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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.
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Best Short Duration Funds or Short Term Debt Funds FY 20 - 21
(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 Below is the key information for HDFC Short Term Debt Fund Returns up to 1 year are on To generate stable returns with a low risk strategy while maintaining liquidity through a portfolio comprising of debt and money market instruments. However, there can be no assurance that the investment objective of the scheme will be achieved. Axis Short Term Fund is a Debt - Short term Bond fund was launched on 22 Jan 10. It is a fund with Moderately Low risk and has given a Below is the key information for Axis Short Term Fund Returns up to 1 year are on (Erstwhile IDFC Super Saver Income Fund - Short Term Plan) The primary investment objective of the scheme is to seek to generate stable returns with a low-risk strategy by creating a portfolio that is invested in good quality fixed income & Money Market securities. However, there can be no assurance that the investment objectives of the scheme will be realized. IDFC Bond Fund Short Term Plan is a Debt - Short term Bond fund was launched on 14 Dec 00. It is a fund with Moderately Low risk and has given a Below is the key information for IDFC Bond Fund Short Term Plan 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 The investment objective of the Scheme is to provide reasonable returns and high level of liquidity by investing in debt instruments such as bonds, debentures and Government securities; and money market Instrument such as treasury
bills,commercial papers, certificates of deposit, including repos in permitted
securities of different maturities, so as to spread the risk across different kinds of
issuers in the debt markets. The Scheme may invest in the call money/termmoney market in terms of RBI guidelines in this respect. To reduce the risk of the portfolio, the Scheme may also use various derivative
and hedging products from time to time, in the manner permitted by SEBI. Subject to the maximum amount permitted from time
to time, the Scheme may invest in offshoresecurities in the manner allowed by
SEBI/RBI, provided such investments are in conformity with the investment objective of the Scheme and the prevailing guidelines
and Regulations. Kotak Bond Short Term is a Debt - Short term Bond fund was launched on 2 May 02. It is a fund with Moderately Low risk and has given a Below is the key information for Kotak Bond Short Term 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 HDFC Short Term Debt Fund Growth ₹24.1809
↑ 0.02 ₹13,569 1.6 6.9 11.2 8.9 9.7 6.22% 2Y 9M 7D 3Y 8M 23D Axis Short Term Fund Growth ₹23.5404
↑ 0.01 ₹8,115 1.4 6.1 10.4 8.4 9.8 5.07% 2Y 1M 6D 2Y 6M IDFC Bond Fund Short Term Plan Growth ₹44.1346
↑ 0.02 ₹13,334 1.4 6 10.1 8.3 9.7 4.76% 1Y 8M 12D 1Y 11M 12D Aditya Birla Sun Life Short Term Opportunities Fund Growth ₹35.9731
↑ 0.02 ₹5,546 2.7 8.1 10.5 8.3 8.5 5.78% 2Y 6M 14D 3Y 2M 23D Kotak Bond Short Term Growth ₹40.3941
↑ 0.03 ₹14,379 1.3 6.1 10.1 8.2 9.6 5.44% 2Y 5M 16D 3Y 14D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 19 Oct 20 Assets >= 100 Crore & Sorted on 3 Year CAGR Return.
1. HDFC Short Term Debt Fund
CAGR/Annualized return of 8.9% since its launch. Ranked 30 in Short term Bond category. Return for 2019 was 9.7% , 2018 was 7% and 2017 was 6.5% . HDFC Short Term Debt Fund
Growth Launch Date 25 Jun 10 NAV (19 Oct 20) ₹24.1809 ↑ 0.02 (0.07 %) Net Assets (Cr) ₹13,569 on 30 Sep 20 Category Debt - Short term Bond AMC HDFC Asset Management Company Limited Rating ☆☆☆ Risk Moderately Low Expense Ratio 0.4 Sharpe Ratio 2.3 Information Ratio 0.61 Alpha Ratio -0.34 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 6.22% Effective Maturity 3 Years 8 Months 23 Days Modified Duration 2 Years 9 Months 7 Days Growth of 10,000 investment over the years.
