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6 Best Performing Ultra Short Term Mutual Funds 2019 for Investments

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6 Best Ultra Short Term Mutual Funds 2019

Updated on December 5, 2019 , 40135 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 2019-2020.

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 19 - 20

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)2018 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
Franklin India Ultra Short Bond Fund - Super Institutional Plan Growth ₹27.9109
↓ 0.00
₹19,9502.24.49.68.78.79.44%5M 16D6M 25D
Aditya Birla Sun Life Savings Fund Growth ₹390.137
↑ 0.04
₹15,8401.848.77.67.65.99%3M 22D4M 6D
UTI Ultra Short Term Fund Growth ₹3,059.24
↑ 0.69
₹2,5762.13.43.55.677.11%3M 20D4M 23D
ICICI Prudential Ultra Short Term Fund Growth ₹19.9555
↑ 0.00
₹5,99524.18.67.57.57.5%4M 20D5M 5D
SBI Magnum Ultra Short Duration Fund Growth ₹4,366.97
↑ 0.58
₹10,9251.73.88.27.57.95.9%5M 1D5M 12D
Kotak Savings Fund Growth ₹31.5248
↑ 0.00
₹11,2811.73.78.17.37.46.1%5M 16D5M 23D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 6 Dec 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 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 (06 Dec 19) ₹27.9109 ↓ 0.00   (0.00 %)
Net Assets (Cr) ₹19,950 on 31 Oct 19
Category Debt - Ultrashort Bond
AMC Franklin Templeton Asst Mgmt(IND)Pvt Ltd
Rating
Risk Moderate
Expense Ratio 0.42
Sharpe Ratio 10.31
Information Ratio 0
Alpha Ratio 0
Min Investment 10,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 9.44%
Effective Maturity 6 Months 25 Days
Modified Duration 5 Months 16 Days

Growth of 10,000 investment over the years.

DateValue
30 Nov 14₹10,000
30 Nov 15₹10,977
30 Nov 16₹12,075
30 Nov 17₹13,073
30 Nov 18₹14,142
30 Nov 19₹15,518

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 6 Dec 19

DurationReturns
1 Month 0.8%
3 Month 2.2%
6 Month 4.4%
1 Year 9.6%
3 Year 8.7%
5 Year 9.2%
10 Year
15 Year
Since launch 9%
Historical performance (Yearly) on absolute basis
YearReturns
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
NameSinceTenure
Santosh Kamath25 Oct 181.02 Yr.
Pallab Roy1 Jun 0811.42 Yr.

Data below for Franklin India Ultra Short Bond Fund - Super Institutional Plan as on 31 Oct 19

Asset Allocation
Asset ClassValue
Cash13.11%
Debt70.53%
Other16.36%
Debt Sector Allocation
SectorValue
Corporate75.81%
Cash Equivalent6.83%
Government1%
Credit Quality
RatingValue
A30.75%
AA57.92%
AAA11.32%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Call, Cash & Other Assets
Receivables | -
16%₹3,265 Cr
Vedanta Limited
Debentures | -
4%₹796 Cr7,900
Vodafone Mobile Services Limited
Debentures | -
4%₹709 Cr7,990
Renew Power Ventures Private Limited
Debentures | -
3%₹674 Cr6,740
Bharti Airtel Limited
Debentures | -
3%₹552 Cr5,500
↑ 5,500
JM FINANCIAL CREDIT SOLUTIONS LIMITED
Debentures | -
3%₹541 Cr5,400
REC LIMITED
Commercial Paper | -
2%₹468 Cr9,500
Indostar Capital Finance Limited
Debentures | -
2%₹441 Cr4,400
Bharti Airtel Limited
Debentures | -
2%₹401 Cr4,000
INDOSTAR CAPITAL FINANCE LIMITED
Debentures | -
2%₹391 Cr3,900
↑ 3,900

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 (06 Dec 19) ₹390.137 ↑ 0.04   (0.01 %)
Net Assets (Cr) ₹15,840 on 31 Oct 19
Category Debt - Ultrashort Bond
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk Moderately Low
Expense Ratio 0.35
Sharpe Ratio 10.25
Information Ratio 0
Alpha Ratio 0
Min Investment 1,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 5.99%
Effective Maturity 4 Months 6 Days
Modified Duration 3 Months 22 Days

Growth of 10,000 investment over the years.

