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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 April 15, 2019 , 1194 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 ₹33.5368
↑ 0.01
₹3921.33.55.175.511.87%9M 18D11M 8D
Aditya Birla Sun Life Short Term Opportunities Fund Growth ₹30.9175
↑ 0.00
₹3,5571.74.46.97.46.59.45%1Y 5M 8D1Y 9M 22D
ICICI Prudential Short Term Fund Growth ₹38.6626
↑ 0.01
₹7,3262.24.76.67.45.88.64%1Y 5M 1D1Y 9M 29D
Reliance Short Term Fund Growth ₹34.7843
↓ 0.00
₹6,6872.24.96.36.95.58.82%1Y 6M 29D2Y 18D
UTI Short Term Income Fund Growth ₹22.519
↓ 0.00
₹5,5461.846.37.268.73%1Y 4M 6D1Y 7M 1D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 16 Apr 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 7.7% 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 (16 Apr 19) ₹33.5368 ↑ 0.01   (0.02 %)
Net Assets (Cr) ₹392 on 28 Feb 19
Category Debt - Short term Bond
AMC DHFL Pramerica Asset Managers Private Limited
Rating
Risk Moderate
Expense Ratio 1.45
Sharpe Ratio 1.74
Information Ratio -0.26
Alpha Ratio -0.98
Min Investment 5,000
Min SIP Investment 500
Exit Load 0-6 Months (0.5%),6 Months and above(NIL)
Yield to Maturity 11.87%
Effective Maturity 11 Months 8 Days
Modified Duration 9 Months 18 Days

Growth of 10,000 investment over the years.

DateValue
31 Mar 14₹10,000
31 Mar 15₹11,103
31 Mar 16₹11,995
31 Mar 17₹13,139
31 Mar 18₹14,024
31 Mar 19₹14,779

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 16 Apr 19

DurationReturns
1 Month 0.2%
3 Month 1.3%
6 Month 3.5%
1 Year 5.1%
3 Year 7%
5 Year 8.1%
10 Year
15 Year
Since launch 7.7%
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 171.3 Yr.
Puneet Pal13 Dec 171.3 Yr.

Data below for DHFL Pramerica Short Maturity Fund as on 28 Feb 19

Asset Allocation
Asset ClassValue
Cash16.75%
Debt83.25%
Debt Sector Allocation
SectorValue
Corporate83.25%
Cash Equivalent16.75%
Credit Quality
RatingValue
A51.21%
AA36.5%
AAA12.29%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Business Broadcast News Holdings Limited
Debentures | -
23%₹83 Cr8,500,000
Dewan Housing Finance Corporation Limited
Debentures | -
21%₹74 Cr7,500,000
Reliance Mediaworks Limited
Debentures | -
14%₹49 Cr5,000,000
Reliance Big Entertainment Private Limited
Debentures | -
12%₹42 Cr4,250,000
Indiabulls Housing Finance Limited
Debentures | -
12%₹42 Cr4,185,000
↓ -815,000
Yes Bank Limited
Debentures | -
8%₹27 Cr2,830,000
Dewan Housing Finance Corporation Limited
Debentures | -
5%₹18 Cr2,000,000
Net Receivables / (Payables)
Net Current Assets | -
5%₹17 Cr
Hansdeep Industries & Trading Company Limited
Debentures | -
1%₹5 Cr590,000
↓ -1,910,000
Clearing Corporation Of India Ltd.
CBLO | -
0%₹0 Cr

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 (16 Apr 19) ₹30.9175 ↑ 0.00   (0.01 %)
Net Assets (Cr) ₹3,557 on 28 Feb 19
Category Debt - Short term Bond
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk Moderate
Expense Ratio 1.38
Sharpe Ratio 2.45
Information Ratio 0.16
Alpha Ratio 0.31
Min Investment 1,000
Min SIP Investment 1,000
Exit Load 0-90 Days (0.5%),90 Days and above(NIL)
Yield to Maturity 9.45%
Effective Maturity 1 Year 9 Months 22 Days
Modified Duration 1 Year 5 Months 8 Days

Growth of 10,000 investment over the years.

DateValue
31 Mar 14₹10,000
31 Mar 15₹11,130
31 Mar 16₹12,065
31 Mar 17₹13,202
31 Mar 18₹14,036
31 Mar 19₹15,035

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 16 Apr 19

DurationReturns
1 Month 0.6%
3 Month 1.7%
6 Month 4.4%
1 Year 6.9%
3 Year 7.4%
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 172 Yr.
Kaustubh Gupta11 Sep 144.55 Yr.

