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5 Best Short Duration (Short Term) Debt Mutual Funds 2020

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5 Best Short Duration (Short Term) Debt Funds To Invest In 2020

Updated on January 20, 2020 , 3463 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 20 - 21

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)2019 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
PGIM India Short Maturity Fund Growth ₹32.7659
↑ 0.03
₹460.27.4-1.23.6-0.57.98%2Y 29D2Y 6M 14D
ICICI Prudential Short Term Fund Growth ₹41.5276
↑ 0.03
₹12,3542.14.39.779.77.4%2Y 2M 12D2Y 11M 8D
Nippon India Short Term Fund Growth ₹37.2486
↑ 0.02
₹7,0271.84.39.36.79.47.25%1Y 11M 8D2Y 3M 18D
Aditya Birla Sun Life Short Term Opportunities Fund Growth ₹32.8825
↑ 0.02
₹3,1410.938.36.68.58.57%1Y 11M 12D2Y 5M 26D
UTI Short Term Income Fund Growth ₹21.3189
↑ 0.02
₹2,0491.94.4-3.72.6-3.97.3%2Y 2Y 3M 24D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 22 Jan 20

1. PGIM India 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.

PGIM India 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 7.2% since its launch.  Ranked 5 in Short term Bond category.  Return for 2019 was -0.5% , 2018 was 5.5% and 2017 was 6.8% .

Below is the key information for PGIM India Short Maturity Fund

PGIM India Short Maturity Fund
Growth
Launch Date 21 Jan 03
NAV (22 Jan 20) ₹32.7659 ↑ 0.03   (0.09 %)
Net Assets (Cr) ₹46 on 31 Dec 19
Category Debt - Short term Bond
AMC Pramerica Asset Managers Private Limited
Rating
Risk Moderate
Expense Ratio 1.02
Sharpe Ratio -0.26
Information Ratio -0.53
Alpha Ratio -25.49
Min Investment 5,000
Min SIP Investment 500
Exit Load 0-6 Months (0.5%),6 Months and above(NIL)
Yield to Maturity 7.98%
Effective Maturity 2 Years 6 Months 14 Days
Modified Duration 2 Years 29 Days

Growth of 10,000 investment over the years.

DateValue
31 Dec 14₹10,000
31 Dec 15₹10,834
31 Dec 16₹11,914
31 Dec 17₹12,729
31 Dec 18₹13,423
31 Dec 19₹13,351

PGIM India 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 ₹197,169.
Net Profit of ₹17,169
Invest Now

Returns for PGIM India 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 22 Jan 20

DurationReturns
1 Month 0.1%
3 Month 0.2%
6 Month 7.4%
1 Year -1.2%
3 Year 3.6%
5 Year 5.7%
10 Year
15 Year
Since launch 7.2%
Historical performance (Yearly) on absolute basis
YearReturns
2019 -0.5%
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%
Fund Manager information for PGIM India Short Maturity Fund
NameSinceTenure
Kumaresh Ramakrishnan13 Dec 171.97 Yr.
Puneet Pal13 Dec 171.97 Yr.

Data below for PGIM India Short Maturity Fund as on 31 Dec 19

Asset Allocation
Asset ClassValue
Cash11.6%
Debt88.4%
Debt Sector Allocation
SectorValue
Corporate47.21%
Government41.19%
Cash Equivalent11.6%
Credit Quality
RatingValue
AA5.81%
AAA84.61%
BBB9.58%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
REC LIMITED
Debentures | -
10%₹8 Cr800,000
HINDUSTAN PETROLEUM CORPORATION LIMITED
Debentures | -
10%₹8 Cr800,000
↓ -50,000
SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA
Debentures | -
9%₹7 Cr700,000
Yes Bank Limited
Debentures | -
8%₹7 Cr830,000
Reliance Jio Infocomm Limited
Debentures | -
8%₹6 Cr610,000
GOVT STOCK
Sovereign Bonds | -
8%₹6 Cr600,000
↑ 100,000
NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Debentures | -
8%₹6 Cr600,000
Treps / Reverse Repo
CBLO/Reverse Repo | -
7%₹6 Cr
Power Finance Corporation Ltd.
Debentures | -
6%₹5 Cr500,000
Reliance Industries Limited
Debentures | -
6%₹5 Cr500,000

2. 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 2019 was 9.7% , 2018 was 5.8% and 2017 was 5.9% .

