+91-22-62820123
Table of Contents
6 Best Ultra Short Term Mutual Funds 2019
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.
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.
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 19 - 20
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 Below is the key information for Franklin India Ultra Short Bond Fund - Super Institutional Plan 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 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 (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 (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 Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2018 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity Franklin India Ultra Short Bond Fund - Super Institutional Plan Growth ₹26.5877
↑ 0.01 ₹18,337 2.3 5.1 9.7 8.9 8.7 0% 6M 18D Aditya Birla Sun Life Savings Fund Growth ₹373.142
↑ 0.08 ₹15,387 2.1 4.5 8.7 7.9 7.6 8.44% 5M 26D 6M 18D UTI Ultra Short Term Fund Growth ₹3,056.34
↑ 0.64 ₹5,226 1.8 3.8 7.5 7.3 7 9.35% 3M 19D 4M 24D SBI Magnum Ultra Short Duration Fund Growth ₹4,186.68
↑ 1.00 ₹8,143 1.9 4.2 8.4 7.4 7.9 7.48% 4M 13D 4M 24D ICICI Prudential Ultra Short Term Fund Growth ₹19.0754
↑ 0.00 ₹4,597 2 4.3 8.2 7.9 7.5 8.84% 4M 17D 6M 18D Kotak Savings Fund Growth ₹30.259
↑ 0.01 ₹12,689 2 4.2 8.1 7.4 7.4 7.94% 5M 1D 5M 8D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 21 May 19 1. Franklin India Ultra Short Bond Fund - Super Institutional Plan
CAGR/Annualized return of 8.9% since its launch. Return for 2018 was 8.7% , 2017 was 8.2% and 2016 was 9.7% . Franklin India Ultra Short Bond Fund - Super Institutional Plan
Growth Launch Date 18 Dec 07 NAV (21 May 19) ₹26.5877 ↑ 0.01 (0.03 %) Net Assets (Cr) ₹18,337 on 30 Apr 19 Category Debt - Ultrashort Bond AMC Franklin Templeton Asst Mgmt(IND)Pvt Ltd Rating ☆☆☆☆☆ Risk Moderate Expense Ratio 0.37 Sharpe Ratio 9.05 Information Ratio 3.51 Alpha Ratio -1.24 Min Investment 10,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 0% Effective Maturity 6 Months 18 Days Modified Duration Growth of 10,000 investment over the years.
Date Value 30 Apr 14 ₹10,000 30 Apr 15 ₹10,984 30 Apr 16 ₹12,043 30 Apr 17 ₹13,174 30 Apr 18 ₹14,206 30 Apr 19 ₹15,549 Returns for Franklin India Ultra Short Bond Fund - Super Institutional Plan
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 21 May 19 Duration Returns 1 Month 0.8% 3 Month 2.3% 6 Month 5.1% 1 Year 9.7% 3 Year 8.9% 5 Year 9.2% 10 Year 15 Year Since launch 8.9% Historical performance (Yearly) on absolute basis
Year Returns 2018 8.7% 2017 8.2% 2016 9.7% 2015 9.7% 2014 10% 2013 10% 2012 10.3% 2011 9.4% 2010 5.9% 2009 6.1% Fund Manager information for Franklin India Ultra Short Bond Fund - Super Institutional Plan
Name Since Tenure Santosh Kamath 25 Oct 18 0.43 Yr. Pallab Roy 1 Jun 08 10.84 Yr. Data below for Franklin India Ultra Short Bond Fund - Super Institutional Plan as on 30 Apr 19
Asset Allocation
Asset Class Value Cash 19.13% Debt 77.51% Other 3.35% Debt Sector Allocation
Sector Value Corporate 78.3% Cash Equivalent 16.47% Government 1.87% Credit Quality
Rating Value A 34.68% AA 41.74% AAA 23.58% Top Securities Holdings / Portfolio
Name Holding Value Quantity Vodafone Mobile Services Limited
Debentures | -4% ₹768 Cr 7,990 Renew Power Ventures Private Limited
Debentures | -4% ₹673 Cr 6,740 Call, Cash & Other Assets
