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6 Best Performing Ultra Short Term Mutual Funds 2022 for Investments

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6 Best Ultra Short Term Mutual Funds 2022

Updated on June 20, 2022 , 125716 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, 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 2022-2023.

Best-ultra-short-funds

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 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 22 - 23

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)2021 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
Nippon India Ultra Short Duration Fund Growth ₹3,301.27
↑ 0.57
₹4,3760.81.86.24.57.86.05%5M 5D6M 5D
UTI Ultra Short Term Fund Growth ₹3,478.02
↑ 0.78
₹2,0050.61.55.95.56.14.65%4M 15D4M 20D
Aditya Birla Sun Life Savings Fund Growth ₹442.99
↑ 0.13
₹14,4420.81.93.85.63.96.09%5M 23D6M
ICICI Prudential Ultra Short Term Fund Growth ₹22.5643
↑ 0.00
₹13,1520.81.73.65.545.74%4M 2D4M 13D
Kotak Savings Fund Growth ₹35.0992
↑ 0.01
₹12,3880.81.73.34.83.25.67%4M 6D5M 5D
SBI Magnum Ultra Short Duration Fund Growth ₹4,867.88
↑ 0.93
₹12,8020.61.63.34.93.45.56%5M 8D5M 19D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 22 Jun 22
*List of Funds having AUM >= 500 Crore and sorted on last 1 Year Return.

1. Nippon India Ultra Short Duration Fund

(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.

Nippon India Ultra Short Duration Fund is a Debt - Ultrashort Bond fund was launched on 7 Dec 01. It is a fund with Low risk and has given a CAGR/Annualized return of 6% since its launch.  Ranked 62 in Ultrashort Bond category.  Return for 2021 was 7.8% , 2020 was 4.9% and 2019 was 0.9% .

Below is the key information for Nippon India Ultra Short Duration Fund

Nippon India Ultra Short Duration Fund
Growth
Launch Date 7 Dec 01
NAV (22 Jun 22) ₹3,301.27 ↑ 0.57   (0.02 %)
Net Assets (Cr) ₹4,376 on 31 May 22
Category Debt - Ultrashort Bond
AMC Nippon Life Asset Management Ltd.
Rating
Risk Low
Expense Ratio 1.09
Sharpe Ratio 1.33
Information Ratio 0
Alpha Ratio 0
Min Investment 100
Min SIP Investment 100
Exit Load NIL
Yield to Maturity 6.05%
Effective Maturity 6 Months 5 Days
Modified Duration 5 Months 5 Days

Growth of 10,000 investment over the years.

DateValue
31 May 17₹10,000
31 May 18₹10,594
31 May 19₹11,345
31 May 20₹11,408
31 May 21₹11,947
31 May 22₹12,827

Nippon India 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 ₹197,169.
Net Profit of ₹17,169
Invest Now

Returns for Nippon India 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 22 Jun 22

DurationReturns
1 Month 0.4%
3 Month 0.8%
6 Month 1.8%
1 Year 6.2%
3 Year 4.5%
5 Year 5.1%
10 Year
15 Year
Since launch 6%
Historical performance (Yearly) on absolute basis
YearReturns
2021 7.8%
2020 4.9%
2019 0.9%
2018 7.3%
2017 5.8%
2016 6.8%
2015 7.6%
2014 8.4%
2013 8.5%
2012 9.2%
Fund Manager information for Nippon India Ultra Short Duration Fund
NameSinceTenure
Vivek Sharma1 Oct 138.67 Yr.
Kinjal Desai25 May 184.02 Yr.

