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6 Best Performing Ultra Short Term Mutual Funds 2019 - 2020

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6 Best Ultra Short Term Mutual Funds 2019 - 2020

Updated on January 17, 2019 , 4345 views

Best 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, some of the best Ultra Short Term Mutual Funds have a residual maturity ranging from 6 months to 1 year.

Ultra Short Bond Funds are one of the best short term investments that offer good returns with very less market volatility. The investors who are looking for better returns than Liquid Funds should prefer Investing in Ultra Short Term Mutual Funds, as the returns of these funds are better than that of Liquid Mutual funds. Ultra Short Term fund are for investors who seek to invest money for say a month to a couple of months.

But before investing in Ultra Short Funds it is important to look for best Ultra Short Term Funds as per the current scenario. For the financial year 2019-2020, we have listed best Ultra Short Term Funds below, take a look.

Best-ultra-short-funds

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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 over Mutual Funds like Ultra Short Term Funds that offer good returns with very less volatility. So, we have illustrated an example below to analyse the returns of both savings account and Ultra Short Funds to understand which is a better investment.

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 19 - 20

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)2017 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
Franklin India Ultra Short Bond Fund - Super Institutional Plan Growth ₹25.7839
↑ 0.01
₹14,7002.94.898.98.70%6M 17D
Aditya Birla Sun Life Savings Fund Growth ₹362.913
↑ 0.07
₹14,9492.44.27.98.17.68.4%5M 8D6M 4D
Indiabulls Ultra Short Term Fund Growth ₹1,782.82
↑ 0.42
₹5562.13.67.37.77.18.2%4M 13D
UTI Ultra Short Term Fund Growth ₹2,986.1
↑ 0.22
₹5,0772.13.77.17.579.49%4M 16D7M 8D
SBI Magnum Ultra Short Duration Fund Growth ₹4,078.35
↑ 0.97
₹4,4192.34.28.17.47.97.97%3M 7D3M 14D
Kotak Savings Fund Growth ₹29.4717
↑ 0.01
₹6,8882.33.97.67.57.48.4%5M 12D5M 26D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 18 Jan 19

1. Franklin India Ultra Short Bond Fund - Super Institutional Plan

To provide a combination of regular income and high liquidity by investing primarily in a mix of short term debt and money market instruments.

Franklin India Ultra Short Bond Fund - Super Institutional Plan is a Debt - Ultrashort Bond fund was launched on 18 Dec 07. It is a fund with Moderate risk and has given a CAGR/Annualized return of 8.9% since its launch.  Return for 2018 was 8.7% , 2017 was 8.2% and 2016 was 9.7% .

Below is the key information for Franklin India Ultra Short Bond Fund - Super Institutional Plan

Franklin India Ultra Short Bond Fund - Super Institutional Plan
Growth
Launch Date 18 Dec 07
NAV (18 Jan 19) ₹25.7839 ↑ 0.01   (0.02 %)
Net Assets (Cr) ₹14,700 on 30 Nov 18
Category Debt - Ultrashort Bond
AMC Franklin Templeton Asst Mgmt(IND)Pvt Ltd
Rating
Risk Moderate
Expense Ratio 0.37
Sharpe Ratio 6.68
Information Ratio 3.32
Alpha Ratio -4.48
Min Investment 10,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 0%
Effective Maturity 6 Months 17 Days
Modified Duration

Growth of 10,000 investment over the years.

DateValue
31 Dec 13₹10,000
31 Dec 14₹11,000
31 Dec 15₹12,072
31 Dec 16₹13,240
31 Dec 17₹14,327
31 Dec 18₹15,578

Franklin India Ultra Short Bond Fund - Super Institutional Plan SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹209,201.
Net Profit of ₹29,201
Invest Now

Returns for Franklin India Ultra Short Bond Fund - Super Institutional Plan

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 18 Jan 19

DurationReturns
1 Month 1%
3 Month 2.9%
6 Month 4.8%
1 Year 9%
3 Year 8.9%
5 Year 9.3%
10 Year
15 Year
Since launch 8.9%
Historical performance (Yearly) on absolute basis
YearReturns
2017 8.7%
2016 8.2%
2015 9.7%
2014 9.7%
2013 10%
2012 10%
2011 10.3%
2010 9.4%
2009 5.9%
2008 6.1%
Fund Manager information for Franklin India Ultra Short Bond Fund - Super Institutional Plan
NameSinceTenure
Santosh Kamath25 Oct 180.02 Yr.
Pallab Roy1 Jun 0810.42 Yr.

