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5 Best Short Duration (Short Term) Debt Funds To Invest In 2019
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
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 Below is the key information for DHFL Pramerica Short Maturity 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 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. 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 Below is the key information for Reliance Short Term 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 (%) 2018 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity DHFL Pramerica Short Maturity Fund Growth ₹33.5368
↑ 0.01 ₹392 1.3 3.5 5.1 7 5.5 11.87% 9M 18D 11M 8D Aditya Birla Sun Life Short Term Opportunities Fund Growth ₹30.9175
↑ 0.00 ₹3,557 1.7 4.4 6.9 7.4 6.5 9.45% 1Y 5M 8D 1Y 9M 22D ICICI Prudential Short Term Fund Growth ₹38.6626
↑ 0.01 ₹7,326 2.2 4.7 6.6 7.4 5.8 8.64% 1Y 5M 1D 1Y 9M 29D Reliance Short Term Fund Growth ₹34.7843
↓ 0.00 ₹6,687 2.2 4.9 6.3 6.9 5.5 8.82% 1Y 6M 29D 2Y 18D UTI Short Term Income Fund Growth ₹22.519
↓ 0.00 ₹5,546 1.8 4 6.3 7.2 6 8.73% 1Y 4M 6D 1Y 7M 1D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 16 Apr 19 1. DHFL Pramerica Short Maturity Fund
CAGR/Annualized return of 7.7% since its launch. Ranked 5 in Short term Bond category. Return for 2018 was 5.5% , 2017 was 6.8% and 2016 was 10% . DHFL Pramerica Short Maturity Fund
Growth Launch Date 21 Jan 03 NAV (16 Apr 19) ₹33.5368 ↑ 0.01 (0.02 %) Net Assets (Cr) ₹392 on 28 Feb 19 Category Debt - Short term Bond AMC DHFL Pramerica Asset Managers Private Limited Rating ☆☆☆☆☆ Risk Moderate Expense Ratio 1.45 Sharpe Ratio 1.74 Information Ratio -0.26 Alpha Ratio -0.98 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-6 Months (0.5%),6 Months and above(NIL) Yield to Maturity 11.87% Effective Maturity 11 Months 8 Days Modified Duration 9 Months 18 Days Growth of 10,000 investment over the years.
Date Value 31 Mar 14 ₹10,000 31 Mar 15 ₹11,103 31 Mar 16 ₹11,995 31 Mar 17 ₹13,139 31 Mar 18 ₹14,024 31 Mar 19 ₹14,779 Returns for DHFL Pramerica Short Maturity Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 16 Apr 19 Duration Returns 1 Month 0.2% 3 Month 1.3% 6 Month 3.5% 1 Year 5.1% 3 Year 7% 5 Year 8.1% 10 Year 15 Year Since launch 7.7% Historical performance (Yearly) on absolute basis
Year Returns 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
Name Since Tenure Kumaresh Ramakrishnan 13 Dec 17 1.3 Yr. Puneet Pal 13 Dec 17 1.3 Yr. Data below for DHFL Pramerica Short Maturity Fund as on 28 Feb 19
Asset Allocation
Asset Class Value Cash 16.75% Debt 83.25% Debt Sector Allocation
Sector Value Corporate 83.25% Cash Equivalent 16.75% Credit Quality
Rating Value A 51.21% AA 36.5% AAA 12.29% Top Securities Holdings / Portfolio
Name Holding Value Quantity Business Broadcast News Holdings Limited
Debentures | -23% ₹83 Cr 8,500,000 Dewan Housing Finance Corporation Limited
Debentures | -21% ₹74 Cr 7,500,000 Reliance Mediaworks Limited
Debentures | -14% ₹49 Cr 5,000,000 Reliance Big Entertainment Private Limited
Debentures | -12% ₹42 Cr 4,250,000 Indiabulls Housing Finance Limited
Debentures | -12% ₹42 Cr 4,185,000
↓ -815,000 Yes Bank Limited
Debentures | -8% ₹27 Cr 2,830,000 Dewan Housing Finance Corporation Limited
Debentures | -5% ₹18 Cr 2,000,000 Net Receivables / (Payables)
Net Current Assets | -5% ₹17 Cr Hansdeep Industries & Trading Company Limited
Debentures | -1% ₹5 Cr 590,000
↓ -1,910,000 Clearing Corporation Of India Ltd.
