Cash Equivalent29.72%
Government4.21%
Credit Quality
RatingValue
AA62.09%
AAA37.91%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Net Receivables / (Payables)
Net Current Assets | -
18%₹109 Cr
Business Broadcast News Holdings Limited
Debentures | -
14%₹84 Cr8,500,000
Indiabulls Housing Finance Limited
Debentures | -
12%₹75 Cr7,500,000
Reliance Big Entertainment Private Limited
Debentures | -
12%₹75 Cr7,500,000
Dewan Housing Finance Corporation Limited
Debentures | -
12%₹74 Cr7,500,000
Hansdeep Industries & Trading Company Limited
Debentures | -
9%₹56 Cr6,940,000
↓ -560,000
Reliance Mediaworks Limited
Debentures | -
8%₹49 Cr5,000,000
Yes Bank Limited
Debentures | -
5%₹29 Cr3,040,000
↓ -20,000
Union Bank Of India
Debentures | -
3%₹21 Cr2,150,000
Dewan Housing Finance Corporation Limited
Debentures | -
3%₹19 Cr2,000,000

2. Aditya Birla Sun Life Short Term Opportunities Fund

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 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% .

Below is the key information for Aditya Birla Sun Life Short Term Opportunities Fund

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.

DateValue
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

Aditya Birla Sun Life Short Term Opportunities Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹206,148.
Net Profit of ₹26,148
Invest Now

Returns for Aditya Birla Sun Life Short Term Opportunities Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 18 Feb 19

DurationReturns
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
YearReturns
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
NameSinceTenure
Maneesh Dangi1 Apr 171.59 Yr.
Kaustubh Gupta11 Sep 144.14 Yr.

Data below for Aditya Birla Sun Life Short Term Opportunities Fund as on 31 Jan 19

Asset Allocation
Asset ClassValue
Cash14.89%
Debt85.11%
Debt Sector Allocation
SectorValue
Corporate67.26%
Cash Equivalent14.89%
Government14.52%
Securitized3.33%
Credit Quality
RatingValue
A8.44%
AA31.88%
AAA58.61%
Below B1.07%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
ONGC Petro Additions Limited
Debentures | -
7%₹247 Cr250
Reverse Repo
CBLO/Reverse Repo | -
6%₹220 Cr
ADANI PROPERTIES PRIVATE LIMITED
Debentures | -
6%₹207 Cr200
Indiabulls Housing Finance Limited
Debentures | -
4%₹156 Cr1,200
Net Receivables / (Payables)
Net Current Assets | -
4%₹141 Cr
Tata Motors Limited
Debentures | -
3%₹123 Cr1,284
↓ -31
Power Finance Corporation Ltd.
Debentures | -
3%₹123 Cr1,250
LIC Housing Finance Limited
Debentures | -
3%₹120 Cr1,200
↓ -300
Clearing Corporation Of India Limited
CBLO | -
3%₹103 Cr
Punjab National Bank
Debentures | -
3%₹96 Cr1,000

3. ICICI Prudential Short Term Fund

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 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% .

Below is the key information for ICICI Prudential Short Term Fund

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.

DateValue
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

ICICI Prudential Short Term Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹206,148.
Net Profit of ₹26,148
Invest Now

Returns for ICICI Prudential Short Term Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 18 Feb 19

DurationReturns
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
YearReturns
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
NameSinceTenure
Manish Banthia19 Nov 098.96 Yr.

Data below for ICICI Prudential Short Term Fund as on 31 Jan 19

Asset Allocation
Asset ClassValue
Cash9.45%
Debt90.55%
Debt Sector Allocation
SectorValue
Corporate61.84%
Government22.63%
Cash Equivalent9.45%
Securitized6.08%
Credit Quality
RatingValue
AA17.45%
AAA82.55%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Axis Bank Limited
Debentures | -
4%₹319 Cr3,300
Treps
CBLO/Reverse Repo | -
4%₹260 Cr
SANSAR TRUST NOV 2018
Unlisted bonds | -
4%₹255 Cr1,883
National Bank For Agriculture And Rural Development
Debentures | -
3%₹251 Cr2,500
TATA MOTORS FINANCE LIMITED
Debentures | -
3%₹251 Cr2,500
Small Industries Development Bank Of India
Debentures | -
3%₹250 Cr2,500
Power Finance Corporation Ltd.
Debentures | -
3%₹205 Cr2,050
NRSS XXIX TRANSMISSION LIMITED
Debentures | -
3%₹201 Cr2,000
ONGC Mangalore Petrochemicals Limited
Debentures | -
3%₹200 Cr2,000
Reliance Ports And Terminals Limited
Debentures | -
3%₹198 Cr1,928

4. UTI Short Term Income Fund

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 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% .

