+91-22-62820123
Table of Contents
5 Best Short Duration (Short Term) Debt Funds To Invest In 2020
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.
Talk to our investment specialist
Best Short Duration Funds or Short Term Debt Funds FY 20 - 21
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 Below is the key information for PGIM India Short Maturity 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 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 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 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 Below is the key information for UTI Short Term Income Fund Returns up to 1 year are on Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2019 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity PGIM India Short Maturity Fund Growth ₹33.0553
↓ -0.08 ₹42 1.2 1.5 -1.2 3.5 -0.5 6.43% 2Y 1M 10D 2Y 6M 18D ICICI Prudential Short Term Fund Growth ₹41.9331
↓ -0.16 ₹13,470 1.3 3.6 8.4 7.2 9.7 7.08% 2Y 3M 22D 3Y 1M 6D Nippon India Short Term Fund Growth ₹37.635
↓ -0.11 ₹7,862 1.3 3.5 8.1 6.9 9.4 6.94% 1Y 10M 28D 2Y 3M 11D Aditya Birla Sun Life Short Term Opportunities Fund Growth ₹33.0287
↓ -0.11 ₹3,035 0.3 1.8 6.7 6.8 8.5 8.07% 2Y 6M 14D 3Y 3M 18D UTI Short Term Income Fund Growth ₹21.5581
↓ -0.05 ₹1,977 1.5 3.6 -4.3 2.6 -3.9 0% 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
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% . 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.
Date Value 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 Returns for PGIM India Short Maturity Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 7 Apr 20 Duration Returns 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
Year Returns 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
Name Since Tenure Kumaresh Ramakrishnan 13 Dec 17 2.05 Yr. Puneet Pal 13 Dec 17 2.05 Yr. Data below for PGIM India Short Maturity Fund as on 29 Feb 20
Asset Allocation
Asset Class Value Cash 12.72% Debt 87.28% Debt Sector Allocation
Sector Value Government 52.86% Corporate 34.41% Cash Equivalent 12.72% Credit Quality
Rating Value AA 8.09% AAA 91.91% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.37% Govt Stock 2023
Sovereign Bonds | -12% ₹5 Cr 500,000
↑ 500,000 NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Debentures | -10% ₹4 Cr 420,000 Housing Development Finance Corporation Limited
Debentures | -10% ₹4 Cr 390,000
↑ 330,000 BHARAT PETROLEUM CORPORATION LIMITED
Debentures | -9% ₹4 Cr 380,000 Power Finance Corporation Ltd.
Debentures | -9% ₹4 Cr 370,000 Indian Railway Finance Corporation Limited
Debentures | -8% ₹4 Cr 350,000 Treps / Reverse Repo
CBLO/Reverse Repo | -8% ₹3 Cr State Bank Of India
Debentures | -7% ₹3 Cr 290,000
↑ 60,000 L&T Finance Limited
Debentures | -6% ₹3 Cr 250,000 Net Receivables / (Payables)
Net Current Assets | -4% ₹2 Cr 2. ICICI Prudential Short Term Fund
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% . 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.
Date Value 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 Returns for ICICI Prudential Short Term Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 7 Apr 20 Duration Returns 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
Year Returns 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
Name Since Tenure Manish Banthia 19 Nov 09 10.12 Yr. Data below for ICICI Prudential Short Term Fund as on 29 Feb 20
Asset Allocation
Asset Class Value Cash 11.89% Debt 88.11% Debt Sector Allocation
Sector Value Corporate 60.62% Government 28.49% Cash Equivalent 10.44% Securitized 0.44% Credit Quality
Rating Value AA 18.99% AAA 81.01% Top Securities Holdings / Portfolio
Name Holding Value Quantity GOVT STOCK
Sovereign Bonds | -7% ₹947 Cr 88,103,900
↑ 14,603,900 LIC HOUSING FINANCE LIMITED
Debentures | -4% ₹509 Cr 5,024 Treps
CBLO/Reverse Repo | -3% ₹438 Cr PIPELINE INFRASTRUCTURE PRIVATE LIMITED
Debentures | -3% ₹357 Cr 3,529 7.59% Govt Stock 2026
Sovereign Bonds | -2% ₹318 Cr 30,000,000
↑ 10,000,000 NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Debentures | -2% ₹269 Cr 2,550 Reliance Utilities And Power Private Limited
Debentures | -2% ₹240 Cr 2,250 Net Current Assets
Net Current Assets | -2% ₹238 Cr INDIA GRID TRUST
Debentures | -2% ₹219 Cr 2,150 Reliance Ports And Terminals Limited
Debentures | -2% ₹216 Cr 2,078 3. Nippon India Short Term Fund
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% . 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.