Data below for Nippon India Ultra Short Duration Fund as on 31 May 22

Asset Allocation
Asset ClassValue
Cash64.19%
Debt35.81%
Debt Sector Allocation
SectorValue
Cash Equivalent44.31%
Corporate40.26%
Government15.43%
Credit Quality
RatingValue
AA17.32%
AAA82.68%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
182 Dtb 15092022
Sovereign Bonds | -
5%₹221 Cr22,500,000
Hdb Financial Services Limited
Debentures | -
4%₹161 Cr1,500
Tata Realty And Infrastructure Limited
Debentures | -
3%₹149 Cr1,500
182 Dtb 11082022
Sovereign Bonds | -
3%₹148 Cr15,000,000
Reliance Industries Limited
Debentures | -
2%₹104 Cr1,000
Shriram Housing Finance Company Limited
Debentures | -
2%₹100 Cr1,000
National Housing Bank
Debentures | -
2%₹100 Cr1,000
↑ 1,000
Reliance Industries Limited
Debentures | -
2%₹85 Cr850
Piramal Capital & Housing Finance Limited
Debentures | -
2%₹75 Cr750,000
08.64 UP UDAY 2023
Domestic Bonds | -
2%₹73 Cr7,200,000

2. 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 6.8% since its launch.  Ranked 27 in Ultrashort Bond category.  Return for 2021 was 6.1% , 2020 was 5.3% and 2019 was 3.3% .

Below is the key information for UTI Ultra Short Term Fund

UTI Ultra Short Term Fund
Growth
Launch Date 29 Aug 03
NAV (22 Jun 22) ₹3,478.02 ↑ 0.78   (0.02 %)
Net Assets (Cr) ₹2,005 on 31 May 22
Category Debt - Ultrashort Bond
AMC UTI Asset Management Company Ltd
Rating
Risk Moderately Low
Expense Ratio 0.96
Sharpe Ratio 0.82
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 4.65%
Effective Maturity 4 Months 20 Days
Modified Duration 4 Months 15 Days

Growth of 10,000 investment over the years.

DateValue
31 May 17₹10,000
31 May 18₹10,625
31 May 19₹11,428
31 May 20₹11,716
31 May 21₹12,214
31 May 22₹12,934

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 ₹197,169.
Net Profit of ₹17,169
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 22 Jun 22

DurationReturns
1 Month 0.4%
3 Month 0.6%
6 Month 1.5%
1 Year 5.9%
3 Year 5.5%
5 Year 5.2%
10 Year
15 Year
Since launch 6.8%
Historical performance (Yearly) on absolute basis
YearReturns
2021 6.1%
2020 5.3%
2019 3.3%
2018 7%
2017 6.6%
2016 8.9%
2015 8.5%
2014 8.8%
2013 9.8%
2012 9%
Fund Manager information for UTI Ultra Short Term Fund
NameSinceTenure
Ritesh Nambiar1 Jul 156.92 Yr.

Data below for UTI Ultra Short Term Fund as on 31 May 22

Asset Allocation
Asset ClassValue
Cash60.6%
Debt39.4%
Debt Sector Allocation
SectorValue
Cash Equivalent47.61%
Corporate39.51%
Government12.88%
Credit Quality
RatingValue
AA14.67%
AAA85.33%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
182 Dtb 04082022
Sovereign Bonds | -
6%₹148 Cr1,500,000,000
8.15% Govt Stock 2022
Sovereign Bonds | -
5%₹115 Cr1,150,000,000
182 Dtb 27102022
Sovereign Bonds | -
4%₹98 Cr1,000,000,000
The Tata Power Company Limited
Debentures | -
3%₹71 Cr700
Cholamandalam Investment And Fin. Co. Ltd
Debentures | -
2%₹60 Cr500
Power Finance Corporation Ltd.
Debentures | -
2%₹55 Cr550
Rural Electrification Corporation Limited
Debentures | -
2%₹55 Cr545
Rural Electrification Corporation Limited
Debentures | -
2%₹51 Cr510
National Bank For Agriculture And Rural Development
Debentures | -
2%₹50 Cr500
National Bank For Agriculture And Rural Development
Debentures | -
2%₹50 Cr500

3. 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 7.5% since its launch.  Ranked 6 in Ultrashort Bond category.  Return for 2021 was 3.9% , 2020 was 7% and 2019 was 8.5% .

