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5 Best Short Duration (Short Term) Debt Funds To Invest In 2022
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 22 - 23
(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 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 stable returns with a low risk strategy while maintaining liquidity through a portfolio comprising of debt and money market instruments. However, there can be no assurance that the investment objective of the scheme will be achieved. Axis Short Term Fund is a Debt - Short term Bond fund was launched on 22 Jan 10. It is a fund with Moderately Low risk and has given a Below is the key information for Axis Short Term 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 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. Nippon India 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 Nippon India Short Term Fund Returns up to 1 year are on Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2021 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity HDFC Short Term Debt Fund Growth ₹25.4896
↑ 0.00 ₹18,229 0.6 1.8 4 7.9 3.9 5.33% 2Y 1M 20D 3Y 25D ICICI Prudential Short Term Fund Growth ₹47.4588
↑ 0.01 ₹22,059 0.5 1.8 3.9 7.8 3.9 5.34% 2Y 2M 1D 4Y 1M 17D Axis Short Term Fund Growth ₹24.7179
↑ 0.01 ₹13,768 0.7 1.8 3.8 7.7 3.5 5% 1Y 6M 22D 2Y 4M 17D Aditya Birla Sun Life Short Term Opportunities Fund Growth ₹37.9211
↑ 0.00 ₹9,449 0.6 1.9 4.2 7.6 3.8 5.48% 1Y 9M 4D 2Y 5M 5D Nippon India Short Term Fund Growth ₹42.4106
↑ 0.00 ₹9,692 0.7 1.9 4.8 7.6 4.4 5.39% 1Y 9M 25D 2Y 4M 6D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 19 Jan 22 Assets >= 100 Crore & Sorted on 3 Year CAGR Return.
1. HDFC Short Term Debt Fund
CAGR/Annualized return of 8.4% since its launch. Ranked 30 in Short term Bond category. Return for 2021 was 3.9% , 2020 was 11% and 2019 was 9.7% . HDFC Short Term Debt Fund
Growth Launch Date 25 Jun 10 NAV (19 Jan 22) ₹25.4896 ↑ 0.00 (0.00 %) Net Assets (Cr) ₹18,229 on 31 Dec 21 Category Debt - Short term Bond AMC HDFC Asset Management Company Limited Rating ☆☆☆ Risk Moderately Low Expense Ratio 0.7 Sharpe Ratio 0.25 Information Ratio 0.08 Alpha Ratio -0.4 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 5.33% Effective Maturity 3 Years 25 Days Modified Duration 2 Years 1 Month 20 Days Growth of 10,000 investment over the years.
Date Value 31 Dec 16 ₹10,000 31 Dec 17 ₹10,652 31 Dec 18 ₹11,399 31 Dec 19 ₹12,507 31 Dec 20 ₹13,877 31 Dec 21 ₹14,414 Returns for HDFC Short Term Debt Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 19 Jan 22 Duration Returns 1 Month -0.1% 3 Month 0.6% 6 Month 1.8% 1 Year 4% 3 Year 7.9% 5 Year 7.4% 10 Year 15 Year Since launch 8.4% Historical performance (Yearly) on absolute basis
Year Returns 2021 3.9% 2020 11% 2019 9.7% 2018 7% 2017 6.5% 2016 9.3% 2015 8.7% 2014 10.4% 2013 8.4% 2012 10.1% Fund Manager information for HDFC Short Term Debt Fund
Name Since Tenure Anil Bamboli 25 Jun 10 11.44 Yr. Sankalp Baid 22 Jan 21 0.86 Yr. Data below for HDFC Short Term Debt Fund as on 31 Dec 21
Asset Allocation
Asset Class Value Cash 23.19% Debt 76.81% Debt Sector Allocation
Sector Value Corporate 45.88% Government 32.42% Cash Equivalent 20.81% Securitized 0.88% Credit Quality
Rating Value AA 14.3% AAA 85.7% Top Securities Holdings / Portfolio
Name Holding Value Quantity 5.63% Govt Stock 2026
Sovereign Bonds | -3% ₹569 Cr 57,000,000
↓ -6,000,000 6.67% Govt Stock 2035
Sovereign Bonds | -2% ₹372 Cr 37,500,000 6.79% Govt Stock 2027
Sovereign Bonds | -2% ₹363 Cr 35,000,000 Housing Development Finance Corporation Ltd
Debentures | -2% ₹354 Cr 3,500 Housing Development Finance Corporation Ltd
Debentures | -2% ₹305 Cr 3,000 6.97% Govt Stock 2026
Sovereign Bonds | -2% ₹299 Cr 28,500,000 Indinfravit Trust
Debentures | -2% ₹295 Cr 2,900 State Bank Of India
Debentures | -2% ₹292 Cr 2,750 5.77% Govt Stock 2030
Sovereign Bonds | -1% ₹266 Cr 27,500,000 State Bank Of India
Debentures | -1% ₹260 Cr 2,500 2. ICICI Prudential Short Term Fund
CAGR/Annualized return of 8% since its launch. Ranked 11 in Short term Bond category. Return for 2021 was 3.9% , 2020 was 10.6% and 2019 was 9.7% . ICICI Prudential Short Term Fund
Growth Launch Date 25 Oct 01 NAV (19 Jan 22) ₹47.4588 ↑ 0.01 (0.01 %) Net Assets (Cr) ₹22,059 on 31 Dec 21 Category Debt - Short term Bond AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆ Risk Moderate Expense Ratio 1.16 Sharpe Ratio 0.35 Information Ratio -0.08 Alpha Ratio -0.17 Min Investment 5,000 Min SIP Investment 1,000 Exit Load 0-7 Days (0.25%),7 Days and above(NIL) Yield to Maturity 5.34% Effective Maturity 4 Years 1 Month 17 Days Modified Duration 2 Years 2 Months 1 Day Growth of 10,000 investment over the years.