Receivables | -3% ₹615 Cr ONGC Petro Additions Limited
Debentures | -3% ₹500 Cr 500 Indostar Capital Finance Limited
Debentures | -2% ₹441 Cr 4,400 INDOSTAR CAPITAL FINANCE LIMITED
Debentures | -2% ₹391 Cr 3,900
↑ 3,900 EDELWEISS COMMODITIES SERVICES LIMITED
Debentures | -2% ₹375 Cr 7,500 EDELWEISS COMMODITIES SERVICES LIMITED
Debentures | -2% ₹365 Cr 3,650 Yes Capital (India) Private Limited
Debentures | -2% ₹352 Cr 3,037 Piramal Realty Private Limited
Debentures | -2% ₹351 Cr 3,500 2. Aditya Birla Sun Life Savings Fund
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% . Aditya Birla Sun Life Savings Fund
Growth Launch Date 16 Apr 03 NAV (21 May 19) ₹373.142 ↑ 0.08 (0.02 %) Net Assets (Cr) ₹15,387 on 30 Apr 19 Category Debt - Ultrashort Bond AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆☆☆ Risk Moderately Low Expense Ratio 0.35 Sharpe Ratio 9.37 Information Ratio 0.61 Alpha Ratio 3.2 Min Investment 1,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 8.44% Effective Maturity 6 Months 18 Days Modified Duration 5 Months 26 Days Growth of 10,000 investment over the years.
Date Value 30 Apr 14 ₹10,000 30 Apr 15 ₹10,945 30 Apr 16 ₹11,931 30 Apr 17 ₹12,946 30 Apr 18 ₹13,842 30 Apr 19 ₹14,991 Returns for Aditya Birla Sun Life Savings Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 21 May 19 Duration Returns 1 Month 0.7% 3 Month 2.1% 6 Month 4.5% 1 Year 8.7% 3 Year 7.9% 5 Year 8.4% 10 Year 15 Year Since launch 7.8% Historical performance (Yearly) on absolute basis
Year Returns 2018 7.6% 2017 7.2% 2016 9.2% 2015 8.9% 2014 9.7% 2013 9.5% 2012 9.7% 2011 9.2% 2010 5.8% 2009 5.8% Fund Manager information for Aditya Birla Sun Life Savings Fund
Name Since Tenure Sunaina Cunha 11 Oct 14 4.31 Yr. Kaustubh Gupta 15 Jul 11 7.55 Yr. Data below for Aditya Birla Sun Life Savings Fund as on 30 Apr 19
Asset Allocation
Asset Class Value Cash 33.94% Debt 52.3% Debt Sector Allocation
Sector Value Cash Equivalent 46.57% Corporate 40.79% Government 8.84% Securitized 3.79% Credit Quality
Rating Value A 5.5% AA 16.64% AAA 77.86% Top Securities Holdings / Portfolio
Name Holding Value Quantity Vodafone Mobile Services Limited
Debentures | -5% ₹800 Cr 8,050 Net Receivables / (Payables)
Net Current Assets | -3% ₹461 Cr ONGC Petro Additions Limited
Debentures | -3% ₹460 Cr 460 PNB Housing Finance Limited
Debentures | -3% ₹397 Cr 4,000 PIRAMAL CAPITAL & HOUSING FINANCE LIMITED
Commercial Paper | -2% ₹374 Cr 7,500 NRSS XXIX TRANSMISSION LIMITED
Debentures | -2% ₹351 Cr 3,500 Shriram Transport Finance Company Limited
Debentures | -2% ₹349 Cr 3,500 IndusInd Bank Limited
Certificate of Deposit | -2% ₹336 Cr 35,000 Reliance Industries Limited
Debentures | -2% ₹310 Cr 3,150 AXIS BANK LIMITED
Certificate of Deposit | -2% ₹305 Cr 32,500 3. UTI Ultra Short Term Fund
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% . UTI Ultra Short Term Fund
Growth Launch Date 29 Aug 03 NAV (21 May 19) ₹3,056.34 ↑ 0.64 (0.02 %) Net Assets (Cr) ₹5,226 on 30 Apr 19 Category Debt - Ultrashort Bond AMC UTI Asset Management Company Ltd Rating ☆☆☆☆ Risk Moderately Low Expense Ratio 1.16 Sharpe Ratio 7.75 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 2,500 Exit Load NIL Yield to Maturity 9.35% Effective Maturity 4 Months 24 Days Modified Duration 3 Months 19 Days Growth of 10,000 investment over the years.
