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5 Best Short Duration (Short Term) Debt Funds To Invest In 2023
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 23 - 24
The objective of the Scheme is to provide investors stable returns by investing in fixed income securities. Franklin India Short Term Income Plan - Retail Plan is a Debt - Short term Bond fund was launched on 31 Jan 02. It is a fund with Moderate risk and has given a Below is the key information for Franklin India Short Term Income Plan - Retail Plan 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 (Erstwhile BNP Paribas Short Term Income Fund) The primary objective of the Scheme is to provide income consistent with the prudent risk from a portfolio comprising various debt and money market instruments. However, there can be no assurance that the investment
objective of the Scheme will be achieved. The Scheme / Plan(s) do not guarantee / indicate any returns. BNP Paribas Short Term Fund is a Debt - Short term Bond fund was launched on 13 Sep 04. It is a fund with Moderately Low risk and has given a Below is the key information for BNP Paribas 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 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 Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2022 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity Franklin India Short Term Income Plan - Retail Plan Growth ₹4,874.76
↑ 0.32 ₹484 2.6 2.9 9.9 7.4 8.6 0% UTI Short Term Income Fund Growth ₹26.4918
↑ 0.00 ₹2,246 1.7 2.9 4.3 7.4 3.8 7.62% 1Y 9M 4D 2Y 5M 16D BNP Paribas Short Term Fund Growth ₹25.4771
↓ -0.01 ₹258 0.6 1.3 4.6 6.5 5.16% 1Y 11M 26D 2Y 3M Aditya Birla Sun Life Short Term Opportunities Fund Growth ₹39.7055
↑ 0.01 ₹5,007 1.7 2.7 4.8 6.3 4.2 7.81% 1Y 7M 13D 2Y ICICI Prudential Short Term Fund Growth ₹49.9643
↑ 0.01 ₹15,528 1.7 3.3 5.6 6.2 4.7 7.85% 1Y 4M 20D 4Y 8M 19D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 3 Feb 23 Assets >= 100 Crore & Sorted on 3 Year CAGR Return.
1. Franklin India Short Term Income Plan - Retail Plan
CAGR/Annualized return of 7.8% since its launch. Ranked 19 in Short term Bond category. Return for 2022 was 8.6% , 2021 was 15% and 2020 was -5.3% . Franklin India Short Term Income Plan - Retail Plan
Growth Launch Date 31 Jan 02 NAV (03 Feb 23) ₹4,874.76 ↑ 0.32 (0.01 %) Net Assets (Cr) ₹484 on 31 Dec 22 Category Debt - Short term Bond AMC Franklin Templeton Asst Mgmt(IND)Pvt Ltd Rating ☆☆ Risk Moderate Expense Ratio 0.04 Sharpe Ratio 0.55 Information Ratio -0.04 Alpha Ratio 5.03 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-1 Years (0.5%),1 Years and above(NIL) Yield to Maturity 0% Effective Maturity Modified Duration Growth of 10,000 investment over the years.
