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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 June 20, 2019 , 1539 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 ₹29.7067
↑ 0.04
₹300-11.4-9.7-6.82.35.514.66%8M 1D9M 25D
Aditya Birla Sun Life Short Term Opportunities Fund Growth ₹31.5217
↓ -0.03
₹3,5052.44.48.97.66.59.12%1Y 10M 28D2Y 6M 7D
ICICI Prudential Short Term Fund Growth ₹39.3912
↓ -0.02
₹7,9852.54.88.67.75.88.58%1Y 10M 24D2Y 6M 25D
Reliance Short Term Fund Growth ₹35.3628
↓ -0.01
₹6,5652.34.58.37.15.58.52%1Y 9M2Y 1M 6D
UTI Short Term Income Fund Growth ₹20.1816
↓ -0.02
₹4,220-9.9-8.4-5.1369.13%1Y 8M 5D1Y 11M 16D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 21 Jun 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 6.9% 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 (21 Jun 19) ₹29.7067 ↑ 0.04   (0.14 %)
Net Assets (Cr) ₹300 on 30 Apr 19
Category Debt - Short term Bond
AMC DHFL Pramerica Asset Managers Private Limited
Rating
Risk Moderate
Expense Ratio 1.45
Sharpe Ratio 0.76
Information Ratio -0.93
Alpha Ratio -2.67
Min Investment 5,000
Min SIP Investment 500
Exit Load 0-6 Months (0.5%),6 Months and above(NIL)
Yield to Maturity 14.66%
Effective Maturity 9 Months 25 Days
Modified Duration 8 Months 1 Day

Growth of 10,000 investment over the years.

DateValue
31 May 14₹10,000
31 May 15₹11,002
31 May 16₹11,913
31 May 17₹13,041
31 May 18₹13,715
31 May 19₹14,395

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 ₹194,235.
Net Profit of ₹14,235
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 21 Jun 19

DurationReturns
1 Month -10.9%
3 Month -11.4%
6 Month -9.7%
1 Year -6.8%
3 Year 2.3%
5 Year 5%
10 Year
15 Year
Since launch 6.9%
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 171.3 Yr.
Puneet Pal13 Dec 171.3 Yr.

Data below for DHFL Pramerica Short Maturity Fund as on 30 Apr 19

Asset Allocation
Asset ClassValue
Cash16.67%
Debt83.33%
Debt Sector Allocation
SectorValue
Corporate83.33%
Cash Equivalent16.67%
Credit Quality
RatingValue
A87.32%
AA12.68%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Business Broadcast News Holdings Limited
Debentures | -
27%₹80 Cr8,500,000
Dewan Housing Finance Corporation Limited
Debentures | -
24%₹74 Cr7,500,000
Net Receivables / (Payables)
Net Current Assets | -
17%₹50 Cr
Reliance Mediaworks Limited
Debentures | -
16%₹47 Cr5,000,000
Yes Bank Limited
Debentures | -
9%₹27 Cr2,830,000
Dewan Housing Finance Corporation Limited
Debentures | -
6%₹18 Cr2,000,000
Hansdeep Industries & Trading Company Limited
Debentures | -
2%₹5 Cr590,000
Clearing Corporation Of India Ltd.
CBLO | -
0%₹0 Cr

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 (21 Jun 19) ₹31.5217 ↓ -0.03   (-0.08 %)
Net Assets (Cr) ₹3,505 on 30 Apr 19
Category Debt - Short term Bond
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk Moderate
Expense Ratio 1.38
Sharpe Ratio 3.07
Information Ratio -0.09
Alpha Ratio 0.57
Min Investment 1,000
Min SIP Investment 1,000
Exit Load 0-90 Days (0.5%),90 Days and above(NIL)
Yield to Maturity 9.12%
Effective Maturity 2 Years 6 Months 7 Days
Modified Duration 1 Year 10 Months 28 Days

Growth of 10,000 investment over the years.

