+91-22-62820123
Table of Contents
6 Best Ultra Short Term Mutual Funds 2022
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.
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.
Talk to our investment specialist
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
(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 Below is the key information for Nippon India Ultra Short Duration Fund Returns up to 1 year are on (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 Below is the key information for UTI Ultra Short Term Fund Returns up to 1 year are on 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 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. 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 Below is the key information for ICICI Prudential 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. 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 Below is the key information for Kotak Savings 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. 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 Below is the key information for SBI Magnum Ultra Short Duration 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 Nippon India Ultra Short Duration Fund Growth ₹3,301.27
↑ 0.57 ₹4,376 0.8 1.8 6.2 4.5 7.8 6.05% 5M 5D 6M 5D UTI Ultra Short Term Fund Growth ₹3,478.02
↑ 0.78 ₹2,005 0.6 1.5 5.9 5.5 6.1 4.65% 4M 15D 4M 20D Aditya Birla Sun Life Savings Fund Growth ₹442.99
↑ 0.13 ₹14,442 0.8 1.9 3.8 5.6 3.9 6.09% 5M 23D 6M ICICI Prudential Ultra Short Term Fund Growth ₹22.5643
↑ 0.00 ₹13,152 0.8 1.7 3.6 5.5 4 5.74% 4M 2D 4M 13D Kotak Savings Fund Growth ₹35.0992
↑ 0.01 ₹12,388 0.8 1.7 3.3 4.8 3.2 5.67% 4M 6D 5M 5D SBI Magnum Ultra Short Duration Fund Growth ₹4,867.88
↑ 0.93 ₹12,802 0.6 1.6 3.3 4.9 3.4 5.56% 5M 8D 5M 19D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 22 Jun 22 500 Crore and sorted on last 1 Year Return.
1. Nippon India Ultra Short Duration Fund
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% . 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.
Date Value 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 Returns for Nippon India Ultra Short Duration Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Jun 22 Duration Returns 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
Year Returns 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
Name Since Tenure Vivek Sharma 1 Oct 13 8.67 Yr. Kinjal Desai 25 May 18 4.02 Yr. Data below for Nippon India Ultra Short Duration Fund as on 31 May 22
Asset Allocation
Asset Class Value Cash 64.19% Debt 35.81% Debt Sector Allocation
Sector Value Cash Equivalent 44.31% Corporate 40.26% Government 15.43% Credit Quality
Rating Value AA 17.32% AAA 82.68% Top Securities Holdings / Portfolio
Name Holding Value Quantity 182 Dtb 15092022
Sovereign Bonds | -5% ₹221 Cr 22,500,000 Hdb Financial Services Limited
Debentures | -4% ₹161 Cr 1,500 Tata Realty And Infrastructure Limited
Debentures | -3% ₹149 Cr 1,500 182 Dtb 11082022
Sovereign Bonds | -3% ₹148 Cr 15,000,000 Reliance Industries Limited
Debentures | -2% ₹104 Cr 1,000 Shriram Housing Finance Company Limited
Debentures | -2% ₹100 Cr 1,000 National Housing Bank
Debentures | -2% ₹100 Cr 1,000
↑ 1,000 Reliance Industries Limited
Debentures | -2% ₹85 Cr 850 Piramal Capital & Housing Finance Limited
Debentures | -2% ₹75 Cr 750,000 08.64 UP UDAY 2023
Domestic Bonds | -2% ₹73 Cr 7,200,000 2. UTI Ultra Short Term Fund
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% . 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.
Date Value 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 Returns for UTI Ultra Short Term Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Jun 22 Duration Returns 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
Year Returns 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
Name Since Tenure Ritesh Nambiar 1 Jul 15 6.92 Yr. Data below for UTI Ultra Short Term Fund as on 31 May 22
Asset Allocation
Asset Class Value Cash 60.6% Debt 39.4% Debt Sector Allocation
Sector Value Cash Equivalent 47.61% Corporate 39.51% Government 12.88% Credit Quality
Rating Value AA 14.67% AAA 85.33% Top Securities Holdings / Portfolio
Name Holding Value Quantity 182 Dtb 04082022
Sovereign Bonds | -6% ₹148 Cr 1,500,000,000 8.15% Govt Stock 2022
Sovereign Bonds | -5% ₹115 Cr 1,150,000,000 182 Dtb 27102022
Sovereign Bonds | -4% ₹98 Cr 1,000,000,000 The Tata Power Company Limited
Debentures | -3% ₹71 Cr 700 Cholamandalam Investment And Fin. Co. Ltd
Debentures | -2% ₹60 Cr 500 Power Finance Corporation Ltd.