Date Value 30 Apr 14 ₹10,000 30 Apr 15 ₹10,876 30 Apr 16 ₹11,819 30 Apr 17 ₹12,786 30 Apr 18 ₹13,601 30 Apr 19 ₹14,597 Returns for UTI Ultra Short Term Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 21 May 19 Duration Returns 1 Month 0.6% 3 Month 1.8% 6 Month 3.8% 1 Year 7.5% 3 Year 7.3% 5 Year 7.8% 10 Year 15 Year Since launch 7.4% Historical performance (Yearly) on absolute basis
Year Returns 2018 7% 2017 6.6% 2016 8.9% 2015 8.5% 2014 8.8% 2013 9.8% 2012 9% 2011 8.2% 2010 5.4% 2009 6% Fund Manager information for UTI Ultra Short Term Fund
Name Since Tenure Sudhir Agarwal 1 Jul 15 3.75 Yr. Ritesh Nambiar 1 Jul 15 3.75 Yr. Data below for UTI Ultra Short Term Fund as on 30 Apr 19
Asset Allocation
Asset Class Value Cash 51.85% Debt 48.15% Debt Sector Allocation
Sector Value Cash Equivalent 46.51% Corporate 44.62% Government 8.87% Credit Quality
Rating Value A 8.93% AA 28.05% AAA 63.02% Top Securities Holdings / Portfolio
Name Holding Value Quantity Net Current Assets
Net Current Assets | -25% ₹1,286 Cr 00 UTI Liquid Cash Plan Instl Dir Gr
Investment Fund | -17% ₹895 Cr 2,907,633
↑ 2,580,519 Shriram Transport Finance Company Limited
Debentures | -5% ₹247 Cr 2,500 Avanse Financial Services Limited
Debentures | -4% ₹233 Cr 2,350 Edelweiss Commodities Services Limited
Debentures | -4% ₹198 Cr 2,000 IVL Finance Limited
Commercial Paper | -4% ₹198 Cr 2,000,000,000 Small Industries Development Bank Of India
Debentures | -4% ₹190 Cr 1,900
↑ 1,900 Andhra Bank
Certificate of Deposit | -3% ₹165 Cr 1,750,000,000
↓ -1,250,000,000 Business Broadcast News Holdings Limited
Debentures | -3% ₹157 Cr 1,500 National Bank For Agriculture And Rural Development
Debentures | -3% ₹151 Cr 1,500
↑ 500 4. SBI Magnum Ultra Short Duration Fund
CAGR/Annualized return of 7.4% since its launch. Return for 2018 was 7.9% , 2017 was 6.6% and 2016 was 7.7% . SBI Magnum Ultra Short Duration Fund
Growth Launch Date 21 May 99 NAV (21 May 19) ₹4,186.68 ↑ 1.00 (0.02 %) Net Assets (Cr) ₹8,143 on 30 Apr 19 Category Debt - Ultrashort Bond AMC SBI Funds Management Private Limited Rating ☆☆☆ Risk Low Expense Ratio 0.22 Sharpe Ratio 11.66 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment Exit Load NIL Yield to Maturity 7.48% Effective Maturity 4 Months 24 Days Modified Duration 4 Months 13 Days Growth of 10,000 investment over the years.
