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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
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 ₹32.7659
↑ 0.03 ₹46 0.2 7.4 -1.2 3.6 -0.5 7.98% 2Y 29D 2Y 6M 14D ICICI Prudential Short Term Fund Growth ₹41.5276
↑ 0.03 ₹12,354 2.1 4.3 9.7 7 9.7 7.4% 2Y 2M 12D 2Y 11M 8D Nippon India Short Term Fund Growth ₹37.2486
↑ 0.02 ₹7,027 1.8 4.3 9.3 6.7 9.4 7.25% 1Y 11M 8D 2Y 3M 18D Aditya Birla Sun Life Short Term Opportunities Fund Growth ₹32.8825
↑ 0.02 ₹3,141 0.9 3 8.3 6.6 8.5 8.57% 1Y 11M 12D 2Y 5M 26D UTI Short Term Income Fund Growth ₹21.3189
↑ 0.02 ₹2,049 1.9 4.4 -3.7 2.6 -3.9 7.3% 2Y 2Y 3M 24D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 22 Jan 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 (22 Jan 20) ₹32.7659 ↑ 0.03 (0.09 %) Net Assets (Cr) ₹46 on 31 Dec 19 Category Debt - Short term Bond AMC Pramerica Asset Managers Private Limited Rating ☆☆☆☆☆ Risk Moderate Expense Ratio 1.02 Sharpe Ratio -0.26 Information Ratio -0.53 Alpha Ratio -25.49 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-6 Months (0.5%),6 Months and above(NIL) Yield to Maturity 7.98% Effective Maturity 2 Years 6 Months 14 Days Modified Duration 2 Years 29 Days Growth of 10,000 investment over the years.
Date Value 31 Dec 14 ₹10,000 31 Dec 15 ₹10,834 31 Dec 16 ₹11,914 31 Dec 17 ₹12,729 31 Dec 18 ₹13,423 31 Dec 19 ₹13,351 Returns for PGIM India Short Maturity Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Jan 20 Duration Returns 1 Month 0.1% 3 Month 0.2% 6 Month 7.4% 1 Year -1.2% 3 Year 3.6% 5 Year 5.7% 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 1.97 Yr. Puneet Pal 13 Dec 17 1.97 Yr. Data below for PGIM India Short Maturity Fund as on 31 Dec 19
Asset Allocation
Asset Class Value Cash 11.6% Debt 88.4% Debt Sector Allocation
Sector Value Corporate 47.21% Government 41.19% Cash Equivalent 11.6% Credit Quality
Rating Value AA 5.81% AAA 84.61% BBB 9.58% Top Securities Holdings / Portfolio
Name Holding Value Quantity REC LIMITED
Debentures | -10% ₹8 Cr 800,000 HINDUSTAN PETROLEUM CORPORATION LIMITED
Debentures | -10% ₹8 Cr 800,000
↓ -50,000 SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA
Debentures | -9% ₹7 Cr 700,000 Yes Bank Limited
Debentures | -8% ₹7 Cr 830,000 Reliance Jio Infocomm Limited
Debentures | -8% ₹6 Cr 610,000 GOVT STOCK
Sovereign Bonds | -8% ₹6 Cr 600,000
↑ 100,000 NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Debentures | -8% ₹6 Cr 600,000 Treps / Reverse Repo
CBLO/Reverse Repo | -7% ₹6 Cr Power Finance Corporation Ltd.
Debentures | -6% ₹5 Cr 500,000 Reliance Industries Limited
Debentures | -6% ₹5 Cr 500,000 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 (22 Jan 20) ₹41.5276 ↑ 0.03 (0.07 %) Net Assets (Cr) ₹12,354 on 31 Dec 19 Category Debt - Short term Bond AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆ Risk Moderate Expense Ratio 1.24 Sharpe Ratio 3.87 Information Ratio -0.58 Alpha Ratio -0.17 Min Investment 5,000 Min SIP Investment 1,000 Exit Load 0-7 Days (0.25%),7 Days and above(NIL) Yield to Maturity 7.4% Effective Maturity 2 Years 11 Months 8 Days Modified Duration 2 Years 2 Months 12 Days Growth of 10,000 investment over the years.
