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5 Best Short Duration (Short Term) Debt Funds To Invest In 2022
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 22 - 23
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 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 (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 (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 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 Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2021 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity UTI Short Term Income Fund Growth ₹25.9364
↑ 0.02 ₹2,174 1.5 1.3 3.1 7.7 8.4 6.89% 2Y 4M 2D 4Y 1M 17D ICICI Prudential Short Term Fund Growth ₹48.8974
↑ 0.06 ₹15,615 2.2 2.3 3.6 6.6 3.9 6.83% 1Y 6M 4Y 11M 23D 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 HDFC Short Term Debt Fund Growth ₹25.9678
↑ 0.02 ₹13,619 1.4 1.1 2.5 6.3 3.9 6.83% 1Y 9M 18D 2Y 10M 13D Aditya Birla Sun Life Short Term Opportunities Fund Growth ₹38.8876
↑ 0.03 ₹5,762 1.8 1.6 3.3 6.3 3.8 7.11% 1Y 7M 24D 2Y 3M 29D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 30 Sep 22 Assets >= 100 Crore & Sorted on 3 Year CAGR Return.
1. UTI Short Term Income Fund
CAGR/Annualized return of 6.5% since its launch. Ranked 10 in Short term Bond category. Return for 2021 was 8.4% , 2020 was 10.5% and 2019 was -3.9% . UTI Short Term Income Fund
Growth Launch Date 19 Sep 07 NAV (30 Sep 22) ₹25.9364 ↑ 0.02 (0.07 %) Net Assets (Cr) ₹2,174 on 31 Aug 22 Category Debt - Short term Bond AMC UTI Asset Management Company Ltd Rating ☆☆☆☆ Risk Moderate Expense Ratio 0.93 Sharpe Ratio 0.78 Information Ratio 0 Alpha Ratio 0 Min Investment 10,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 6.89% Effective Maturity 4 Years 1 Month 17 Days Modified Duration 2 Years 4 Months 2 Days Growth of 10,000 investment over the years.
Date Value 30 Sep 17 ₹10,000 30 Sep 18 ₹10,442 30 Sep 19 ₹10,042 30 Sep 20 ₹11,087 30 Sep 21 ₹12,175 30 Sep 22 ₹12,550 Returns for UTI Short Term Income Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 30 Sep 22 Duration Returns 1 Month 0.1% 3 Month 1.5% 6 Month 1.3% 1 Year 3.1% 3 Year 7.7% 5 Year 4.6% 10 Year 15 Year Since launch 6.5% Historical performance (Yearly) on absolute basis
Year Returns 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% 2012 11.2% Fund Manager information for UTI Short Term Income Fund
Name Since Tenure Sudhir Agarwal 25 Oct 12 9.85 Yr. Data below for UTI Short Term Income Fund as on 31 Aug 22
Asset Allocation
Asset Class Value Cash 34.61% Debt 65.39% Debt Sector Allocation
Sector Value Corporate 50.65% Cash Equivalent 32.46% Government 16.89% Credit Quality
Rating Value AA 19.14% AAA 80.86% Top Securities Holdings / Portfolio
Name Holding Value Quantity Axis Finance Limited
Debentures | -7% ₹161 Cr 1,600 7.38% Govt Stock 2027
Sovereign Bonds | -5% ₹116 Cr 1,150,000,000
↑ 1,150,000,000 Housing Development Finance Corporation Limited
Debentures | -3% ₹76 Cr 750 Power Finance Corporation Ltd.
Debentures | -3% ₹75 Cr 750 India Grid TRust
Debentures | -3% ₹74 Cr 750 Mahindra Rural Housing Finance Limited
Debentures | -3% ₹69 Cr 700 Can Fin Homes Limited
Debentures | -3% ₹64 Cr 650 TATA Motors Finance Limited
Debentures | -3% ₹59 Cr 600 Rural Electrification Corporation Limited
Debentures | -2% ₹52 Cr 500 Shriram Transport Finance Company Limited
Debentures | -2% ₹51 Cr 500 2. ICICI Prudential Short Term Fund
CAGR/Annualized return of 7.9% since its launch. Ranked 11 in Short term Bond category. Return for 2021 was 3.9% , 2020 was 10.6% and 2019 was 9.7% . ICICI Prudential Short Term Fund
Growth Launch Date 25 Oct 01 NAV (30 Sep 22) ₹48.8974 ↑ 0.06 (0.13 %) Net Assets (Cr) ₹15,615 on 31 Aug 22 Category Debt - Short term Bond AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆ Risk Moderate Expense Ratio 1.14 Sharpe Ratio -0.37 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 6.83% Effective Maturity 4 Years 11 Months 23 Days Modified Duration 1 Year 6 Months Growth of 10,000 investment over the years.