Date Value 30 Sep 15 ₹10,000 30 Sep 16 ₹10,897 30 Sep 17 ₹11,729 30 Sep 18 ₹12,343 30 Sep 19 ₹13,577 30 Sep 20 ₹15,041 Returns for HDFC Short Term Debt Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 19 Oct 20 Duration Returns 1 Month 1.2% 3 Month 1.6% 6 Month 6.9% 1 Year 11.2% 3 Year 8.9% 5 Year 8.6% 10 Year 15 Year Since launch 8.9% Historical performance (Yearly) on absolute basis
Year Returns 2019 9.7% 2018 7% 2017 6.5% 2016 9.3% 2015 8.7% 2014 10.4% 2013 8.4% 2012 10.1% 2011 9.2% 2010 Fund Manager information for HDFC Short Term Debt Fund
Name Since Tenure Anil Bamboli 25 Jun 10 10.27 Yr. Chirag Dagli 31 Jul 19 1.17 Yr. Data below for HDFC Short Term Debt Fund as on 30 Sep 20
Asset Allocation
Asset Class Value Cash 6.06% Debt 93.94% Debt Sector Allocation
Sector Value Corporate 53.45% Government 38.18% Cash Equivalent 5.62% Securitized 2.75% Credit Quality
Rating Value A 0.75% AA 13.99% AAA 85.22% Below B 0.04% Top Securities Holdings / Portfolio
Name Holding Value Quantity 5.77% GOI 2030
Sovereign Bonds | -3% ₹398 Cr 40,500,000
↑ 2,500,000 Housing Development Finance Corporation Limited
Debentures | -3% ₹361 Cr 3,500 7.32% Govt Stock 2024
Sovereign Bonds | -3% ₹354 Cr 33,000,000 5.79% Govt Stock 2030
Sovereign Bonds | -3% ₹345 Cr 35,000,000 Housing Development Finance Corporation Limited
Debentures | -2% ₹314 Cr 3,000 State Bank of India
Debentures | -2% ₹295 Cr 2,750 Indinfravit Trust
Debentures | -2% ₹293 Cr 2,900 State Bank of India
Debentures | -2% ₹259 Cr 2,500 Rural Electrification Corporation Limited
Debentures | -2% ₹258 Cr 2,500 Motherson Sumi Systems Limited
Debentures | -2% ₹250 Cr 2,500
↑ 2,500 2. Axis Short Term Fund
CAGR/Annualized return of 8.3% since its launch. Ranked 26 in Short term Bond category. Return for 2019 was 9.8% , 2018 was 6.3% and 2017 was 5.9% . Axis Short Term Fund
Growth Launch Date 22 Jan 10 NAV (19 Oct 20) ₹23.5404 ↑ 0.01 (0.06 %) Net Assets (Cr) ₹8,115 on 30 Sep 20 Category Debt - Short term Bond AMC Axis Asset Management Company Limited Rating ☆☆☆ Risk Moderately Low Expense Ratio 0.92 Sharpe Ratio 2.51 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 5.07% Effective Maturity 2 Years 6 Months Modified Duration 2 Years 1 Month 6 Days Growth of 10,000 investment over the years.
Date Value 30 Sep 15 ₹10,000 30 Sep 16 ₹10,888 30 Sep 17 ₹11,702 30 Sep 18 ₹12,217 30 Sep 19 ₹13,457 30 Sep 20 ₹14,828 Returns for Axis Short Term Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 19 Oct 20 Duration Returns 1 Month 1% 3 Month 1.4% 6 Month 6.1% 1 Year 10.4% 3 Year 8.4% 5 Year 8.3% 10 Year 15 Year Since launch 8.3% Historical performance (Yearly) on absolute basis
Year Returns 2019 9.8% 2018 6.3% 2017 5.9% 2016 9.6% 2015 8.1% 2014 10% 2013 7.3% 2012 10.1% 2011 9.2% 2010 Fund Manager information for Axis Short Term Fund
Name Since Tenure Devang Shah 5 Nov 12 7.91 Yr. Data below for Axis Short Term Fund as on 30 Sep 20
Asset Allocation
Asset Class Value Cash 6.59% Debt 93.41% Debt Sector Allocation
Sector Value Corporate 52.01% Government 39.76% Cash Equivalent 5.91% Securitized 2.33% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Food Corporation of India
Debentures | -7% ₹596 Cr 5,550 7.42% MH SDL 2022
Sovereign Bonds | -6% ₹452 Cr 43,247,500
↓ -5,000,000 Reliance Industries Limited
Debentures | -5% ₹384 Cr 3,650
↑ 400 Housing Development Finance Corporation Limited
Debentures | -3% ₹214 Cr 2,080 Mahindra & Mahindra Financial Services Limited
Debentures | -2% ₹188 Cr 1,850 Tata Capital Financial Services Limited
Debentures | -2% ₹187 Cr 1,500 5.77% GOI 2030
Sovereign Bonds | -2% ₹182 Cr 18,500,000
↓ -18,000,000 8.83% Govt Stock 2023
Sovereign Bonds | -2% ₹173 Cr 15,525,000 India Grid Trust
Debentures | -2% ₹167 Cr 1,640
↓ -100 7.27% Govt Stock 2026
Sovereign Bonds | -2% ₹166 Cr 15,500,000
↑ 15,000,000 3. IDFC Bond Fund Short Term Plan
CAGR/Annualized return of 7.8% since its launch. Ranked 47 in Short term Bond category. Return for 2019 was 9.7% , 2018 was 6.5% and 2017 was 5.9% . IDFC Bond Fund Short Term Plan
Growth Launch Date 14 Dec 00 NAV (19 Oct 20) ₹44.1346 ↑ 0.02 (0.04 %) Net Assets (Cr) ₹13,334 on 30 Sep 20 Category Debt - Short term Bond AMC IDFC Asset Management Company Limited Rating ☆☆ Risk Moderately Low Expense Ratio 0.79 Sharpe Ratio 2.29 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 4.76% Effective Maturity 1 Year 11 Months 12 Days Modified Duration 1 Year 8 Months 12 Days Growth of 10,000 investment over the years.