Date Value 31 Jan 18 ₹10,000 31 Jan 19 ₹10,900 31 Jan 20 ₹10,894 31 Jan 21 ₹10,766 31 Jan 22 ₹12,312 31 Jan 23 ₹13,470
Purchase not allowed Returns for Franklin India Short Term Income Plan - Retail Plan
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 3 Feb 23 Duration Returns 1 Month 1.1% 3 Month 2.6% 6 Month 2.9% 1 Year 9.9% 3 Year 7.4% 5 Year 6.2% 10 Year 15 Year Since launch 7.8% Historical performance (Yearly) on absolute basis
Year Returns 2022 8.6% 2021 15% 2020 -5.3% 2019 4.2% 2018 8.8% 2017 8.6% 2016 8.3% 2015 9.1% 2014 11.7% 2013 9% Fund Manager information for Franklin India Short Term Income Plan - Retail Plan
Name Since Tenure Santosh Kamath 31 Jan 02 20.93 Yr. Kunal Agrawal 31 Jan 02 20.93 Yr. Data below for Franklin India Short Term Income Plan - Retail Plan as on 31 Dec 22
Asset Allocation
Asset Class Value Cash 7.65% Debt 92.35% Debt Sector Allocation
Sector Value Corporate 92.35% Cash Equivalent 7.65% Credit Quality
Rating Value A 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Andhra Pradesh Capital Region Development Authority
Debentures | -44% ₹216 Cr 10,670
↓ -05 Andhra Pradesh Capital Region Development Authority
Debentures | -42% ₹202 Cr 10,025
↓ -575 Andhra Pradesh Capital Region Development Authority
Debentures | -6% ₹31 Cr 1,523
↓ -49 SBI Overnight Fund Dir Gr
Investment Fund | -5% ₹25 Cr 70,010
↑ 34,939 Rivaaz TRade Ventures Private Limited
Debentures | -0% ₹0 Cr 1,000
↑ 1,000 Future Ideas Company Limited
Debentures | -0% ₹0 Cr 300
↑ 300 Call, Cash & Other Assets
CBLO | -2% ₹12 Cr 2. UTI Short Term Income Fund
CAGR/Annualized return of 6.5% since its launch. Ranked 10 in Short term Bond category. Return for 2022 was 3.8% , 2021 was 8.4% and 2020 was 10.5% . UTI Short Term Income Fund
Growth Launch Date 19 Sep 07 NAV (03 Feb 23) ₹26.4918 ↑ 0.00 (0.02 %) Net Assets (Cr) ₹2,246 on 31 Dec 22 Category Debt - Short term Bond AMC UTI Asset Management Company Ltd Rating ☆☆☆☆ Risk Moderate Expense Ratio 0.94 Sharpe Ratio -1.24 Information Ratio 0 Alpha Ratio 0 Min Investment 10,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 7.62% Effective Maturity 2 Years 5 Months 16 Days Modified Duration 1 Year 9 Months 4 Days Growth of 10,000 investment over the years.
Date Value 31 Jan 18 ₹10,000 31 Jan 19 ₹10,594 31 Jan 20 ₹10,237 31 Jan 21 ₹11,197 31 Jan 22 ₹12,185 31 Jan 23 ₹12,671 Returns for UTI Short Term Income Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 3 Feb 23 Duration Returns 1 Month 0.5% 3 Month 1.7% 6 Month 2.9% 1 Year 4.3% 3 Year 7.4% 5 Year 4.9% 10 Year 15 Year Since launch 6.5% Historical performance (Yearly) on absolute basis
Year Returns 2022 3.8% 2021 8.4% 2020 10.5% 2019 -3.9% 2018 6% 2017 6.1% 2016 10.1% 2015 8.3% 2014 10.9% 2013 9% Fund Manager information for UTI Short Term Income Fund
Name Since Tenure Sudhir Agarwal 25 Oct 12 10.19 Yr. Data below for UTI Short Term Income Fund as on 31 Dec 22
Asset Allocation
Asset Class Value Cash 31.7% Debt 68.3% Debt Sector Allocation
Sector Value Corporate 60.14% Cash Equivalent 21.1% Government 18.76% Credit Quality
Rating Value AA 17.8% AAA 82.2% Top Securities Holdings / Portfolio
Name Holding Value Quantity National Bank For Agriculture And Rural Development
Debentures | -9% ₹199 Cr 2,000
↑ 2,000 Axis Finance Limited
Debentures | -7% ₹160 Cr 1,600 Small Industries Development Bank Of India
Debentures | -7% ₹149 Cr 1,500 7.38% Govt Stock 2027
Sovereign Bonds | -4% ₹101 Cr 1,000,000,000
↓ -500,000,000 India Grid TRust
Debentures | -3% ₹74 Cr 750 Mahindra Rural Housing Finance Limited
Debentures | -3% ₹69 Cr 700 Can Fin Homes Limited
Debentures | -3% ₹63 Cr 650 TATA Motors Finance Limited
Debentures | -3% ₹59 Cr 600 Rural Electrification Corporation Limited
Debentures | -2% ₹51 Cr 500 Shriram Finance Limited
Debentures | -2% ₹50 Cr 500 3. BNP Paribas Short Term Fund
CAGR/Annualized return of 5.5% since its launch. Ranked 41 in Short term Bond category. . BNP Paribas Short Term Fund
Growth Launch Date 13 Sep 04 NAV (11 Mar 22) ₹25.4771 ↓ -0.01 (-0.02 %) Net Assets (Cr) ₹258 on 15 Feb 22 Category Debt - Short term Bond AMC BNP Paribas Asset Mgmt India Pvt. Ltd Rating ☆☆☆ Risk Moderately Low Expense Ratio 0.98 Sharpe Ratio 0.07 Information Ratio -0.85 Alpha Ratio -1.04 Min Investment 5,000 Min SIP Investment 300 Exit Load NIL Yield to Maturity 5.16% Effective Maturity 2 Years 3 Months Modified Duration 1 Year 11 Months 26 Days Growth of 10,000 investment over the years.