DateValue
31 May 14₹10,000
31 May 15₹11,032
31 May 16₹12,005
31 May 17₹13,101
31 May 18₹13,744
31 May 19₹14,975

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 21 Jun 19

DurationReturns
1 Month 1.2%
3 Month 2.4%
6 Month 4.4%
1 Year 8.9%
3 Year 7.6%
5 Year 8.4%
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 30 Apr 19

Asset Allocation
Asset ClassValue
Cash5.86%
Debt94.14%
Debt Sector Allocation
SectorValue
Corporate74.98%
Government15.53%
Cash Equivalent5.86%
Securitized3.64%
Credit Quality
RatingValue
A7.65%
AA27.52%
AAA63.77%
Below B1.06%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
ONGC Petro Additions Limited
Debentures | -
7%₹247 Cr250
ADANI PROPERTIES PRIVATE LIMITED
Debentures | -
6%₹213 Cr200
Indiabulls Housing Finance Limited
Debentures | -
4%₹125 Cr950
↓ -50
Power Finance Corporation Ltd.
Debentures | -
4%₹124 Cr1,250
Tata Motors Limited
Debentures | -
4%₹124 Cr1,284
NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Debentures | -
3%₹120 Cr1,200
REC LIMITED
Debentures | -
3%₹120 Cr1,200
Housing Development Finance Corporation Limited
Debentures | -
3%₹100 Cr1,000
Punjab National Bank
Debentures | -
3%₹96 Cr1,000
Net Receivables / (Payables)
Net Current Assets | -
3%₹96 Cr

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 (21 Jun 19) ₹39.3912 ↓ -0.02   (-0.06 %)
Net Assets (Cr) ₹7,985 on 30 Apr 19
Category Debt - Short term Bond
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 1.27
Sharpe Ratio 2.94
Information Ratio -0.04
Alpha Ratio -0.03
Min Investment 5,000
Min SIP Investment 1,000
Exit Load 0-7 Days (0.25%),7 Days and above(NIL)
Yield to Maturity 8.58%
Effective Maturity 2 Years 6 Months 25 Days
Modified Duration 1 Year 10 Months 24 Days

Growth of 10,000 investment over the years.

DateValue
31 May 14₹10,000
31 May 15₹11,008
31 May 16₹11,961
31 May 17₹13,135
31 May 18₹13,737
31 May 19₹14,928

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 21 Jun 19

DurationReturns
1 Month 1.2%
3 Month 2.5%
6 Month 4.8%
1 Year 8.6%
3 Year 7.7%
5 Year 8.3%
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 099.37 Yr.

Data below for ICICI Prudential Short Term Fund as on 30 Apr 19

Asset Allocation
Asset ClassValue
Cash8.49%
Debt91.51%
Debt Sector Allocation
SectorValue
Corporate70.79%
Government15.97%
Cash Equivalent8.49%
Securitized4.76%
Credit Quality
RatingValue
AA17.64%
AAA82.36%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
TATA MOTORS FINANCE LIMITED
Debentures | -
3%₹251 Cr2,500
Reliance Utilities And Power Private Limited
Debentures | -
3%₹228 Cr2,250
↑ 1,000
SANSAR TRUST NOV 2018
Unlisted bonds | -
3%₹211 Cr1,883
Axis Bank Limited
Debentures | -
3%₹210 Cr2,150
Power Finance Corporation Ltd.
Debentures | -
3%₹205 Cr2,050
NRSS XXIX TRANSMISSION LIMITED
Debentures | -
3%₹201 Cr2,000
Reliance Ports And Terminals Limited
Debentures | -
2%₹198 Cr1,928
Reliance Utilities And Power Private Limited
Debentures | -
2%₹173 Cr1,750
Power Finance Corporation Ltd.
Debentures | -
2%₹171 Cr1,700
PIPELINE INFRASTRUCTURE PRIVATE LIMITED
Debentures | -
2%₹151 Cr1,519
↑ 1,519

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 (21 Jun 19) ₹35.3628 ↓ -0.01   (-0.04 %)
Net Assets (Cr) ₹6,565 on 30 Apr 19
Category Debt - Short term Bond
AMC Reliance Nippon Life Asset Management Ltd.
Rating
Risk Moderately Low
Expense Ratio 1.12
Sharpe Ratio 2.21
Information Ratio -1.14
Alpha Ratio -1.27
Min Investment 5,000
Min SIP Investment 100
Exit Load NIL
Yield to Maturity 8.52%
Effective Maturity 2 Years 1 Month 6 Days
Modified Duration 1 Year 9 Months

Growth of 10,000 investment over the years.

