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5 Best Short Duration (Short Term) Debt Mutual Funds 2024

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5 Best Short Duration (Short Term) Debt Funds To Invest In 2024

Updated on July 14, 2024 , 27320 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 24 - 25

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)2023 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
UTI Short Term Income Fund Growth ₹29.3492
↑ 0.02
₹2,6731.93.87.27.26.97.52%2Y 6M 22D3Y 1M 28D
BNP Paribas Short Term Fund Growth ₹25.4771
↓ -0.01
₹2580.61.34.66.5 5.16%1Y 11M 26D2Y 3M
ICICI Prudential Short Term Fund Growth ₹55.6112
↑ 0.02
₹18,2492.13.87.56.17.47.94%2Y 9M 7D5Y 4D
Aditya Birla Sun Life Short Term Opportunities Fund Growth ₹43.9401
↑ 0.02
₹7,4972.13.87.15.76.97.85%2Y 10M 6D4Y 1M 10D
HDFC Short Term Debt Fund Growth ₹29.5396
↑ 0.02
₹13,0162.14.17.65.77.17.83%2Y 9M 24D4Y 15D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 16 Jul 24
*List Funds based on Assets >= 100 Crore & Sorted on 3 Year CAGR Return.

1. 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 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% .

Below is the key information for UTI Short Term Income Fund

UTI Short Term Income Fund
Growth
Launch Date 19 Sep 07
NAV (16 Jul 24) ₹29.3492 ↑ 0.02   (0.08 %)
Net Assets (Cr) ₹2,673 on 31 May 24
Category Debt - Short term Bond
AMC UTI Asset Management Company Ltd
Rating
Risk Moderate
Expense Ratio 0.95
Sharpe Ratio -0.2
Information Ratio 0
Alpha Ratio 0
Min Investment 10,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 7.52%
Effective Maturity 3 Years 1 Month 28 Days
Modified Duration 2 Years 6 Months 22 Days

Growth of 10,000 investment over the years.

DateValue
30 Jun 19₹10,000
30 Jun 20₹11,207
30 Jun 21₹11,786
30 Jun 22₹12,674
30 Jun 23₹13,535
30 Jun 24₹14,491

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 ₹203,125.
Net Profit of ₹23,125
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 Jul 24

DurationReturns
1 Month 0.7%
3 Month 1.9%
6 Month 3.8%
1 Year 7.2%
3 Year 7.2%
5 Year 7.5%
10 Year
15 Year
Since launch 6.6%
Historical performance (Yearly) on absolute basis
YearReturns
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
NameSinceTenure
Sudhir Agarwal25 Oct 1211.61 Yr.

Data below for UTI Short Term Income Fund as on 31 May 24

Asset Allocation
Asset ClassValue
Cash22.83%
Debt76.94%
Other0.23%
Debt Sector Allocation
SectorValue
Corporate61.7%
Government19.71%
Cash Equivalent18.36%
Credit Quality
RatingValue
AA7.69%
AAA92.31%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.1% Govt Stock 2034
Sovereign Bonds | -
10%₹277 Cr2,750,000,000
↑ 2,000,000,000
ICICI Bank Ltd.
Debentures | -
9%₹237 Cr2,500,000,000
National Bank For Agriculture And Rural Development
Debentures | -
8%₹225 Cr22,500
LIC Housing Finance Limited
Debentures | -
8%₹225 Cr2,250
Power Finance Corporation Ltd.
Debentures | -
8%₹201 Cr20,000
Small Industries Development Bank of India
Debentures | -
7%₹200 Cr20,000
Union Bank of India
Domestic Bonds | -
7%₹189 Cr2,000,000,000
182 DTB 29082024
Sovereign Bonds | -
6%₹148 Cr1,500,000,000
Kotak Mahindra Bank Ltd.
Debentures | -
4%₹95 Cr1,000,000,000
India Grid TRust
Debentures | -
3%₹75 Cr750

2. BNP Paribas Short Term Fund

(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 CAGR/Annualized return of 5.5% since its launch.  Ranked 41 in Short term Bond category. .

Below is the key information for BNP Paribas Short Term Fund

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.

