fincash logo SOLUTIONS
EXPLORE FUNDS
CALCULATORS
fincash number+91-22-62820123
5 Best Short Duration (Short Term) Debt Mutual Funds 2021

Fincash » MutualFunds » Best Short Duration Funds

5 Best Short Duration (Short Term) Debt Funds To Invest In 2021

Updated on September 23, 2021 , 19804 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.

Ready to Invest?
Talk to our investment specialist
Disclaimer:
By submitting this form I authorize Fincash.com to call/SMS/email me about its products and I accept the terms of Privacy Policy and Terms & Conditions.

best-short-duration-funds

Best Short Duration Funds or Short Term Debt Funds FY 21 - 22

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)2020 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
HDFC Short Term Debt Fund Growth ₹25.3212
↓ -0.02
₹19,0111.53.35.98.9114.95%2Y 1M 6D2Y 10M 20D
Aditya Birla Sun Life Short Term Opportunities Fund Growth ₹37.6428
↓ -0.01
₹8,5141.53.35.88.711.15.06%1Y 8M 19D2Y 4M 13D
ICICI Prudential Short Term Fund Growth ₹47.1717
↓ -0.02
₹20,8501.435.98.710.65.25%2Y 4M 10D4Y 1M 17D
Axis Short Term Fund Growth ₹24.5277
↓ -0.01
₹12,1831.42.95.28.510.14.84%1Y 11M 5D2Y 10M 24D
Nippon India Short Term Fund Growth ₹42.0806
↓ -0.02
₹10,1891.53.56.38.59.54.98%1Y 10M 17D2Y 4M 28D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 24 Sep 21
*List Funds based on Assets >= 100 Crore & Sorted on 3 Year CAGR Return.

1. 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 8.6% since its launch.  Ranked 30 in Short term Bond category.  Return for 2020 was 11% , 2019 was 9.7% and 2018 was 7% .

Below is the key information for HDFC Short Term Debt Fund

HDFC Short Term Debt Fund
Growth
Launch Date 25 Jun 10
NAV (24 Sep 21) ₹25.3212 ↓ -0.02   (-0.07 %)
Net Assets (Cr) ₹19,011 on 31 Aug 21
Category Debt - Short term Bond
AMC HDFC Asset Management Company Limited
Rating
Risk Moderately Low
Expense Ratio 0.7
Sharpe Ratio 1.5
Information Ratio -0.01
Alpha Ratio 0.28
Min Investment 5,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 4.95%
Effective Maturity 2 Years 10 Months 20 Days
Modified Duration 2 Years 1 Month 6 Days

Growth of 10,000 investment over the years.

DateValue
31 Aug 16₹10,000
31 Aug 17₹10,807
31 Aug 18₹11,402
31 Aug 19₹12,497
31 Aug 20₹13,834
31 Aug 21₹14,664

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 ₹203,125.
Net Profit of ₹23,125
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 24 Sep 21

DurationReturns
1 Month 0.5%
3 Month 1.5%
6 Month 3.3%
1 Year 5.9%
3 Year 8.9%
5 Year 7.9%
10 Year
15 Year
Since launch 8.6%
Historical performance (Yearly) on absolute basis
YearReturns
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%
2011 9.2%
Fund Manager information for HDFC Short Term Debt Fund
NameSinceTenure
Anil Bamboli25 Jun 1011.11 Yr.
Sankalp Baid22 Jan 210.52 Yr.

Data below for HDFC Short Term Debt Fund as on 31 Aug 21

Asset Allocation
Asset ClassValue
Cash26.54%
Debt73.46%
Debt Sector Allocation
SectorValue
Corporate44.63%
Government29.05%
Cash Equivalent25.19%
Securitized1.12%
Credit Quality
RatingValue
AA17.02%
AAA82.98%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
91 DTB 11112021
Sovereign Bonds | -
3%₹481 Cr48,500,000
↑ 48,500,000
6.79% Govt Stock 2027
Sovereign Bonds | -
2%₹414 Cr40,000,000
5.77% GOI 2030
Sovereign Bonds | -
2%₹370 Cr38,500,000
Housing Development Finance Corporation Limited
Debentures | -
2%₹357 Cr3,500
6.97% Govt Stock 2026
Sovereign Bonds | -
2%₹350 Cr33,500,000
5.63% Govt Stock 2026
Sovereign Bonds | -
2%₹324 Cr32,500,000
↑ 7,500,000
Housing Development Finance Corporation Limited
Debentures | -
2%₹310 Cr3,000
Indinfravit Trust
Debentures | -
2%₹298 Cr2,900
State Bank of India
Debentures | -
2%₹292 Cr2,750
Rural Electrification Corporation Limited
Debentures | -
1%₹259 Cr2,500

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 7.5% since its launch.  Ranked 18 in Short term Bond category.  Return for 2020 was 11.1% , 2019 was 8.5% and 2018 was 6.5% .