Below is the key information for ICICI Prudential Short Term Fund

ICICI Prudential Short Term Fund
Growth
Launch Date 25 Oct 01
NAV (22 Jan 20) ₹41.5276 ↑ 0.03   (0.07 %)
Net Assets (Cr) ₹12,354 on 31 Dec 19
Category Debt - Short term Bond
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 1.24
Sharpe Ratio 3.87
Information Ratio -0.58
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 7.4%
Effective Maturity 2 Years 11 Months 8 Days
Modified Duration 2 Years 2 Months 12 Days

Growth of 10,000 investment over the years.

DateValue
31 Dec 14₹10,000
31 Dec 15₹10,799
31 Dec 16₹12,001
31 Dec 17₹12,710
31 Dec 18₹13,453
31 Dec 19₹14,754

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 22 Jan 20

DurationReturns
1 Month 0.7%
3 Month 2.1%
6 Month 4.3%
1 Year 9.7%
3 Year 7%
5 Year 8%
10 Year
15 Year
Since launch 8.1%
Historical performance (Yearly) on absolute basis
YearReturns
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%
2010 4.4%
Fund Manager information for ICICI Prudential Short Term Fund
NameSinceTenure
Manish Banthia19 Nov 0910.12 Yr.

Data below for ICICI Prudential Short Term Fund as on 31 Dec 19

Asset Allocation
Asset ClassValue
Cash11.6%
Debt88.4%
Debt Sector Allocation
SectorValue
Corporate64.92%
Government26.41%
Cash Equivalent8.66%
Credit Quality
RatingValue
AA18.38%
AAA81.62%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
GOVT STOCK
Sovereign Bonds | -
6%₹687 Cr65,500,000
↑ 7,500,000
LIC HOUSING FINANCE LIMITED
Debentures | -
4%₹431 Cr4,250
Net Current Assets
Net Current Assets | -
3%₹393 Cr
PIPELINE INFRASTRUCTURE PRIVATE LIMITED
Debentures | -
3%₹357 Cr3,529
State Bank Of India
Debentures | -
3%₹312 Cr3,000
GOVT STOCK
Sovereign Bonds | -
2%₹271 Cr26,000,000
↑ 6,500,000
NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Debentures | -
2%₹268 Cr2,550
TATA MOTORS FINANCE LIMITED
Debentures | -
2%₹251 Cr2,500
Reliance Utilities And Power Private Limited
Debentures | -
2%₹239 Cr2,250
Reliance Ports And Terminals Limited
Debentures | -
2%₹216 Cr2,078

3. 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 2019 was 9.4% , 2018 was 5.5% and 2017 was 5.7% .

Below is the key information for Nippon India Short Term Fund

Nippon India Short Term Fund
Growth
Launch Date 18 Dec 02
NAV (22 Jan 20) ₹37.2486 ↑ 0.02   (0.05 %)
Net Assets (Cr) ₹7,027 on 31 Dec 19
Category Debt - Short term Bond
AMC Nippon Life Asset Management Ltd.
Rating
Risk Moderately Low
Expense Ratio 1.1
Sharpe Ratio 3.47
Information Ratio -1.35
Alpha Ratio -0.96
Min Investment 5,000
Min SIP Investment 100
Exit Load NIL
Yield to Maturity 7.25%
Effective Maturity 2 Years 3 Months 18 Days
Modified Duration 1 Year 11 Months 8 Days

Growth of 10,000 investment over the years.