DateValue
30 Jun 19₹10,000
30 Jun 20₹11,130
30 Jun 21₹11,723

BNP Paribas 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 ₹200,132.
Net Profit of ₹20,132
Invest Now

Returns for BNP Paribas 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 Jul 24

DurationReturns
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
YearReturns
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
Fund Manager information for BNP Paribas Short Term Fund
NameSinceTenure

Data below for BNP Paribas Short Term Fund as on 15 Feb 22

Asset Allocation
Asset ClassValue
Debt Sector Allocation
SectorValue
Credit Quality
RatingValue
Top Securities Holdings / Portfolio
NameHoldingValueQuantity

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 7.8% 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% .

Below is the key information for ICICI Prudential Short Term Fund

ICICI Prudential Short Term Fund
Growth
Launch Date 25 Oct 01
NAV (16 Jul 24) ₹55.6112 ↑ 0.02   (0.04 %)
Net Assets (Cr) ₹18,249 on 31 May 24
Category Debt - Short term Bond
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 1.11
Sharpe Ratio 0.28
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 7.94%
Effective Maturity 5 Years 4 Days
Modified Duration 2 Years 9 Months 7 Days

Growth of 10,000 investment over the years.

DateValue
30 Jun 19₹10,000
30 Jun 20₹11,125
30 Jun 21₹11,807
30 Jun 22₹12,147
30 Jun 23₹13,096
30 Jun 24₹14,058

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 ₹200,132.
Net Profit of ₹20,132
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 Jul 24

DurationReturns
1 Month 0.7%
3 Month 2.1%
6 Month 3.8%
1 Year 7.5%
3 Year 6.1%
5 Year 6.9%
10 Year
15 Year
Since launch 7.8%
Historical performance (Yearly) on absolute basis
YearReturns
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
NameSinceTenure
Manish Banthia19 Nov 0914.54 Yr.
Nikhil Kabra29 Dec 203.42 Yr.

Data below for ICICI Prudential Short Term Fund as on 31 May 24

Asset Allocation
Asset ClassValue
Cash14.64%
Debt85.1%
Other0.26%
Debt Sector Allocation
SectorValue
Corporate49.37%
Government38.16%
Cash Equivalent12.11%
Securitized0.11%
Credit Quality
RatingValue
AA19.92%
AAA80.08%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.18% Govt Stock 2033
Sovereign Bonds | -
12%₹2,173 Cr215,344,210
↓ -89,000,000
8.34% Govt Stock 2033
Sovereign Bonds | -
9%₹1,641 Cr160,908,750
8% Govt Stock 2034
Sovereign Bonds | -
5%₹911 Cr91,074,740
7.06% Govt Stock 2028
Sovereign Bonds | -
4%₹755 Cr75,354,250
Small Industries Development Bank Of India
Debentures | -
2%₹369 Cr37,000
Small Industries Development Bank Of India
Debentures | -
2%₹300 Cr3,000
LIC Housing Finance Limited
Debentures | -
2%₹299 Cr3,000
Muthoot Finance Limited
Debentures | -
2%₹299 Cr30,000
7.26% Govt Stock 2033
Sovereign Bonds | -
1%₹272 Cr26,815,400
Pipeline Infrastructure Ltd.
Debentures | -
1%₹255 Cr25,300

4. 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 7.2% 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% .

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 Jul 24) ₹43.9401 ↑ 0.02   (0.06 %)
Net Assets (Cr) ₹7,497 on 31 May 24
Category Debt - Short term Bond
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk Moderate
Expense Ratio 1.11
Sharpe Ratio -0.47
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 7.85%
Effective Maturity 4 Years 1 Month 10 Days
Modified Duration 2 Years 10 Months 6 Days

Growth of 10,000 investment over the years.

DateValue
30 Jun 19₹10,000
30 Jun 20₹10,948
30 Jun 21₹11,764
30 Jun 22₹12,127
30 Jun 23₹12,976
30 Jun 24₹13,886

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 ₹200,132.
Net Profit of ₹20,132
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 Jul 24

DurationReturns
1 Month 0.7%
3 Month 2.1%
6 Month 3.8%
1 Year 7.1%
3 Year 5.7%
5 Year 6.6%
10 Year
15 Year
Since launch 7.2%
Historical performance (Yearly) on absolute basis
YearReturns
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
NameSinceTenure
Kaustubh Gupta11 Sep 149.73 Yr.
Mohit Sharma6 Aug 203.82 Yr.
Dhaval Joshi21 Nov 221.53 Yr.

