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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 April 5, 2020 , 4701 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 ₹33.0553
↓ -0.08
₹421.21.5-1.23.5-0.56.43%2Y 1M 10D2Y 6M 18D
ICICI Prudential Short Term Fund Growth ₹41.9331
↓ -0.16
₹13,4701.33.68.47.29.77.08%2Y 3M 22D3Y 1M 6D
Nippon India Short Term Fund Growth ₹37.635
↓ -0.11
₹7,8621.33.58.16.99.46.94%1Y 10M 28D2Y 3M 11D
Aditya Birla Sun Life Short Term Opportunities Fund Growth ₹33.0287
↓ -0.11
₹3,0350.31.86.76.88.58.07%2Y 6M 14D3Y 3M 18D
UTI Short Term Income Fund Growth ₹21.5581
↓ -0.05
₹1,9771.53.6-4.32.6-3.90%2Y 9M 26D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 7 Apr 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 (07 Apr 20) ₹33.0553 ↓ -0.08   (-0.24 %)
Net Assets (Cr) ₹42 on 29 Feb 20
Category Debt - Short term Bond
AMC Pramerica Asset Managers Private Limited
Rating
Risk Moderate
Expense Ratio 1.02
Sharpe Ratio -0.23
Information Ratio -0.61
Alpha Ratio -30.17
Min Investment 5,000
Min SIP Investment 500
Exit Load 0-6 Months (0.5%),6 Months and above(NIL)
Yield to Maturity 6.43%
Effective Maturity 2 Years 6 Months 18 Days
Modified Duration 2 Years 1 Month 10 Days

Growth of 10,000 investment over the years.

DateValue
31 Mar 15₹10,000
31 Mar 16₹10,803
31 Mar 17₹11,833
31 Mar 18₹12,630
31 Mar 19₹13,310
31 Mar 20₹13,179

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 7 Apr 20

DurationReturns
1 Month -0.7%
3 Month 1.2%
6 Month 1.5%
1 Year -1.2%
3 Year 3.5%
5 Year 5.6%
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 172.05 Yr.
Puneet Pal13 Dec 172.05 Yr.

Data below for PGIM India Short Maturity Fund as on 29 Feb 20

Asset Allocation
Asset ClassValue
Cash12.72%
Debt87.28%
Debt Sector Allocation
SectorValue
Government52.86%
Corporate34.41%
Cash Equivalent12.72%
Credit Quality
RatingValue
AA8.09%
AAA91.91%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.37% Govt Stock 2023
Sovereign Bonds | -
12%₹5 Cr500,000
↑ 500,000
NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Debentures | -
10%₹4 Cr420,000
Housing Development Finance Corporation Limited
Debentures | -
10%₹4 Cr390,000
↑ 330,000
BHARAT PETROLEUM CORPORATION LIMITED
Debentures | -
9%₹4 Cr380,000
Power Finance Corporation Ltd.
Debentures | -
9%₹4 Cr370,000
Indian Railway Finance Corporation Limited
Debentures | -
8%₹4 Cr350,000
Treps / Reverse Repo
CBLO/Reverse Repo | -
8%₹3 Cr
State Bank Of India
Debentures | -
7%₹3 Cr290,000
↑ 60,000
L&T Finance Limited
Debentures | -
6%₹3 Cr250,000
Net Receivables / (Payables)
Net Current Assets | -
4%₹2 Cr

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 (07 Apr 20) ₹41.9331 ↓ -0.16   (-0.39 %)
Net Assets (Cr) ₹13,470 on 29 Feb 20
Category Debt - Short term Bond
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 1.24
Sharpe Ratio 4.49
Information Ratio -0.72
Alpha Ratio -0.06
Min Investment 5,000
Min SIP Investment 1,000
Exit Load 0-7 Days (0.25%),7 Days and above(NIL)
Yield to Maturity 7.08%
Effective Maturity 3 Years 1 Month 6 Days
Modified Duration 2 Years 3 Months 22 Days

Growth of 10,000 investment over the years.