DateValue
31 May 14₹10,000
31 May 15₹10,996
31 May 16₹11,910
31 May 17₹12,941
31 May 18₹13,501
31 May 19₹14,637

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 ₹203,125.
Net Profit of ₹23,125
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 21 Jun 19

DurationReturns
1 Month 1.1%
3 Month 2.3%
6 Month 4.5%
1 Year 8.3%
3 Year 7.1%
5 Year 7.9%
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 30 Apr 19

Asset Allocation
Asset ClassValue
Cash21.1%
Debt78.89%
Other0.01%
Debt Sector Allocation
SectorValue
Corporate59.47%
Cash Equivalent21.01%
Government11.29%
Securitized8.22%
Credit Quality
RatingValue
AA16.09%
AAA83.91%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Reliance Liquid Dir Gr
Investment Fund | -
13%₹845 Cr1,841,718
↑ 1,786,859
Muthoot Finance Limited
Debentures | -
5%₹309 Cr3,171,098
HDB Financial Services Limited
Debentures | -
4%₹247 Cr2,500
INDIA GRID TRUST
Debentures | -
4%₹235 Cr2,350
INDUSIND BANK LIMITED
Debentures | -
4%₹231 Cr2,329
↑ 1,079
Reliance Industries Limited
Debentures | -
3%₹212 Cr2,150
Reliance Utilities And Power Private Limited
Debentures | -
3%₹187 Cr1,890
Bharti Telecom Limited
Debentures | -
3%₹182 Cr1,695
↓ -55
REC LIMITED
Debentures | -
3%₹175 Cr1,750
↑ 1,000
Aditya Birla Finance Limited
Debentures | -
2%₹158 Cr1,600

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 (21 Jun 19) ₹20.1816 ↓ -0.02   (-0.12 %)
Net Assets (Cr) ₹4,220 on 30 Apr 19
Category Debt - Short term Bond
AMC UTI Asset Management Company Ltd
Rating
Risk Moderate
Expense Ratio 0.98
Sharpe Ratio 2.57
Information Ratio -0.32
Alpha Ratio -0.4
Min Investment 10,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 9.13%
Effective Maturity 1 Year 11 Months 16 Days
Modified Duration 1 Year 8 Months 5 Days

Growth of 10,000 investment over the years.

DateValue
31 May 14₹10,000
31 May 15₹10,960
31 May 16₹11,862
31 May 17₹13,002
31 May 18₹13,643
31 May 19₹14,644

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 21 Jun 19

DurationReturns
1 Month -10.5%
3 Month -9.9%
6 Month -8.4%
1 Year -5.1%
3 Year 3%
5 Year 5.3%
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 30 Apr 19

Asset Allocation
Asset ClassValue
Cash35.58%
Debt64.42%
Debt Sector Allocation
SectorValue
Corporate36.46%
Cash Equivalent35.58%
Government20.45%
Securitized7.51%
Credit Quality
RatingValue
A16.01%
AA20.09%
AAA63.9%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Net Current Assets
Net Current Assets | -
11%₹473 Cr00
Dewan Housing Finance Corporation Limited
Debentures | -
8%₹354 Cr4,000,000
Axis Bank Limited
Certificate of Deposit | -
7%₹282 Cr3,000,000,000
↑ 200,000,000
STATE BANK OF INDIA
Debentures | -
6%₹272 Cr2,700
↓ -550
NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Certificate of Deposit | -
6%₹259 Cr2,750,000,000
↑ 2,100,000,000
Indiabulls Housing Finance Limited
Debentures | -
6%₹245 Cr2,450
Punjab National Bank
Debentures | -
6%₹245 Cr2,550
Oriental Bank Of Commerce
Certificate of Deposit | -
6%₹235 Cr2,500,000,000
↓ -500,000,000
Power Finance Corporation Ltd.
Debentures | -
4%₹173 Cr1,750
↓ -100
REC LIMITED
Debentures | -
4%₹160 Cr1,600
↓ -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

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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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