Data below for Franklin India Ultra Short Bond Fund - Super Institutional Plan as on 30 Nov 18

Asset Allocation
Asset ClassValue
Cash17.61%
Debt77.46%
Other4.93%
Debt Sector Allocation
SectorValue
Corporate84.57%
Cash Equivalent7.92%
Government2.58%
Credit Quality
RatingValue
A43.34%
AA36%
AAA20.66%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Call, Cash & Other Assets
Receivables | -
5%₹742 Cr
Renew Power Ventures Private Limited
Debentures | -
4%₹673 Cr6,740
Vodafone Mobile Services Limited
Debentures | -
4%₹618 Cr6,410
↑ 350
Adani Infra (India) Limited
Debentures | -
4%₹538 Cr500
Aditya Birla Retail Limited
Debentures | -
3%₹496 Cr400
Indostar Capital Finance Limited
Debentures | -
3%₹440 Cr4,400
EDELWEISS COMMODITIES SERVICES LIMITED
Debentures | -
2%₹375 Cr7,500
↑ 7,500
Piramal Realty Private Limited
Debentures | -
2%₹351 Cr3,500
INDIAN OIL CORPORATION LIMITED
Commercial Paper | -
2%₹349 Cr7,000
↑ 7,000
Aasan Developers & Constructions Private Limited
Debentures | -
2%₹346 Cr3,450

2. Aditya Birla Sun Life Savings Fund

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.

Aditya Birla Sun Life Savings Fund is a Debt - Ultrashort Bond fund was launched on 16 Apr 03. It is a fund with Moderately Low risk and has given a CAGR/Annualized return of 7.8% since its launch.  Ranked 6 in Ultrashort Bond category.  Return for 2018 was 7.6% , 2017 was 7.2% and 2016 was 9.2% .

Below is the key information for Aditya Birla Sun Life Savings Fund

Aditya Birla Sun Life Savings Fund
Growth
Launch Date 16 Apr 03
NAV (18 Jan 19) ₹362.913 ↑ 0.07   (0.02 %)
Net Assets (Cr) ₹14,949 on 30 Nov 18
Category Debt - Ultrashort Bond
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk Moderately Low
Expense Ratio 0.35
Sharpe Ratio 5.49
Information Ratio 0.77
Alpha Ratio 2.73
Min Investment 1,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 8.4%
Effective Maturity 6 Months 4 Days
Modified Duration 5 Months 8 Days

Growth of 10,000 investment over the years.

DateValue
31 Dec 13₹10,000
31 Dec 14₹10,966
31 Dec 15₹11,941
31 Dec 16₹13,044
31 Dec 17₹13,982
31 Dec 18₹15,049

Aditya Birla Sun Life Savings Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹206,148.
Net Profit of ₹26,148
Invest Now

Returns for Aditya Birla Sun Life Savings Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 18 Jan 19

DurationReturns
1 Month 0.9%
3 Month 2.4%
6 Month 4.2%
1 Year 7.9%
3 Year 8.1%
5 Year 8.5%
10 Year
15 Year
Since launch 7.8%
Historical performance (Yearly) on absolute basis
YearReturns
2017 7.6%
2016 7.2%
2015 9.2%
2014 8.9%
2013 9.7%
2012 9.5%
2011 9.7%
2010 9.2%
2009 5.8%
2008 5.8%
Fund Manager information for Aditya Birla Sun Life Savings Fund
NameSinceTenure
Sunaina Cunha11 Oct 144.06 Yr.
Kaustubh Gupta15 Jul 117.3 Yr.

