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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 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 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 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 (%) 2018 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity DHFL Pramerica Short Maturity Fund Growth ₹32.8822
↑ 0.01 ₹99 4.4 -1.2 1 4.3 5.5 6.4% 1Y 3M 25D 1Y 8M 23D Reliance Short Term Fund Growth ₹36.8272
↑ 0.03 ₹5,797 2.3 5.7 10.4 6.9 5.5 7.98% 2Y 11D 2Y 5M 12D ICICI Prudential Short Term Fund Growth ₹40.9364
↑ 0.04 ₹10,198 2.2 5.6 10.2 7.2 5.8 7.7% 1Y 10M 2D 2Y 5M 26D Aditya Birla Sun Life Short Term Opportunities Fund Growth ₹32.7409
↑ 0.03 ₹3,096 2 5.6 9.9 7.1 6.5 8.34% 1Y 11M 12D 2Y 6M UTI Short Term Income Fund Growth ₹21.0455
↑ 0.02 ₹2,219 2.3 -6.5 -3.3 2.8 6 7.59% 2Y 1M 17D 2Y 5M 16D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 13 Nov 19 1. DHFL Pramerica Short Maturity Fund
CAGR/Annualized return of 7.3% 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 (13 Nov 19) ₹32.8822 ↑ 0.01 (0.04 %) Net Assets (Cr) ₹99 on 30 Sep 19 Category Debt - Short term Bond AMC DHFL Pramerica Asset Managers Private Limited Rating ☆☆☆☆☆ Risk Moderate Expense Ratio 1.45 Sharpe Ratio -0.17 Information Ratio -0.48 Alpha Ratio -32.13 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-6 Months (0.5%),6 Months and above(NIL) Yield to Maturity 6.4% Effective Maturity 1 Year 8 Months 23 Days Modified Duration 1 Year 3 Months 25 Days Growth of 10,000 investment over the years.
Date Value 31 Oct 14 ₹10,000 31 Oct 15 ₹10,907 31 Oct 16 ₹11,950 31 Oct 17 ₹12,923 31 Oct 18 ₹13,429 31 Oct 19 ₹13,610 Returns for DHFL Pramerica Short Maturity Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 13 Nov 19 Duration Returns 1 Month 0.9% 3 Month 4.4% 6 Month -1.2% 1 Year 1% 3 Year 4.3% 5 Year 6.3% 10 Year 15 Year Since launch 7.3% 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 1.8 Yr. Puneet Pal 13 Dec 17 1.8 Yr. Data below for DHFL Pramerica Short Maturity Fund as on 30 Sep 19
Asset Allocation
Asset Class Value Cash 12.69% Debt 87.31% Debt Sector Allocation
Sector Value Corporate 48.86% Government 38.45% Cash Equivalent 12.69% Credit Quality
Rating Value AAA 78.74% BBB 21.26% Top Securities Holdings / Portfolio
Name Holding Value Quantity HINDUSTAN PETROLEUM CORPORATION LIMITED
Debentures | -10% ₹9 Cr 850,000
↑ 850,000 REC LIMITED
Debentures | -10% ₹8 Cr 800,000
↑ 800,000 Yes Bank Limited
Debentures | -9% ₹7 Cr 830,000 SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA
Debentures | -8% ₹7 Cr 700,000
↑ 700,000 Reliance Jio Infocomm Limited
Debentures | -7% ₹6 Cr 610,000
↑ 610,000 NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Debentures | -7% ₹6 Cr 600,000
↑ 600,000 GOVT STOCK
Sovereign Bonds | -6% ₹5 Cr 500,000
↓ -500,000 Power Finance Corporation Ltd.
Debentures | -6% ₹5 Cr 500,000
↑ 500,000 Reliance Industries Limited
Debentures | -6% ₹5 Cr 500,000
↑ 500,000 Clearing Corporation Of India Ltd.
CBLO | -6% ₹5 Cr 2. Reliance Short Term Fund
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% . Reliance Short Term Fund
Growth Launch Date 18 Dec 02 NAV (13 Nov 19) ₹36.8272 ↑ 0.03 (0.07 %) Net Assets (Cr) ₹5,797 on 30 Sep 19 Category Debt - Short term Bond AMC Reliance Nippon Life Asset Management Ltd. Rating ☆☆☆☆ Risk Moderately Low Expense Ratio 1.12 Sharpe Ratio 3.93 Information Ratio -1.49 Alpha Ratio -1.71 Min Investment 5,000 Min SIP Investment 100 Exit Load NIL Yield to Maturity 7.98% Effective Maturity 2 Years 5 Months 12 Days Modified Duration 2 Years 11 Days Growth of 10,000 investment over the years.
