+91-22-489139096 Best Ultra Short Term Mutual Funds 2025
Ultra short term funds are very short term Mutual Funds that invest in a combination of debt instruments including treasury bills, certificate of deposits, commercial papers and corporate Bonds. Generally, these funds have a residual maturity ranging from 6 months to 1 year.
Ultra short bond funds generally offer good returns with very less Market Volatility. These funds are for investors who seek to invest money for say a month to a couple of months. Investors who are looking for better returns than Liquid Funds should prefer Investing in Ultra Short Term fund. But before investing in these funds, take a look at the best ultra short term funds for the financial year 2025-2026.
Why Best Ultra Short Term Funds over Savings Account?
Conventional investors often restrict themselves from investing in Mutual Funds due to the market risks involved. They prefer Savings Account as they offer good returns with no volatility. Let's look at the illustration below to analyse the returns of both savings account and ultra short term funds to understand which is a better investment to choose.
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Illustration:
An investor invests INR 40,00,00 in both ultra short term funds and savings account with the interest rate 3.5% p.a. and 8% p.a. respectively. See how the returns differ-
| Saving Account | Ultra Short Funds |
|---|---|
| Amount Invested | 40,00,00 |
| Interest Earned (Profit) | 14,000 |
Taxation Breakup (Saving Account) @ 3.5%
| Tax Bracket | Tax | Net Income (Profit) |
|---|---|---|
| 5% | 200 | 13,800 |
| 20% | 800 | 13,200 |
| 30% | 1200 | 12,800 |
Taxation Breakup (Ultra Short Funds) @ 8%
| Tax Bracket | Tax | Net Income (Profit) |
|---|---|---|
| 5% | 3200 | 28,800 |
| 20% | 6400 | 25,600 |
| 30% | 9600 | 22,400 |
The above table clearly portrays the difference in the net income from savings accounts and ultra short term funds. Even the investors falling under the maximum tax bracket of 30% can avail returns of INR 22,400 by investing in ultra short term funds, which is much more than INR 12,800 offered by a savings account.
Top 6 Ultra Short Term Funds for Investments in India FY 25 - 26
The primary objective of the schemes is to generate regular income through investments in debt and money market instruments. Income maybe generated through the receipt of coupon payments or the purchase and sale of securities in the underlying portfolio. The schemes will under normal market conditions, invest its net assets in fixed income securities, money market instruments, cash and cash equivalents. Research Highlights for Aditya Birla Sun Life Savings Fund Below is the key information for Aditya Birla Sun Life Savings Fund Returns up to 1 year are on (Erstwhile ICICI Prudential Regular Income Fund) The fund’s objective is to generate regular income through investments primarily in debt and money market instruments. As a secondary objective, the Scheme also seeks to generate long term capital appreciation from the portion of equity investments under the Scheme. Research Highlights for ICICI Prudential Ultra Short Term Fund Below is the key information for ICICI Prudential Ultra Short Term Fund Returns up to 1 year are on (Erstwhile SBI Magnum InstaCash Fund) To provide the investors an opportunity to earn returns through investment in
debt & money market securities, while having the benefit of a very high degree of liquidity. Research Highlights for SBI Magnum Ultra Short Duration Fund Below is the key information for SBI Magnum Ultra Short Duration Fund Returns up to 1 year are on (Erstwhile Invesco India Medium Term Bond Fund) The objective is to generate regular income and capital appreciation by investing in a portfolio of medium term debt and money market instruments. Research Highlights for Invesco India Ultra Short Term Fund Below is the key information for Invesco India Ultra Short Term Fund Returns up to 1 year are on (Erstwhile Kotak Treasury Advantage