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5 Best Short Duration (Short Term) Debt Mutual Funds 2022

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5 Best Short Duration (Short Term) Debt Funds To Invest In 2022

Updated on June 23, 2022 , 22245 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 22 - 23

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)2021 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
UTI Short Term Income Fund Growth ₹25.5325
↑ 0.00
₹2,425-0.10.77.48.28.45.62%1Y 3M 18D2Y 2M 26D
HDFC Short Term Debt Fund Growth ₹25.5709
↓ 0.00
₹14,204-0.30.42.56.73.96.4%1Y 8M 12D2Y 9M
ICICI Prudential Short Term Fund Growth ₹47.7637
↓ -0.01
₹16,3150.10.72.76.63.96.7%2Y 29D5Y 6M 29D
Aditya Birla Sun Life Short Term Opportunities Fund Growth ₹38.1705
↓ 0.00
₹5,724-0.10.82.96.63.87.17%1Y 7M 24D2Y 5M 12D
BNP Paribas Short Term Fund Growth ₹25.4771
↓ -0.01
₹2580.61.34.66.5 5.16%1Y 11M 26D2Y 3M
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 24 Jun 22
*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 2021 was 8.4% , 2020 was 10.5% and 2019 was -3.9% .

Below is the key information for UTI Short Term Income Fund

UTI Short Term Income Fund
Growth
Launch Date 19 Sep 07
NAV (24 Jun 22) ₹25.5325 ↑ 0.00   (0.01 %)
Net Assets (Cr) ₹2,425 on 31 May 22
Category Debt - Short term Bond
AMC UTI Asset Management Company Ltd
Rating
Risk Moderate
Expense Ratio 0.93
Sharpe Ratio 0.89
Information Ratio 0
Alpha Ratio 0
Min Investment 10,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 5.62%
Effective Maturity 2 Years 2 Months 26 Days
Modified Duration 1 Year 3 Months 18 Days

Growth of 10,000 investment over the years.

DateValue
31 May 17₹10,000
31 May 18₹10,493
31 May 19₹11,263
31 May 20₹11,024
31 May 21₹11,753
31 May 22₹12,665

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 ₹194,235.
Net Profit of ₹14,235
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 24 Jun 22

DurationReturns
1 Month 0.1%
3 Month -0.1%
6 Month 0.7%
1 Year 7.4%
3 Year 8.2%
5 Year 4.7%
10 Year
15 Year
Since launch 6.6%
Historical performance (Yearly) on absolute basis
YearReturns
2021 8.4%
2020 10.5%
2019 -3.9%
2018 6%
2017 6.1%
2016 10.1%
2015 8.3%
2014 10.9%
2013 9%
2012 11.2%
Fund Manager information for UTI Short Term Income Fund
NameSinceTenure
Sudhir Agarwal25 Oct 129.61 Yr.

Data below for UTI Short Term Income Fund as on 31 May 22

Asset Allocation
Asset ClassValue
Cash30.77%
Debt69.23%
Debt Sector Allocation
SectorValue
Corporate38.18%
Government31.05%
Cash Equivalent30.77%
Credit Quality
RatingValue
AA27.67%
AAA72.33%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Axis Finance Limited
Debentures | -
6%₹159 Cr1,600
5.53% Govt Stock 2033
Sovereign Bonds | -
4%₹104 Cr1,050,000,000
Power Grid Corporation Of India Limited
Debentures | -
4%₹102 Cr1,000
National Bank For Agriculture And Rural Development
Debentures | -
4%₹99 Cr1,000
Power Finance Corporation Ltd.
Debentures | -
3%₹75 Cr750
India Grid TRust
Debentures | -
3%₹75 Cr750
Mahindra Rural Housing Finance Limited
Debentures | -
3%₹68 Cr700
Can Fin Homes Limited
Debentures | -
3%₹63 Cr650
TATA Motors Finance Limited
Debentures | -
2%₹59 Cr600
7.68% Govt Stock 2023
Sovereign Bonds | -
2%₹51 Cr500,000,000

2. 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 8.1% since its launch.  Ranked 30 in Short term Bond category.  Return for 2021 was 3.9% , 2020 was 11% and 2019 was 9.7% .