Date Value 31 Jan 18 ₹10,000 31 Jan 19 ₹10,676 31 Jan 20 ₹11,457 31 Jan 21 ₹12,498 31 Jan 22 ₹12,954 Returns for BNP Paribas Short Term Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 3 Feb 23 Duration Returns 1 Month 0.2% 3 Month 0.6% 6 Month 1.3% 1 Year 4.6% 3 Year 6.5% 5 Year 6.6% 10 Year 15 Year Since launch 5.5% Historical performance (Yearly) on absolute basis
Year Returns 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Fund Manager information for BNP Paribas Short Term Fund
Name Since Tenure Data below for BNP Paribas Short Term Fund as on 15 Feb 22
Asset Allocation
Asset Class Value Debt Sector Allocation
Sector Value Credit Quality
Rating Value Top Securities Holdings / Portfolio
Name Holding Value Quantity 4. Aditya Birla Sun Life Short Term Opportunities Fund
CAGR/Annualized return of 7.2% since its launch. Ranked 18 in Short term Bond category. Return for 2022 was 4.2% , 2021 was 3.8% and 2020 was 11.1% . Aditya Birla Sun Life Short Term Opportunities Fund
Growth Launch Date 9 May 03 NAV (03 Feb 23) ₹39.7055 ↑ 0.01 (0.03 %) Net Assets (Cr) ₹5,007 on 31 Dec 22 Category Debt - Short term Bond AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆☆ Risk Moderate Expense Ratio 1.11 Sharpe Ratio -0.69 Information Ratio 0 Alpha Ratio 0 Min Investment 1,000 Min SIP Investment 1,000 Exit Load 0-90 Days (0.5%),90 Days and above(NIL) Yield to Maturity 7.81% Effective Maturity 2 Years Modified Duration 1 Year 7 Months 13 Days Growth of 10,000 investment over the years.
Date Value 31 Jan 18 ₹10,000 31 Jan 19 ₹10,668 31 Jan 20 ₹11,573 31 Jan 21 ₹12,799 31 Jan 22 ₹13,335 31 Jan 23 ₹13,919 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 3 Feb 23 Duration Returns 1 Month 0.5% 3 Month 1.7% 6 Month 2.7% 1 Year 4.8% 3 Year 6.3% 5 Year 6.9% 10 Year 15 Year Since launch 7.2% Historical performance (Yearly) on absolute basis
Year Returns 2022 4.2% 2021 3.8% 2020 11.1% 2019 8.5% 2018 6.5% 2017 5.6% 2016 11.3% 2015 8.4% 2014 11.3% 2013 10.1% Fund Manager information for Aditya Birla Sun Life Short Term Opportunities Fund
Name Since Tenure Kaustubh Gupta 11 Sep 14 8.31 Yr. Mohit Sharma 6 Aug 20 2.41 Yr. Data below for Aditya Birla Sun Life Short Term Opportunities Fund as on 31 Dec 22
Asset Allocation
Asset Class Value Cash 24.08% Debt 75.92% Debt Sector Allocation
Sector Value Corporate 56.69% Government 30.1% Cash Equivalent 10.13% Securitized 3.08% Credit Quality
Rating Value AA 23.23% AAA 76.77% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.26% Govt Stock 2032
Sovereign Bonds | -6% ₹319 Cr 32,011,700
↑ 11,500,000 Housing Development Finance Corporation Ltd
Debentures | -3% ₹149 Cr 1,500 Shriram Finance Limited
Debentures | -3% ₹141 Cr 1,400 State Bank Of India
Debentures | -3% ₹140 Cr 1,450 Bajaj Housing Finance Limited