DateValue
31 Mar 15₹10,000
31 Mar 16₹10,812
31 Mar 17₹11,919
31 Mar 18₹12,643
31 Mar 19₹13,490
31 Mar 20₹14,729

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 7 Apr 20

DurationReturns
1 Month -0.7%
3 Month 1.3%
6 Month 3.6%
1 Year 8.4%
3 Year 7.2%
5 Year 7.9%
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 29 Feb 20

Asset Allocation
Asset ClassValue
Cash11.89%
Debt88.11%
Debt Sector Allocation
SectorValue
Corporate60.62%
Government28.49%
Cash Equivalent10.44%
Securitized0.44%
Credit Quality
RatingValue
AA18.99%
AAA81.01%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
GOVT STOCK
Sovereign Bonds | -
7%₹947 Cr88,103,900
↑ 14,603,900
LIC HOUSING FINANCE LIMITED
Debentures | -
4%₹509 Cr5,024
Treps
CBLO/Reverse Repo | -
3%₹438 Cr
PIPELINE INFRASTRUCTURE PRIVATE LIMITED
Debentures | -
3%₹357 Cr3,529
7.59% Govt Stock 2026
Sovereign Bonds | -
2%₹318 Cr30,000,000
↑ 10,000,000
NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Debentures | -
2%₹269 Cr2,550
Reliance Utilities And Power Private Limited
Debentures | -
2%₹240 Cr2,250
Net Current Assets
Net Current Assets | -
2%₹238 Cr
INDIA GRID TRUST
Debentures | -
2%₹219 Cr2,150
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 (07 Apr 20) ₹37.635 ↓ -0.11   (-0.28 %)
Net Assets (Cr) ₹7,862 on 29 Feb 20
Category Debt - Short term Bond
AMC Nippon Life Asset Management Ltd.
Rating
Risk Moderately Low
Expense Ratio 1.1
Sharpe Ratio 4.1
Information Ratio -1.78
Alpha Ratio -0.78
Min Investment 5,000
Min SIP Investment 100
Exit Load NIL
Yield to Maturity 6.94%
Effective Maturity 2 Years 3 Months 11 Days
Modified Duration 1 Year 10 Months 28 Days

Growth of 10,000 investment over the years.

DateValue
31 Mar 15₹10,000
31 Mar 16₹10,791
31 Mar 17₹11,759
31 Mar 18₹12,453
31 Mar 19₹13,249
31 Mar 20₹14,415

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 7 Apr 20

DurationReturns
1 Month -0.5%
3 Month 1.3%
6 Month 3.5%
1 Year 8.1%
3 Year 6.9%
5 Year 7.5%
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 29 Feb 20

Asset Allocation
Asset ClassValue
Cash20.41%
Debt79.59%
Other0%
Debt Sector Allocation
SectorValue
Corporate58.96%
Government26.34%
Cash Equivalent12.64%
Securitized2.05%
Credit Quality
RatingValue
AA7.67%
AAA92.33%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.59% Govt Stock 2026
Sovereign Bonds | -
6%₹472 Cr44,500,000
↑ 44,500,000
Triparty Repo
CBLO/Reverse Repo | -
5%₹423 Cr
GOVT STOCK
Sovereign Bonds | -
5%₹394 Cr37,500,000
↑ 37,500,000
7.35% Govt Stock 2024
Sovereign Bonds | -
4%₹321 Cr30,500,000
↑ 30,500,000
Muthoot Finance Limited
Debentures | -
4%₹319 Cr3,182,598
National Bank For Agriculture And Rural Development
Certificate of Deposit | -
4%₹313 Cr33,100
↑ 33,100
Reliance Ports And Terminals Limited
Debentures | -
3%₹243 Cr2,339
INDIA GRID TRUST
Debentures | -
3%₹212 Cr2,100
Reliance Jio Infocomm Limited
Debentures | -
3%₹210 Cr2,050
Housing Development Finance Corporation Limited
Debentures | -
3%₹205 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 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 (07 Apr 20) ₹33.0287 ↓ -0.11   (-0.34 %)
Net Assets (Cr) ₹3,035 on 29 Feb 20
Category Debt - Short term Bond
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk Moderate
Expense Ratio 1.16
Sharpe Ratio 2.95
Information Ratio -0.89
Alpha Ratio -1.69
Min Investment 1,000
Min SIP Investment 1,000
Exit Load 0-90 Days (0.5%),90 Days and above(NIL)
Yield to Maturity 8.07%
Effective Maturity 3 Years 3 Months 18 Days
Modified Duration 2 Years 6 Months 14 Days

Growth of 10,000 investment over the years.