Date Value 30 Sep 15 ₹10,000 30 Sep 16 ₹10,863 30 Sep 17 ₹11,637 30 Sep 18 ₹12,124 30 Sep 19 ₹13,405 30 Sep 20 ₹14,735 Returns for IDFC Bond Fund Short Term Plan
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 19 Oct 20 Duration Returns 1 Month 1.1% 3 Month 1.4% 6 Month 6% 1 Year 10.1% 3 Year 8.3% 5 Year 8.1% 10 Year 15 Year Since launch 7.8% Historical performance (Yearly) on absolute basis
Year Returns 2019 9.7% 2018 6.5% 2017 5.9% 2016 8.8% 2015 8.1% 2014 10.1% 2013 7.6% 2012 9.3% 2011 9.2% 2010 3.7% Fund Manager information for IDFC Bond Fund Short Term Plan
Name Since Tenure Suyash Choudhary 11 Mar 11 9.56 Yr. Data below for IDFC Bond Fund Short Term Plan as on 30 Sep 20
Asset Allocation
Asset Class Value Cash 13.81% Debt 86.19% Debt Sector Allocation
Sector Value Corporate 47.32% Government 38.83% Cash Equivalent 13.26% Securitized 0.6% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Reliance Industries Limited
Debentures | -7% ₹924 Cr 88,900,000
↑ 2,400,000 Indian Railway Finance Corporation Limited
Debentures | -4% ₹492 Cr 45,000,000 Indian Railway Finance Corporation Limited
Debentures | -3% ₹453 Cr 44,000,000 Housing Development Finance Corporation Limited
Debentures | -3% ₹440 Cr 42,000,000
↑ 2,500,000 Reliance Industries Limited
Debentures | -3% ₹431 Cr 41,000,000 National Bank For Agriculture and Rural Development
Debentures | -3% ₹423 Cr 39,400,000 Power Finance Corporation Limited
Debentures | -3% ₹390 Cr 37,500,000 NTPC Limited
Debentures | -3% ₹390 Cr 37,000,000 LIC Housing Finance Limited
Debentures | -3% ₹348 Cr 34,000,000 Small Industries Development Bank of India
Debentures | -2% ₹311 Cr 29,450,000 4. Aditya Birla Sun Life Short Term Opportunities Fund
CAGR/Annualized return of 7.6% 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 (19 Oct 20) ₹35.9731 ↑ 0.02 (0.06 %) Net Assets (Cr) ₹5,546 on 30 Sep 20 Category Debt - Short term Bond AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆☆ Risk Moderate Expense Ratio 1.16 Sharpe Ratio 1.6 Information Ratio -0.18 Alpha Ratio -1.09 Min Investment 1,000 Min SIP Investment 1,000 Exit Load 0-90 Days (0.5%),90 Days and above(NIL) Yield to Maturity 5.78% Effective Maturity 3 Years 2 Months 23 Days Modified Duration 2 Years 6 Months 14 Days Growth of 10,000 investment over the years.