Debentures | -2% ₹55 Cr 550 Rural Electrification Corporation Limited
Debentures | -2% ₹55 Cr 545 Rural Electrification Corporation Limited
Debentures | -2% ₹51 Cr 510 National Bank For Agriculture And Rural Development
Debentures | -2% ₹50 Cr 500 National Bank For Agriculture And Rural Development
Debentures | -2% ₹50 Cr 500 3. Aditya Birla Sun Life Savings Fund
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% . 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.
Date Value 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 Returns for Aditya Birla Sun Life Savings Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Jun 22 Duration Returns 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
Year Returns 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
Name Since Tenure Sunaina Cunha 14 Jun 14 7.97 Yr. Kaustubh Gupta 15 Jul 11 10.89 Yr. Monika Gandhi 22 Mar 21 1.19 Yr. Data below for Aditya Birla Sun Life Savings Fund as on 15 Jun 22
Asset Allocation
Asset Class Value Cash 65.06% Debt 34.94% Debt Sector Allocation
Sector Value Corporate 42.78% Cash Equivalent 36.09% Government 21.13% Credit Quality
Rating Value AA 11.64% AAA 88.36% Top Securities Holdings / Portfolio
Name Holding Value Quantity Housing Development Finance Corporation Limited
Debentures | -4% ₹598 Cr 6,000 182 Dtb 08092022
Sovereign Bonds | -2% ₹394 Cr 40,000,000 8.15% Govt Stock 2022
Sovereign Bonds | -2% ₹296 Cr 29,500,000 Shriram Transport Finance Company Limited
Debentures | -2% ₹280 Cr 2,750 Reliance Industries Limited
Debentures | -2% ₹259 Cr 2,500 08.54 MH Sdl 2023
Sovereign Bonds | -2% ₹250 Cr 24,500,000
↑ 10,000,000 Housing Development Finance Corporation Limited
Debentures | -2% ₹245 Cr 2,450 08.21 HR UDAY 2023
Domestic Bonds | -1% ₹234 Cr 23,000,000 08.24 GJ Sdl 2023
Sovereign Bonds | -1% ₹214 Cr 21,000,000 08.18 HR UDAY 2022
Domestic Bonds | -1% ₹211 Cr 21,000,000 4. ICICI Prudential Ultra Short Term Fund
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% . 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.
Date Value 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 Returns for ICICI Prudential Ultra Short Term Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Jun 22 Duration Returns 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
Year Returns 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
Name Since Tenure Manish Banthia 15 Nov 16 5.54 Yr. Ritesh Lunawat 15 Jun 17 4.96 Yr. Data below for ICICI Prudential Ultra Short Term Fund as on 31 May 22
Asset Allocation
Asset Class Value Cash 56.85% Debt 43.15% Debt Sector Allocation
Sector Value Cash Equivalent 44.07% Corporate 39.67% Government 16.26% Credit Quality
Rating Value A 1% AA 19% AAA 80.01% Top Securities Holdings / Portfolio
Name Holding Value Quantity National Bank For Agriculture And Rural Development
Debentures | -7% ₹849 Cr 8,500 182 Dtb 10112022
Sovereign Bonds | -5% ₹682 Cr 70,000,000
↑ 70,000,000 91 Dtb 13072022
Sovereign Bonds | -4% ₹496 Cr 50,000,000 91 Dtb 21072022
Sovereign Bonds | -3% ₹397 Cr 40,000,000 182 Dtb 20102022
Sovereign Bonds | -3% ₹345 Cr 35,226,000 Housing Development Finance Corporation Ltd
Debentures | -2% ₹251 Cr 2,500
↑ 1,500 The Tata Power Company Limited
Debentures | -2% ₹211 Cr 2,084 Shriram Transport Finance Company Limited
Debentures | -2% ₹202 Cr 2,000 LIC Housing Finance Limited
Debentures | -2% ₹196 Cr 1,950 Rec Limited
Debentures | -1% ₹165 Cr 1,650 5. Kotak Savings Fund
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% . 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.
