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5 Best Short Duration (Short Term) Debt Funds To Invest In 2021
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 21 - 22
(Erstwhile HDFC Short Term Opportunities Fund) To generate regular income through investments in Debt/Money Market Instruments and Government Securities with maturities not exceeding 36 months. HDFC Short Term Debt Fund is a Debt - Short term Bond fund was launched on 25 Jun 10. It is a fund with Moderately Low risk and has given a Below is the key information for HDFC Short Term Debt 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 To generate stable returns with a low risk strategy while maintaining liquidity through a portfolio comprising of debt and money market instruments. However, there can be no assurance that the investment objective of the scheme will be achieved. Axis Short Term Fund is a Debt - Short term Bond fund was launched on 22 Jan 10. It is a fund with Moderately Low risk and has given a Below is the key information for Axis 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 The investment objective of the Scheme is to provide reasonable returns and high level of liquidity by investing in debt instruments such as bonds, debentures and Government securities; and money market Instrument such as treasury
bills,commercial papers, certificates of deposit, including repos in permitted
securities of different maturities, so as to spread the risk across different kinds of
issuers in the debt markets. The Scheme may invest in the call money/termmoney market in terms of RBI guidelines in this respect. To reduce the risk of the portfolio, the Scheme may also use various derivative
and hedging products from time to time, in the manner permitted by SEBI. Subject to the maximum amount permitted from time
to time, the Scheme may invest in offshoresecurities in the manner allowed by
SEBI/RBI, provided such investments are in conformity with the investment objective of the Scheme and the prevailing guidelines
and Regulations. Kotak Bond Short Term is a Debt - Short term Bond fund was launched on 2 May 02. It is a fund with Moderately Low risk and has given a Below is the key information for Kotak Bond Short Term Returns up to 1 year are on Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2020 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity HDFC Short Term Debt Fund Growth ₹24.5105
↑ 0.00 ₹17,928 1.4 3 10.4 9.1 11 5.31% 2Y 7M 9D 3Y 5M 16D ICICI Prudential Short Term Fund Growth ₹45.6986
↑ 0.01 ₹23,696 1.5 3 10.2 8.6 10.6 4.91% 2Y 7D 3Y 22D Axis Short Term Fund Growth ₹23.8017
↑ 0.00 ₹14,992 1.1 2.5 9.5 8.6 10.1 4.83% 2Y 3M 18D 2Y 10M 24D Aditya Birla Sun Life Short Term Opportunities Fund Growth ₹36.4029
↓ 0.00 ₹8,302 1.2 4 10.8 8.5 11.1 5.13% 2Y 2M 26D 2Y 8M 23D Kotak Bond Short Term Growth ₹40.8382
↓ -0.01 ₹19,644 1.1 2.4 9.4 8.5 10 4.88% 2Y 5M 16D 3Y 1M 17D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 19 Jan 21 Assets >= 100 Crore & Sorted on 3 Year CAGR Return.
1. HDFC Short Term Debt Fund
CAGR/Annualized return of 8.8% since its launch. Ranked 30 in Short term Bond category. Return for 2020 was 11% , 2019 was 9.7% and 2018 was 7% . HDFC Short Term Debt Fund
Growth Launch Date 25 Jun 10 NAV (19 Jan 21) ₹24.5105 ↑ 0.00 (0.01 %) Net Assets (Cr) ₹17,928 on 31 Dec 20 Category Debt - Short term Bond AMC HDFC Asset Management Company Limited Rating ☆☆☆ Risk Moderately Low Expense Ratio 0.4 Sharpe Ratio 2.59 Information Ratio 0.53 Alpha Ratio -0.91 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 5.31% Effective Maturity 3 Years 5 Months 16 Days Modified Duration 2 Years 7 Months 9 Days Growth of 10,000 investment over the years.