Date Value 30 Sep 15 ₹10,000 30 Sep 16 ₹11,074 30 Sep 17 ₹11,861 30 Sep 18 ₹12,389 30 Sep 19 ₹13,586 30 Sep 20 ₹14,944 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 19 Oct 20 Duration Returns 1 Month 1.2% 3 Month 2.7% 6 Month 8.1% 1 Year 10.5% 3 Year 8.3% 5 Year 8.5% 10 Year 15 Year Since launch 7.6% 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 Kaustubh Gupta 11 Sep 14 6.06 Yr. Mohit Sharma 6 Aug 20 0.15 Yr. Data below for Aditya Birla Sun Life Short Term Opportunities Fund as on 30 Sep 20
Asset Allocation
Asset Class Value Cash 10.35% Debt 89.65% Debt Sector Allocation
Sector Value Corporate 54.91% Government 36.06% Cash Equivalent 9.03% Credit Quality
Rating Value A 1.66% AA 8.45% AAA 89.66% Below B 0.23% Top Securities Holdings / Portfolio
Name Holding Value Quantity Reliance Industries Limited
Debentures | -3% ₹166 Cr 1,600
↑ 700 6.79% Govt Stock 2027
Sovereign Bonds | -3% ₹146 Cr 14,000,000
↑ 4,000,000 Rural Electrification Corporation Limited
Debentures | -3% ₹143 Cr 1,400 8.15% Govt Stock 2026
Sovereign Bonds | -3% ₹139 Cr 12,500,000
↑ 12,500,000 7.32% Govt Stock 2024
Sovereign Bonds | -2% ₹134 Cr 12,500,000 5.77% GOI 2030
Sovereign Bonds | -2% ₹133 Cr 13,500,000
↓ -500,000 7.27% Govt Stock 2026
Sovereign Bonds | -2% ₹107 Cr 10,000,000 6.45% Govt Stock 2029
Sovereign Bonds | -2% ₹107 Cr 10,500,000
↑ 1,500,000 HDB Financial Services Limited
Debentures | -2% ₹106 Cr 850 Power Finance Corporation Limited
Debentures | -2% ₹100 Cr 1,000 5. Kotak Bond Short Term
CAGR/Annualized return of 7.9% since its launch. Ranked 42 in Short term Bond category. Return for 2019 was 9.6% , 2018 was 6.3% and 2017 was 5.4% . Kotak Bond Short Term
Growth Launch Date 2 May 02 NAV (19 Oct 20) ₹40.3941 ↑ 0.03 (0.07 %) Net Assets (Cr) ₹14,379 on 30 Sep 20 Category Debt - Short term Bond AMC Kotak Mahindra Asset Management Co Ltd Rating ☆☆☆ Risk Moderately Low Expense Ratio 0.44 Sharpe Ratio 2.26 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 5.44% Effective Maturity 3 Years 14 Days Modified Duration 2 Years 5 Months 16 Days Growth of 10,000 investment over the years.
Date Value 30 Sep 15 ₹10,000 30 Sep 16 ₹10,910 30 Sep 17 ₹11,661 30 Sep 18 ₹12,130 30 Sep 19 ₹13,374 30 Sep 20 ₹14,670 Returns for Kotak Bond Short Term
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 19 Oct 20 Duration Returns 1 Month 1.2% 3 Month 1.3% 6 Month 6.1% 1 Year 10.1% 3 Year 8.2% 5 Year 8.1% 10 Year 15 Year Since launch 7.9% Historical performance (Yearly) on absolute basis
Year Returns 2019 9.6% 2018 6.3% 2017 5.4% 2016 9.7% 2015 8% 2014 10.2% 2013 7.3% 2012 9.7% 2011 8.2% 2010 4% Fund Manager information for Kotak Bond Short Term
Name Since Tenure Deepak Agrawal 14 Apr 08 12.47 Yr. Data below for Kotak Bond Short Term as on 30 Sep 20
Asset Allocation
Asset Class Value Cash 7.75% Debt 92.25% Debt Sector Allocation
Sector Value Government 46.07% Corporate 45.43% Cash Equivalent 7.08% Securitized 1.43% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.59% Govt Stock 2026
Sovereign Bonds | -5% ₹705 Cr 65,000,000 7.27% Govt Stock 2026
Sovereign Bonds | -4% ₹574 Cr 53,500,000
↑ 13,000,000 6.79% Govt Stock 2027
Sovereign Bonds | -4% ₹533 Cr 51,000,000
↑ 28,000,000 LIC Housing Finance Limited
Debentures | -4% ₹507 Cr 4,850 State Bank of India
Debentures | -3% ₹476 Cr 4,350
↓ -500 Housing Development Finance Corporation Limited
Debentures | -3% ₹384 Cr 3,650
↓ -250 Bajaj Finance Limited
Debentures | -3% ₹361 Cr 2,850
↑ 500 Housing Development Finance Corporation Limited
Debentures | -2% ₹347 Cr 3,400 7.68% Govt Stock 2023
Sovereign Bonds | -2% ₹319 Cr 29,500,000 7.32% Govt Stock 2024
Sovereign Bonds | -2% ₹300 Cr 28,000,000
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?
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.
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