Data below for Aditya Birla Sun Life Savings Fund as on 30 Nov 18

Asset Allocation
Asset ClassValue
Cash34.86%
Debt61.79%
Other3.35%
Debt Sector Allocation
SectorValue
Corporate54.49%
Cash Equivalent31.11%
Government6.86%
Securitized4.2%
Credit Quality
RatingValue
AA31.61%
AAA68.39%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Vodafone Mobile Services Limited
Debentures | -
5%₹687 Cr6,950
L & T INFRASTRUCTURE FINANCE COMPANY LIMITED
Commercial Paper | -
3%₹483 Cr10,000
↑ 10,000
Net Receivables / (Payables)
Receivables | -
3%₹469 Cr
ONGC Petro Additions Limited
Debentures | -
3%₹461 Cr460
Indiabulls Infraestates Ltd
Debentures | -
3%₹442 Cr4,420
↑ 4,140
Adani Infra (India) Limited
Debentures | -
3%₹378 Cr350
↑ 350
INDUSIND BANK LIMITED
Certificate of Deposit | -
3%₹364 Cr37,500
↑ 37,500
NRSS XXIX TRANSMISSION LIMITED
Debentures | -
3%₹351 Cr3,500
Parimal Finance Private Limited
Debentures | -
2%₹349 Cr3,500
INDUSIND BANK LIMITED
Certificate of Deposit | -
2%₹338 Cr35,000
↑ 25,000

3. Indiabulls Ultra Short Term Fund

To provide liquidity with returns commensurate with low risk through a portfolio of money market and debt securities. However, there can be no assurance that the investment objective of the scheme will be achieved.

Indiabulls Ultra Short Term Fund is a Debt - Ultrashort Bond fund was launched on 6 Jan 12. It is a fund with Moderately Low risk and has given a CAGR/Annualized return of 8.6% since its launch.  Ranked 17 in Ultrashort Bond category.  Return for 2018 was 7.1% , 2017 was 6.9% and 2016 was 8.8% .

Below is the key information for Indiabulls Ultra Short Term Fund

Indiabulls Ultra Short Term Fund
Growth
Launch Date 6 Jan 12
NAV (18 Jan 19) ₹1,782.82 ↑ 0.42   (0.02 %)
Net Assets (Cr) ₹556 on 30 Nov 18
Category Debt - Ultrashort Bond
AMC Indiabulls Asset Management Company Ltd.
Rating
Risk Moderately Low
Expense Ratio 0.71
Sharpe Ratio 8.85
Information Ratio 0.8
Alpha Ratio -0.91
Min Investment 500
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 8.2%
Effective Maturity 4 Months 13 Days
Modified Duration

Growth of 10,000 investment over the years.

DateValue
31 Dec 13₹10,000
31 Dec 14₹10,928
31 Dec 15₹11,893
31 Dec 16₹12,945
31 Dec 17₹13,840
31 Dec 18₹14,825

Indiabulls Ultra Short Term Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹206,148.
Net Profit of ₹26,148
Invest Now

Returns for Indiabulls Ultra Short Term Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 18 Jan 19

DurationReturns
1 Month 0.8%
3 Month 2.1%
6 Month 3.6%
1 Year 7.3%
3 Year 7.7%
5 Year 8.2%
10 Year
15 Year
Since launch 8.6%
Historical performance (Yearly) on absolute basis
YearReturns
2017 7.1%
2016 6.9%
2015 8.8%
2014 8.8%
2013 9.3%
2012 8.8%
2011
2010
2009
2008
Fund Manager information for Indiabulls Ultra Short Term Fund
NameSinceTenure
Malay Shah22 Aug 144.36 Yr.

