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5 Best Short Duration (Short Term) Debt Mutual Funds 2019

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5 Best Short Duration (Short Term) Debt Funds To Invest In 2019

Updated on August 22, 2019 , 1960 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 19 - 20

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)2018 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
DHFL Pramerica Short Maturity Fund Growth ₹31.8434
↑ 0.03
₹116-4.6-4.4-1.445.534.55%3M 4D4M 13D
Aditya Birla Sun Life Short Term Opportunities Fund Growth ₹32.1593
↑ 0.01
₹3,16835.59.67.36.58.72%2Y 1M 6D2Y 9M 14D
ICICI Prudential Short Term Fund Growth ₹40.1663
↑ 0.02
₹8,95035.59.47.45.87.95%1Y 10M 20D2Y 5M 1D
Reliance Short Term Fund Growth ₹36.0981
↑ 0.02
₹6,65035.49.275.58.04%1Y 11M 5D2Y 3M 18D
UTI Short Term Income Fund Growth ₹20.6144
↑ 0.01
₹2,313-8.7-7.2-4.42.967.61%2Y 10M 20D3Y 6M 1D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 23 Aug 19

1. DHFL Pramerica 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.

DHFL Pramerica 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 2018 was 5.5% , 2017 was 6.8% and 2016 was 10% .

Below is the key information for DHFL Pramerica Short Maturity Fund

DHFL Pramerica Short Maturity Fund
Growth
Launch Date 21 Jan 03
NAV (23 Aug 19) ₹31.8434 ↑ 0.03   (0.10 %)
Net Assets (Cr) ₹116 on 31 Jul 19
Category Debt - Short term Bond
AMC DHFL Pramerica Asset Managers Private Limited
Rating
Risk Moderate
Expense Ratio 1.45
Sharpe Ratio -0.64
Information Ratio -0.71
Alpha Ratio -24.41
Min Investment 5,000
Min SIP Investment 500
Exit Load 0-6 Months (0.5%),6 Months and above(NIL)
Yield to Maturity 34.55%
Effective Maturity 4 Months 13 Days
Modified Duration 3 Months 4 Days

Growth of 10,000 investment over the years.

DateValue
31 Jul 14₹10,000
31 Jul 15₹10,969
31 Jul 16₹11,972
31 Jul 17₹13,088
31 Jul 18₹13,681
31 Jul 19₹13,092

DHFL Pramerica 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 ₹200,132.
Net Profit of ₹20,132
Invest Now

Returns for DHFL Pramerica 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 23 Aug 19

DurationReturns
1 Month 4.2%
3 Month -4.6%
6 Month -4.4%
1 Year -1.4%
3 Year 4%
5 Year 6.2%
10 Year
15 Year
Since launch 7.2%
Historical performance (Yearly) on absolute basis
YearReturns
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%
2009 7.7%
Fund Manager information for DHFL Pramerica Short Maturity Fund
NameSinceTenure
Kumaresh Ramakrishnan13 Dec 171.63 Yr.
Puneet Pal13 Dec 171.63 Yr.

Data below for DHFL Pramerica Short Maturity Fund as on 31 Jul 19

Asset Allocation
Asset ClassValue
Debt110.18%
Debt Sector Allocation
SectorValue
Corporate110.18%
Credit Quality
RatingValue
BBB96.08%
Below B3.92%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Business Broadcast News Holdings Limited
Debentures | -
61%₹71 Cr8,500,000
Reliance Mediaworks Limited
Debentures | -
36%₹42 Cr5,000,000
Net Receivables / (Payables)
Net Current Assets | -
10%-₹12 Cr
Yes Bank Limited
Debentures | -
8%₹10 Cr1,100,000
↓ -260,000
Dewan Housing Finance Corporation Limited
Debentures | -
4%₹5 Cr2,000,000

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 7.4% since its launch.  Ranked 18 in Short term Bond category.  Return for 2018 was 6.5% , 2017 was 5.6% and 2016 was 11.3% .

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 (23 Aug 19) ₹32.1593 ↑ 0.01   (0.02 %)
Net Assets (Cr) ₹3,168 on 31 Jul 19
Category Debt - Short term Bond
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk Moderate
Expense Ratio 1.38
Sharpe Ratio 3.49
Information Ratio -0.12
Alpha Ratio 0.36
Min Investment 1,000
Min SIP Investment 1,000
Exit Load 0-90 Days (0.5%),90 Days and above(NIL)
Yield to Maturity 8.72%
Effective Maturity 2 Years 9 Months 14 Days
Modified Duration 2 Years 1 Month 6 Days

Growth of 10,000 investment over the years.

DateValue
31 Jul 14₹10,000
31 Jul 15₹11,032
31 Jul 16₹12,152
31 Jul 17₹13,175
31 Jul 18₹13,740
31 Jul 19₹15,056

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 ₹206,148.
Net Profit of ₹26,148
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 23 Aug 19

DurationReturns
1 Month 0.8%
3 Month 3%
6 Month 5.5%
1 Year 9.6%
3 Year 7.3%
5 Year 8.6%
10 Year
15 Year
Since launch 7.4%
Historical performance (Yearly) on absolute basis
YearReturns
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%
2009 8.1%
Fund Manager information for Aditya Birla Sun Life Short Term Opportunities Fund
NameSinceTenure
Maneesh Dangi1 Apr 172 Yr.
Kaustubh Gupta11 Sep 144.55 Yr.