Data below for Aditya Birla Sun Life Short Term Opportunities Fund as on 31 May 24

Asset Allocation
Asset ClassValue
Cash10.68%
Debt88.46%
Other0.22%
Debt Sector Allocation
SectorValue
Corporate53.48%
Government36.73%
Cash Equivalent7.7%
Securitized1.87%
Credit Quality
RatingValue
AA14.24%
AAA85.76%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.18% Govt Stock 2033
Sovereign Bonds | -
11%₹833 Cr82,500,000
↑ 50,500,000
7.26% Govt Stock 2033
Sovereign Bonds | -
5%₹405 Cr40,000,000
↓ -13,000,000
7.18% Govt Stock 2037
Sovereign Bonds | -
4%₹309 Cr30,500,000
↓ -22,000,000
Bajaj Housing Finance Limited
Debentures | -
3%₹201 Cr20,000
Small Industries Development Bank of India 7.68%
Debentures | -
3%₹200 Cr20,000
Bharti Telecom Limited
Debentures | -
2%₹190 Cr1,900
Small Industries Development Bank Of India
Debentures | -
2%₹184 Cr1,850
Bharti Telecom Limited
Debentures | -
2%₹150 Cr15,000
HDFC Bank Limited
Debentures | -
2%₹150 Cr1,500
7.17% Govt Stock 2030
Sovereign Bonds | -
2%₹146 Cr14,500,000

5. HDFC Short Term Debt Fund

(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 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% .

Below is the key information for HDFC Short Term Debt Fund

HDFC Short Term Debt Fund
Growth
Launch Date 25 Jun 10
NAV (16 Jul 24) ₹29.5396 ↑ 0.02   (0.05 %)
Net Assets (Cr) ₹13,016 on 15 May 24
Category Debt - Short term Bond
AMC HDFC Asset Management Company Limited
Rating
Risk Moderately Low
Expense Ratio 0.74
Sharpe Ratio 0.17
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 300
Exit Load NIL
Yield to Maturity 7.83%
Effective Maturity 4 Years 15 Days
Modified Duration 2 Years 9 Months 24 Days

Growth of 10,000 investment over the years.

DateValue
30 Jun 19₹10,000
30 Jun 20₹11,157
30 Jun 21₹11,855
30 Jun 22₹12,172
30 Jun 23₹13,016
30 Jun 24₹13,977

HDFC Short Term Debt Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹200,132.
Net Profit of ₹20,132
Invest Now

Returns for HDFC Short Term Debt 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 Jul 24

DurationReturns
1 Month 0.7%
3 Month 2.1%
6 Month 4.1%
1 Year 7.6%
3 Year 5.7%
5 Year 6.8%
10 Year
15 Year
Since launch 8%
Historical performance (Yearly) on absolute basis
YearReturns
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
NameSinceTenure
Anil Bamboli25 Jun 1013.95 Yr.
Dhruv Muchhal22 Jun 230.95 Yr.

Data below for HDFC Short Term Debt Fund as on 15 May 24

Asset Allocation
Asset ClassValue
Cash4.59%
Debt95.13%
Other0.28%
Debt Sector Allocation
SectorValue
Corporate53.21%
Government42.18%
Cash Equivalent4.02%
Securitized0.31%
Credit Quality
RatingValue
AA13.59%
AAA86.41%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.18% Govt Stock 2033
Sovereign Bonds | -
8%₹1,065 Cr105,500,000
↑ 1,000,000
7.72% Govt Stock 2028
Sovereign Bonds | -
4%₹516 Cr51,500,000
7.26% Govt Stock 2032
Sovereign Bonds | -
3%₹349 Cr34,500,000
Bajaj Housing Finance Limited
Debentures | -
2%₹251 Cr25,000
National Bank for Agriculture and Rural Development
Domestic Bonds | -
2%₹251 Cr25,000
State Bank Of India
Debentures | -
2%₹250 Cr2,500
TVS Credit Services Limited
Debentures | -
2%₹203 Cr200
Kotak Mahindra Investments Limited
Debentures | -
2%₹201 Cr20,000
Small Industries Development Bank Of India
Debentures | -
2%₹201 Cr20,000
Ongc Petro Additions Limited
Debentures | -
2%₹200 Cr20,000

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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