Date Value 31 Dec 15 ₹10,000 31 Dec 16 ₹10,931 31 Dec 17 ₹11,644 31 Dec 18 ₹12,460 31 Dec 19 ₹13,671 31 Dec 20 ₹15,169 Returns for HDFC Short Term Debt Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 19 Jan 21 Duration Returns 1 Month 0.2% 3 Month 1.4% 6 Month 3% 1 Year 10.4% 3 Year 9.1% 5 Year 8.6% 10 Year 15 Year Since launch 8.8% Historical performance (Yearly) on absolute basis
Year Returns 2020 11% 2019 9.7% 2018 7% 2017 6.5% 2016 9.3% 2015 8.7% 2014 10.4% 2013 8.4% 2012 10.1% 2011 9.2% Fund Manager information for HDFC Short Term Debt Fund
Name Since Tenure Anil Bamboli 25 Jun 10 10.53 Yr. Anand Laddha 21 Oct 20 0.2 Yr. Data below for HDFC Short Term Debt Fund as on 31 Dec 20
Asset Allocation
Asset Class Value Cash 13.17% Debt 86.83% Debt Sector Allocation
Sector Value Corporate 48.51% Government 38.6% Cash Equivalent 11.12% Securitized 1.76% Credit Quality
Rating Value AA 15.16% AAA 84.84% Top Securities Holdings / Portfolio
Name Holding Value Quantity 5.77% GOI 2030
Sovereign Bonds | -4% ₹788 Cr 79,500,000
↑ 7,500,000 7.32% Govt Stock 2024
Sovereign Bonds | -3% ₹585 Cr 54,000,000 Housing Development Finance Corporation Limited
Debentures | -2% ₹362 Cr 3,500 6.79% Govt Stock 2027
Sovereign Bonds | -2% ₹325 Cr 30,500,000 Housing Development Finance Corporation Limited
Debentures | -2% ₹315 Cr 3,000 5.79% Govt Stock 2030
Sovereign Bonds | -2% ₹303 Cr 30,500,000
↓ -4,500,000 State Bank of India
Debentures | -2% ₹299 Cr 2,750 Indinfravit Trust
Debentures | -2% ₹297 Cr 2,900 State Bank Of India
Debentures | -2% ₹286 Cr 2,800 State Bank of India
Debentures | -1% ₹262 Cr 2,500 2. ICICI Prudential Short Term Fund
CAGR/Annualized return of 8.2% since its launch. Ranked 11 in Short term Bond category. Return for 2020 was 10.6% , 2019 was 9.7% and 2018 was 5.8% . ICICI Prudential Short Term Fund
Growth Launch Date 25 Oct 01 NAV (19 Jan 21) ₹45.6986 ↑ 0.01 (0.01 %) Net Assets (Cr) ₹23,696 on 31 Dec 20 Category Debt - Short term Bond AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆ Risk Moderate Expense Ratio 1.15 Sharpe Ratio 2.6 Information Ratio -0.24 Alpha Ratio -0.95 Min Investment 5,000 Min SIP Investment 1,000 Exit Load 0-7 Days (0.25%),7 Days and above(NIL) Yield to Maturity 4.91% Effective Maturity 3 Years 22 Days Modified Duration 2 Years 7 Days Growth of 10,000 investment over the years.
Date Value 31 Dec 15 ₹10,000 31 Dec 16 ₹11,113 31 Dec 17 ₹11,769 31 Dec 18 ₹12,457 31 Dec 19 ₹13,662 31 Dec 20 ₹15,117 Returns for ICICI Prudential Short Term Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 19 Jan 21 Duration Returns 1 Month 0.2% 3 Month 1.5% 6 Month 3% 1 Year 10.2% 3 Year 8.6% 5 Year 8.5% 10 Year 15 Year Since launch 8.2% Historical performance (Yearly) on absolute basis
Year Returns 2020 10.6% 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% Fund Manager information for ICICI Prudential Short Term Fund
Name Since Tenure Manish Banthia 19 Nov 09 11.12 Yr. Nikhil Kabra 29 Dec 20 0.01 Yr. Data below for ICICI Prudential Short Term Fund as on 31 Dec 20
Asset Allocation
Asset Class Value Cash 27.87% Debt 72.13% Debt Sector Allocation
Sector Value Corporate 40.4% Government 35.2% Cash Equivalent 23.71% Securitized 0.69% Credit Quality
Rating Value AA 19.14% AAA 80.86% Top Securities Holdings / Portfolio
Name Holding Value Quantity 5.77% GOI 2030
Sovereign Bonds | -5% ₹1,160 Cr 117,000,000
↓ -5,000,000 6.22% Govt Stock 2035
Sovereign Bonds | -3% ₹687 Cr 69,000,000
↑ 18,000,000 6.79% Govt Stock 2027
Sovereign Bonds | -2% ₹544 Cr 51,000,000 7.94% Govt Stock 2021
Sovereign Bonds | -2% ₹509 Cr 50,000,000
↑ 50,000,000 Pipeline Infrastructure Private Limited
Debentures | -2% ₹453 Cr 4,129 6.18% Govt Stock 2024
Sovereign Bonds | -2% ₹451 Cr 43,000,000
↓ -30,000,000 91 DTB 7012021
Sovereign Bonds | -2% ₹400 Cr 40,000,000 GOI Floating Rate Bond 2024
Sovereign Bonds | -2% ₹395 Cr 40,000,000
↑ 20,000,000 6.19% Govt Stock 2034
Sovereign Bonds | -2% ₹394 Cr 39,600,000
↓ -13,000,000 GOVT STOCK
Sovereign Bonds | -2% ₹380 Cr 38,000,000
↑ 10,000,000 3. Axis Short Term Fund
CAGR/Annualized return of 8.2% since its launch. Ranked 26 in Short term Bond category. Return for 2020 was 10.1% , 2019 was 9.8% and 2018 was 6.3% . Axis Short Term Fund
Growth Launch Date 22 Jan 10 NAV (19 Jan 21) ₹23.8017 ↑ 0.00 (0.00 %) Net Assets (Cr) ₹14,992 on 31 Dec 20 Category Debt - Short term Bond AMC Axis Asset Management Company Limited Rating ☆☆☆ Risk Moderately Low Expense Ratio 0.92 Sharpe Ratio 2.79 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 4.83% Effective Maturity 2 Years 10 Months 24 Days Modified Duration 2 Years 3 Months 18 Days Growth of 10,000 investment over the years.