CBLO | -0% ₹0 Cr 2. 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 2018 was 6.5% , 2017 was 5.6% and 2016 was 11.3% . Aditya Birla Sun Life Short Term Opportunities Fund
Growth Launch Date 9 May 03 NAV (16 Apr 19) ₹30.9175 ↑ 0.00 (0.01 %) Net Assets (Cr) ₹3,557 on 28 Feb 19 Category Debt - Short term Bond AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆☆ Risk Moderate Expense Ratio 1.38 Sharpe Ratio 2.45 Information Ratio 0.16 Alpha Ratio 0.31 Min Investment 1,000 Min SIP Investment 1,000 Exit Load 0-90 Days (0.5%),90 Days and above(NIL) Yield to Maturity 9.45% Effective Maturity 1 Year 9 Months 22 Days Modified Duration 1 Year 5 Months 8 Days Growth of 10,000 investment over the years.
Date Value 31 Mar 14 ₹10,000 31 Mar 15 ₹11,130 31 Mar 16 ₹12,065 31 Mar 17 ₹13,202 31 Mar 18 ₹14,036 31 Mar 19 ₹15,035 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 16 Apr 19 Duration Returns 1 Month 0.6% 3 Month 1.7% 6 Month 4.4% 1 Year 6.9% 3 Year 7.4% 5 Year 8.5% 10 Year 15 Year Since launch 7.3% Historical performance (Yearly) on absolute basis
Year Returns 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
Name Since Tenure Maneesh Dangi 1 Apr 17 2 Yr. Kaustubh Gupta 11 Sep 14 4.55 Yr. Data below for Aditya Birla Sun Life Short Term Opportunities Fund as on 28 Feb 19
Asset Allocation
Asset Class Value Cash 4.12% Debt 95.88% Debt Sector Allocation
Sector Value Corporate 78.62% Government 13.66% Cash Equivalent 4.12% Securitized 3.6% Credit Quality
Rating Value A 7.33% AA 27.74% AAA 63.92% Below B 1.01% Top Securities Holdings / Portfolio
Name Holding Value Quantity ONGC Petro Additions Limited
Debentures | -7% ₹248 Cr 250 ADANI PROPERTIES PRIVATE LIMITED
Debentures | -6% ₹211 Cr 200 Indiabulls Housing Finance Limited
Debentures | -4% ₹131 Cr 1,000 Tata Motors Limited
Debentures | -3% ₹124 Cr 1,284 Power Finance Corporation Ltd.
Debentures | -3% ₹124 Cr 1,250 REC LIMITED
Debentures | -3% ₹121 Cr 1,200
↑ 1,200 NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Debentures | -3% ₹121 Cr 1,200 Housing Development Finance Corporation Limited
Debentures | -3% ₹101 Cr 1,000
↑ 1,000 Punjab National Bank
Debentures | -3% ₹96 Cr 1,000 NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Debentures | -3% ₹92 Cr 900
↑ 800 3. ICICI Prudential Short Term Fund
CAGR/Annualized return of 8% 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% . ICICI Prudential Short Term Fund
Growth Launch Date 25 Oct 01 NAV (16 Apr 19) ₹38.6626 ↑ 0.01 (0.02 %) Net Assets (Cr) ₹7,326 on 28 Feb 19 Category Debt - Short term Bond AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆ Risk Moderate Expense Ratio 1.27 Sharpe Ratio 2.04 Information Ratio 0.26 Alpha Ratio -0.6 Min Investment 5,000 Min SIP Investment 1,000 Exit Load 0-7 Days (0.25%),7 Days and above(NIL) Yield to Maturity 8.64% Effective Maturity 1 Year 9 Months 29 Days Modified Duration 1 Year 5 Months 1 Day Growth of 10,000 investment over the years.