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

Asset Allocation
Asset ClassValue
Cash4.78%
Debt95.22%
Debt Sector Allocation
SectorValue
Corporate73.39%
Government18.23%
Cash Equivalent4.78%
Securitized3.6%
Credit Quality
RatingValue
A10.19%
AA18.18%
AAA70.46%
Below B1.18%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
ONGC Petro Additions Limited
Debentures | -
8%₹250 Cr250
ADANI PROPERTIES PRIVATE LIMITED
Debentures | -
7%₹220 Cr200
7.26% Govt Stock 2029
Sovereign Bonds | -
4%₹122 Cr11,500,000
↓ -2,000,000
NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Debentures | -
4%₹121 Cr1,200
Punjab National Bank
Debentures | -
3%₹97 Cr1,000
LIC Housing Finance Limited
Debentures | -
3%₹92 Cr900
↓ -400
NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Debentures | -
3%₹88 Cr850
↑ 400
Net Receivables / (Payables)
Net Current Assets | -
2%₹77 Cr
Clearing Corporation Of India Limited
CBLO | -
2%₹74 Cr
Grand View Estates Private Limited
Debentures | -
2%₹73 Cr75

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 2018 was 5.8% , 2017 was 5.9% and 2016 was 11.1% .

Below is the key information for ICICI Prudential Short Term Fund

ICICI Prudential Short Term Fund
Growth
Launch Date 25 Oct 01
NAV (23 Aug 19) ₹40.1663 ↑ 0.02   (0.06 %)
Net Assets (Cr) ₹8,950 on 31 Jul 19
Category Debt - Short term Bond
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 1.27
Sharpe Ratio 3.46
Information Ratio -0.23
Alpha Ratio -0.22
Min Investment 5,000
Min SIP Investment 1,000
Exit Load 0-7 Days (0.25%),7 Days and above(NIL)
Yield to Maturity 7.95%
Effective Maturity 2 Years 5 Months 1 Day
Modified Duration 1 Year 10 Months 20 Days

Growth of 10,000 investment over the years.

DateValue
31 Jul 14₹10,000
31 Jul 15₹10,978
31 Jul 16₹12,082
31 Jul 17₹13,190
31 Jul 18₹13,714
31 Jul 19₹14,963

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 ₹206,148.
Net Profit of ₹26,148
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 23 Aug 19

DurationReturns
1 Month 0.9%
3 Month 3%
6 Month 5.5%
1 Year 9.4%
3 Year 7.4%
5 Year 8.5%
10 Year
15 Year
Since launch 8.1%
Historical performance (Yearly) on absolute basis
YearReturns
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%
2009 5.8%
Fund Manager information for ICICI Prudential Short Term Fund
NameSinceTenure
Manish Banthia19 Nov 099.53 Yr.

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

Asset Allocation
Asset ClassValue
Cash8.5%
Debt91.5%
Debt Sector Allocation
SectorValue
Corporate71.9%
Government15.92%
Cash Equivalent8.5%
Securitized3.68%
Credit Quality
RatingValue
AA19.56%
AAA80.44%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
LIC HOUSING FINANCE LIMITED
Debentures | -
5%₹427 Cr4,250
↑ 4,250
State Bank Of India
Debentures | -
3%₹306 Cr3,000
NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Debentures | -
3%₹258 Cr2,500
Net Current Assets
Net Current Assets | -
3%₹255 Cr
TATA MOTORS FINANCE LIMITED
Debentures | -
3%₹252 Cr2,500
PIPELINE INFRASTRUCTURE PRIVATE LIMITED
Debentures | -
3%₹242 Cr2,429
Reliance Utilities And Power Private Limited
Debentures | -
3%₹234 Cr2,250
Power Finance Corporation Ltd.
Debentures | -
2%₹207 Cr2,050
Reliance Ports And Terminals Limited
Debentures | -
2%₹199 Cr1,928
Axis Bank Limited
Debentures | -
2%₹180 Cr1,800

4. Reliance 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.

Reliance 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 2018 was 5.5% , 2017 was 5.7% and 2016 was 9.8% .

Below is the key information for Reliance Short Term Fund

Reliance Short Term Fund
Growth
Launch Date 18 Dec 02
NAV (23 Aug 19) ₹36.0981 ↑ 0.02   (0.05 %)
Net Assets (Cr) ₹6,650 on 31 Jul 19
Category Debt - Short term Bond
AMC Reliance Nippon Life Asset Management Ltd.
Rating
Risk Moderately Low
Expense Ratio 1.12
Sharpe Ratio 2.88
Information Ratio -1.29
Alpha Ratio -1.39
Min Investment 5,000
Min SIP Investment 100
Exit Load NIL
Yield to Maturity 8.04%
Effective Maturity 2 Years 3 Months 18 Days
Modified Duration 1 Year 11 Months 5 Days

Growth of 10,000 investment over the years.