Date Value 31 Dec 14 ₹10,000 31 Dec 15 ₹10,799 31 Dec 16 ₹12,001 31 Dec 17 ₹12,710 31 Dec 18 ₹13,453 31 Dec 19 ₹14,754 Returns for ICICI Prudential Short Term Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Jan 20 Duration Returns 1 Month 0.7% 3 Month 2.1% 6 Month 4.3% 1 Year 9.7% 3 Year 7% 5 Year 8% 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 31 Dec 19
Asset Allocation
Asset Class Value Cash 11.6% Debt 88.4% Debt Sector Allocation
Sector Value Corporate 64.92% Government 26.41% Cash Equivalent 8.66% Credit Quality
Rating Value AA 18.38% AAA 81.62% Top Securities Holdings / Portfolio
Name Holding Value Quantity GOVT STOCK
Sovereign Bonds | -6% ₹687 Cr 65,500,000
↑ 7,500,000 LIC HOUSING FINANCE LIMITED
Debentures | -4% ₹431 Cr 4,250 Net Current Assets
Net Current Assets | -3% ₹393 Cr PIPELINE INFRASTRUCTURE PRIVATE LIMITED
Debentures | -3% ₹357 Cr 3,529 State Bank Of India
Debentures | -3% ₹312 Cr 3,000 GOVT STOCK
Sovereign Bonds | -2% ₹271 Cr 26,000,000
↑ 6,500,000 NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Debentures | -2% ₹268 Cr 2,550 TATA MOTORS FINANCE LIMITED
Debentures | -2% ₹251 Cr 2,500 Reliance Utilities And Power Private Limited
Debentures | -2% ₹239 Cr 2,250 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 (22 Jan 20) ₹37.2486 ↑ 0.02 (0.05 %) Net Assets (Cr) ₹7,027 on 31 Dec 19 Category Debt - Short term Bond AMC Nippon Life Asset Management Ltd. Rating ☆☆☆☆ Risk Moderately Low Expense Ratio 1.1 Sharpe Ratio 3.47 Information Ratio -1.35 Alpha Ratio -0.96 Min Investment 5,000 Min SIP Investment 100 Exit Load NIL Yield to Maturity 7.25% Effective Maturity 2 Years 3 Months 18 Days Modified Duration 1 Year 11 Months 8 Days Growth of 10,000 investment over the years.
Date Value 31 Dec 14 ₹10,000 31 Dec 15 ₹10,812 31 Dec 16 ₹11,869 31 Dec 17 ₹12,545 31 Dec 18 ₹13,236 31 Dec 19 ₹14,474 Returns for Nippon India Short Term Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Jan 20 Duration Returns 1 Month 0.6% 3 Month 1.8% 6 Month 4.3% 1 Year 9.3% 3 Year 6.7% 5 Year 7.6% 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 31 Dec 19
Asset Allocation
Asset Class Value Cash 19.72% Debt 80.27% Other 0% Debt Sector Allocation
Sector Value Corporate 67.4% Government 22.42% Cash Equivalent 10.17% Credit Quality
Rating Value AA 12.28% AAA 87.72% Top Securities Holdings / Portfolio
Name Holding Value Quantity GOVT STOCK
Sovereign Bonds | -11% ₹708 Cr 68,000,000
↑ 2,500,000 Muthoot Finance Limited
Debentures | -5% ₹313 Cr 3,171,098 NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Debentures | -5% ₹300 Cr 2,850 Reliance Jio Infocomm Limited
Debentures | -5% ₹289 Cr 2,800
↑ 2,800 State Bank Of India
Debentures | -4% ₹252 Cr 2,500
↑ 2,500 INDIA GRID TRUST
Debentures | -3% ₹213 Cr 2,100 Housing Development Finance Corporation Limited
Debentures | -3% ₹205 Cr 2,000 Reliance Utilities And Power Private Limited
Debentures | -3% ₹192 Cr 1,865 State Bank Of India
Debentures | -3% ₹173 Cr 1,700
↓ -1,300 Net Current Assets
Net Current Assets | -3% ₹168 Cr 4. Aditya Birla Sun Life Short Term Opportunities Fund
CAGR/Annualized return of 7.4% 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 (22 Jan 20) ₹32.8825 ↑ 0.02 (0.07 %) Net Assets (Cr) ₹3,141 on 31 Dec 19 Category Debt - Short term Bond AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆☆ Risk Moderate Expense Ratio 1.16 Sharpe Ratio 2.65 Information Ratio -0.64 Alpha Ratio -2.26 Min Investment 1,000 Min SIP Investment 1,000 Exit Load 0-90 Days (0.5%),90 Days and above(NIL) Yield to Maturity 8.57% Effective Maturity 2 Years 5 Months 26 Days Modified Duration 1 Year 11 Months 12 Days Growth of 10,000 investment over the years.