Date Value 30 Sep 17 ₹10,000 30 Sep 18 ₹10,378 30 Sep 19 ₹11,386 30 Sep 20 ₹12,573 30 Sep 21 ₹13,316 30 Sep 22 ₹13,794 Returns for ICICI Prudential Short Term Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 30 Sep 22 Duration Returns 1 Month 0.4% 3 Month 2.2% 6 Month 2.3% 1 Year 3.6% 3 Year 6.6% 5 Year 6.6% 10 Year 15 Year Since launch 7.9% Historical performance (Yearly) on absolute basis
Year Returns 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% 2012 9.5% Fund Manager information for ICICI Prudential Short Term Fund
Name Since Tenure Manish Banthia 19 Nov 09 12.79 Yr. Nikhil Kabra 29 Dec 20 1.67 Yr. Data below for ICICI Prudential Short Term Fund as on 31 Aug 22
Asset Allocation
Asset Class Value Cash 24.17% Debt 75.83% Debt Sector Allocation
Sector Value Corporate 40.5% Government 35.89% Cash Equivalent 22.61% Securitized 1.01% Credit Quality
Rating Value AA 18.4% AAA 81.6% Top Securities Holdings / Portfolio
Name Holding Value Quantity 5.53% Govt Stock 2033
Sovereign Bonds | -11% ₹1,694 Cr 169,624,650 6.54% Govt Stock 2032
Sovereign Bonds | -6% ₹987 Cr 103,542,250
↓ -1,500,000 5.38% Govt Stock 2034
Sovereign Bonds | -6% ₹938 Cr 95,824,740 4.93% Govt Stock 2028
Sovereign Bonds | -5% ₹718 Cr 72,756,299 Pipeline Infrastructure Limited
Debentures | -3% ₹423 Cr 4,129 6.69% Govt Stock 2024
Sovereign Bonds | -2% ₹250 Cr 25,000,000 Godrej Industries Limited
Debentures | -1% ₹221 Cr 2,250 Jamnagar Utilities & Power Private Limited
Debentures | -1% ₹202 Cr 2,000 182 Dtb 22092022
Sovereign Bonds | -1% ₹200 Cr 20,000,000 National Bank For Agriculture And Rural Development
Debentures | -1% ₹196 Cr 1,950
↑ 1,350 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 30 Sep 17 ₹10,000 30 Sep 18 ₹10,473 30 Sep 19 ₹11,249 30 Sep 20 ₹12,352 30 Sep 21 ₹13,000 Returns for BNP Paribas Short Term Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 30 Sep 22 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 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 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. HDFC Short Term Debt Fund
CAGR/Annualized return of 8.1% since its launch. Ranked 30 in Short term Bond category. Return for 2021 was 3.9% , 2020 was 11% and 2019 was 9.7% . HDFC Short Term Debt Fund
Growth Launch Date 25 Jun 10 NAV (30 Sep 22) ₹25.9678 ↑ 0.02 (0.08 %) Net Assets (Cr) ₹13,619 on 31 Aug 22 Category Debt - Short term Bond AMC HDFC Asset Management Company Limited Rating ☆☆☆ Risk Moderately Low Expense Ratio 0.7 Sharpe Ratio -1.15 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 300 Exit Load NIL Yield to Maturity 6.83% Effective Maturity 2 Years 10 Months 13 Days Modified Duration 1 Year 9 Months 18 Days Growth of 10,000 investment over the years.