Date Value 31 Oct 14 ₹10,000 31 Oct 15 ₹10,923 31 Oct 16 ₹11,944 31 Oct 17 ₹12,793 31 Oct 18 ₹13,214 31 Oct 19 ₹14,623 Returns for Reliance Short Term Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 13 Nov 19 Duration Returns 1 Month 1.1% 3 Month 2.3% 6 Month 5.7% 1 Year 10.4% 3 Year 6.9% 5 Year 7.9% 10 Year 15 Year Since launch 8% 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 13.73 Yr. Kinjal Desai 25 May 18 1.35 Yr. Data below for Reliance Short Term Fund as on 30 Sep 19
Asset Allocation
Asset Class Value Cash 18.38% Debt 81.62% Other 0% Debt Sector Allocation
Sector Value Corporate 61.11% Government 23.5% Cash Equivalent 15.39% Credit Quality
Rating Value AA 14.76% AAA 85.24% Top Securities Holdings / Portfolio
Name Holding Value Quantity NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Debentures | -6% ₹327 Cr 3,150
↓ -250 Muthoot Finance Limited
Debentures | -5% ₹308 Cr 3,171,098 State Bank Of India
Debentures | -5% ₹301 Cr 3,000 GOVT STOCK
Sovereign Bonds | -4% ₹238 Cr 23,000,000
↑ 23,000,000 INDIA GRID TRUST
Debentures | -4% ₹211 Cr 2,100 Triparty Repo
CBLO/Reverse Repo | -4% ₹210 Cr Housing Development Finance Corporation Limited
Debentures | -3% ₹203 Cr 2,000 LIC Housing Finance Limited
Debentures | -3% ₹199 Cr 2,000
↑ 2,000 EMBASSY OFFICE PARKS REIT
Debentures | -3% ₹192 Cr 1,830
↓ -1,850 Reliance Utilities And Power Private Limited
Debentures | -3% ₹186 Cr 1,865 3. ICICI Prudential Short Term Fund
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% . ICICI Prudential Short Term Fund
Growth Launch Date 25 Oct 01 NAV (13 Nov 19) ₹40.9364 ↑ 0.04 (0.09 %) Net Assets (Cr) ₹10,198 on 30 Sep 19 Category Debt - Short term Bond AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆ Risk Moderate Expense Ratio 1.27 Sharpe Ratio 4.09 Information Ratio -0.57 Alpha Ratio -1.24 Min Investment 5,000 Min SIP Investment 1,000 Exit Load 0-7 Days (0.25%),7 Days and above(NIL) Yield to Maturity 7.7% Effective Maturity 2 Years 5 Months 26 Days Modified Duration 1 Year 10 Months 2 Days Growth of 10,000 investment over the years.
Date Value 31 Oct 14 ₹10,000 31 Oct 15 ₹10,935 31 Oct 16 ₹12,030 31 Oct 17 ₹12,947 31 Oct 18 ₹13,469 31 Oct 19 ₹14,869 Returns for ICICI Prudential Short Term Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 13 Nov 19 Duration Returns 1 Month 1.1% 3 Month 2.2% 6 Month 5.6% 1 Year 10.2% 3 Year 7.2% 5 Year 8.2% 10 Year 15 Year Since launch 8.1% 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 9.53 Yr. Data below for ICICI Prudential Short Term Fund as on 30 Sep 19
Asset Allocation
Asset Class Value Cash 10.83% Debt 89.17% Debt Sector Allocation
Sector Value Corporate 67.37% Government 25.16% Cash Equivalent 7.47% Credit Quality
Rating Value AA 18.65% AAA 81.35% Top Securities Holdings / Portfolio
Name Holding Value Quantity GOVT STOCK
Sovereign Bonds | -4% ₹430 Cr 41,000,000
↑ 26,000,000 LIC HOUSING FINANCE LIMITED
Debentures | -4% ₹429 Cr 4,250 State Bank Of India
Debentures | -3% ₹307 Cr 3,000 NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Debentures | -3% ₹264 Cr 2,550 Treps
CBLO/Reverse Repo | -3% ₹259 Cr Net Current Assets
Net Current Assets | -2% ₹255 Cr TATA MOTORS FINANCE LIMITED
Debentures | -2% ₹252 Cr 2,500 PIPELINE INFRASTRUCTURE PRIVATE LIMITED
Debentures | -2% ₹243 Cr 2,429 Reliance Utilities And Power Private Limited
Debentures | -2% ₹231 Cr 2,250 Reliance Ports And Terminals Limited
Debentures | -2% ₹213 Cr 2,078
↑ 150 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 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 (13 Nov 19) ₹32.7409 ↑ 0.03 (0.08 %) Net Assets (Cr) ₹3,096 on 30 Sep 19 Category Debt - Short term Bond AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆☆ Risk Moderate Expense Ratio 1.16 Sharpe Ratio 3.54 Information Ratio -0.43 Alpha Ratio -2.19 Min Investment 1,000 Min SIP Investment 1,000 Exit Load 0-90 Days (0.5%),90 Days and above(NIL) Yield to Maturity 8.34% Effective Maturity 2 Years 6 Months Modified Duration 1 Year 11 Months 12 Days Growth of 10,000 investment over the years.