DateValue
30 Nov 14₹10,000
30 Nov 15₹10,900
30 Nov 16₹11,970
30 Nov 17₹12,801
30 Nov 18₹13,705
30 Nov 19₹14,917

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 6 Dec 19

DurationReturns
1 Month 0.5%
3 Month 1.8%
6 Month 4%
1 Year 8.7%
3 Year 7.6%
5 Year 8.3%
10 Year
15 Year
Since launch 7.8%
Historical performance (Yearly) on absolute basis
YearReturns
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
NameSinceTenure
Sunaina Cunha11 Oct 144.98 Yr.
Kaustubh Gupta15 Jul 118.22 Yr.

Data below for Aditya Birla Sun Life Savings Fund as on 31 Oct 19

Asset Allocation
Asset ClassValue
Cash55.91%
Debt44.09%
Debt Sector Allocation
SectorValue
Corporate45.21%
Cash Equivalent35.43%
Government18.6%
Securitized0.76%
Credit Quality
RatingValue
AA13.4%
AAA86.6%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
8.19% Govt Stock 2020
Sovereign Bonds | -
7%₹1,126 Cr111,904,300
↑ 111,904,300
6.35% Govt Stock 2020
Sovereign Bonds | -
6%₹967 Cr96,500,000
↑ 33,500,000
National Bank For Agriculture And Rural Development
Debentures | -
3%₹538 Cr5,350
Power Finance Corporation Ltd.
Debentures | -
3%₹469 Cr4,650
Net Receivables / (Payables)
Net Current Assets | -
3%₹437 Cr
Rural Electrification Corporation Limited
Debentures | -
3%₹429 Cr4,263
Bharti Telecom Limited
Debentures | -
3%₹402 Cr3,500
Reliance Jio Infocomm Limited
Commercial Paper | -
2%₹349 Cr7,000
↑ 7,000
Clearing Corporation Of India Limited
CBLO | -
2%₹317 Cr
POWER FINANCE CORPORATION LIMITED
Debentures | -
2%₹310 Cr3,050

3. 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 7.1% 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 (06 Dec 19) ₹3,059.24 ↑ 0.69   (0.02 %)
Net Assets (Cr) ₹2,576 on 31 Oct 19
Category Debt - Ultrashort Bond
AMC UTI Asset Management Company Ltd
Rating
Risk Moderately Low
Expense Ratio 0.99
Sharpe Ratio 0.1
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 2,500
Exit Load NIL
Yield to Maturity 7.11%
Effective Maturity 4 Months 23 Days
Modified Duration 3 Months 20 Days

Growth of 10,000 investment over the years.

DateValue
30 Nov 14₹10,000
30 Nov 15₹10,870
30 Nov 16₹11,865
30 Nov 17₹12,647
30 Nov 18₹13,478
30 Nov 19₹13,956

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 ₹200,132.
Net Profit of ₹20,132
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 6 Dec 19

DurationReturns
1 Month 0.5%
3 Month 2.1%
6 Month 3.4%
1 Year 3.5%
3 Year 5.6%
5 Year 6.9%
10 Year
15 Year
Since launch 7.1%
Historical performance (Yearly) on absolute basis
YearReturns
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
NameSinceTenure
Sudhir Agarwal1 Jul 153.75 Yr.
Ritesh Nambiar1 Jul 153.75 Yr.