Fund) The investment objective of the Scheme is to generate returns through investments in debt and money market instruments with a view to reduce the interest rate risk. However, there is no assurance or guarantee that the investment objective of the scheme will be achieved. Research Highlights for Kotak Savings Fund Below is the key information for Kotak Savings Fund Returns up to 1 year are on (Erstwhile Reliance Liquid Fund - Cash Plan) The investment objective of the Scheme is to generate optimal returns consistent with moderate levels of risk and high liquidity. Accordingly, investments shall predominantly be made in Debt and Money Market Instruments. Research Highlights for Nippon India Ultra Short Duration Fund Below is the key information for Nippon India Ultra Short Duration Fund Returns up to 1 year are on Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2024 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity Aditya Birla Sun Life Savings Fund Growth ₹558.157
↑ 0.26 ₹21,521 1.5 3.6 7.8 7.5 7.9 6.76% 5M 8D 6M 11D ICICI Prudential Ultra Short Term Fund Growth ₹28.1783
↑ 0.01 ₹16,980 1.5 3.5 7.4 7.2 7.5 6.66% 4M 20D 7M 2D SBI Magnum Ultra Short Duration Fund Growth ₹6,074.49
↑ 2.91 ₹15,525 1.5 3.4 7.3 7.2 7.4 6.22% 5M 8D 6M Invesco India Ultra Short Term Fund Growth ₹2,740.84
↑ 1.23 ₹1,330 1.4 3.3 7.2 7 7.5 6.35% 5M 16D 5M 28D Kotak Savings Fund Growth ₹43.5693
↑ 0.02 ₹15,667 1.4 3.3 7.1 7 7.2 6.41% 5M 8D 5M 23D Nippon India Ultra Short Duration Fund Growth ₹4,094.02
↑ 2.02 ₹11,076 1.4 3.3 7.1 6.9 7.2 6.72% 5M 12D 8M 1D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 3 Oct 25 Research Highlights & Commentary of 6 Funds showcased
Commentary Aditya Birla Sun Life Savings Fund ICICI Prudential Ultra Short Term Fund SBI Magnum Ultra Short Duration Fund Invesco India Ultra Short Term Fund Kotak Savings Fund Nippon India Ultra Short Duration Fund Point 1 Highest AUM (₹21,521 Cr). Upper mid AUM (₹16,980 Cr). Lower mid AUM (₹15,525 Cr). Bottom quartile AUM (₹1,330 Cr). Upper mid AUM (₹15,667 Cr). Bottom quartile AUM (₹11,076 Cr). Point 2 Established history (22+ yrs). Established history (14+ yrs). Oldest track record among peers (26 yrs). Established history (14+ yrs). Established history (21+ yrs). Established history (23+ yrs). Point 3 Top rated. Rating: 3★ (upper mid). Rating: 3★ (upper mid). Rating: 3★ (lower mid). Rating: 3★ (bottom quartile). Rating: 2★ (bottom quartile). Point 4 Risk profile: Moderately Low. Risk profile: Moderate. Risk profile: Low. Risk profile: Moderate. Risk profile: Moderately Low. Risk profile: Low. Point 5 1Y return: 7.84% (top quartile). 1Y return: 7.40% (upper mid). 1Y return: 7.26% (upper mid). 1Y return: 7.19% (lower mid). 1Y return: 7.10% (bottom quartile). 1Y return: 7.10% (bottom quartile). Point 6 1M return: 0.56% (upper mid). 1M return: 0.56% (top quartile). 1M return: 0.55% (upper mid). 1M return: 0.51% (bottom quartile). 1M return: 0.53% (lower mid). 1M return: 0.53% (bottom quartile). Point 7 Sharpe: 3.66 (top quartile). Sharpe: 2.88 (upper mid). Sharpe: 2.74 (lower mid). Sharpe: 2.79 (upper mid). Sharpe: 2.02 (bottom quartile). Sharpe: 2.31 (bottom quartile). Point 8 Information ratio: 0.00 (top quartile). Information ratio: 0.00 (upper mid). Information ratio: 0.00 (upper mid). Information ratio: 0.00 (lower mid). Information ratio: 0.00 (bottom quartile). Information ratio: 0.00 (bottom quartile). Point 9 Yield to maturity (debt): 6.76% (top quartile). Yield to maturity (debt): 6.66% (upper mid). Yield to maturity (debt): 6.22% (bottom quartile). Yield to maturity (debt): 6.35% (bottom quartile). Yield to maturity (debt): 6.41% (lower mid). Yield to maturity (debt): 6.72% (upper mid). Point 10 Modified duration: 0.44 yrs (upper mid). Modified duration: 0.39 yrs (top quartile). Modified duration: 0.44 yrs (upper mid). Modified duration: 0.46 yrs (bottom quartile). Modified duration: 0.44 yrs (lower mid). Modified duration: 0.45 yrs (bottom quartile). Aditya Birla Sun Life Savings Fund