Date Value 31 Dec 15 ₹10,000 31 Dec 16 ₹10,964 31 Dec 17 ₹11,615 31 Dec 18 ₹12,352 31 Dec 19 ₹13,559 31 Dec 20 ₹14,934 Returns for Axis Short Term Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 19 Jan 21 Duration Returns 1 Month 0% 3 Month 1.1% 6 Month 2.5% 1 Year 9.5% 3 Year 8.6% 5 Year 8.2% 10 Year 15 Year Since launch 8.2% Historical performance (Yearly) on absolute basis
Year Returns 2020 10.1% 2019 9.8% 2018 6.3% 2017 5.9% 2016 9.6% 2015 8.1% 2014 10% 2013 7.3% 2012 10.1% 2011 9.2% Fund Manager information for Axis Short Term Fund
Name Since Tenure Devang Shah 5 Nov 12 8.16 Yr. Data below for Axis Short Term Fund as on 31 Dec 20
Asset Allocation
Asset Class Value Cash 14.91% Debt 85.09% Debt Sector Allocation
Sector Value Corporate 46.21% Government 42.93% Cash Equivalent 9.57% Securitized 1.29% Credit Quality
Rating Value AA 5.09% AAA 94.91% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.32% Govt Stock 2024
Sovereign Bonds | -7% ₹991 Cr 91,500,000
↑ 14,000,000 6.79% Govt Stock 2027
Sovereign Bonds | -3% ₹513 Cr 48,090,400
↑ 24,000,000 State Bank Of India
Debentures | -3% ₹491 Cr 4,800
↓ -250 Food Corporation of India
Debentures | -3% ₹486 Cr 4,550
↓ -500 7.42% MH SDL 2022
Sovereign Bonds | -3% ₹426 Cr 40,747,500 Power Finance Corporation Ltd.
Debentures | -3% ₹407 Cr 3,950 Reliance Industries Limited
Debentures | -2% ₹357 Cr 3,400 Housing Development Finance Corporation Limited
Debentures | -2% ₹277 Cr 2,680 Housing Development Finance Corporation Limited
Debentures | -2% ₹233 Cr 2,300 8.83% Govt Stock 2023
Sovereign Bonds | -1% ₹224 Cr 20,025,000 4. Aditya Birla Sun Life Short Term Opportunities Fund
CAGR/Annualized return of 7.6% since its launch. Ranked 18 in Short term Bond category. Return for 2020 was 11.1% , 2019 was 8.5% and 2018 was 6.5% . Aditya Birla Sun Life Short Term Opportunities Fund
Growth Launch Date 9 May 03 NAV (19 Jan 21) ₹36.4029 ↓ 0.00 (-0.01 %) Net Assets (Cr) ₹8,302 on 31 Dec 20 Category Debt - Short term Bond AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆☆ Risk Moderate Expense Ratio 1.13 Sharpe Ratio 2.19 Information Ratio -0.14 Alpha Ratio -0.29 Min Investment 1,000 Min SIP Investment 1,000 Exit Load 0-90 Days (0.5%),90 Days and above(NIL) Yield to Maturity 5.13% Effective Maturity 2 Years 8 Months 23 Days Modified Duration 2 Years 2 Months 26 Days Growth of 10,000 investment over the years.