DateValue
31 Mar 15₹10,000
31 Mar 16₹10,840
31 Mar 17₹11,862
31 Mar 18₹12,612
31 Mar 19₹13,509
31 Mar 20₹14,504

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 7 Apr 20

DurationReturns
1 Month -0.8%
3 Month 0.3%
6 Month 1.8%
1 Year 6.7%
3 Year 6.8%
5 Year 7.6%
10 Year
15 Year
Since launch 7.3%
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 172.75 Yr.
Kaustubh Gupta11 Sep 145.31 Yr.

Data below for Aditya Birla Sun Life Short Term Opportunities Fund as on 29 Feb 20

Asset Allocation
Asset ClassValue
Cash3.62%
Debt96.38%
Debt Sector Allocation
SectorValue
Corporate58.33%
Government37.68%
Cash Equivalent3.62%
Securitized0.36%
Credit Quality
RatingValue
A4.79%
AA14.08%
AAA78.86%
BBB2.27%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Air India Assets Holding Limited
Debentures | -
5%₹152 Cr1,500
↑ 1,000
National Bank For Agriculture And Rural Development
Debentures | -
4%₹113 Cr1,100
↑ 850
7.72% GS 2025
Sovereign Bonds | -
4%₹107 Cr10,000,000
Punjab National Bank
Debentures | -
3%₹100 Cr1,000
REC LIMITED
Debentures | -
3%₹98 Cr950
State Bank Of India
Debentures | -
3%₹94 Cr900
Shriram Transport Finance Company Limited
Debentures | -
3%₹90 Cr900
↑ 900
Housing And Urban Development Corporation Ltd.
Debentures | -
3%₹87 Cr850
Net Receivables / (Payables)
Net Current Assets | -
3%₹82 Cr
HOUSING AND URBAN DEVELOPMENT CORPORATION LIMITED (HUDCO)
Debentures | -
3%₹76 Cr750

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 (07 Apr 20) ₹21.5581 ↓ -0.05   (-0.25 %)
Net Assets (Cr) ₹1,977 on 29 Feb 20
Category Debt - Short term Bond
AMC UTI Asset Management Company Ltd
Rating
Risk Moderate
Expense Ratio 0.9
Sharpe Ratio -0.43
Information Ratio -0.74
Alpha Ratio -31.31
Min Investment 10,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 0%
Effective Maturity 2 Years 9 Months 26 Days
Modified Duration

Growth of 10,000 investment over the years.

DateValue
31 Mar 15₹10,000
31 Mar 16₹10,798
31 Mar 17₹11,851
31 Mar 18₹12,555
31 Mar 19₹13,380
31 Mar 20₹12,859

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 7 Apr 20

DurationReturns
1 Month -0.6%
3 Month 1.5%
6 Month 3.6%
1 Year -4.3%
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 127.19 Yr.

Data below for UTI Short Term Income Fund as on 29 Feb 20

Asset Allocation
Asset ClassValue
Cash3.84%
Debt96.16%
Debt Sector Allocation
SectorValue
Corporate48.25%
Government45.91%
Cash Equivalent3.84%
Securitized2%
Credit Quality
RatingValue
A7.23%
AA9.61%
AAA83.16%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
06.52 OD SDL 2023
Sovereign Bonds | -
15%₹304 Cr3,000,000,000
↑ 3,000,000,000
Punjab National Bank
Debentures | -
7%₹137 Cr1,370
Housing Development Finance Corporation Limited
Debentures | -
6%₹125 Cr1,250
↑ 1,250
STATE BANK OF INDIA
Debentures | -
5%₹106 Cr1,000
HOUSING AND URBAN DEVELOPMENT CORPORATION LIMITED (HUDCO)
Debentures | -
5%₹101 Cr1,000
Larsen And Toubro Limited
Debentures | -
5%₹91 Cr878
↓ -350
Small Industries Development Bank Of India
Debentures | -
4%₹88 Cr870
POWER FINANCE CORPORATION LIMITED
Debentures | -
4%₹82 Cr795
REC LIMITED
Debentures | -
4%₹80 Cr778
Bank Of Baroda
Debentures | -
4%₹77 Cr750
↓ -250

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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