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 (24 Sep 21) ₹37.6428 ↓ -0.01   (-0.04 %)
Net Assets (Cr) ₹8,514 on 31 Aug 21
Category Debt - Short term Bond
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk Moderate
Expense Ratio 1.09
Sharpe Ratio 1.86
Information Ratio -0.15
Alpha Ratio 1.4
Min Investment 1,000
Min SIP Investment 1,000
Exit Load 0-90 Days (0.5%),90 Days and above(NIL)
Yield to Maturity 5.06%
Effective Maturity 2 Years 4 Months 13 Days
Modified Duration 1 Year 8 Months 19 Days

Growth of 10,000 investment over the years.

DateValue
31 Aug 16₹10,000
31 Aug 17₹10,789
31 Aug 18₹11,239
31 Aug 19₹12,327
31 Aug 20₹13,449
31 Aug 21₹14,375

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 ₹203,125.
Net Profit of ₹23,125
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 24 Sep 21

DurationReturns
1 Month 0.4%
3 Month 1.5%
6 Month 3.3%
1 Year 5.8%
3 Year 8.7%
5 Year 7.4%
10 Year
15 Year
Since launch 7.5%
Historical performance (Yearly) on absolute basis
YearReturns
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%
2011 9.5%
Fund Manager information for Aditya Birla Sun Life Short Term Opportunities Fund
NameSinceTenure
Kaustubh Gupta11 Sep 146.89 Yr.
Mohit Sharma6 Aug 200.98 Yr.

Data below for Aditya Birla Sun Life Short Term Opportunities Fund as on 31 Aug 21

Asset Allocation
Asset ClassValue
Cash11.15%
Debt88.85%
Debt Sector Allocation
SectorValue
Corporate49.56%
Government37.06%
Cash Equivalent11.15%
Securitized2.22%
Credit Quality
RatingValue
A0.87%
AA14.32%
AAA84.69%
Below B0.12%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Reliance Industries Limited
Debentures | -
3%₹218 Cr2,100
GOVT STOCK
Sovereign Bonds | -
3%₹212 Cr21,000,000
8.60% Bihar SDL 2026
Sovereign Bonds | -
2%₹175 Cr15,887,000
8.15% Govt Stock 2026
Sovereign Bonds | -
2%₹159 Cr14,500,000
8.92% Madhya Pradesh SDL 2022
Sovereign Bonds | -
2%₹157 Cr15,000,000
National Bank For Agriculture And Rural Development
Debentures | -
2%₹151 Cr1,500
Shriram Transport Finance Company Limited
Debentures | -
2%₹140 Cr1,400
8.54% Maharashtra SDL 2023
Sovereign Bonds | -
2%₹139 Cr13,000,000
Embassy Office Parks REIT
Debentures | -
2%₹126 Cr1,250
6.64% Govt Stock 2035
Sovereign Bonds | -
1%₹108 Cr11,000,000
↑ 8,500,000

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 8.1% since its launch.  Ranked 11 in Short term Bond category.  Return for 2020 was 10.6% , 2019 was 9.7% and 2018 was 5.8% .

Below is the key information for ICICI Prudential Short Term Fund

ICICI Prudential Short Term Fund
Growth
Launch Date 25 Oct 01
NAV (24 Sep 21) ₹47.1717 ↓ -0.02   (-0.05 %)
Net Assets (Cr) ₹20,850 on 31 Aug 21
Category Debt - Short term Bond
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 1.16
Sharpe Ratio 1.73
Information Ratio -0.31
Alpha Ratio 0.61
Min Investment 5,000
Min SIP Investment 1,000
Exit Load 0-7 Days (0.25%),7 Days and above(NIL)
Yield to Maturity 5.25%
Effective Maturity 4 Years 1 Month 17 Days
Modified Duration 2 Years 4 Months 10 Days

Growth of 10,000 investment over the years.