Date Value 31 Mar 14 ₹10,000 31 Mar 15 ₹11,150 31 Mar 16 ₹12,055 31 Mar 17 ₹13,289 31 Mar 18 ₹14,096 31 Mar 19 ₹15,041 Returns for ICICI Prudential Short Term Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 16 Apr 19 Duration Returns 1 Month 0.7% 3 Month 2.2% 6 Month 4.7% 1 Year 6.6% 3 Year 7.4% 5 Year 8.5% 10 Year 15 Year Since launch 8% Historical performance (Yearly) on absolute basis
Year Returns 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
Name Since Tenure Manish Banthia 19 Nov 09 9.37 Yr. Data below for ICICI Prudential Short Term Fund as on 28 Feb 19
Asset Allocation
Asset Class Value Cash 9.38% Debt 90.62% Debt Sector Allocation
Sector Value Corporate 71.08% Government 14.31% Cash Equivalent 9.38% Securitized 5.23% Credit Quality
Rating Value AA 17.64% AAA 82.36% Top Securities Holdings / Portfolio
Name Holding Value Quantity TATA MOTORS FINANCE LIMITED
Debentures | -3% ₹251 Cr 2,500 SANSAR TRUST NOV 2018
Unlisted bonds | -3% ₹228 Cr 1,883 Axis Bank Limited
Debentures | -3% ₹212 Cr 2,150
↓ -650 Power Finance Corporation Ltd.
Debentures | -3% ₹206 Cr 2,050 NRSS XXIX TRANSMISSION LIMITED
Debentures | -3% ₹201 Cr 2,000 Reliance Ports And Terminals Limited
Debentures | -3% ₹199 Cr 1,928 Reliance Utilities And Power Private Limited
Debentures | -2% ₹175 Cr 1,750 Power Finance Corporation Ltd.
Debentures | -2% ₹171 Cr 1,700 Net Current Assets
Net Current Assets | -2% ₹156 Cr Housing And Urban Development Corporation Ltd.
Debentures | -2% ₹153 Cr 1,500
↑ 1,500 4. Reliance Short Term Fund
CAGR/Annualized return of 7.9% 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% . Reliance Short Term Fund
Growth Launch Date 18 Dec 02 NAV (16 Apr 19) ₹34.7843 ↓ 0.00 (-0.01 %) Net Assets (Cr) ₹6,687 on 28 Feb 19 Category Debt - Short term Bond AMC Reliance Nippon Life Asset Management Ltd. Rating ☆☆☆☆ Risk Moderately Low Expense Ratio 1.12 Sharpe Ratio 1.64 Information Ratio -1.01 Alpha Ratio -1.46 Min Investment 5,000 Min SIP Investment 100 Exit Load NIL Yield to Maturity 8.82% Effective Maturity 2 Years 18 Days Modified Duration 1 Year 6 Months 29 Days Growth of 10,000 investment over the years.