Date Value 30 Sep 17 ₹10,000 30 Sep 18 ₹10,524 30 Sep 19 ₹11,576 30 Sep 20 ₹12,824 30 Sep 21 ₹13,575 30 Sep 22 ₹13,919 Returns for HDFC Short Term Debt Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 30 Sep 22 Duration Returns 1 Month 0.1% 3 Month 1.4% 6 Month 1.1% 1 Year 2.5% 3 Year 6.3% 5 Year 6.8% 10 Year 15 Year Since launch 8.1% Historical performance (Yearly) on absolute basis
Year Returns 2021 3.9% 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% Fund Manager information for HDFC Short Term Debt Fund
Name Since Tenure Anil Bamboli 25 Jun 10 12.19 Yr. Priya Ranjan 1 May 22 0.33 Yr. Data below for HDFC Short Term Debt Fund as on 31 Aug 22
Asset Allocation
Asset Class Value Cash 19.32% Debt 80.68% Debt Sector Allocation
Sector Value Corporate 47.73% Government 37.69% Cash Equivalent 13.61% Securitized 0.97% Credit Quality
Rating Value AA 15.85% AAA 84.15% Top Securities Holdings / Portfolio
Name Holding Value Quantity 4.93% Govt Stock 2028
Sovereign Bonds | -4% ₹573 Cr 58,000,000 6.79% Govt Stock 2027
Sovereign Bonds | -3% ₹365 Cr 37,000,000 Samvardhana Motherson International Limited
Debentures | -2% ₹298 Cr 3,000 Indinfravit TRust
Debentures | -2% ₹284 Cr 2,900 6.97% Govt Stock 2026
Sovereign Bonds | -2% ₹284 Cr 28,500,000 State Bank Of India
Debentures | -2% ₹278 Cr 2,750 Rec Limited
Debentures | -2% ₹250 Cr 2,500 7.59% Govt Stock 2026
Sovereign Bonds | -2% ₹249 Cr 24,500,000 182 Dtb 10112022
Sovereign Bonds | -2% ₹248 Cr 25,000,000 State Bank Of India
Debentures | -2% ₹245 Cr 2,400 5. 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 2021 was 3.8% , 2020 was 11.1% and 2019 was 8.5% . Aditya Birla Sun Life Short Term Opportunities Fund
Growth Launch Date 9 May 03 NAV (30 Sep 22) ₹38.8876 ↑ 0.03 (0.09 %) Net Assets (Cr) ₹5,762 on 31 Aug 22 Category Debt - Short term Bond AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆☆ Risk Moderate Expense Ratio 1.11 Sharpe Ratio -0.6 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 7.11% Effective Maturity 2 Years 3 Months 29 Days Modified Duration 1 Year 7 Months 24 Days Growth of 10,000 investment over the years.
Date Value 30 Sep 17 ₹10,000 30 Sep 18 ₹10,445 30 Sep 19 ₹11,454 30 Sep 20 ₹12,599 30 Sep 21 ₹13,324 30 Sep 22 ₹13,762 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 30 Sep 22 Duration Returns 1 Month 0.1% 3 Month 1.8% 6 Month 1.6% 1 Year 3.3% 3 Year 6.3% 5 Year 6.6% 10 Year 15 Year Since launch 7.3% Historical performance (Yearly) on absolute basis
Year Returns 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% 2012 11.1% Fund Manager information for Aditya Birla Sun Life Short Term Opportunities Fund
Name Since Tenure Kaustubh Gupta 11 Sep 14 7.98 Yr. Mohit Sharma 6 Aug 20 2.07 Yr. Data below for Aditya Birla Sun Life Short Term Opportunities Fund as on 31 Aug 22
Asset Allocation
Asset Class Value Cash 31.9% Debt 68.1% Debt Sector Allocation
Sector Value Corporate 46.79% Government 32.17% Cash Equivalent 18.59% Securitized 2.45% Credit Quality
Rating Value A 0.38% AA 19.31% AAA 80.31% Top Securities Holdings / Portfolio
Name Holding Value Quantity 6.54% Govt Stock 2032
Sovereign Bonds | -6% ₹424 Cr 44,500,000
↑ 15,000,000 Bajaj Housing Finance Limited
Debentures | -2% ₹152 Cr 1,550 Housing Development Finance Corporation Ltd
Debentures | -2% ₹150 Cr 1,500 State Bank Of India
Debentures | -2% ₹146 Cr 1,500 Shriram Transport Finance Company Limited
Debentures | -2% ₹143 Cr 1,400 5.53% Govt Stock 2033
Sovereign Bonds | -2% ₹140 Cr 14,000,000 6.84% Govt Stock 2022
Sovereign Bonds | -2% ₹125 Cr 12,500,000
↑ 12,500,000 State Bank Of India
Debentures | -2% ₹122 Cr 1,204
↑ 500 06.90 OIL SPL 2026
Domestic Bonds | -1% ₹103 Cr 10,397,000 Sundew Properties Limited
Debentures | -1% ₹99 Cr 1,020
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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