Date Value 31 Oct 14 ₹10,000 31 Oct 15 ₹10,941 31 Oct 16 ₹12,118 31 Oct 17 ₹12,963 31 Oct 18 ₹13,554 31 Oct 19 ₹14,924 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 13 Nov 19 Duration Returns 1 Month 0.8% 3 Month 2% 6 Month 5.6% 1 Year 9.9% 3 Year 7.1% 5 Year 8.3% 10 Year 15 Year Since launch 7.4% 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 2.5 Yr. Kaustubh Gupta 11 Sep 14 5.06 Yr. Data below for Aditya Birla Sun Life Short Term Opportunities Fund as on 30 Sep 19
Asset Allocation
Asset Class Value Cash 12.34% Debt 87.66% Debt Sector Allocation
Sector Value Corporate 50.05% Government 39.78% Cash Equivalent 10.05% Securitized 0.13% Credit Quality
Rating Value A 9.73% AA 19.53% AAA 69.56% Below B 1.18% Top Securities Holdings / Portfolio
Name Holding Value Quantity ADANI PROPERTIES PRIVATE LIMITED
Debentures | -7% ₹227 Cr 200 Clearing Corporation Of India Limited
CBLO | -6% ₹190 Cr REC LIMITED
Debentures | -5% ₹148 Cr 1,450
↑ 250 NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Debentures | -4% ₹109 Cr 1,050 SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA
Debentures | -3% ₹101 Cr 1,000 Punjab National Bank
Debentures | -3% ₹98 Cr 1,000 State Bank Of India
Debentures | -3% ₹95 Cr 950
↑ 950 LIC Housing Finance Limited
Debentures | -3% ₹92 Cr 900 State Bank Of India
Debentures | -3% ₹92 Cr 900 Housing And Urban Development Corporation Ltd.
Debentures | -3% ₹86 Cr 850 5. UTI Short Term Income Fund
CAGR/Annualized return of 6.3% 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 (13 Nov 19) ₹21.0455 ↑ 0.02 (0.10 %) Net Assets (Cr) ₹2,219 on 30 Sep 19 Category Debt - Short term Bond AMC UTI Asset Management Company Ltd Rating ☆☆☆☆ Risk Moderate Expense Ratio 0.9 Sharpe Ratio -0.55 Information Ratio -0.71 Alpha Ratio -35.53 Min Investment 10,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 7.59% Effective Maturity 2 Years 5 Months 16 Days Modified Duration 2 Years 1 Month 17 Days Growth of 10,000 investment over the years.
Date Value 31 Oct 14 ₹10,000 31 Oct 15 ₹10,940 31 Oct 16 ₹11,945 31 Oct 17 ₹12,874 31 Oct 18 ₹13,439 31 Oct 19 ₹13,015 Returns for UTI Short Term Income Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 13 Nov 19 Duration Returns 1 Month 1% 3 Month 2.3% 6 Month -6.5% 1 Year -3.3% 3 Year 2.8% 5 Year 5.3% 10 Year 15 Year Since launch 6.3% 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 30 Sep 19
Asset Allocation
Asset Class Value Cash 18.2% Debt 81.8% Debt Sector Allocation
Sector Value Corporate 56.54% Government 35.37% Cash Equivalent 8.09% Credit Quality
Rating Value A 9.73% AA 13.91% AAA 76.37% Top Securities Holdings / Portfolio
Name Holding Value Quantity Syndicate Bank
Certificate of Deposit | -9% ₹199 Cr 2,000,000,000 Punjab National Bank
Debentures | -8% ₹184 Cr 1,870
↓ -130 Net Current Assets
Net Current Assets | -8% ₹170 Cr 00 STATE BANK OF INDIA
Debentures | -7% ₹156 Cr 1,500 REC LIMITED
Debentures | -6% ₹137 Cr 1,328 Larsen And Toubro Limited
Debentures | -6% ₹126 Cr 1,228 Bank Of Baroda
Debentures | -6% ₹126 Cr 1,250 Housing Development Finance Corporation Limited
Debentures | -5% ₹102 Cr 1,000 HOUSING AND URBAN DEVELOPMENT CORPORATION LIMITED (HUDCO)
Debentures | -5% ₹101 Cr 1,000 National Bank For Agriculture And Rural Development
Debentures | -4% ₹98 Cr 950
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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