Date Value 31 Mar 14 ₹10,000 31 Mar 15 ₹11,104 31 Mar 16 ₹11,982 31 Mar 17 ₹13,058 31 Mar 18 ₹13,828 31 Mar 19 ₹14,712 Returns for Reliance Short Term Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 16 Apr 19 Duration Returns 1 Month 0.7% 3 Month 2.2% 6 Month 4.9% 1 Year 6.3% 3 Year 6.9% 5 Year 8% 10 Year 15 Year Since launch 7.9% Historical performance (Yearly) on absolute basis
Year Returns 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
Name Since Tenure Prashant Pimple 10 Jan 06 13.07 Yr. Kinjal Desai 25 May 18 0.69 Yr. Data below for Reliance Short Term Fund as on 28 Feb 19
Asset Allocation
Asset Class Value Cash 11.25% Debt 88.75% Other 0.01% Debt Sector Allocation
Sector Value Corporate 67.01% Government 13.67% Cash Equivalent 11.23% Securitized 8.07% Credit Quality
Rating Value AA 15.05% AAA 84.95% Top Securities Holdings / Portfolio
Name Holding Value Quantity Housing Development Finance Corporation Limited
Debentures | -5% ₹333 Cr 3,300 Muthoot Finance Limited
Debentures | -5% ₹309 Cr 3,171,098 HDB Financial Services Limited
Debentures | -4% ₹247 Cr 2,500 INDIA GRID TRUST
Debentures | -4% ₹236 Cr 2,350 Net Current Assets
Net Current Assets | -3% ₹215 Cr Reliance Industries Limited
Debentures | -3% ₹213 Cr 2,150
↓ -2,000 Reliance Utilities And Power Private Limited
Debentures | -3% ₹189 Cr 1,890
↑ 250 Bharti Telecom Limited
Debentures | -3% ₹187 Cr 1,750 POWER FINANCE CORPORATION LIMITED
Debentures | -3% ₹176 Cr 1,750
↑ 1,750 Aditya Birla Finance Limited
Debentures | -2% ₹159 Cr 1,600 5. UTI Short Term Income Fund
CAGR/Annualized return of 7.3% since its launch. Ranked 10 in Short term Bond category. Return for 2018 was 6% , 2017 was 6.1% and 2016 was 10.1% . UTI Short Term Income Fund
Growth Launch Date 19 Sep 07 NAV (16 Apr 19) ₹22.519 ↓ 0.00 (-0.01 %) Net Assets (Cr) ₹5,546 on 28 Feb 19 Category Debt - Short term Bond AMC UTI Asset Management Company Ltd Rating ☆☆☆☆ Risk Moderate Expense Ratio 0.98 Sharpe Ratio 2.44 Information Ratio -0.36 Alpha Ratio 0.02 Min Investment 10,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 8.73% Effective Maturity 1 Year 7 Months 1 Day Modified Duration 1 Year 4 Months 6 Days Growth of 10,000 investment over the years.
Date Value 31 Mar 14 ₹10,000 31 Mar 15 ₹11,091 31 Mar 16 ₹11,976 31 Mar 17 ₹13,144 31 Mar 18 ₹13,924 31 Mar 19 ₹14,839 Returns for UTI Short Term Income Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 16 Apr 19 Duration Returns 1 Month 0.7% 3 Month 1.8% 6 Month 4% 1 Year 6.3% 3 Year 7.2% 5 Year 8.1% 10 Year 15 Year Since launch 7.3% Historical performance (Yearly) on absolute basis
Year Returns 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
Name Since Tenure Sudhir Agarwal 25 Oct 12 6.43 Yr. Data below for UTI Short Term Income Fund as on 28 Feb 19
Asset Allocation
Asset Class Value Cash 16.62% Debt 83.38% Debt Sector Allocation
Sector Value Corporate 50.45% Government 24.84% Cash Equivalent 16.62% Securitized 8.09% Credit Quality
Rating Value A 5.49% AA 29.81% AAA 64.7% Top Securities Holdings / Portfolio
Name Holding Value Quantity Net Current Assets
Net Current Assets | -16% -₹693 Cr 00 Dewan Housing Finance Corporation Limited
Debentures | -8% ₹361 Cr 4,000,000 STATE BANK OF INDIA
Debentures | -8% ₹328 Cr 3,250 Oriental Bank Of Commerce
Certificate of Deposit | -6% ₹281 Cr 3,000,000,000
↑ 3,000,000,000 Axis Bank Limited
Certificate of Deposit | -6% ₹262 Cr 2,800,000,000
↑ 2,800,000,000 Punjab National Bank
Debentures | -6% ₹245 Cr 2,550 Indiabulls Housing Finance Limited
Debentures | -6% ₹245 Cr 2,450
↓ -2,600 National Bank For Agriculture And Rural Development
Certificate of Deposit | -5% ₹210 Cr 2,250,000,000
↑ 2,250,000,000 INDIAN RAILWAY FINANCE CORPORATION LIMITED
Debentures | -5% ₹200 Cr 2,000
↑ 2,000 REC LIMITED
Debentures | -4% ₹187 Cr 1,850
↑ 1,850
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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