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 (22 Jun 22) ₹442.99 ↑ 0.13   (0.03 %)
Net Assets (Cr) ₹14,442 on 15 Jun 22
Category Debt - Ultrashort Bond
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk Moderately Low
Expense Ratio 0.47
Sharpe Ratio 0.2
Information Ratio 0
Alpha Ratio 0
Min Investment 1,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 6.09%
Effective Maturity 6 Months
Modified Duration 5 Months 23 Days

Growth of 10,000 investment over the years.

DateValue
31 May 17₹10,000
31 May 18₹10,668
31 May 19₹11,601
31 May 20₹12,505
31 May 21₹13,196
31 May 22₹13,691

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 ₹200,132.
Net Profit of ₹20,132
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 22 Jun 22

DurationReturns
1 Month 0.5%
3 Month 0.8%
6 Month 1.9%
1 Year 3.8%
3 Year 5.6%
5 Year 6.4%
10 Year
15 Year
Since launch 7.5%
Historical performance (Yearly) on absolute basis
YearReturns
2021 3.9%
2020 7%
2019 8.5%
2018 7.6%
2017 7.2%
2016 9.2%
2015 8.9%
2014 9.7%
2013 9.5%
2012 9.7%
Fund Manager information for Aditya Birla Sun Life Savings Fund
NameSinceTenure
Sunaina Cunha14 Jun 147.97 Yr.
Kaustubh Gupta15 Jul 1110.89 Yr.
Monika Gandhi22 Mar 211.19 Yr.

Data below for Aditya Birla Sun Life Savings Fund as on 15 Jun 22

Asset Allocation
Asset ClassValue
Cash65.06%
Debt34.94%
Debt Sector Allocation
SectorValue
Corporate42.78%
Cash Equivalent36.09%
Government21.13%
Credit Quality
RatingValue
AA11.64%
AAA88.36%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Housing Development Finance Corporation Limited
Debentures | -
4%₹598 Cr6,000
182 Dtb 08092022
Sovereign Bonds | -
2%₹394 Cr40,000,000
8.15% Govt Stock 2022
Sovereign Bonds | -
2%₹296 Cr29,500,000
Shriram Transport Finance Company Limited
Debentures | -
2%₹280 Cr2,750
Reliance Industries Limited
Debentures | -
2%₹259 Cr2,500
08.54 MH Sdl 2023
Sovereign Bonds | -
2%₹250 Cr24,500,000
↑ 10,000,000
Housing Development Finance Corporation Limited
Debentures | -
2%₹245 Cr2,450
08.21 HR UDAY 2023
Domestic Bonds | -
1%₹234 Cr23,000,000
08.24 GJ Sdl 2023
Sovereign Bonds | -
1%₹214 Cr21,000,000
08.18 HR UDAY 2022
Domestic Bonds | -
1%₹211 Cr21,000,000

4. ICICI Prudential Ultra Short Term Fund

(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.

ICICI Prudential Ultra Short Term Fund is a Debt - Ultrashort Bond fund was launched on 3 May 11. It is a fund with Moderate risk and has given a CAGR/Annualized return of 7.6% since its launch.  Ranked 27 in Ultrashort Bond category.  Return for 2021 was 4% , 2020 was 6.5% and 2019 was 8.4% .

Below is the key information for ICICI Prudential Ultra Short Term Fund

ICICI Prudential Ultra Short Term Fund
Growth
Launch Date 3 May 11
NAV (22 Jun 22) ₹22.5643 ↑ 0.00   (0.02 %)
Net Assets (Cr) ₹13,152 on 31 May 22
Category Debt - Ultrashort Bond
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 0.99
Sharpe Ratio -0.16
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 5.74%
Effective Maturity 4 Months 13 Days
Modified Duration 4 Months 2 Days

Growth of 10,000 investment over the years.