ICICI Prudential Ultra Short Term Fund
SBI Magnum Ultra Short Duration Fund
Invesco India Ultra Short Term Fund
Kotak Savings Fund
Nippon India Ultra Short Duration Fund
500 Crore and sorted on last 1 Year Return.
1. Aditya Birla Sun Life Savings Fund
Aditya Birla Sun Life Savings Fund
Growth Launch Date 16 Apr 03 NAV (03 Oct 25) ₹558.157 ↑ 0.26 (0.05 %) Net Assets (Cr) ₹21,521 on 31 Aug 25 Category Debt - Ultrashort Bond AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆☆☆ Risk Moderately Low Expense Ratio 0.55 Sharpe Ratio 3.66 Information Ratio 0 Alpha Ratio 0 Min Investment 1,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 6.76% Effective Maturity 6 Months 11 Days Modified Duration 5 Months 8 Days Growth of 10,000 investment over the years.
Date Value 30 Sep 20 ₹10,000 30 Sep 21 ₹10,435 30 Sep 22 ₹10,856 30 Sep 23 ₹11,624 30 Sep 24 ₹12,503 30 Sep 25 ₹13,481 Returns for Aditya Birla Sun Life Savings Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 3 Oct 25 Duration Returns 1 Month 0.6% 3 Month 1.5% 6 Month 3.6% 1 Year 7.8% 3 Year 7.5% 5 Year 6.2% 10 Year 15 Year Since launch 7.4% Historical performance (Yearly) on absolute basis
Year Returns 2024 7.9% 2023 7.2% 2022 4.8% 2021 3.9% 2020 7% 2019 8.5% 2018 7.6% 2017 7.2% 2016 9.2% 2015 8.9% Fund Manager information for Aditya Birla Sun Life Savings Fund
Name Since Tenure Sunaina Cunha 20 Jun 14 11.21 Yr. Kaustubh Gupta 15 Jul 11 14.14 Yr. Monika Gandhi 22 Mar 21 4.45 Yr. Data below for Aditya Birla Sun Life Savings Fund as on 31 Aug 25
Asset Allocation
Asset Class Value Cash 43.9% Debt 55.85% Other 0.25% Debt Sector Allocation
Sector Value Corporate 58.06% Cash Equivalent 25.58% Government 16.11% Credit Quality
Rating Value AA 30.25% AAA 69.75% Top Securities Holdings / Portfolio
Name Holding Value Quantity Shriram Finance Limited
Debentures | -3% ₹614 Cr 60,000 Nirma Limited
Debentures | -2% ₹487 Cr 48,500 07.22 GJ Sdl 2028
Sovereign Bonds | -2% ₹377 Cr 37,500,000 Mankind Pharma Limited
Debentures | -2% ₹348 Cr 34,500 National Bank For Agriculture And Rural Development
Debentures | -2% ₹341 Cr 3,400
↑ 250 Bharti Telecom Limited
Debentures | -1% ₹321 Cr 3,200 Avanse Financial Services Limited
Debentures | -1% ₹301 Cr 30,000 Power Finance Corporation Limited
Debentures | -1% ₹298 Cr 30,000 ICICI Home Finance Company Limited
Debentures | -1% ₹271 Cr 27,000 Bharti Telecom Limited
Debentures | -1% ₹261 Cr 2,600 2. ICICI Prudential Ultra Short Term Fund
ICICI Prudential Ultra Short Term Fund
Growth Launch Date 3 May 11 NAV (03 Oct 25) ₹28.1783 ↑ 0.01 (0.05 %) Net Assets (Cr) ₹16,980 on 15 Sep 25 Category Debt - Ultrashort Bond AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆ Risk Moderate Expense Ratio 0.8 Sharpe Ratio 2.88 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load 0-1 Months (0.5%),1 Months and above(NIL) Yield to Maturity 6.66% Effective Maturity 7 Months 2 Days Modified Duration 4 Months 20 Days Growth of 10,000 investment over the years.