Date Value 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 Returns for Kotak Savings Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Jun 22 Duration Returns 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
Year Returns 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
Name Since Tenure Deepak Agrawal 15 Apr 08 14.13 Yr. Vihag Mishra 30 Apr 22 0.09 Yr. Data below for Kotak Savings Fund as on 31 May 22
Asset Allocation
Asset Class Value Cash 69.91% Debt 30.09% Debt Sector Allocation
Sector Value Cash Equivalent 43.88% Corporate 36.21% Government 19.91% Credit Quality
Rating Value AA 8.65% AAA 91.35% Top Securities Holdings / Portfolio
Name Holding Value Quantity 8.08% Govt Stock 2022
Sovereign Bonds | -6% ₹765 Cr 75,999,900 182 Dtb 15092022
Sovereign Bonds | -5% ₹590 Cr 60,000,000 182 Dtb 01092022
Sovereign Bonds | -3% ₹429 Cr 43,500,000 182 Dtb 08092022
Sovereign Bonds | -3% ₹345 Cr 35,000,000
↑ 10,000,000 Shriram Transport Finance Company Limited
Debentures | -2% ₹249 Cr 2,450 8.15% Govt Stock 2022
Sovereign Bonds | -2% ₹206 Cr 20,500,000 Muthoot Finance Limited
Debentures | -2% ₹200 Cr 2,000,000 Bajaj Finance Limited
Debentures | -2% ₹200 Cr 2,000 91 Dtb 30062022
Sovereign Bonds | -2% ₹199 Cr 20,000,000 Small Industries Development Bank Of India
Debentures | -2% ₹191 Cr 1,900 6. SBI Magnum Ultra Short Duration Fund
CAGR/Annualized return of 7.1% since its launch. Return for 2021 was 3.4% , 2020 was 5.9% and 2019 was 8% . 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.
Date Value 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 Returns for SBI Magnum Ultra Short Duration Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Jun 22 Duration Returns 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
Year Returns 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
Name Since Tenure Arun R. 1 Jul 21 0.92 Yr. Data below for SBI Magnum Ultra Short Duration Fund as on 15 Jun 22
Asset Allocation
Asset Class Value Cash 65.21% Debt 34.79% Debt Sector Allocation
Sector Value Cash Equivalent 49.03% Government 29.02% Corporate 21.96% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 182 Dtb 11082022
Sovereign Bonds | -5% ₹717 Cr 72,500,000 182 Dtb 29092022
Sovereign Bonds | -5% ₹687 Cr 70,000,000 91 Dtb 28072022
Sovereign Bonds | -4% ₹594 Cr 60,000,000 3.8% Govt Stock 2024
Sovereign Bonds | -4% ₹567 Cr 57,300,000 7.16% Govt Stock 2023
Sovereign Bonds | -3% ₹430 Cr 42,500,000 National Bank For Agriculture And Rural Development
Debentures | -3% ₹406 Cr 4,000 Power Finance Corporation Ltd.
Debentures | -3% ₹357 Cr 3,550 182 Dtb 03112022
Sovereign Bonds | -2% ₹244 Cr 25,000,000
↑ 25,000,000 Indusind Bank Ltd.
Debentures | -2% ₹240 Cr 5,000 7.37% Govt Stock 2023
Sovereign Bonds | -2% ₹213 Cr 21,000,000
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?
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!
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.
AMFI Registration No. 112358 | CIN: U74999MH2016PTC282153
Shepard Technologies Pvt. Ltd. (with ARN code 112358) makes no warranties or representations, express or implied, on products offered through the platform. It accepts no liability for any damages or losses, however caused, in connection with the use of, or on the reliance of its product or related services. Terms and conditions of the website are applicable.
©2022 Shepard Technologies Private Limited. All Rights Reserved
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