Date Value 30 Apr 14 ₹10,000 30 Apr 15 ₹10,887 30 Apr 16 ₹11,776 30 Apr 17 ₹12,611 30 Apr 18 ₹13,462 30 Apr 19 ₹14,575 Returns for SBI Magnum Ultra Short Duration Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 21 May 19 Duration Returns 1 Month 0.6% 3 Month 1.9% 6 Month 4.2% 1 Year 8.4% 3 Year 7.4% 5 Year 7.8% 10 Year 15 Year Since launch 7.4% Historical performance (Yearly) on absolute basis
Year Returns 2018 7.9% 2017 6.6% 2016 7.7% 2015 8.3% 2014 9% 2013 9.3% 2012 9.3% 2011 8.7% 2010 5.4% 2009 4.8% Fund Manager information for SBI Magnum Ultra Short Duration Fund
Name Since Tenure Rajeev Radhakrishnan 1 May 10 9 Yr. Data below for SBI Magnum Ultra Short Duration Fund as on 30 Apr 19
Asset Allocation
Asset Class Value Cash 72.96% Debt 27.04% Debt Sector Allocation
Sector Value Cash Equivalent 72.96% Corporate 22.17% Government 4.86% Credit Quality
Rating Value AA 7.65% AAA 92.35% Top Securities Holdings / Portfolio
Name Holding Value Quantity Indian Railway Finance Corporation Limited
Debentures | -4% ₹350 Cr 3,500 Treps
CBLO/Reverse Repo | -4% ₹327 Cr CITICORP FINANCE (INDIA) LIMITED
Debentures | -4% ₹300 Cr 3,000 CHOLAMANDALAM INVESTMENT AND FIN. CO. LTD (CHOLAMANDALAM DBS FINANCE LTD)
Commercial Paper | -4% ₹298 Cr 6,000 NTPC Limited
Commercial Paper | -4% ₹297 Cr 6,000
↑ 6,000 IDFC BANK LIMITED
Certificate of Deposit | -4% ₹297 Cr 30,000
↑ 30,000 Indian Oil Corporation Limited
Commercial Paper | -3% ₹248 Cr 5,000
↑ 5,000 AXIS BANK LIMITED
Certificate of Deposit | -3% ₹248 Cr 25,000
↑ 25,000 Axis Bank Limited
Certificate of Deposit | -3% ₹235 Cr 25,000 Novy MIR Lightweighting Solutions Private Limited
Debentures | -3% ₹210 Cr 42 5. ICICI Prudential Ultra Short Term Fund
CAGR/Annualized return of 8.4% since its launch. Ranked 27 in Ultrashort Bond category. Return for 2018 was 7.5% , 2017 was 6.9% and 2016 was 9.8% . ICICI Prudential Ultra Short Term Fund
Growth Launch Date 3 May 11 NAV (21 May 19) ₹19.0754 ↑ 0.00 (0.03 %) Net Assets (Cr) ₹4,597 on 30 Apr 19 Category Debt - Ultrashort Bond AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆ Risk Moderate Expense Ratio 1.56 Sharpe Ratio 8.28 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 8.84% Effective Maturity 6 Months 18 Days Modified Duration 4 Months 17 Days Growth of 10,000 investment over the years.
Date Value 30 Apr 14 ₹10,000 30 Apr 15 ₹11,423 30 Apr 16 ₹12,475 30 Apr 17 ₹13,603 30 Apr 18 ₹14,527 30 Apr 19 ₹15,670 Returns for ICICI Prudential Ultra Short Term Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 21 May 19 Duration Returns 1 Month 0.7% 3 Month 2% 6 Month 4.3% 1 Year 8.2% 3 Year 7.9% 5 Year 9.3% 10 Year 15 Year Since launch 8.4% Historical performance (Yearly) on absolute basis
Year Returns 2018 7.5% 2017 6.9% 2016 9.8% 2015 9.1% 2014 14.8% 2013 3.1% 2012 9.4% 2011 2010 2009 Fund Manager information for ICICI Prudential Ultra Short Term Fund
Name Since Tenure Manish Banthia 15 Nov 16 2.37 Yr. Ritesh Lunawat 15 Jun 17 1.79 Yr. Data below for ICICI Prudential Ultra Short Term Fund as on 30 Apr 19
Asset Allocation
Asset Class Value Cash 40.59% Debt 59.41% Debt Sector Allocation
Sector Value Corporate 55.26% Cash Equivalent 40.59% Government 4.14% Credit Quality
Rating Value A 6.55% AA 57.45% AAA 36% Top Securities Holdings / Portfolio
Name Holding Value Quantity ONGC Petro Additions Limited
Debentures | -5% ₹250 Cr 250 Treps
CBLO/Reverse Repo | -5% ₹236 Cr Writers And Publishers Private Limited
Debentures | -4% ₹195 Cr 1,950 JSW Steel Limited
Debentures | -3% ₹161 Cr 1,595 Bahadur Chand Investments Private Limited
Debentures | -3% ₹150 Cr 1,500 Tata Realty And Infrastructure Limited
Debentures | -3% ₹150 Cr 1,500 Ashoka Buildcon Ltd.