Data below for Indiabulls Ultra Short Term Fund as on 30 Nov 18

Asset Allocation
Asset ClassValue
Cash68.75%
Debt29.35%
Other1.9%
Debt Sector Allocation
SectorValue
Corporate59.17%
Cash Equivalent38.93%
Credit Quality
RatingValue
AA9.28%
AAA90.72%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Indiabulls Housing Finance Limited
Debentures | -
9%₹50 Cr5,000,000
TALWANDI SABO POWER LTD
Debentures | -
9%₹50 Cr5,000,000
Cholamandalam Investment And Fin. Co. Ltd
Commercial Paper | -
9%₹49 Cr5,000,000
↑ 5,000,000
Dewan Housing Finance Corporation Limited
Debentures | -
6%₹33 Cr2,050,000
AXIS BANK LIMITED
Certificate of Deposit | -
5%₹30 Cr3,000,000
↑ 3,000,000
Small Industries Development Bank Of India
Certificate of Deposit | -
5%₹25 Cr2,620,000
↑ 2,620,000
Shapoorji Pallonji & Company Limited
Commercial Paper | -
5%₹25 Cr2,500,000
BHARTI AIRTEL LIMITED
Commercial Paper | -
4%₹25 Cr2,500,000
Edelweiss Commodities Services Limited
Commercial Paper | -
4%₹25 Cr2,500,000
↑ 2,500,000
HDB Financial Services Limited
Commercial Paper | -
4%₹25 Cr2,500,000
↑ 2,500,000

4. UTI Ultra Short Term Fund

(Erstwhile UTI - Floating Rate Fund - Short Term Plan)

To generate regular income through investment in a portfolio comprising substantially of floating rate debt / money market instruments, fixed rate debt / money market instruments swapped for floating rate returns. The Scheme may also invest a portion of its net assets in fixed rate debt securities and money market instruments .However there can be no assurance that the investment objective of the Scheme will be achieved. The Scheme does not guarantee / indicate any returns.

UTI Ultra Short Term Fund is a Debt - Ultrashort Bond fund was launched on 29 Aug 03. It is a fund with Moderately Low risk and has given a CAGR/Annualized return of 7.4% since its launch.  Ranked 27 in Ultrashort Bond category.  Return for 2018 was 7% , 2017 was 6.6% and 2016 was 8.9% .

Below is the key information for UTI Ultra Short Term Fund

UTI Ultra Short Term Fund
Growth
Launch Date 29 Aug 03
NAV (18 Jan 19) ₹2,986.1 ↑ 0.22   (0.01 %)
Net Assets (Cr) ₹5,077 on 30 Nov 18
Category Debt - Ultrashort Bond
AMC UTI Asset Management Company Ltd
Rating
Risk Moderately Low
Expense Ratio 1.16
Sharpe Ratio 6.87
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 2,500
Exit Load NIL
Yield to Maturity 9.49%
Effective Maturity 7 Months 8 Days
Modified Duration 4 Months 16 Days

Growth of 10,000 investment over the years.

DateValue
31 Dec 13₹10,000
31 Dec 14₹10,884
31 Dec 15₹11,810
31 Dec 16₹12,857
31 Dec 17₹13,712
31 Dec 18₹14,674

UTI Ultra Short Term Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹203,125.
Net Profit of ₹23,125
Invest Now

Returns for UTI Ultra Short Term Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 18 Jan 19

DurationReturns
1 Month 0.7%
3 Month 2.1%
6 Month 3.7%
1 Year 7.1%
3 Year 7.5%
5 Year 8%
10 Year
15 Year
Since launch 7.4%
Historical performance (Yearly) on absolute basis
YearReturns
2017 7%
2016 6.6%
2015 8.9%
2014 8.5%
2013 8.8%
2012 9.8%
2011 9%
2010 8.2%
2009 5.4%
2008 6%
Fund Manager information for UTI Ultra Short Term Fund
NameSinceTenure
Sudhir Agarwal1 Jul 153.34 Yr.
Ritesh Nambiar1 Jul 153.34 Yr.