Data below for Aditya Birla Sun Life Short Term Opportunities Fund as on 28 Feb 19

Asset Allocation
Asset ClassValue
Cash4.12%
Debt95.88%
Debt Sector Allocation
SectorValue
Corporate78.62%
Government13.66%
Cash Equivalent4.12%
Securitized3.6%
Credit Quality
RatingValue
A7.33%
AA27.74%
AAA63.92%
Below B1.01%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
ONGC Petro Additions Limited
Debentures | -
7%₹248 Cr250
ADANI PROPERTIES PRIVATE LIMITED
Debentures | -
6%₹211 Cr200
Indiabulls Housing Finance Limited
Debentures | -
4%₹131 Cr1,000
Tata Motors Limited
Debentures | -
3%₹124 Cr1,284
Power Finance Corporation Ltd.
Debentures | -
3%₹124 Cr1,250
REC LIMITED
Debentures | -
3%₹121 Cr1,200
↑ 1,200
NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Debentures | -
3%₹121 Cr1,200
Housing Development Finance Corporation Limited
Debentures | -
3%₹101 Cr1,000
↑ 1,000
Punjab National Bank
Debentures | -
3%₹96 Cr1,000
NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Debentures | -
3%₹92 Cr900
↑ 800

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 (16 Apr 19) ₹38.6626 ↑ 0.01   (0.02 %)
Net Assets (Cr) ₹7,326 on 28 Feb 19
Category Debt - Short term Bond
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 1.27
Sharpe Ratio 2.04
Information Ratio 0.26
Alpha Ratio -0.6
Min Investment 5,000
Min SIP Investment 1,000
Exit Load 0-7 Days (0.25%),7 Days and above(NIL)
Yield to Maturity 8.64%
Effective Maturity 1 Year 9 Months 29 Days
Modified Duration 1 Year 5 Months 1 Day

Growth of 10,000 investment over the years.

DateValue
31 Mar 14₹10,000
31 Mar 15₹11,150
31 Mar 16₹12,055
31 Mar 17₹13,289
31 Mar 18₹14,096
31 Mar 19₹15,041

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 16 Apr 19

DurationReturns
1 Month 0.7%
3 Month 2.2%
6 Month 4.7%
1 Year 6.6%
3 Year 7.4%
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 099.37 Yr.

Data below for ICICI Prudential Short Term Fund as on 28 Feb 19

Asset Allocation
Asset ClassValue
Cash9.38%
Debt90.62%
Debt Sector Allocation
SectorValue
Corporate71.08%
Government14.31%
Cash Equivalent9.38%
Securitized5.23%
Credit Quality
RatingValue
AA17.64%
AAA82.36%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
TATA MOTORS FINANCE LIMITED
Debentures | -
3%₹251 Cr2,500
SANSAR TRUST NOV 2018
Unlisted bonds | -
3%₹228 Cr1,883
Axis Bank Limited
Debentures | -
3%₹212 Cr2,150
↓ -650
Power Finance Corporation Ltd.
Debentures | -
3%₹206 Cr2,050
NRSS XXIX TRANSMISSION LIMITED
Debentures | -
3%₹201 Cr2,000
Reliance Ports And Terminals Limited
Debentures | -
3%₹199 Cr1,928
Reliance Utilities And Power Private Limited
Debentures | -
2%₹175 Cr1,750
Power Finance Corporation Ltd.
Debentures | -
2%₹171 Cr1,700
Net Current Assets
Net Current Assets | -
2%₹156 Cr
Housing And Urban Development Corporation Ltd.
Debentures | -
2%₹153 Cr1,500
↑ 1,500

4. 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 (16 Apr 19) ₹34.7843 ↓ 0.00   (-0.01 %)
Net Assets (Cr) ₹6,687 on 28 Feb 19
Category Debt - Short term Bond
AMC Reliance Nippon Life Asset Management Ltd.
Rating
Risk Moderately Low
Expense Ratio 1.12
Sharpe Ratio 1.64
Information Ratio -1.01
Alpha Ratio -1.46
Min Investment 5,000
Min SIP Investment 100
Exit Load NIL
Yield to Maturity 8.82%
Effective Maturity 2 Years 18 Days
Modified Duration 1 Year 6 Months 29 Days

Growth of 10,000 investment over the years.