Data below for UTI Ultra Short Term Fund as on 31 Oct 19

Asset Allocation
Asset ClassValue
Cash79.33%
Debt20.67%
Debt Sector Allocation
SectorValue
Corporate45.34%
Cash Equivalent40.32%
Government14.34%
Credit Quality
RatingValue
A11.49%
AA17.32%
AAA71.19%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Net Current Assets
Net Current Assets | -
21%₹548 Cr00
Avanse Financial Services Limited
Debentures | -
9%₹232 Cr2,350
Edelweiss Commodities Services Limited
Debentures | -
8%₹198 Cr2,000
HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED
Commercial Paper | -
7%₹192 Cr2,000,000,000
NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Certificate of Deposit | -
5%₹123 Cr1,250,000,000
Andhra Bank
Certificate of Deposit | -
5%₹123 Cr1,250,000,000
↑ 500,000,000
AXIS BANK LIMITED
Certificate of Deposit | -
4%₹100 Cr1,000,000,000
AXIS BANK LIMITED
Certificate of Deposit | -
4%₹99 Cr1,000,000,000
IndusInd Bank Limited
Certificate of Deposit | -
4%₹98 Cr1,000,000,000
INDIAN OIL CORPORATION LIMITED
Commercial Paper | -
3%₹75 Cr750,000,000

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 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% .

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 (06 Dec 19) ₹19.9555 ↑ 0.00   (0.01 %)
Net Assets (Cr) ₹5,995 on 31 Oct 19
Category Debt - Ultrashort Bond
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 1.09
Sharpe Ratio 10.2
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 7.5%
Effective Maturity 5 Months 5 Days
Modified Duration 4 Months 20 Days

Growth of 10,000 investment over the years.

DateValue
30 Nov 14₹10,000
30 Nov 15₹10,927
30 Nov 16₹12,051
30 Nov 17₹12,868
30 Nov 18₹13,755
30 Nov 19₹14,955

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 ₹206,148.
Net Profit of ₹26,148
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 6 Dec 19

DurationReturns
1 Month 0.6%
3 Month 2%
6 Month 4.1%
1 Year 8.6%
3 Year 7.5%
5 Year 8.4%
10 Year
15 Year
Since launch 8.4%
Historical performance (Yearly) on absolute basis
YearReturns
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
NameSinceTenure
Manish Banthia15 Nov 162.96 Yr.
Ritesh Lunawat15 Jun 172.38 Yr.

Data below for ICICI Prudential Ultra Short Term Fund as on 31 Oct 19

Asset Allocation
Asset ClassValue
Cash31.33%
Debt68.67%
Debt Sector Allocation
SectorValue
Corporate71.14%
Cash Equivalent20.61%
Government8.26%
Credit Quality
RatingValue
A6.8%
AA57.58%
AAA35.62%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Treps
CBLO/Reverse Repo | -
7%₹434 Cr
National Bank For Agriculture And Rural Development
Debentures | -
4%₹267 Cr2,650
NIRCHEM Cement Limited
Debentures | -
3%₹208 Cr2,060
MANAPPURAM FINANCE LIMITED
Debentures | -
3%₹200 Cr2,000
Writers And Publishers Private Limited
Debentures | -
3%₹179 Cr1,782
NABHA POWER LIMITED
Debentures | -
3%₹166 Cr1,650
↑ 1,650
JSW Steel Limited
Debentures | -
3%₹160 Cr1,595
Ashoka Buildcon Ltd.
Debentures | -
3%₹151 Cr1,500
Bahadur Chand Investments Private Limited
Debentures | -
3%₹150 Cr1,500
Tata Value Homes Limited
Debentures | -
3%₹150 Cr1,500

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 (06 Dec 19) ₹4,366.97 ↑ 0.58   (0.01 %)
Net Assets (Cr) ₹10,925 on 31 Oct 19
Category Debt - Ultrashort Bond
AMC SBI Funds Management Private Limited
Rating
Risk Low
Expense Ratio 0.28
Sharpe Ratio 9.68
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment
Exit Load NIL
Yield to Maturity 5.9%
Effective Maturity 5 Months 12 Days
Modified Duration 5 Months 1 Day

Growth of 10,000 investment over the years.