Debentures | -3% ₹150 Cr 1,500 Aspire Home Finance Corporation Limited
Debentures | -3% ₹150 Cr 1,500 Manappuram Finance Limited
Debentures | -3% ₹148 Cr 1,481 NIRCHEM Cement Limited
Debentures | -3% ₹146 Cr 1,465 6. Kotak Savings Fund
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% . Kotak Savings Fund
Growth Launch Date 13 Aug 04 NAV (21 May 19) ₹30.259 ↑ 0.01 (0.03 %) Net Assets (Cr) ₹12,689 on 30 Apr 19 Category Debt - Ultrashort Bond AMC Kotak Mahindra Asset Management Co Ltd Rating ☆☆☆ Risk Moderately Low Expense Ratio 0.39 Sharpe Ratio 8.26 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 7.94% Effective Maturity 5 Months 8 Days Modified Duration 5 Months 1 Day Growth of 10,000 investment over the years.
Date Value 30 Apr 14 ₹10,000 30 Apr 15 ₹10,918 30 Apr 16 ₹11,835 30 Apr 17 ₹12,758 30 Apr 18 ₹13,597 30 Apr 19 ₹14,667 Returns for Kotak Savings Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 21 May 19 Duration Returns 1 Month 0.6% 3 Month 2% 6 Month 4.2% 1 Year 8.1% 3 Year 7.4% 5 Year 7.9% 10 Year 15 Year Since launch 7.8% Historical performance (Yearly) on absolute basis
Year Returns 2018 7.4% 2017 6.7% 2016 8.2% 2015 8.6% 2014 9.4% 2013 8.9% 2012 9.6% 2011 9.2% 2010 5.7% 2009 5.9% Fund Manager information for Kotak Savings Fund
Name Since Tenure Deepak Agrawal 15 Apr 08 10.8 Yr. Data below for Kotak Savings Fund as on 30 Apr 19
Asset Allocation
Asset Class Value Cash 66.26% Debt 33.74% Debt Sector Allocation
Sector Value Cash Equivalent 62.57% Corporate 31.35% Government 4.62% Securitized 1.46% Credit Quality
Rating Value AA 10.97% AAA 89.03% Top Securities Holdings / Portfolio
Name Holding Value Quantity Nabha Power Limited
Debentures | -4% ₹549 Cr 5,500 Bank Of Baroda
Certificate of Deposit | -4% ₹487 Cr 50,000
↓ -2,500 SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA
Commercial Paper | -4% ₹485 Cr 10,000
↑ 10,000 AXIS BANK LIMITED
Certificate of Deposit | -4% ₹485 Cr 50,000
↑ 50,000 Oriental Bank Of Commerce
Certificate of Deposit | -3% ₹390 Cr 40,000 INDUSIND BANK LIMITED
Certificate of Deposit | -3% ₹376 Cr 39,500 L&T Finance Limited
Commercial Paper | -3% ₹371 Cr 7,500
↓ -500 CHENNAI PETROLEUM CORPORATION LTD
Commercial Paper | -3% ₹358 Cr 7,200
↑ 7,200 IDFC First Bank Limited
Certificate of Deposit | -3% ₹341 Cr 35,000 NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Commercial Paper | -3% ₹338 Cr 6,800
↑ 6,800
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?
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.
©2019 Shepard Technologies Private Limited. All Rights Reserved
Presentation is very good