Date Value 31 Dec 15 ₹10,000 31 Dec 16 ₹11,132 31 Dec 17 ₹11,755 31 Dec 18 ₹12,520 31 Dec 19 ₹13,584 31 Dec 20 ₹15,086 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 19 Jan 21 Duration Returns 1 Month 0% 3 Month 1.2% 6 Month 4% 1 Year 10.8% 3 Year 8.5% 5 Year 8.5% 10 Year 15 Year Since launch 7.6% Historical performance (Yearly) on absolute basis
Year Returns 2020 11.1% 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% Fund Manager information for Aditya Birla Sun Life Short Term Opportunities Fund
Name Since Tenure Kaustubh Gupta 11 Sep 14 6.31 Yr. Mohit Sharma 6 Aug 20 0.4 Yr. Data below for Aditya Birla Sun Life Short Term Opportunities Fund as on 31 Dec 20
Asset Allocation
Asset Class Value Cash 15.18% Debt 84.82% Debt Sector Allocation
Sector Value Corporate 49.37% Government 38.69% Cash Equivalent 11.93% Credit Quality
Rating Value A 1.02% AA 17.13% AAA 81.72% Below B 0.12% Top Securities Holdings / Portfolio
Name Holding Value Quantity 8.60% Bihar SDL 2026
Sovereign Bonds | -2% ₹179 Cr 15,887,000 Reliance Industries Limited
Debentures | -2% ₹168 Cr 1,600 6.79% Govt Stock 2027
Sovereign Bonds | -2% ₹165 Cr 15,500,000
↓ -1,000,000 8.15% Govt Stock 2026
Sovereign Bonds | -2% ₹164 Cr 14,500,000 State Bank Of India
Debentures | -2% ₹154 Cr 1,500 Rural Electrification Corporation Limited
Debentures | -2% ₹143 Cr 1,400 07.77 OD SDL 2023
Sovereign Bonds | -2% ₹139 Cr 13,000,000 7.32% Govt Stock 2024
Sovereign Bonds | -2% ₹135 Cr 12,500,000 8.24% Govt Stock 2027
Sovereign Bonds | -2% ₹131 Cr 11,500,000 Power Finance Corporation Limited
Debentures | -2% ₹128 Cr 1,200 5. Kotak Bond Short Term
CAGR/Annualized return of 7.8% since its launch. Ranked 42 in Short term Bond category. Return for 2020 was 10% , 2019 was 9.6% and 2018 was 6.3% . Kotak Bond Short Term
Growth Launch Date 2 May 02 NAV (19 Jan 21) ₹40.8382 ↓ -0.01 (-0.01 %) Net Assets (Cr) ₹19,644 on 31 Dec 20 Category Debt - Short term Bond AMC Kotak Mahindra Asset Management Co Ltd Rating ☆☆☆ Risk Moderately Low Expense Ratio 0.44 Sharpe Ratio 2.68 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 4.88% Effective Maturity 3 Years 1 Month 17 Days Modified Duration 2 Years 5 Months 16 Days Growth of 10,000 investment over the years.
Date Value 31 Dec 15 ₹10,000 31 Dec 16 ₹10,970 31 Dec 17 ₹11,564 31 Dec 18 ₹12,295 31 Dec 19 ₹13,471 31 Dec 20 ₹14,818 Returns for Kotak Bond Short Term
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 19 Jan 21 Duration Returns 1 Month 0% 3 Month 1.1% 6 Month 2.4% 1 Year 9.4% 3 Year 8.5% 5 Year 8.1% 10 Year 15 Year Since launch 7.8% Historical performance (Yearly) on absolute basis
Year Returns 2020 10% 2019 9.6% 2018 6.3% 2017 5.4% 2016 9.7% 2015 8% 2014 10.2% 2013 7.3% 2012 9.7% 2011 8.2% Fund Manager information for Kotak Bond Short Term
Name Since Tenure Deepak Agrawal 14 Apr 08 12.72 Yr. Data below for Kotak Bond Short Term as on 31 Dec 20
Asset Allocation
Asset Class Value Cash 10.78% Debt 89.22% Debt Sector Allocation
Sector Value Government 58.81% Corporate 29.59% Cash Equivalent 10.53% Securitized 1.07% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 5.09% Govt Stock 2022
Sovereign Bonds | -10% ₹1,911 Cr 188,000,000
↓ -20,000,000 6.79% Govt Stock 2027
Sovereign Bonds | -4% ₹864 Cr 81,000,000 State Bank Of India
Debentures | -4% ₹726 Cr 7,100
↑ 5,400 5.77% GOI 2030
Sovereign Bonds | -3% ₹500 Cr 50,500,000
↑ 33,500,000 7.59% Govt Stock 2026
Sovereign Bonds | -3% ₹496 Cr 45,000,000
↓ -20,000,000 364 DTB 07052021
Sovereign Bonds | -2% ₹410 Cr 41,500,000
↑ 41,500,000 Bajaj Finance Limited
Debentures | -2% ₹369 Cr 2,850 7.35% Govt Stock 2024
Sovereign Bonds | -2% ₹353 Cr 32,500,000
↑ 20,000,000 7.26% Govt Stock 2029
Sovereign Bonds | -2% ₹330 Cr 30,500,000
↑ 30,000,000 91 DTB11022021
Sovereign Bonds | -2% ₹324 Cr 32,500,000
↑ 32,500,000
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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