Data below for UTI Ultra Short Term Fund as on 30 Nov 18

Asset Allocation
Asset ClassValue
Cash61.91%
Debt38.09%
Debt Sector Allocation
SectorValue
Cash Equivalent57.2%
Corporate42.8%
Credit Quality
RatingValue
AA46.51%
AAA53.49%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Net Current Assets
Net Current Assets | -
18%₹920 Cr00
PIRAMAL ENTERPRISES LIMITED
Commercial Paper | -
5%₹247 Cr2,500,000,000
↑ 2,500,000,000
Shriram Transport Finance Company Limited
Debentures | -
5%₹247 Cr2,500
NTPC Limited
Commercial Paper | -
5%₹246 Cr2,500,000,000
↑ 2,500,000,000
Avanse Financial Services Limited
Debentures | -
4%₹234 Cr2,350
Edelweiss Commodities Services Limited
Debentures | -
4%₹200 Cr2,000
Indiabulls Consumer Finance Limited
Debentures | -
4%₹197 Cr2,000,000,000
↑ 2,000,000,000
Business Broadcast News Holdings Limited
Debentures | -
3%₹159 Cr1,500
Shriram Transport Finance Company Limited
Debentures | -
3%₹150 Cr1,500
REC LIMITED
Commercial Paper | -
3%₹146 Cr1,500,000,000
↑ 1,500,000,000

5. SBI Magnum Ultra Short Duration Fund

(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.

SBI Magnum Ultra Short Duration Fund is a Debt - Ultrashort Bond fund was launched on 21 May 99. It is a fund with Low risk and has given a CAGR/Annualized return of 7.4% since its launch.  Return for 2018 was 7.9% , 2017 was 6.6% and 2016 was 7.7% .

Below is the key information for SBI Magnum Ultra Short Duration Fund

SBI Magnum Ultra Short Duration Fund
Growth
Launch Date 21 May 99
NAV (18 Jan 19) ₹4,078.35 ↑ 0.97   (0.02 %)
Net Assets (Cr) ₹4,419 on 30 Nov 18
Category Debt - Ultrashort Bond
AMC SBI Funds Management Private Limited
Rating
Risk Low
Expense Ratio 0.22
Sharpe Ratio 13.15
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment
Exit Load NIL
Yield to Maturity 7.97%
Effective Maturity 3 Months 14 Days
Modified Duration 3 Months 7 Days

Growth of 10,000 investment over the years.

DateValue
31 Dec 13₹10,000
31 Dec 14₹10,903
31 Dec 15₹11,809
31 Dec 16₹12,713
31 Dec 17₹13,553
31 Dec 18₹14,626

SBI Magnum Ultra Short Duration Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹203,125.
Net Profit of ₹23,125
Invest Now

Returns for SBI Magnum Ultra Short Duration Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 18 Jan 19

DurationReturns
1 Month 0.8%
3 Month 2.3%
6 Month 4.2%
1 Year 8.1%
3 Year 7.4%
5 Year 7.9%
10 Year
15 Year
Since launch 7.4%
Historical performance (Yearly) on absolute basis
YearReturns
2017 7.9%
2016 6.6%
2015 7.7%
2014 8.3%
2013 9%
2012 9.3%
2011 9.3%
2010 8.7%
2009 5.4%
2008 4.8%
Fund Manager information for SBI Magnum Ultra Short Duration Fund
NameSinceTenure
Rajeev Radhakrishnan1 May 108.51 Yr.

Data below for SBI Magnum Ultra Short Duration Fund as on 30 Nov 18

Asset Allocation
Asset ClassValue
Cash57.84%
Debt41.43%
Other0.73%
Debt Sector Allocation
SectorValue
Cash Equivalent46.34%
Corporate42.37%
Government10.56%
Credit Quality
RatingValue
AA10.36%
AAA89.64%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
CHOLAMANDALAM INVESTMENT AND FIN. CO. LTD (CHOLAMANDALAM DBS FINANCE LTD)
Commercial Paper | -
6%₹290 Cr6,000
↑ 6,000
Novy MIR Lightweighting Solutions Private Limited
Debentures | -
4%₹211 Cr42
LIC Housing Finance Limited
Debentures | -
4%₹200 Cr2,000
↑ 2,000
National Housing Bank
Debentures | -
4%₹200 Cr2,000
JSW STEEL LIMITED
Commercial Paper | -
4%₹196 Cr4,000
REC LIMITED
Commercial Paper | -
4%₹195 Cr4,000
↑ 4,000
NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Commercial Paper | -
4%₹193 Cr4,000
↑ 4,000
RMZ Infotech Private Limited
Debentures | -
4%₹184 Cr1,750
AXIS BANK LIMITED
Certificate of Deposit | -
3%₹180 Cr19,300
↑ 19,300
Small Industries Development Bank Of India
Debentures | -
3%₹175 Cr1,750

6. Kotak Savings Fund

(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.