Below is the key information for HDFC Short Term Debt Fund

HDFC Short Term Debt Fund
Growth
Launch Date 25 Jun 10
NAV (24 Jun 22) ₹25.5709 ↓ 0.00   (-0.01 %)
Net Assets (Cr) ₹14,204 on 31 May 22
Category Debt - Short term Bond
AMC HDFC Asset Management Company Limited
Rating
Risk Moderately Low
Expense Ratio 0.7
Sharpe Ratio -0.85
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 300
Exit Load NIL
Yield to Maturity 6.4%
Effective Maturity 2 Years 9 Months
Modified Duration 1 Year 8 Months 12 Days

Growth of 10,000 investment over the years.

DateValue
31 May 17₹10,000
31 May 18₹10,569
31 May 19₹11,505
31 May 20₹12,699
31 May 21₹13,675
31 May 22₹14,042

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 24 Jun 22

DurationReturns
1 Month 0.2%
3 Month -0.3%
6 Month 0.4%
1 Year 2.5%
3 Year 6.7%
5 Year 6.9%
10 Year
15 Year
Since launch 8.1%
Historical performance (Yearly) on absolute basis
YearReturns
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
NameSinceTenure
Anil Bamboli25 Jun 1011.94 Yr.
Sankalp Baid22 Jan 211.35 Yr.

Data below for HDFC Short Term Debt Fund as on 31 May 22

Asset Allocation
Asset ClassValue
Cash25.06%
Debt74.94%
Debt Sector Allocation
SectorValue
Corporate46.29%
Government31.03%
Cash Equivalent21.69%
Securitized0.99%
Credit Quality
RatingValue
AA16.53%
AAA83.47%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
4.93% Govt Stock 2028
Sovereign Bonds | -
4%₹521 Cr53,000,000
↑ 8,000,000
6.79% Govt Stock 2027
Sovereign Bonds | -
2%₹355 Cr36,000,000
↑ 1,000,000
Housing Development Finance Corporation Ltd
Debentures | -
2%₹350 Cr3,500
Housing Development Finance Corporation Ltd
Debentures | -
2%₹301 Cr3,000
Indinfravit Trust
Debentures | -
2%₹287 Cr2,900
6.97% Govt Stock 2026
Sovereign Bonds | -
2%₹284 Cr28,500,000
State Bank Of India
Debentures | -
2%₹278 Cr2,750
Rec Limited
Debentures | -
2%₹251 Cr2,500
State Bank Of India
Debentures | -
2%₹251 Cr2,450
Motherson Sumi Systems Limited
Debentures | -
2%₹248 Cr2,500

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 7.9% 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% .

Below is the key information for ICICI Prudential Short Term Fund

ICICI Prudential Short Term Fund
Growth
Launch Date 25 Oct 01
NAV (24 Jun 22) ₹47.7637 ↓ -0.01   (-0.03 %)
Net Assets (Cr) ₹16,315 on 31 May 22
Category Debt - Short term Bond
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 1.16
Sharpe Ratio -0.82
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 6.7%
Effective Maturity 5 Years 6 Months 29 Days
Modified Duration 2 Years 29 Days

Growth of 10,000 investment over the years.

DateValue
31 May 17₹10,000
31 May 18₹10,458
31 May 19₹11,365
31 May 20₹12,494
31 May 21₹13,431
31 May 22₹13,821

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 24 Jun 22

DurationReturns
1 Month 0.1%
3 Month 0.1%
6 Month 0.7%
1 Year 2.7%
3 Year 6.6%
5 Year 6.5%
10 Year
15 Year
Since launch 7.9%
Historical performance (Yearly) on absolute basis
YearReturns
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
NameSinceTenure
Manish Banthia19 Nov 0912.54 Yr.
Nikhil Kabra29 Dec 201.42 Yr.