Date Value 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 Returns for Nippon India Short Term Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 7 Apr 20 Duration Returns 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
Year Returns 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
Name Since Tenure Prashant Pimple 10 Jan 06 13.98 Yr. Kinjal Desai 25 May 18 1.6 Yr. Data below for Nippon India Short Term Fund as on 29 Feb 20
Asset Allocation
Asset Class Value Cash 20.41% Debt 79.59% Other 0% Debt Sector Allocation
Sector Value Corporate 58.96% Government 26.34% Cash Equivalent 12.64% Securitized 2.05% Credit Quality
Rating Value AA 7.67% AAA 92.33% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.59% Govt Stock 2026
Sovereign Bonds | -6% ₹472 Cr 44,500,000
↑ 44,500,000 Triparty Repo
CBLO/Reverse Repo | -5% ₹423 Cr GOVT STOCK
Sovereign Bonds | -5% ₹394 Cr 37,500,000
↑ 37,500,000 7.35% Govt Stock 2024
Sovereign Bonds | -4% ₹321 Cr 30,500,000
↑ 30,500,000 Muthoot Finance Limited
Debentures | -4% ₹319 Cr 3,182,598 National Bank For Agriculture And Rural Development
Certificate of Deposit | -4% ₹313 Cr 33,100
↑ 33,100 Reliance Ports And Terminals Limited
Debentures | -3% ₹243 Cr 2,339 INDIA GRID TRUST
Debentures | -3% ₹212 Cr 2,100 Reliance Jio Infocomm Limited
Debentures | -3% ₹210 Cr 2,050 Housing Development Finance Corporation Limited
Debentures | -3% ₹205 Cr 2,000 4. Aditya Birla Sun Life Short Term Opportunities Fund
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% . 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.
Date Value 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 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 7 Apr 20 Duration Returns 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
Year Returns 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
Name Since Tenure Maneesh Dangi 1 Apr 17 2.75 Yr. Kaustubh Gupta 11 Sep 14 5.31 Yr. Data below for Aditya Birla Sun Life Short Term Opportunities Fund as on 29 Feb 20
Asset Allocation
Asset Class Value Cash 3.62% Debt 96.38% Debt Sector Allocation
Sector Value Corporate 58.33% Government 37.68% Cash Equivalent 3.62% Securitized 0.36% Credit Quality
Rating Value A 4.79% AA 14.08% AAA 78.86% BBB 2.27% Top Securities Holdings / Portfolio
Name Holding Value Quantity Air India Assets Holding Limited
Debentures | -5% ₹152 Cr 1,500
↑ 1,000 National Bank For Agriculture And Rural Development
Debentures | -4% ₹113 Cr 1,100
↑ 850 7.72% GS 2025
Sovereign Bonds | -4% ₹107 Cr 10,000,000 Punjab National Bank
Debentures | -3% ₹100 Cr 1,000 REC LIMITED
Debentures | -3% ₹98 Cr 950 State Bank Of India
Debentures | -3% ₹94 Cr 900 Shriram Transport Finance Company Limited
Debentures | -3% ₹90 Cr 900
↑ 900 Housing And Urban Development Corporation Ltd.
Debentures | -3% ₹87 Cr 850 Net Receivables / (Payables)
Net Current Assets | -3% ₹82 Cr HOUSING AND URBAN DEVELOPMENT CORPORATION LIMITED (HUDCO)
Debentures | -3% ₹76 Cr 750 5. UTI Short Term Income Fund
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% . 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.
Date Value 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 Returns for UTI Short Term Income Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 7 Apr 20 Duration Returns 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
Year Returns 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
Name Since Tenure Sudhir Agarwal 25 Oct 12 7.19 Yr. Data below for UTI Short Term Income Fund as on 29 Feb 20
Asset Allocation
Asset Class Value Cash 3.84% Debt 96.16% Debt Sector Allocation
Sector Value Corporate 48.25% Government 45.91% Cash Equivalent 3.84% Securitized 2% Credit Quality
Rating Value A 7.23% AA 9.61% AAA 83.16% Top Securities Holdings / Portfolio
Name Holding Value Quantity 06.52 OD SDL 2023
Sovereign Bonds | -15% ₹304 Cr 3,000,000,000
↑ 3,000,000,000 Punjab National Bank
Debentures | -7% ₹137 Cr 1,370 Housing Development Finance Corporation Limited
Debentures | -6% ₹125 Cr 1,250
↑ 1,250 STATE BANK OF INDIA
Debentures | -5% ₹106 Cr 1,000 HOUSING AND URBAN DEVELOPMENT CORPORATION LIMITED (HUDCO)
Debentures | -5% ₹101 Cr 1,000 Larsen And Toubro Limited
Debentures | -5% ₹91 Cr 878
↓ -350 Small Industries Development Bank Of India
Debentures | -4% ₹88 Cr 870 POWER FINANCE CORPORATION LIMITED
Debentures | -4% ₹82 Cr 795 REC LIMITED
Debentures | -4% ₹80 Cr 778 Bank Of Baroda
Debentures | -4% ₹77 Cr 750
↓ -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?
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.
You Might Also Like
AMFI Registration No. 112358 | CIN: U74999MH2016PTC282153
Shepard Technologies Pvt. Ltd. (with ARN code 112358) makes no warranties or representations, express or implied, on products offered through the platform. It accepts no liability for any damages or losses, however caused, in connection with the use of, or on the reliance of its product or related services. Terms and conditions of the website are applicable.
©2020 Shepard Technologies Private Limited. All Rights Reserved