DateValue
31 Dec 14₹10,000
31 Dec 15₹10,812
31 Dec 16₹11,869
31 Dec 17₹12,545
31 Dec 18₹13,236
31 Dec 19₹14,474

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 22 Jan 20

DurationReturns
1 Month 0.6%
3 Month 1.8%
6 Month 4.3%
1 Year 9.3%
3 Year 6.7%
5 Year 7.6%
10 Year
15 Year
Since launch 8%
Historical performance (Yearly) on absolute basis
YearReturns
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%
2010 5%
Fund Manager information for Nippon India Short Term Fund
NameSinceTenure
Prashant Pimple10 Jan 0613.98 Yr.
Kinjal Desai25 May 181.6 Yr.

Data below for Nippon India Short Term Fund as on 31 Dec 19

Asset Allocation
Asset ClassValue
Cash19.72%
Debt80.27%
Other0%
Debt Sector Allocation
SectorValue
Corporate67.4%
Government22.42%
Cash Equivalent10.17%
Credit Quality
RatingValue
AA12.28%
AAA87.72%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
GOVT STOCK
Sovereign Bonds | -
11%₹708 Cr68,000,000
↑ 2,500,000
Muthoot Finance Limited
Debentures | -
5%₹313 Cr3,171,098
NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Debentures | -
5%₹300 Cr2,850
Reliance Jio Infocomm Limited
Debentures | -
5%₹289 Cr2,800
↑ 2,800
State Bank Of India
Debentures | -
4%₹252 Cr2,500
↑ 2,500
INDIA GRID TRUST
Debentures | -
3%₹213 Cr2,100
Housing Development Finance Corporation Limited
Debentures | -
3%₹205 Cr2,000
Reliance Utilities And Power Private Limited
Debentures | -
3%₹192 Cr1,865
State Bank Of India
Debentures | -
3%₹173 Cr1,700
↓ -1,300
Net Current Assets
Net Current Assets | -
3%₹168 Cr

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 7.4% since its launch.  Ranked 18 in Short term Bond category.  Return for 2019 was 8.5% , 2018 was 6.5% and 2017 was 5.6% .

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 (22 Jan 20) ₹32.8825 ↑ 0.02   (0.07 %)
Net Assets (Cr) ₹3,141 on 31 Dec 19
Category Debt - Short term Bond
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk Moderate
Expense Ratio 1.16
Sharpe Ratio 2.65
Information Ratio -0.64
Alpha Ratio -2.26
Min Investment 1,000
Min SIP Investment 1,000
Exit Load 0-90 Days (0.5%),90 Days and above(NIL)
Yield to Maturity 8.57%
Effective Maturity 2 Years 5 Months 26 Days
Modified Duration 1 Year 11 Months 12 Days

Growth of 10,000 investment over the years.

DateValue
31 Dec 14₹10,000
31 Dec 15₹10,842
31 Dec 16₹12,069
31 Dec 17₹12,745
31 Dec 18₹13,574
31 Dec 19₹14,728

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 22 Jan 20

DurationReturns
1 Month 0.2%
3 Month 0.9%
6 Month 3%
1 Year 8.3%
3 Year 6.6%
5 Year 7.8%
10 Year
15 Year
Since launch 7.4%
Historical performance (Yearly) on absolute basis
YearReturns
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%
2010 6%
Fund Manager information for Aditya Birla Sun Life Short Term Opportunities Fund
NameSinceTenure
Maneesh Dangi1 Apr 172.58 Yr.
Kaustubh Gupta11 Sep 145.14 Yr.