Date Value 31 Dec 16 ₹10,000 31 Dec 17 ₹10,590 31 Dec 18 ₹11,210 31 Dec 19 ₹12,294 31 Dec 20 ₹13,603 31 Dec 21 ₹14,130 Returns for ICICI Prudential Short Term Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 19 Jan 22 Duration Returns 1 Month -0.1% 3 Month 0.5% 6 Month 1.8% 1 Year 3.9% 3 Year 7.8% 5 Year 7% 10 Year 15 Year Since launch 8% Historical performance (Yearly) on absolute basis
Year Returns 2021 3.9% 2020 10.6% 2019 9.7% 2018 5.8% 2017 5.9% 2016 11.1% 2015 8% 2014 11.6% 2013 7.2% 2012 9.5% Fund Manager information for ICICI Prudential Short Term Fund
Name Since Tenure Manish Banthia 19 Nov 09 12.04 Yr. Nikhil Kabra 29 Dec 20 0.92 Yr. Data below for ICICI Prudential Short Term Fund as on 31 Dec 21
Asset Allocation
Asset Class Value Cash 33.25% Debt 66.75% Debt Sector Allocation
Sector Value Corporate 36.4% Government 32.64% Cash Equivalent 30.19% Securitized 0.77% Credit Quality
Rating Value AA 17.7% AAA 82.3% Top Securities Holdings / Portfolio
Name Holding Value Quantity 6.67% Govt Stock 2035
Sovereign Bonds | -6% ₹1,353 Cr 136,442,700 4.62% Govt Stock 2033
Sovereign Bonds | -5% ₹1,068 Cr 106,250,000
↑ 30,000,000 6.1% Govt Stock 2031
Sovereign Bonds | -5% ₹1,015 Cr 103,467,250
↑ 32,092,250 National Bank For Agriculture And Rural Development
Debentures | -4% ₹901 Cr 9,000 Pipeline Infrastructure Limited
Debentures | -2% ₹442 Cr 4,129 Housing Development Finance Corporation Ltd
Debentures | -2% ₹414 Cr 4,096 182 DTB 30122021
Sovereign Bonds | -1% ₹300 Cr 30,000,000 6.64% Govt Stock 2035
Sovereign Bonds | -1% ₹276 Cr 27,934,900 07.19 Up SDL 2031
Sovereign Bonds | -1% ₹255 Cr 24,907,750
↓ -12,092,250 ICICI Bank Limited
Debentures | -1% ₹230 Cr 2,200 3. Axis Short Term Fund
CAGR/Annualized return of 7.8% since its launch. Ranked 26 in Short term Bond category. Return for 2021 was 3.5% , 2020 was 10.1% and 2019 was 9.8% . Axis Short Term Fund
Growth Launch Date 22 Jan 10 NAV (19 Jan 22) ₹24.7179 ↑ 0.01 (0.02 %) Net Assets (Cr) ₹13,768 on 31 Dec 21 Category Debt - Short term Bond AMC Axis Asset Management Company Limited Rating ☆☆☆ Risk Moderately Low Expense Ratio 0.99 Sharpe Ratio -0.05 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 5% Effective Maturity 2 Years 4 Months 17 Days Modified Duration 1 Year 6 Months 22 Days Growth of 10,000 investment over the years.