Date Value 30 Sep 20 ₹10,000 30 Sep 21 ₹10,444 30 Sep 22 ₹10,848 30 Sep 23 ₹11,587 30 Sep 24 ₹12,439 30 Sep 25 ₹13,356 Returns for ICICI Prudential Ultra Short Term Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 3 Oct 25 Duration Returns 1 Month 0.6% 3 Month 1.5% 6 Month 3.5% 1 Year 7.4% 3 Year 7.2% 5 Year 6% 10 Year 15 Year Since launch 7.4% Historical performance (Yearly) on absolute basis
Year Returns 2024 7.5% 2023 6.9% 2022 4.5% 2021 4% 2020 6.5% 2019 8.4% 2018 7.5% 2017 6.9% 2016 9.8% 2015 9.1% Fund Manager information for ICICI Prudential Ultra Short Term Fund
Name Since Tenure Manish Banthia 15 Nov 16 8.8 Yr. Ritesh Lunawat 15 Jun 17 8.22 Yr. Data below for ICICI Prudential Ultra Short Term Fund as on 15 Sep 25
Asset Allocation
Asset Class Value Cash 51.54% Debt 48.19% Other 0.27% Debt Sector Allocation
Sector Value Corporate 52.58% Cash Equivalent 28.33% Government 16.18% Securitized 2.65% Credit Quality
Rating Value AA 18.31% AAA 81.69% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.11% Govt Stock 2028
Sovereign Bonds | -4% ₹731 Cr 72,318,200
↓ -10,181,800 LIC Housing Finance Ltd
Debentures | -4% ₹602 Cr 6,000 National Bank For Agriculture And Rural Development
Debentures | -3% ₹579 Cr 57,500 Radhakrishna Securitization Trust **
Unlisted bonds | -3% ₹450 Cr 450
↑ 450 National Bank For Agriculture And Rural Development
Debentures | -2% ₹376 Cr 3,750 Small Industries Development Bank Of India
Debentures | -2% ₹352 Cr 35,000
↑ 10,000 Vedanta Limited
Debentures | -2% ₹300 Cr 30,000 Piramal Finance Limited
Debentures | -2% ₹276 Cr 27,500 Larsen And Toubro Limited
Debentures | -1% ₹250 Cr 25,000 LIC Housing Finance Ltd
Debentures | -1% ₹226 Cr 2,250 3. SBI Magnum Ultra Short Duration Fund
SBI Magnum Ultra Short Duration Fund
Growth Launch Date 21 May 99 NAV (03 Oct 25) ₹6,074.49 ↑ 2.91 (0.05 %) Net Assets (Cr) ₹15,525 on 31 Aug 25 Category Debt - Ultrashort Bond AMC SBI Funds Management Private Limited Rating ☆☆☆ Risk Low Expense Ratio 0.54 Sharpe Ratio 2.74 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 6.22% Effective Maturity 6 Months Modified Duration 5 Months 8 Days Growth of 10,000 investment over the years.
Date Value 30 Sep 20 ₹10,000 30 Sep 21 ₹10,360 30 Sep 22 ₹10,744 30 Sep 23 ₹11,479 30 Sep 24 ₹12,323 30 Sep 25 ₹13,216 Returns for SBI Magnum Ultra Short Duration Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 3 Oct 25 Duration Returns 1 Month 0.5% 3 Month 1.5% 6 Month 3.4% 1 Year 7.3% 3 Year 7.2% 5 Year 5.7% 10 Year 15 Year Since launch 7.1% Historical performance (Yearly) on absolute basis
Year Returns 2024 7.4% 2023 7% 2022 4.5% 2021 3.4% 2020 5.9% 2019 8% 2018 7.9% 2017 6.6% 2016 7.7% 2015 8.3% Fund Manager information for SBI Magnum Ultra Short Duration Fund
Name Since Tenure Sudhir Agrawal 15 May 25 0.3 Yr. Data below for SBI Magnum Ultra Short Duration Fund as on 31 Aug 25
Asset Allocation
Asset Class Value Cash 54.71% Debt 44.99% Other 0.3% Debt Sector Allocation
Sector Value Corporate 51.81% Cash Equivalent 25.63% Government 19.97% Securitized 2.29% Credit Quality
Rating Value AA 3.68% AAA 96.32% Top Securities Holdings / Portfolio
Name Holding Value Quantity Rec Limited
Debentures | -4% ₹694 Cr 6,950 5.63% Govt Stock 2026
Sovereign Bonds | -4% ₹685 Cr 68,500,000 National Bank For Agriculture And Rural Development
Debentures | -3% ₹516 Cr 5,150 HDFC Bank Ltd.