DateValue
31 May 17₹10,000
31 May 18₹10,656
31 May 19₹11,542
31 May 20₹12,412
31 May 21₹13,104
31 May 22₹13,577

ICICI Prudential 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 ₹200,132.
Net Profit of ₹20,132
Invest Now

Returns for ICICI Prudential 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 22 Jun 22

DurationReturns
1 Month 0.4%
3 Month 0.8%
6 Month 1.7%
1 Year 3.6%
3 Year 5.5%
5 Year 6.2%
10 Year
15 Year
Since launch 7.6%
Historical performance (Yearly) on absolute basis
YearReturns
2021 4%
2020 6.5%
2019 8.4%
2018 7.5%
2017 6.9%
2016 9.8%
2015 9.1%
2014 14.8%
2013 3.1%
2012 9.4%
Fund Manager information for ICICI Prudential Ultra Short Term Fund
NameSinceTenure
Manish Banthia15 Nov 165.54 Yr.
Ritesh Lunawat15 Jun 174.96 Yr.

Data below for ICICI Prudential Ultra Short Term Fund as on 31 May 22

Asset Allocation
Asset ClassValue
Cash56.85%
Debt43.15%
Debt Sector Allocation
SectorValue
Cash Equivalent44.07%
Corporate39.67%
Government16.26%
Credit Quality
RatingValue
A1%
AA19%
AAA80.01%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
National Bank For Agriculture And Rural Development
Debentures | -
7%₹849 Cr8,500
182 Dtb 10112022
Sovereign Bonds | -
5%₹682 Cr70,000,000
↑ 70,000,000
91 Dtb 13072022
Sovereign Bonds | -
4%₹496 Cr50,000,000
91 Dtb 21072022
Sovereign Bonds | -
3%₹397 Cr40,000,000
182 Dtb 20102022
Sovereign Bonds | -
3%₹345 Cr35,226,000
Housing Development Finance Corporation Ltd
Debentures | -
2%₹251 Cr2,500
↑ 1,500
The Tata Power Company Limited
Debentures | -
2%₹211 Cr2,084
Shriram Transport Finance Company Limited
Debentures | -
2%₹202 Cr2,000
LIC Housing Finance Limited
Debentures | -
2%₹196 Cr1,950
Rec Limited
Debentures | -
1%₹165 Cr1,650

5. 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 7.3% since its launch.  Ranked 44 in Ultrashort Bond category.  Return for 2021 was 3.2% , 2020 was 5.8% and 2019 was 7.8% .

Below is the key information for Kotak Savings Fund

Kotak Savings Fund
Growth
Launch Date 13 Aug 04
NAV (22 Jun 22) ₹35.0992 ↑ 0.01   (0.02 %)
Net Assets (Cr) ₹12,388 on 31 May 22
Category Debt - Ultrashort Bond
AMC Kotak Mahindra Asset Management Co Ltd
Rating
Risk Moderately Low
Expense Ratio 0.45
Sharpe Ratio -1.11
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 5.67%
Effective Maturity 5 Months 5 Days
Modified Duration 4 Months 6 Days

Growth of 10,000 investment over the years.

DateValue
31 May 17₹10,000
31 May 18₹10,651
31 May 19₹11,522
31 May 20₹12,360
31 May 21₹12,872
31 May 22₹13,293

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 ₹197,169.
Net Profit of ₹17,169
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 22 Jun 22

DurationReturns
1 Month 0.4%
3 Month 0.8%
6 Month 1.7%
1 Year 3.3%
3 Year 4.8%
5 Year 5.8%
10 Year
15 Year
Since launch 7.3%
Historical performance (Yearly) on absolute basis
YearReturns
2021 3.2%
2020 5.8%
2019 7.8%
2018 7.4%
2017 6.7%
2016 8.2%
2015 8.6%
2014 9.4%
2013 8.9%
2012 9.6%
Fund Manager information for Kotak Savings Fund
NameSinceTenure
Deepak Agrawal15 Apr 0814.13 Yr.
Vihag Mishra30 Apr 220.09 Yr.