Date Value 31 Dec 16 ₹10,000 31 Dec 17 ₹10,593 31 Dec 18 ₹11,266 31 Dec 19 ₹12,366 31 Dec 20 ₹13,620 31 Dec 21 ₹14,094 Returns for Axis Short Term Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 19 Jan 22 Duration Returns 1 Month 0.2% 3 Month 0.7% 6 Month 1.8% 1 Year 3.8% 3 Year 7.7% 5 Year 7% 10 Year 15 Year Since launch 7.8% Historical performance (Yearly) on absolute basis
Year Returns 2021 3.5% 2020 10.1% 2019 9.8% 2018 6.3% 2017 5.9% 2016 9.6% 2015 8.1% 2014 10% 2013 7.3% 2012 10.1% Fund Manager information for Axis Short Term Fund
Name Since Tenure Devang Shah 5 Nov 12 9.08 Yr. Data below for Axis Short Term Fund as on 31 Dec 21
Asset Allocation
Asset Class Value Cash 27.03% Debt 72.97% Debt Sector Allocation
Sector Value Corporate 41.82% Government 33.74% Cash Equivalent 23.16% Securitized 1.27% Credit Quality
Rating Value AA 12.14% AAA 87.86% Top Securities Holdings / Portfolio
Name Holding Value Quantity 5.63% Govt Stock 2026
Sovereign Bonds | -6% ₹763 Cr 76,500,000
↑ 5,000,000 National Bank For Agriculture And Rural Development
Debentures | -5% ₹586 Cr 5,850 4.62% Govt Stock 2033
Sovereign Bonds | -4% ₹489 Cr 48,662,000 6.1% Govt Stock 2031
Sovereign Bonds | -3% ₹416 Cr 42,394,000
↑ 11,500,000 Axis Money Market Dir Gr
Investment Fund | -2% ₹300 Cr 2,639,189
↑ 2,639,189 91 DTB 23122021
Sovereign Bonds | -2% ₹265 Cr 26,500,000 Food Corporation Of India
Debentures | -2% ₹258 Cr 2,550
↓ -1,000 Mahindra Rural Housing Finance Limited
Debentures | -2% ₹248 Cr 2,500 Rec Limited
Debentures | -2% ₹241 Cr 2,350
↑ 1,250 Power Finance Corporation Ltd.
Debentures | -2% ₹215 Cr 2,100 4. Aditya Birla Sun Life Short Term Opportunities Fund
CAGR/Annualized return of 7.4% since its launch. Ranked 18 in Short term Bond category. Return for 2021 was 3.8% , 2020 was 11.1% and 2019 was 8.5% . Aditya Birla Sun Life Short Term Opportunities Fund
Growth Launch Date 9 May 03 NAV (19 Jan 22) ₹37.9211 ↑ 0.00 (0.01 %) Net Assets (Cr) ₹9,449 on 31 Dec 21 Category Debt - Short term Bond AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆☆ Risk Moderate Expense Ratio 1.09 Sharpe Ratio 0.25 Information Ratio -0.26 Alpha Ratio -0.41 Min Investment 1,000 Min SIP Investment 1,000 Exit Load 0-90 Days (0.5%),90 Days and above(NIL) Yield to Maturity 5.48% Effective Maturity 2 Years 5 Months 5 Days Modified Duration 1 Year 9 Months 4 Days Growth of 10,000 investment over the years.