Debentures | -3% ₹484 Cr 10,000 Bharti Telecom Limited
Debentures | -2% ₹371 Cr 3,700 Radhakrishna Securitisation Trust (Obligor - Digital Fibre Infrastructure T
Unlisted bonds | -2% ₹355 Cr 355
↑ 355 Ntpc Limited
Debentures | -2% ₹349 Cr 34,800 National Bank For Agriculture And Rural Development
Debentures | -2% ₹296 Cr 29,500 Bank of Baroda
Debentures | -2% ₹292 Cr 6,000 Citicorp Finance (India) Limited
Debentures | -2% ₹250 Cr 25,000 4. Invesco India Ultra Short Term Fund
Invesco India Ultra Short Term Fund
Growth Launch Date 30 Dec 10 NAV (03 Oct 25) ₹2,740.84 ↑ 1.23 (0.04 %) Net Assets (Cr) ₹1,330 on 31 Aug 25 Category Debt - Ultrashort Bond AMC Invesco Asset Management (India) Private Ltd Rating ☆☆☆ Risk Moderate Expense Ratio 0.74 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 6.35% Effective Maturity 5 Months 28 Days Modified Duration 5 Months 16 Days Growth of 10,000 investment over the years.
Date Value 30 Sep 20 ₹10,000 30 Sep 21 ₹10,320 30 Sep 22 ₹10,666 30 Sep 23 ₹11,360 30 Sep 24 ₹12,191 30 Sep 25 ₹13,066 Returns for Invesco India Ultra Short Term Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 3 Oct 25 Duration Returns 1 Month 0.5% 3 Month 1.4% 6 Month 3.3% 1 Year 7.2% 3 Year 7% 5 Year 5.5% 10 Year 15 Year Since launch 7.1% Historical performance (Yearly) on absolute basis
Year Returns 2024 7.5% 2023 6.6% 2022 4.1% 2021 3% 2020 5.1% 2019 7.6% 2018 7.3% 2017 7.1% 2016 9.1% 2015 8.3% Fund Manager information for Invesco India Ultra Short Term Fund
Name Since Tenure Krishna Cheemalapati 4 Jan 20 5.66 Yr. Vikas Garg 27 Jul 21 4.1 Yr. Data below for Invesco India Ultra Short Term Fund as on 31 Aug 25
Asset Allocation
Asset Class Value Cash 47.44% Debt 52.25% Other 0.31% Debt Sector Allocation
Sector Value Corporate 52.83% Cash Equivalent 35.15% Government 11.72% Credit Quality
Rating Value AA 19.13% AAA 80.87% Top Securities Holdings / Portfolio
Name Holding Value Quantity Bank of Baroda
Debentures | -6% ₹73 Cr 7,500,000 Small Industries Development Bank Of India
Debentures | -4% ₹50 Cr 5,000,000 91 Days Tbill Red 30-10-2025
Sovereign Bonds | -4% ₹50 Cr 5,000,000 India (Republic of)
- | -4% ₹50 Cr 5,000,000 Summit Digitel Infrastructure Limited
Debentures | -3% ₹40 Cr 4,000,000 Sundaram Home Finance Limited
Debentures | -3% ₹35 Cr 3,500,000 Power Finance Corporation Limited
Debentures | -2% ₹25 Cr 2,500,000 National Bank For Agriculture And Rural Development
Debentures | -2% ₹25 Cr 2,500,000 National Bank For Agriculture And Rural Development
Debentures | -2% ₹25 Cr 2,500,000 ICICI Home Finance Company Limited
Debentures | -2% ₹25 Cr 2,500,000 5. Kotak Savings Fund
Kotak Savings Fund
Growth Launch Date 13 Aug 04 NAV (03 Oct 25) ₹43.5693 ↑ 0.02 (0.05 %) Net Assets (Cr) ₹15,667 on 31 Aug 25 Category Debt - Ultrashort Bond AMC Kotak Mahindra Asset Management Co Ltd Rating ☆☆☆ Risk Moderately Low Expense Ratio 0.81 Sharpe Ratio 2.02 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 6.41% Effective Maturity 5 Months 23 Days Modified Duration 5 Months 8 Days Growth of 10,000 investment over the years.