Data below for Aditya Birla Sun Life Short Term Opportunities Fund as on 31 Dec 19

Asset Allocation
Asset ClassValue
Cash6.42%
Debt93.58%
Debt Sector Allocation
SectorValue
Corporate53.77%
Government39.69%
Cash Equivalent6.42%
Securitized0.13%
Credit Quality
RatingValue
A8.99%
AA18.03%
AAA71.83%
Below B1.15%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
ADANI PROPERTIES PRIVATE LIMITED
Debentures | -
5%₹164 Cr142
↓ -29
REC LIMITED
Debentures | -
5%₹149 Cr1,450
7.72% GS 2025
Sovereign Bonds | -
4%₹127 Cr12,000,000
↑ 2,500,000
GOVT STOCK
Sovereign Bonds | -
3%₹109 Cr10,500,000
↑ 2,500,000
SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA
Debentures | -
3%₹102 Cr1,000
Punjab National Bank
Debentures | -
3%₹99 Cr1,000
State Bank Of India
Debentures | -
3%₹97 Cr950
NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Debentures | -
3%₹95 Cr900
↓ -150
State Bank Of India
Debentures | -
3%₹94 Cr900
Net Receivables / (Payables)
Net Current Assets | -
3%₹91 Cr

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 6.3% since its launch.  Ranked 10 in Short term Bond category.  Return for 2019 was -3.9% , 2018 was 6% and 2017 was 6.1% .

Below is the key information for UTI Short Term Income Fund

UTI Short Term Income Fund
Growth
Launch Date 19 Sep 07
NAV (22 Jan 20) ₹21.3189 ↑ 0.02   (0.10 %)
Net Assets (Cr) ₹2,049 on 31 Dec 19
Category Debt - Short term Bond
AMC UTI Asset Management Company Ltd
Rating
Risk Moderate
Expense Ratio 0.9
Sharpe Ratio -0.54
Information Ratio -0.71
Alpha Ratio -26.44
Min Investment 10,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 7.3%
Effective Maturity 2 Years 3 Months 24 Days
Modified Duration 2 Years

Growth of 10,000 investment over the years.

DateValue
31 Dec 14₹10,000
31 Dec 15₹10,829
31 Dec 16₹11,921
31 Dec 17₹12,645
31 Dec 18₹13,404
31 Dec 19₹12,880

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 ₹197,169.
Net Profit of ₹17,169
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 22 Jan 20

DurationReturns
1 Month 0.7%
3 Month 1.9%
6 Month 4.4%
1 Year -3.7%
3 Year 2.6%
5 Year 5.1%
10 Year
15 Year
Since launch 6.3%
Historical performance (Yearly) on absolute basis
YearReturns
2019 -3.9%
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%
Fund Manager information for UTI Short Term Income Fund
NameSinceTenure
Sudhir Agarwal25 Oct 127.1 Yr.

Data below for UTI Short Term Income Fund as on 31 Dec 19

Asset Allocation
Asset ClassValue
Cash10.57%
Debt89.43%
Debt Sector Allocation
SectorValue
Corporate46.45%
Government42.98%
Cash Equivalent10.57%
Credit Quality
RatingValue
A7.16%
AA10.83%
AAA82.01%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Net Current Assets
Net Current Assets | -
10%₹217 Cr00
REC LIMITED
Debentures | -
6%₹137 Cr1,328
Punjab National Bank
Debentures | -
6%₹136 Cr1,370
↓ -500
Larsen And Toubro Limited
Debentures | -
6%₹127 Cr1,228
STATE BANK OF INDIA
Debentures | -
5%₹104 Cr1,000
↓ -500
Housing Development Finance Corporation Limited
Debentures | -
5%₹102 Cr1,000
Bank Of Baroda
Debentures | -
5%₹102 Cr1,000
↓ -250
HOUSING AND URBAN DEVELOPMENT CORPORATION LIMITED (HUDCO)
Debentures | -
5%₹101 Cr1,000
GOVT STOCK
Sovereign Bonds | -
5%₹100 Cr1,000,000,000
↑ 1,000,000,000
Small Industries Development Bank Of India
Debentures | -
4%₹88 Cr870

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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  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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