Debentures | -3% ₹137 Cr 1,400 State Bank Of India
Debentures | -2% ₹121 Cr 1,204 06.90 OIL SPL 2026
Domestic Bonds | -2% ₹103 Cr 10,397,000 Bharti Telecom Limited
Debentures | -2% ₹100 Cr 1,000 7.42% Govt Stock 2033
Sovereign Bonds | -2% ₹100 Cr 10,000,000 Sundew Properties Limited
Debentures | -2% ₹99 Cr 1,020 5. ICICI Prudential Short Term Fund
CAGR/Annualized return of 7.9% since its launch. Ranked 11 in Short term Bond category. Return for 2022 was 4.7% , 2021 was 3.9% and 2020 was 10.6% . ICICI Prudential Short Term Fund
Growth Launch Date 25 Oct 01 NAV (03 Feb 23) ₹49.9643 ↑ 0.01 (0.02 %) Net Assets (Cr) ₹15,528 on 31 Dec 22 Category Debt - Short term Bond AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆ Risk Moderate Expense Ratio 1.14 Sharpe Ratio -0.28 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load 0-7 Days (0.25%),7 Days and above(NIL) Yield to Maturity 7.85% Effective Maturity 4 Years 8 Months 19 Days Modified Duration 1 Year 4 Months 20 Days Growth of 10,000 investment over the years.
Date Value 31 Jan 18 ₹10,000 31 Jan 19 ₹10,616 31 Jan 20 ₹11,651 31 Jan 21 ₹12,805 31 Jan 22 ₹13,298 31 Jan 23 ₹13,968 Returns for ICICI Prudential Short Term Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 3 Feb 23 Duration Returns 1 Month 0.5% 3 Month 1.7% 6 Month 3.3% 1 Year 5.6% 3 Year 6.2% 5 Year 7% 10 Year 15 Year Since launch 7.9% Historical performance (Yearly) on absolute basis
Year Returns 2022 4.7% 2021 3.9% 2020 10.6% 2019 9.7% 2018 5.8% 2017 5.9% 2016 11.1% 2015 8% 2014 11.6% 2013 7.2% Fund Manager information for ICICI Prudential Short Term Fund
Name Since Tenure Manish Banthia 19 Nov 09 13.13 Yr. Nikhil Kabra 29 Dec 20 2.01 Yr. Data below for ICICI Prudential Short Term Fund as on 31 Dec 22
Asset Allocation
Asset Class Value Cash 20.45% Debt 79.55% Debt Sector Allocation
Sector Value Corporate 49.3% Government 40.62% Cash Equivalent 9.22% Securitized 0.86% Credit Quality
Rating Value AA 16.66% AAA 83.34% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.42% Govt Stock 2033
Sovereign Bonds | -11% ₹1,690 Cr 169,624,650 7.38% Govt Stock 2027
Sovereign Bonds | -8% ₹1,325 Cr 131,199,900 7.69% Govt Stock 2034
Sovereign Bonds | -6% ₹938 Cr 95,824,740 7.01% Govt Stock 2028
Sovereign Bonds | -5% ₹717 Cr 72,756,299 Pipeline Infrastructure Limited
Debentures | -3% ₹420 Cr 4,129 Small Industries Development Bank Of India
Debentures | -2% ₹301 Cr 3,000 6.69% Govt Stock 2024
Sovereign Bonds | -2% ₹249 Cr 25,000,000 Godrej Industries Limited
Debentures | -1% ₹221 Cr 2,250 Jamnagar Utilities & Power Private Limited
Debentures | -1% ₹201 Cr 2,000 Power Finance Corporation Ltd.
Debentures | -1% ₹200 Cr 2,000
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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