DateValue
31 Aug 16₹10,000
31 Aug 17₹10,893
31 Aug 18₹11,304
31 Aug 19₹12,372
31 Aug 20₹13,640
31 Aug 21₹14,454

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 ₹203,125.
Net Profit of ₹23,125
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 24 Sep 21

DurationReturns
1 Month 0.6%
3 Month 1.4%
6 Month 3%
1 Year 5.9%
3 Year 8.7%
5 Year 7.6%
10 Year
15 Year
Since launch 8.1%
Historical performance (Yearly) on absolute basis
YearReturns
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%
2011 8.7%
Fund Manager information for ICICI Prudential Short Term Fund
NameSinceTenure
Manish Banthia19 Nov 0911.7 Yr.
Nikhil Kabra29 Dec 200.59 Yr.

Data below for ICICI Prudential Short Term Fund as on 31 Aug 21

Asset Allocation
Asset ClassValue
Cash17.94%
Debt82.06%
Debt Sector Allocation
SectorValue
Government41.18%
Corporate40.09%
Cash Equivalent17.94%
Securitized0.8%
Credit Quality
RatingValue
AA19.75%
AAA80.25%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
6.64% Govt Stock 2035
Sovereign Bonds | -
8%₹1,611 Cr164,252,600
National Bank For Agriculture And Rural Development
Debentures | -
4%₹904 Cr9,000
182 DTB 09122021
Sovereign Bonds | -
4%₹742 Cr75,000,000
GOVT STOCK
Sovereign Bonds | -
3%₹687 Cr68,000,000
91 DTB 14102021
Sovereign Bonds | -
2%₹497 Cr50,000,000
Pipeline Infrastructure Private Limited
Debentures | -
2%₹445 Cr4,129
Housing Development Finance Corporation Limited
Debentures | -
2%₹420 Cr4,096
07.19 UP SDL 2031
Sovereign Bonds | -
2%₹375 Cr37,000,000
6.79% Govt Stock 2027
Sovereign Bonds | -
2%₹338 Cr32,625,000
6.67% Govt Stock 2050
Sovereign Bonds | -
2%₹328 Cr35,000,000

4. Axis Short Term Fund

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 CAGR/Annualized return of 8% since its launch.  Ranked 26 in Short term Bond category.  Return for 2020 was 10.1% , 2019 was 9.8% and 2018 was 6.3% .

Below is the key information for Axis Short Term Fund

Axis Short Term Fund
Growth
Launch Date 22 Jan 10
NAV (24 Sep 21) ₹24.5277 ↓ -0.01   (-0.06 %)
Net Assets (Cr) ₹12,183 on 31 Aug 21
Category Debt - Short term Bond
AMC Axis Asset Management Company Limited
Rating
Risk Moderately Low
Expense Ratio 0.99
Sharpe Ratio 1.34
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 4.84%
Effective Maturity 2 Years 10 Months 24 Days
Modified Duration 1 Year 11 Months 5 Days

Growth of 10,000 investment over the years.

DateValue
31 Aug 16₹10,000
31 Aug 17₹10,811
31 Aug 18₹11,303
31 Aug 19₹12,418
31 Aug 20₹13,668
31 Aug 21₹14,392

Axis 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 ₹203,125.
Net Profit of ₹23,125
Invest Now

Returns for Axis 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 24 Sep 21

DurationReturns
1 Month 0.4%
3 Month 1.4%
6 Month 2.9%
1 Year 5.2%
3 Year 8.5%
5 Year 7.5%
10 Year
15 Year
Since launch 8%
Historical performance (Yearly) on absolute basis
YearReturns
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%
2011 9.2%
Fund Manager information for Axis Short Term Fund
NameSinceTenure
Devang Shah5 Nov 128.74 Yr.