Date Value 31 Dec 14 ₹10,000 31 Dec 15 ₹10,842 31 Dec 16 ₹12,069 31 Dec 17 ₹12,745 31 Dec 18 ₹13,574 31 Dec 19 ₹14,728 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 22 Jan 20 Duration Returns 1 Month 0.2% 3 Month 0.9% 6 Month 3% 1 Year 8.3% 3 Year 6.6% 5 Year 7.8% 10 Year 15 Year Since launch 7.4% 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 2.58 Yr. Kaustubh Gupta 11 Sep 14 5.14 Yr. Data below for Aditya Birla Sun Life Short Term Opportunities Fund as on 31 Dec 19
Asset Allocation
Asset Class Value Cash 6.42% Debt 93.58% Debt Sector Allocation
Sector Value Corporate 53.77% Government 39.69% Cash Equivalent 6.42% Securitized 0.13% Credit Quality
Rating Value A 8.99% AA 18.03% AAA 71.83% Below B 1.15% Top Securities Holdings / Portfolio
Name Holding Value Quantity ADANI PROPERTIES PRIVATE LIMITED
Debentures | -5% ₹164 Cr 142
↓ -29 REC LIMITED
Debentures | -5% ₹149 Cr 1,450 7.72% GS 2025
Sovereign Bonds | -4% ₹127 Cr 12,000,000
↑ 2,500,000 GOVT STOCK
Sovereign Bonds | -3% ₹109 Cr 10,500,000
↑ 2,500,000 SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA
Debentures | -3% ₹102 Cr 1,000 Punjab National Bank
Debentures | -3% ₹99 Cr 1,000 State Bank Of India
Debentures | -3% ₹97 Cr 950 NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Debentures | -3% ₹95 Cr 900
↓ -150 State Bank Of India
Debentures | -3% ₹94 Cr 900 Net Receivables / (Payables)
Net Current Assets | -3% ₹91 Cr 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 (22 Jan 20) ₹21.3189 ↑ 0.02 (0.10 %) Net Assets (Cr) ₹2,049 on 31 Dec 19 Category Debt - Short term Bond AMC UTI Asset Management Company Ltd Rating ☆☆☆☆ Risk Moderate Expense Ratio 0.9 Sharpe Ratio -0.54 Information Ratio -0.71 Alpha Ratio -26.44 Min Investment 10,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 7.3% Effective Maturity 2 Years 3 Months 24 Days Modified Duration 2 Years Growth of 10,000 investment over the years.
Date Value 31 Dec 14 ₹10,000 31 Dec 15 ₹10,829 31 Dec 16 ₹11,921 31 Dec 17 ₹12,645 31 Dec 18 ₹13,404 31 Dec 19 ₹12,880 Returns for UTI Short Term Income Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Jan 20 Duration Returns 1 Month 0.7% 3 Month 1.9% 6 Month 4.4% 1 Year -3.7% 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 7.1 Yr. Data below for UTI Short Term Income Fund as on 31 Dec 19
Asset Allocation
Asset Class Value Cash 10.57% Debt 89.43% Debt Sector Allocation
Sector Value Corporate 46.45% Government 42.98% Cash Equivalent 10.57% Credit Quality
Rating Value A 7.16% AA 10.83% AAA 82.01% Top Securities Holdings / Portfolio
Name Holding Value Quantity Net Current Assets
Net Current Assets | -10% ₹217 Cr 00 REC LIMITED
Debentures | -6% ₹137 Cr 1,328 Punjab National Bank
Debentures | -6% ₹136 Cr 1,370
↓ -500 Larsen And Toubro Limited
Debentures | -6% ₹127 Cr 1,228 STATE BANK OF INDIA
Debentures | -5% ₹104 Cr 1,000
↓ -500 Housing Development Finance Corporation Limited
Debentures | -5% ₹102 Cr 1,000 Bank Of Baroda
Debentures | -5% ₹102 Cr 1,000
↓ -250 HOUSING AND URBAN DEVELOPMENT CORPORATION LIMITED (HUDCO)
Debentures | -5% ₹101 Cr 1,000 GOVT STOCK
Sovereign Bonds | -5% ₹100 Cr 1,000,000,000
↑ 1,000,000,000 Small Industries Development Bank Of India
Debentures | -4% ₹88 Cr 870
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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