Date Value 30 Sep 20 ₹10,000 30 Sep 21 ₹10,347 30 Sep 22 ₹10,731 30 Sep 23 ₹11,454 30 Sep 24 ₹12,268 30 Sep 25 ₹13,137 Returns for Kotak Savings Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 3 Oct 25 Duration Returns 1 Month 0.5% 3 Month 1.4% 6 Month 3.3% 1 Year 7.1% 3 Year 7% 5 Year 5.6% 10 Year 15 Year Since launch 7.2% Historical performance (Yearly) on absolute basis
Year Returns 2024 7.2% 2023 6.8% 2022 4.5% 2021 3.2% 2020 5.8% 2019 7.8% 2018 7.4% 2017 6.7% 2016 8.2% 2015 8.6% Fund Manager information for Kotak Savings Fund
Name Since Tenure Deepak Agrawal 15 Apr 08 17.39 Yr. Manu Sharma 1 Nov 22 2.84 Yr. Data below for Kotak Savings Fund as on 31 Aug 25
Asset Allocation
Asset Class Value Cash 54.37% Debt 45.35% Other 0.29% Debt Sector Allocation
Sector Value Corporate 54.98% Cash Equivalent 26.27% Government 17.11% Securitized 1.35% Credit Quality
Rating Value AA 9.45% AAA 90.55% Top Securities Holdings / Portfolio
Name Holding Value Quantity 8.2% Govt Stock 2025
Sovereign Bonds | -5% ₹800 Cr 80,000,000 National Bank For Agriculture And Rural Development
Debentures | -4% ₹688 Cr 68,500 Bajaj Housing Finance Limited
Debentures | -4% ₹645 Cr 6,420 National Bank For Agriculture And Rural Development
Debentures | -3% ₹482 Cr 47,500 Rec Limited
Debentures | -3% ₹477 Cr 47,500 Mankind Pharma Limited
Debentures | -2% ₹302 Cr 30,000 364 DTB 19mar2026
Sovereign Bonds | -2% ₹243 Cr 25,000,000 364 Days Tbill Red 28-05-2026
Sovereign Bonds | -2% ₹241 Cr 25,000,000 Bharti Telecom Limited
Debentures | -1% ₹226 Cr 2,250 Ptc Radhakrishna Securitisation Trust 28/09/2028(Radhakrishna Trust)** So
Unlisted bonds | -1% ₹210 Cr 210
↑ 210 6. Nippon India Ultra Short Duration Fund
Nippon India Ultra Short Duration Fund
Growth Launch Date 7 Dec 01 NAV (03 Oct 25) ₹4,094.02 ↑ 2.02 (0.05 %) Net Assets (Cr) ₹11,076 on 31 Aug 25 Category Debt - Ultrashort Bond AMC Nippon Life Asset Management Ltd. Rating ☆☆ Risk Low Expense Ratio 1.12 Sharpe Ratio 2.31 Information Ratio 0 Alpha Ratio 0 Min Investment 100 Min SIP Investment 100 Exit Load NIL Yield to Maturity 6.72% Effective Maturity 8 Months 1 Day Modified Duration 5 Months 12 Days Growth of 10,000 investment over the years.