Data below for Axis Short Term Fund as on 31 Aug 21

Asset Allocation
Asset ClassValue
Cash13.12%
Debt86.88%
Debt Sector Allocation
SectorValue
Corporate48.09%
Government39.11%
Cash Equivalent11.51%
Securitized1.29%
Credit Quality
RatingValue
AA12.24%
AAA87.76%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
National Bank For Agriculture And Rural Development
Debentures | -
4%₹487 Cr4,850
Food Corporation of India
Debentures | -
4%₹470 Cr4,550
GOVT STOCK
Sovereign Bonds | -
4%₹462 Cr45,662,000
↑ 5,000,000
7.42% MH SDL 2022
Sovereign Bonds | -
2%₹300 Cr29,247,500
8.83% Govt Stock 2023
Sovereign Bonds | -
2%₹284 Cr26,025,000
Housing Development Finance Corporation Limited
Debentures | -
2%₹273 Cr2,680
364 DTB 16092021
Sovereign Bonds | -
2%₹249 Cr25,000,000
↑ 25,000,000
Mahindra Rural Housing Finance Limited
Debentures | -
2%₹249 Cr2,500
Telesonic Networks Limited
Debentures | -
2%₹236 Cr2,350
↑ 2,350
National Bank For Agriculture And Rural Development
Debentures | -
2%₹202 Cr2,000

5. Nippon India 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.

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 CAGR/Annualized return of 8% since its launch.  Ranked 17 in Short term Bond category.  Return for 2020 was 9.5% , 2019 was 9.4% and 2018 was 5.5% .

Below is the key information for Nippon India Short Term Fund

Nippon India Short Term Fund
Growth
Launch Date 18 Dec 02
NAV (24 Sep 21) ₹42.0806 ↓ -0.02   (-0.05 %)
Net Assets (Cr) ₹10,189 on 31 Aug 21
Category Debt - Short term Bond
AMC Nippon Life Asset Management Ltd.
Rating
Risk Moderately Low
Expense Ratio 1.15
Sharpe Ratio 1.92
Information Ratio -0.98
Alpha Ratio 0.76
Min Investment 5,000
Min SIP Investment 100
Exit Load NIL
Yield to Maturity 4.98%
Effective Maturity 2 Years 4 Months 28 Days
Modified Duration 1 Year 10 Months 17 Days

Growth of 10,000 investment over the years.

DateValue
31 Aug 16₹10,000
31 Aug 17₹10,800
31 Aug 18₹11,189
31 Aug 19₹12,228
31 Aug 20₹13,339
31 Aug 21₹14,192

Nippon India 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 ₹203,125.
Net Profit of ₹23,125
Invest Now

Returns for Nippon India 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 24 Sep 21

DurationReturns
1 Month 0.4%
3 Month 1.5%
6 Month 3.5%
1 Year 6.3%
3 Year 8.5%
5 Year 7.2%
10 Year
15 Year
Since launch 8%
Historical performance (Yearly) on absolute basis
YearReturns
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%
2011 7.9%
Fund Manager information for Nippon India Short Term Fund
NameSinceTenure
Vivek Sharma1 Feb 201.5 Yr.
Kinjal Desai25 May 183.19 Yr.
Sushil Budhia31 Mar 210.33 Yr.

Data below for Nippon India Short Term Fund as on 31 Aug 21

Asset Allocation
Asset ClassValue
Cash11.46%
Debt88.54%
Debt Sector Allocation
SectorValue
Corporate52.91%
Government35.14%
Cash Equivalent9.5%
Securitized2.45%
Credit Quality
RatingValue
AA13.75%
AAA86.25%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
National Bank For Agriculture and Rural Development
Debentures | -
4%₹349 Cr3,300
State Bank Of India
Debentures | -
3%₹328 Cr3,300
182 DTB 02122021
Sovereign Bonds | -
3%₹297 Cr30,000,000
Muthoot Finance Limited
Debentures | -
3%₹280 Cr2,748,618
India Infradebt Limited
Debentures | -
2%₹230 Cr2,195
ICICI Prudential Life Insurance Company Limited
Debentures | -
2%₹229 Cr2,300
India Grid Trust
Debentures | -
2%₹216 Cr2,100
5.63% Govt Stock 2026
Sovereign Bonds | -
2%₹209 Cr21,000,000
↓ -14,000,000
Indian Oil Corporation Limited
Debentures | -
2%₹205 Cr2,000
Power Finance Corporation Limited
Debentures | -
2%₹196 Cr1,900

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!

    Get Started

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.
How helpful was this page ?
Rated 4.8, based on 6 reviews.
POST A COMMENT