Data below for ICICI Prudential Short Term Fund as on 31 May 22

Asset Allocation
Asset ClassValue
Cash19.3%
Debt80.7%
Debt Sector Allocation
SectorValue
Corporate43.19%
Government37.13%
Cash Equivalent18.72%
Securitized0.96%
Credit Quality
RatingValue
AA18.97%
AAA81.03%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
5.53% Govt Stock 2033
Sovereign Bonds | -
10%₹1,683 Cr169,624,650
6.54% Govt Stock 2032
Sovereign Bonds | -
8%₹1,358 Cr143,376,250
↓ -19,626,450
National Bank For Agriculture And Rural Development
Debentures | -
5%₹899 Cr9,000
4.68% Govt Stock 2034
Sovereign Bonds | -
4%₹647 Cr66,585,930
4.93% Govt Stock 2028
Sovereign Bonds | -
3%₹541 Cr55,000,000
Pipeline Infrastructure Limited
Debentures | -
3%₹427 Cr4,129
ICICI Bank Limited
Debentures | -
1%₹224 Cr2,200
Godrej Industries Limited
Debentures | -
1%₹221 Cr2,250
India Grid TRust
Debentures | -
1%₹215 Cr2,150
Jamnagar Utilities & Power Private Limited
Debentures | -
1%₹204 Cr2,000

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 7.3% 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% .

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 Jun 22) ₹38.1705 ↓ 0.00   (-0.01 %)
Net Assets (Cr) ₹5,724 on 15 Jun 22
Category Debt - Short term Bond
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk Moderate
Expense Ratio 1.09
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 7.17%
Effective Maturity 2 Years 5 Months 12 Days
Modified Duration 1 Year 7 Months 24 Days

Growth of 10,000 investment over the years.

DateValue
31 May 17₹10,000
31 May 18₹10,491
31 May 19₹11,431
31 May 20₹12,339
31 May 21₹13,472
31 May 22₹13,902

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 24 Jun 22

DurationReturns
1 Month 0.1%
3 Month -0.1%
6 Month 0.8%
1 Year 2.9%
3 Year 6.6%
5 Year 6.6%
10 Year
15 Year
Since launch 7.3%
Historical performance (Yearly) on absolute basis
YearReturns
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
NameSinceTenure
Kaustubh Gupta11 Sep 147.72 Yr.
Mohit Sharma6 Aug 201.82 Yr.

Data below for Aditya Birla Sun Life Short Term Opportunities Fund as on 15 Jun 22

Asset Allocation
Asset ClassValue
Cash21.42%
Debt78.58%
Debt Sector Allocation
SectorValue
Corporate50.26%
Government32.84%
Cash Equivalent14.82%
Securitized2.07%
Credit Quality
RatingValue
A0.32%
AA17.53%
AAA82.06%
Below B0.08%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
National Bank For Agriculture And Rural Development
Debentures | -
3%₹295 Cr2,950
5.53% Govt Stock 2033
Sovereign Bonds | -
2%₹198 Cr20,000,000
L&T Finance Limited
Debentures | -
2%₹197 Cr1,950
Bajaj Housing Finance Limited
Debentures | -
2%₹186 Cr1,900
08.67 KA Sdl 2026
Sovereign Bonds | -
2%₹183 Cr17,500,000
08.92 MP Sdl 2022
Sovereign Bonds | -
2%₹151 Cr15,000,000
8.15% Govt Stock 2026
Sovereign Bonds | -
2%₹151 Cr14,500,000
Housing Development Finance Corporation Limited
Debentures | -
2%₹150 Cr1,500
State Bank Of India
Debentures | -
2%₹145 Cr1,500
Shriram Transport Finance Company Limited
Debentures | -
2%₹143 Cr1,400

5. 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
31 May 17₹10,000
31 May 18₹10,528
31 May 19₹11,422
31 May 20₹12,288
31 May 21₹13,137

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 24 Jun 22

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
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
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

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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