Date Value 30 Sep 20 ₹10,000 30 Sep 21 ₹10,852 30 Sep 22 ₹11,286 30 Sep 23 ₹12,030 30 Sep 24 ₹12,884 30 Sep 25 ₹13,797 Returns for Nippon India Ultra Short Duration Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 3 Oct 25 Duration Returns 1 Month 0.5% 3 Month 1.4% 6 Month 3.3% 1 Year 7.1% 3 Year 6.9% 5 Year 6.7% 10 Year 15 Year Since launch 6.1% Historical performance (Yearly) on absolute basis
Year Returns 2024 7.2% 2023 6.7% 2022 4.6% 2021 7.8% 2020 4.9% 2019 0.9% 2018 7.3% 2017 5.8% 2016 6.8% 2015 7.6% Fund Manager information for Nippon India Ultra Short Duration Fund
Name Since Tenure Vivek Sharma 1 Oct 13 11.93 Yr. Kinjal Desai 25 May 18 7.28 Yr. Akshay Sharma 1 Dec 22 2.75 Yr. Data below for Nippon India Ultra Short Duration Fund as on 31 Aug 25
Asset Allocation
Asset Class Value Cash 43.92% Debt 55.84% Other 0.24% Debt Sector Allocation
Sector Value Corporate 67.02% Cash Equivalent 19.97% Government 12.76% Credit Quality
Rating Value AA 18.36% AAA 81.64% Top Securities Holdings / Portfolio
Name Holding Value Quantity National Bank For Agriculture And Rural Development
Debentures | -4% ₹487 Cr 48,500 Power Finance Corporation Limited
Debentures | -3% ₹352 Cr 35,000 Small Industries Development Bank Of India
Debentures | -2% ₹276 Cr 2,750 Vedanta Limited
Debentures | -2% ₹241 Cr 24,000 TATA Communications Limited
Debentures | -2% ₹227 Cr 22,500 National Bank For Agriculture And Rural Development
Debentures | -2% ₹201 Cr 20,000 182 Days Tbill
Sovereign Bonds | -2% ₹200 Cr 20,000,000 India (Republic of)
- | -2% ₹198 Cr 20,000,000 364 DTB 27112025
Sovereign Bonds | -2% ₹198 Cr 20,000,000 L&T Metro Rail (Hyderabad) Limited
Debentures | -2% ₹195 Cr 1,950
↑ 700
Features Of Ultra Short Term Funds
Fund Type: Open-ended
Fund Category: Debt fund
Minimum Amount: INR 5,000 - 10,000
Risk Involved: Low -risk
Redemption: T+1, meaning that if you register the Redemption request before 3 PM, you shall get the redemption amount after a day. However, if the redemption request is sent after 3 PM, the redemption request shall be processed day after.
Things to Consider as an Investor
1. Risk
Unlike other debt funds, the ultra-short term funds are somewhat immune to interest rate risks because of the short maturity of their Underlying assets. However, as compared to liquid funds, these funds are pretty risky. The investment strategy of the fund manager may introduce credit risk when he incorporates low-credit rated securities in the expectation of an upgrade in future. Moreover, the introduction of government securities may increase the volatility of the fund more than expected.
2. Return
An investor can expect returns of around 7-9% from this fund in a stable interest rate environment. This return is moderately higher than what a liquid fund offers. However, even though these funds are fixed-income havens, they may not offer guaranteed returns. You need to look at Yield to Maturity (ytm) to understand what to expect with the investments at the time of investment.
3. Cost
Ultra short-term funds charge a fee to manage your money called an expense ratio. Till now the Securities and Exchange Board of India (SEBI) had mandated the upper limit of expense ratio to be 2.25% (might change time to time). Considering the overall returns generated by these funds as compared to liquid funds, a long-term holding period and lower expense ratio would help in recovering the money gone out by way of interest rate fluctuations.
4. Investment Horizon
Ultra short-term funds earn from the coupon of short-term instruments. The prices of these securities may change on a day-to-day Basis and have a relatively longer maturity. These are much more volatile than liquid funds and a short time frame may seem inadequate to generate sufficient returns. As compared to liquid funds, you need to hold these funds for comparatively longer horizon owing to a higher average maturity of the underlying securities.
5. Financial Goals
You may use these funds for a variety of purposes. If you need to park money for a period of 3 months to a year, then these funds may come handy. Additionally, you may want these to transfer your funds to a riskier haven like Equity Funds. Put a lump sum in these funds and initiate a Systematic Transfer Plan (STP) to equity funds. You may look at them as an additional haven to be used as an emergency fund. If you need monthly income, then invest a portion of your superannuation Portfolio in these and initiate a systematic withdrawal plan (SWP).
6. Taxation
Dividends of ultra short term funds in India are tax-free in the hands of the investor. The AMC deducts a Dividend Distribution Tax (DDT) on behalf of the investor before it sends the dividend to the investor. If the investor has invested in a growth fund and redeemed his/her investment within 1 year, he/she may have to pay Short Term Capital Gains Tax (STCG).
How to Invest in Ultra Short Term 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
In today’s time, people face financial insecurities every now and then. In such a case, smart investments made in mutual funds help. Ultra short term funds are one such Smart investment that offers good returns to investors in order to manage financial insecurities. So, invest in the best ultra short term funds today!
The way to wealth is easy, spend less than you earn and INVEST the difference wisely!
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well explained and got to know which one i need to pick it p
Get deep insight of the funds. Better than moneycontrol and valuereserach sort of sites.
Very good information
Presentation is very good