Date Value 31 Dec 16 ₹10,000 31 Dec 17 ₹10,560 31 Dec 18 ₹11,247 31 Dec 19 ₹12,203 31 Dec 20 ₹13,553 31 Dec 21 ₹14,073 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 19 Jan 22 Duration Returns 1 Month 0.1% 3 Month 0.6% 6 Month 1.9% 1 Year 4.2% 3 Year 7.6% 5 Year 6.9% 10 Year 15 Year Since launch 7.4% Historical performance (Yearly) on absolute basis
Year Returns 2021 3.8% 2020 11.1% 2019 8.5% 2018 6.5% 2017 5.6% 2016 11.3% 2015 8.4% 2014 11.3% 2013 10.1% 2012 11.1% Fund Manager information for Aditya Birla Sun Life Short Term Opportunities Fund
Name Since Tenure Kaustubh Gupta 11 Sep 14 7.23 Yr. Mohit Sharma 6 Aug 20 1.32 Yr. Data below for Aditya Birla Sun Life Short Term Opportunities Fund as on 31 Dec 21
Asset Allocation
Asset Class Value Cash 23.08% Debt 76.92% Debt Sector Allocation
Sector Value Corporate 45.36% Government 33.41% Cash Equivalent 19.48% Securitized 1.75% Credit Quality
Rating Value A 0.66% AA 11.76% AAA 87.48% Below B 0.09% Top Securities Holdings / Portfolio
Name Holding Value Quantity National Bank For Agriculture And Rural Development
Debentures | -4% ₹429 Cr 4,200 5.63% Govt Stock 2026
Sovereign Bonds | -4% ₹419 Cr 42,000,000
↑ 3,000,000 6.1% Govt Stock 2031
Sovereign Bonds | -2% ₹250 Cr 25,500,000
↑ 6,500,000 Reliance Industries Limited
Debentures | -2% ₹215 Cr 2,100 L&T Finance Limited
Debentures | -2% ₹200 Cr 1,950 4.62% Govt Stock 2033
Sovereign Bonds | -2% ₹186 Cr 18,500,000 08.60 BR Sdl 2026
Sovereign Bonds | -2% ₹175 Cr 15,887,000 8.15% Govt Stock 2026
Sovereign Bonds | -2% ₹159 Cr 14,500,000 State Bank Of India
Debentures | -1% ₹155 Cr 1,454 08.92 MP Sdl 2022
Sovereign Bonds | -1% ₹154 Cr 15,000,000 5. Nippon India Short Term Fund
CAGR/Annualized return of 7.9% since its launch. Ranked 17 in Short term Bond category. Return for 2021 was 4.4% , 2020 was 9.5% and 2019 was 9.4% . Nippon India Short Term Fund
Growth Launch Date 18 Dec 02 NAV (19 Jan 22) ₹42.4106 ↑ 0.00 (0.01 %) Net Assets (Cr) ₹9,692 on 31 Dec 21 Category Debt - Short term Bond AMC Nippon Life Asset Management Ltd. Rating ☆☆☆☆ Risk Moderately Low Expense Ratio 1.15 Sharpe Ratio 0.71 Information Ratio -0.72 Alpha Ratio 0.15 Min Investment 5,000 Min SIP Investment 100 Exit Load NIL Yield to Maturity 5.39% Effective Maturity 2 Years 4 Months 6 Days Modified Duration 1 Year 9 Months 25 Days Growth of 10,000 investment over the years.
Date Value 31 Dec 16 ₹10,000 31 Dec 17 ₹10,569 31 Dec 18 ₹11,152 31 Dec 19 ₹12,195 31 Dec 20 ₹13,350 31 Dec 21 ₹13,940 Returns for Nippon India Short Term Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 19 Jan 22 Duration Returns 1 Month 0.1% 3 Month 0.7% 6 Month 1.9% 1 Year 4.8% 3 Year 7.6% 5 Year 6.7% 10 Year 15 Year Since launch 7.9% Historical performance (Yearly) on absolute basis
Year Returns 2021 4.4% 2020 9.5% 2019 9.4% 2018 5.5% 2017 5.7% 2016 9.8% 2015 8.1% 2014 11.3% 2013 7.5% 2012 9.8% Fund Manager information for Nippon India Short Term Fund
Name Since Tenure Vivek Sharma 1 Feb 20 1.83 Yr. Kinjal Desai 25 May 18 3.52 Yr. Sushil Budhia 31 Mar 21 0.67 Yr. Data below for Nippon India Short Term Fund as on 31 Dec 21
Asset Allocation
Asset Class Value Cash 18.07% Debt 81.93% Debt Sector Allocation
Sector Value Corporate 59.17% Government 25.79% Cash Equivalent 11.74% Securitized 3.3% Credit Quality
Rating Value AA 11.06% AAA 88.94% Top Securities Holdings / Portfolio
Name Holding Value Quantity 5.63% Govt Stock 2026
Sovereign Bonds | -4% ₹349 Cr 35,000,000
↑ 20,000,000 State Bank Of India
Debentures | -3% ₹333 Cr 3,300 5.22% Govt Stock 2025
Sovereign Bonds | -3% ₹319 Cr 32,042,400 Muthoot Finance Limited
Debentures | -3% ₹281 Cr 2,748,618 National Bank For Agriculture And Rural Development
Debentures | -2% ₹239 Cr 2,300 India Infradebt Limited
Debentures | -2% ₹232 Cr 2,195 India Grid Trust
Debentures | -2% ₹215 Cr 2,100 ICICI Prudential Life Insurance Company Limited
Debentures | -2% ₹211 Cr 2,100 Embassy Office Parks Reit
Debentures | -2% ₹176 Cr 1,750 Housing Development Finance Corporation Ltd
Debentures | -2% ₹176 Cr 1,750
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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