DateValue
31 Mar 14₹10,000
31 Mar 15₹11,104
31 Mar 16₹11,982
31 Mar 17₹13,058
31 Mar 18₹13,828
31 Mar 19₹14,712

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 16 Apr 19

DurationReturns
1 Month 0.7%
3 Month 2.2%
6 Month 4.9%
1 Year 6.3%
3 Year 6.9%
5 Year 8%
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 0613.07 Yr.
Kinjal Desai25 May 180.69 Yr.

Data below for Reliance Short Term Fund as on 28 Feb 19

Asset Allocation
Asset ClassValue
Cash11.25%
Debt88.75%
Other0.01%
Debt Sector Allocation
SectorValue
Corporate67.01%
Government13.67%
Cash Equivalent11.23%
Securitized8.07%
Credit Quality
RatingValue
AA15.05%
AAA84.95%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Housing Development Finance Corporation Limited
Debentures | -
5%₹333 Cr3,300
Muthoot Finance Limited
Debentures | -
5%₹309 Cr3,171,098
HDB Financial Services Limited
Debentures | -
4%₹247 Cr2,500
INDIA GRID TRUST
Debentures | -
4%₹236 Cr2,350
Net Current Assets
Net Current Assets | -
3%₹215 Cr
Reliance Industries Limited
Debentures | -
3%₹213 Cr2,150
↓ -2,000
Reliance Utilities And Power Private Limited
Debentures | -
3%₹189 Cr1,890
↑ 250
Bharti Telecom Limited
Debentures | -
3%₹187 Cr1,750
POWER FINANCE CORPORATION LIMITED
Debentures | -
3%₹176 Cr1,750
↑ 1,750
Aditya Birla Finance Limited
Debentures | -
2%₹159 Cr1,600

5. 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 7.3% 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 (16 Apr 19) ₹22.519 ↓ 0.00   (-0.01 %)
Net Assets (Cr) ₹5,546 on 28 Feb 19
Category Debt - Short term Bond
AMC UTI Asset Management Company Ltd
Rating
Risk Moderate
Expense Ratio 0.98
Sharpe Ratio 2.44
Information Ratio -0.36
Alpha Ratio 0.02
Min Investment 10,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 8.73%
Effective Maturity 1 Year 7 Months 1 Day
Modified Duration 1 Year 4 Months 6 Days

Growth of 10,000 investment over the years.

DateValue
31 Mar 14₹10,000
31 Mar 15₹11,091
31 Mar 16₹11,976
31 Mar 17₹13,144
31 Mar 18₹13,924
31 Mar 19₹14,839

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 16 Apr 19

DurationReturns
1 Month 0.7%
3 Month 1.8%
6 Month 4%
1 Year 6.3%
3 Year 7.2%
5 Year 8.1%
10 Year
15 Year
Since launch 7.3%
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 126.43 Yr.

Data below for UTI Short Term Income Fund as on 28 Feb 19

Asset Allocation
Asset ClassValue
Cash16.62%
Debt83.38%
Debt Sector Allocation
SectorValue
Corporate50.45%
Government24.84%
Cash Equivalent16.62%
Securitized8.09%
Credit Quality
RatingValue
A5.49%
AA29.81%
AAA64.7%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Net Current Assets
Net Current Assets | -
16%-₹693 Cr00
Dewan Housing Finance Corporation Limited
Debentures | -
8%₹361 Cr4,000,000
STATE BANK OF INDIA
Debentures | -
8%₹328 Cr3,250
Oriental Bank Of Commerce
Certificate of Deposit | -
6%₹281 Cr3,000,000,000
↑ 3,000,000,000
Axis Bank Limited
Certificate of Deposit | -
6%₹262 Cr2,800,000,000
↑ 2,800,000,000
Punjab National Bank
Debentures | -
6%₹245 Cr2,550
Indiabulls Housing Finance Limited
Debentures | -
6%₹245 Cr2,450
↓ -2,600
National Bank For Agriculture And Rural Development
Certificate of Deposit | -
5%₹210 Cr2,250,000,000
↑ 2,250,000,000
INDIAN RAILWAY FINANCE CORPORATION LIMITED
Debentures | -
5%₹200 Cr2,000
↑ 2,000
REC LIMITED
Debentures | -
4%₹187 Cr1,850
↑ 1,850

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?

  1. Open Free Investment Account for Lifetime at Fincash.com.

  2. Complete your Registration and KYC Process

  3. Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!

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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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