Below is the key information for UTI Short Term Income Fund

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.

DateValue
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

UTI Short Term Income Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹206,148.
Net Profit of ₹26,148
Invest Now

Returns for UTI Short Term Income Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 18 Feb 19

DurationReturns
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
YearReturns
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
NameSinceTenure
Sudhir Agarwal25 Oct 126.02 Yr.

Data below for UTI Short Term Income Fund as on 31 Jan 19

Asset Allocation
Asset ClassValue
Cash33.22%
Debt60.94%
Other5.84%
Debt Sector Allocation
SectorValue
Corporate35.32%
Cash Equivalent31.77%
Government22.84%
Securitized4.23%
Credit Quality
RatingValue
A3.92%
AA16.18%
AAA79.9%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Net Current Assets
Net Current Assets | -
21%₹1,808 Cr00
Indiabulls Housing Finance Limited
Debentures | -
6%₹505 Cr5,050
Mf Units-Uti Treasury Adv Fund-Ins Dir Grow
- | -
6%₹500 Cr1,949,874
↑ 1,949,874
LARSEN AND TOUBRO LIMITED
Commercial Paper | -
5%₹400 Cr4,000,000,000
↑ 4,000,000,000
Dewan Housing Finance Corporation Limited
Debentures | -
4%₹363 Cr4,000,000
Power Finance Corporation Ltd.
Debentures | -
4%₹310 Cr3,100
NRSS XXIX TRANSMISSION LIMITED
Debentures | -
4%₹301 Cr3,000
7.17% Govt Stock 2028
Sovereign Bonds | -
3%₹289 Cr2,950,000,000
↓ -5,300,000,000
Punjab National Bank
Debentures | -
3%₹245 Cr2,550
Rural Electrification Corporation Limited
Debentures | -
3%₹239 Cr2,415

5. Reliance Short Term Fund

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 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% .

Below is the key information for Reliance Short Term Fund

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.

DateValue
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

Reliance Short Term Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹206,148.
Net Profit of ₹26,148
Invest Now

Returns for Reliance Short Term Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 18 Feb 19

DurationReturns
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
YearReturns
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
NameSinceTenure
Prashant Pimple10 Jan 0612.82 Yr.
Kinjal Desai25 May 180.44 Yr.

Data below for Reliance Short Term Fund as on 31 Jan 19

Asset Allocation
Asset ClassValue
Cash17.72%
Debt82.27%
Other0.01%
Debt Sector Allocation
SectorValue
Corporate61.82%
Government17.76%
Cash Equivalent13.82%
Securitized6.59%
Credit Quality
RatingValue
AA14.49%
AAA85.51%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Reliance Industries Limited
Debentures | -
5%₹407 Cr4,150
↓ -150
Housing Development Finance Corporation Limited
Debentures | -
4%₹350 Cr3,500
↑ 3,500
GOVT STOCK
Sovereign Bonds | -
3%₹276 Cr27,500,000
↑ 27,500,000
State Bank Of India
Debentures | -
3%₹256 Cr2,515
↑ 50
Net Current Assets
Net Current Assets | -
3%₹254 Cr
Muthoot Finance Limited
Debentures | -
3%₹248 Cr2,571,098
↓ -37,000
HDB Financial Services Limited
Debentures | -
3%₹246 Cr2,500
Panchshil Corporate Park Private Limited
Debentures | -
3%₹222 Cr225
↓ -150
Axis Bank Limited
Debentures | -
3%₹221 Cr2,287
↓ -10
PNB Housing Finance Limited
Debentures | -
2%₹197 Cr2,000

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?

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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!

Disclaimer:
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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