Kotak Savings Fund is a Debt - Ultrashort Bond fund was launched on 13 Aug 04. It is a fund with Moderately Low risk and has given a CAGR/Annualized return of 7.8% since its launch.  Ranked 44 in Ultrashort Bond category.  Return for 2018 was 7.4% , 2017 was 6.7% and 2016 was 8.2% .

Below is the key information for Kotak Savings Fund

Kotak Savings Fund
Growth
Launch Date 13 Aug 04
NAV (18 Jan 19) ₹29.4717 ↑ 0.01   (0.02 %)
Net Assets (Cr) ₹6,888 on 30 Nov 18
Category Debt - Ultrashort Bond
AMC Kotak Mahindra Asset Management Co Ltd
Rating
Risk Moderately Low
Expense Ratio 0.39
Sharpe Ratio 6.81
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 8.4%
Effective Maturity 5 Months 26 Days
Modified Duration 5 Months 12 Days

Growth of 10,000 investment over the years.

DateValue
31 Dec 13₹10,000
31 Dec 14₹10,943
31 Dec 15₹11,887
31 Dec 16₹12,858
31 Dec 17₹13,714
31 Dec 18₹14,731

Kotak Savings Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹206,148.
Net Profit of ₹26,148
Invest Now

Returns for Kotak Savings Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 18 Jan 19

DurationReturns
1 Month 0.8%
3 Month 2.3%
6 Month 3.9%
1 Year 7.6%
3 Year 7.5%
5 Year 8.1%
10 Year
15 Year
Since launch 7.8%
Historical performance (Yearly) on absolute basis
YearReturns
2017 7.4%
2016 6.7%
2015 8.2%
2014 8.6%
2013 9.4%
2012 8.9%
2011 9.6%
2010 9.2%
2009 5.7%
2008 5.9%
Fund Manager information for Kotak Savings Fund
NameSinceTenure
Deepak Agrawal15 Apr 0810.55 Yr.

Data below for Kotak Savings Fund as on 30 Nov 18

Asset Allocation
Asset ClassValue
Cash38.39%
Debt61.61%
Debt Sector Allocation
SectorValue
Corporate44.54%
Cash Equivalent36.73%
Government14.71%
Securitized4.03%
Credit Quality
RatingValue
AA16.62%
AAA83.38%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
REC LIMITED
Commercial Paper | -
7%₹536 Cr11,000
↑ 11,000
Nabha Power Limited
Debentures | -
5%₹364 Cr3,650
↑ 1,750
ONGC Mangalore Petrochemicals Limited
Debentures | -
4%₹325 Cr3,250
↓ -750
INDUSIND BANK LIMITED
Certificate of Deposit | -
4%₹290 Cr30,000
↓ -15,000
Power Finance Corporation Ltd.
Debentures | -
3%₹249 Cr2,500
↑ 1,500
Reliance Jio Infocomm Limited
Debentures | -
3%₹220 Cr2,200
Triparty Repo
CBLO/Reverse Repo | -
3%₹218 Cr
Piramal Housing Finance Limited
Commercial Paper | -
3%₹213 Cr4,500
Reliance Jio Infocomm Limited
Debentures | -
3%₹210 Cr2,100
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MAHINDRA & MAHINDRA FINANCIAL SERVICES LIMITED
Debentures | -
3%₹201 Cr2,000

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 debt 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 ultra short-term funds in an stable interest rate enviornment. If one compare this return rate to the other fund categories, you will see that these returns are moderately higher than what a liquid fund, for instance, can earn you over the same 1-9 month time horizon as Ultra short-term funds are riskier than liquid funds. Even though these funds are fixed-income havens, they don’t offer guaranteed returns. One need to look at Yield to Maturity (ytm) to understand what one can 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 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?

  1. Open Free Investment Account for Lifetime at Fincash.com.

  2. Complete your Registration and KYC Process

  3. Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!

    Get Started

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!

Disclaimer:
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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DEBAJIT SHYAMAL, posted on 27 Nov 18 1:13 AM

Presentation is very good

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