DateValue
31 Jul 14₹10,000
31 Jul 15₹10,990
31 Jul 16₹12,002
31 Jul 17₹12,998
31 Jul 18₹13,491
31 Jul 19₹14,666

Reliance 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 ₹206,148.
Net Profit of ₹26,148
Invest Now

Returns for Reliance 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 23 Aug 19

DurationReturns
1 Month 1.1%
3 Month 3%
6 Month 5.4%
1 Year 9.2%
3 Year 7%
5 Year 8.1%
10 Year
15 Year
Since launch 8%
Historical performance (Yearly) on absolute basis
YearReturns
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%
2009 8.9%
Fund Manager information for Reliance Short Term Fund
NameSinceTenure
Prashant Pimple10 Jan 0613.07 Yr.
Kinjal Desai25 May 180.69 Yr.

Data below for Reliance Short Term Fund as on 31 Jul 19

Asset Allocation
Asset ClassValue
Cash15.55%
Debt84.44%
Other0%
Debt Sector Allocation
SectorValue
Corporate59.63%
Cash Equivalent15.55%
Government15.33%
Securitized9.48%
Credit Quality
RatingValue
AA10.45%
AAA89.55%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
EMBASSY OFFICE PARKS REIT
Debentures | -
6%₹394 Cr3,820
↑ 320
NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Debentures | -
6%₹372 Cr3,600
GOVT STOCK
Sovereign Bonds | -
5%₹322 Cr31,000,000
↑ 30,000,000
Muthoot Finance Limited
Debentures | -
5%₹310 Cr3,171,098
Reliance Industries Limited
Debentures | -
4%₹270 Cr2,650
↓ -250
INDIA GRID TRUST
Debentures | -
4%₹235 Cr2,350
Net Current Assets
Net Current Assets | -
4%₹235 Cr
INDUSIND BANK LIMITED
Debentures | -
3%₹228 Cr2,329
Housing Development Finance Corporation Limited
Debentures | -
3%₹226 Cr2,250
↑ 2,250
Reliance Utilities And Power Private Limited
Debentures | -
3%₹186 Cr1,840
↑ 450

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 6.2% since its launch.  Ranked 10 in Short term Bond category.  Return for 2018 was 6% , 2017 was 6.1% and 2016 was 10.1% .

Below is the key information for UTI Short Term Income Fund

UTI Short Term Income Fund
Growth
Launch Date 19 Sep 07
NAV (23 Aug 19) ₹20.6144 ↑ 0.01   (0.03 %)
Net Assets (Cr) ₹2,313 on 31 Jul 19
Category Debt - Short term Bond
AMC UTI Asset Management Company Ltd
Rating
Risk Moderate
Expense Ratio 0.98
Sharpe Ratio -0.6
Information Ratio -0.69
Alpha Ratio -23.74
Min Investment 10,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 7.61%
Effective Maturity 3 Years 6 Months 1 Day
Modified Duration 2 Years 10 Months 20 Days

Growth of 10,000 investment over the years.

DateValue
31 Jul 14₹10,000
31 Jul 15₹10,933
31 Jul 16₹11,964
31 Jul 17₹13,030
31 Jul 18₹13,632
31 Jul 19₹13,025

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 23 Aug 19

DurationReturns
1 Month 1%
3 Month -8.7%
6 Month -7.2%
1 Year -4.4%
3 Year 2.9%
5 Year 5.5%
10 Year
15 Year
Since launch 6.2%
Historical performance (Yearly) on absolute basis
YearReturns
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%
2009
Fund Manager information for UTI Short Term Income Fund
NameSinceTenure
Sudhir Agarwal25 Oct 126.43 Yr.

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

Asset Allocation
Asset ClassValue
Cash12.21%
Debt87.79%
Debt Sector Allocation
SectorValue
Corporate45.8%
Government41.99%
Cash Equivalent12.21%
Credit Quality
RatingValue
A10.26%
AA13.11%
AAA76.62%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
GOVT STOCK
Sovereign Bonds | -
19%₹431 Cr4,150,000,000
↑ 4,150,000,000
Punjab National Bank
Debentures | -
9%₹219 Cr2,250
7.26% Govt Stock 2029
Sovereign Bonds | -
7%₹161 Cr1,512,680,000
↑ 1,500,000,000
STATE BANK OF INDIA
Debentures | -
7%₹155 Cr1,500
Net Current Assets
Net Current Assets | -
6%₹143 Cr00
SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA
Debentures | -
6%₹136 Cr1,350
↓ -500
REC LIMITED
Debentures | -
6%₹134 Cr1,328
↓ -22
Bank Of Baroda
Debentures | -
5%₹125 Cr1,250
Larsen And Toubro Limited
Debentures | -
5%₹125 Cr1,228
↓ -22
BHARAT HEAVY ELECTRICALS LIMITED
Commercial Paper | -
4%₹99 Cr1,000,000,000

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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