Data below for Kotak Savings Fund as on 31 May 22

Asset Allocation
Asset ClassValue
Cash69.91%
Debt30.09%
Debt Sector Allocation
SectorValue
Cash Equivalent43.88%
Corporate36.21%
Government19.91%
Credit Quality
RatingValue
AA8.65%
AAA91.35%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
8.08% Govt Stock 2022
Sovereign Bonds | -
6%₹765 Cr75,999,900
182 Dtb 15092022
Sovereign Bonds | -
5%₹590 Cr60,000,000
182 Dtb 01092022
Sovereign Bonds | -
3%₹429 Cr43,500,000
182 Dtb 08092022
Sovereign Bonds | -
3%₹345 Cr35,000,000
↑ 10,000,000
Shriram Transport Finance Company Limited
Debentures | -
2%₹249 Cr2,450
8.15% Govt Stock 2022
Sovereign Bonds | -
2%₹206 Cr20,500,000
Muthoot Finance Limited
Debentures | -
2%₹200 Cr2,000,000
Bajaj Finance Limited
Debentures | -
2%₹200 Cr2,000
91 Dtb 30062022
Sovereign Bonds | -
2%₹199 Cr20,000,000
Small Industries Development Bank Of India
Debentures | -
2%₹191 Cr1,900

6. 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 7.1% since its launch.  Return for 2021 was 3.4% , 2020 was 5.9% and 2019 was 8% .

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 (22 Jun 22) ₹4,867.88 ↑ 0.93   (0.02 %)
Net Assets (Cr) ₹12,802 on 15 Jun 22
Category Debt - Ultrashort Bond
AMC SBI Funds Management Private Limited
Rating
Risk Low
Expense Ratio 0.49
Sharpe Ratio -0.94
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 5.56%
Effective Maturity 5 Months 19 Days
Modified Duration 5 Months 8 Days

Growth of 10,000 investment over the years.

DateValue
31 May 17₹10,000
31 May 18₹10,680
31 May 19₹11,586
31 May 20₹12,451
31 May 21₹12,976
31 May 22₹13,398

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 ₹197,169.
Net Profit of ₹17,169
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 22 Jun 22

DurationReturns
1 Month 0.4%
3 Month 0.6%
6 Month 1.6%
1 Year 3.3%
3 Year 4.9%
5 Year 6%
10 Year
15 Year
Since launch 7.1%
Historical performance (Yearly) on absolute basis
YearReturns
2021 3.4%
2020 5.9%
2019 8%
2018 7.9%
2017 6.6%
2016 7.7%
2015 8.3%
2014 9%
2013 9.3%
2012 9.3%
Fund Manager information for SBI Magnum Ultra Short Duration Fund
NameSinceTenure
Arun R.1 Jul 210.92 Yr.

Data below for SBI Magnum Ultra Short Duration Fund as on 15 Jun 22

Asset Allocation
Asset ClassValue
Cash65.21%
Debt34.79%
Debt Sector Allocation
SectorValue
Cash Equivalent49.03%
Government29.02%
Corporate21.96%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
182 Dtb 11082022
Sovereign Bonds | -
5%₹717 Cr72,500,000
182 Dtb 29092022
Sovereign Bonds | -
5%₹687 Cr70,000,000
91 Dtb 28072022
Sovereign Bonds | -
4%₹594 Cr60,000,000
3.8% Govt Stock 2024
Sovereign Bonds | -
4%₹567 Cr57,300,000
7.16% Govt Stock 2023
Sovereign Bonds | -
3%₹430 Cr42,500,000
National Bank For Agriculture And Rural Development
Debentures | -
3%₹406 Cr4,000
Power Finance Corporation Ltd.
Debentures | -
3%₹357 Cr3,550
182 Dtb 03112022
Sovereign Bonds | -
2%₹244 Cr25,000,000
↑ 25,000,000
Indusind Bank Ltd.
Debentures | -
2%₹240 Cr5,000
7.37% Govt Stock 2023
Sovereign Bonds | -
2%₹213 Cr21,000,000

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 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?

  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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Srinivas, posted on 3 Jul 20 5:07 PM

well explained and got to know which one i need to pick it p

mayank RAstogi, posted on 23 Jan 20 12:54 PM

Get deep insight of the funds. Better than moneycontrol and valuereserach sort of sites.

Anil kumar Agarwal, posted on 22 Sep 19 8:37 PM

Very good information

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

Presentation is very good

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