DateValue
30 Nov 14₹10,000
30 Nov 15₹10,838
30 Nov 16₹11,680
30 Nov 17₹12,452
30 Nov 18₹13,407
30 Nov 19₹14,523

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 6 Dec 19

DurationReturns
1 Month 0.5%
3 Month 1.7%
6 Month 3.8%
1 Year 8.2%
3 Year 7.5%
5 Year 7.7%
10 Year
15 Year
Since launch 7.4%
Historical performance (Yearly) on absolute basis
YearReturns
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
NameSinceTenure
Rajeev Radhakrishnan1 May 109.51 Yr.

Data below for SBI Magnum Ultra Short Duration Fund as on 31 Oct 19

Asset Allocation
Asset ClassValue
Cash58.43%
Debt41.34%
Other0.23%
Debt Sector Allocation
SectorValue
Corporate54.7%
Government22.64%
Cash Equivalent19.75%
Securitized2.68%
Credit Quality
RatingValue
AA4.88%
AAA95.12%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
INDIAN BANK
Certificate of Deposit | -
7%₹748 Cr75,000
↑ 75,000
Treps
CBLO/Reverse Repo | -
6%₹690 Cr
POWER FINANCE CORPORATION LIMITED
Debentures | -
4%₹406 Cr4,000
↑ 1,750
NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Certificate of Deposit | -
3%₹339 Cr35,000
Bank Of Baroda
Debentures | -
3%₹329 Cr3,283
↑ 3,283
ASHOK LEYLAND LIMITED
Commercial Paper | -
2%₹244 Cr5,000
ANDHRA BANK
Certificate of Deposit | -
2%₹243 Cr25,000
BANK OF BARODA
Certificate of Deposit | -
2%₹243 Cr25,000
HDFC Bank Limited
Certificate of Deposit | -
2%₹236 Cr24,000
HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED
Commercial Paper | -
2%₹210 Cr4,280

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 (06 Dec 19) ₹31.5248 ↑ 0.00   (0.01 %)
Net Assets (Cr) ₹11,281 on 31 Oct 19
Category Debt - Ultrashort Bond
AMC Kotak Mahindra Asset Management Co Ltd
Rating
Risk Moderately Low
Expense Ratio 0.68
Sharpe Ratio 8.96
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 6.1%
Effective Maturity 5 Months 23 Days
Modified Duration 5 Months 16 Days

Growth of 10,000 investment over the years.

DateValue
30 Nov 14₹10,000
30 Nov 15₹10,874
30 Nov 16₹11,784
30 Nov 17₹12,575
30 Nov 18₹13,451
30 Nov 19₹14,558

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 ₹203,125.
Net Profit of ₹23,125
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 6 Dec 19

DurationReturns
1 Month 0.5%
3 Month 1.7%
6 Month 3.7%
1 Year 8.1%
3 Year 7.3%
5 Year 7.8%
10 Year
15 Year
Since launch 7.8%
Historical performance (Yearly) on absolute basis
YearReturns
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
NameSinceTenure
Deepak Agrawal15 Apr 0811.38 Yr.

Data below for Kotak Savings Fund as on 31 Oct 19

Asset Allocation
Asset ClassValue
Cash73.33%
Debt26.67%
Debt Sector Allocation
SectorValue
Corporate52.58%
Cash Equivalent34.89%
Government11.71%
Securitized0.82%
Credit Quality
RatingValue
AA6.51%
AAA93.49%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
91 DTB 23012020
Sovereign Bonds | -
9%₹1,023 Cr103,500,000
↑ 103,500,000
National Bank For Agriculture And Rural Development
Commercial Paper | -
6%₹687 Cr14,000
LARSEN AND TOUBRO LIMITED
Commercial Paper | -
5%₹590 Cr12,000
↑ 12,000
Power Finance Corporation Ltd.
Commercial Paper | -
5%₹515 Cr10,500
SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA
Certificate of Deposit | -
4%₹480 Cr50,000
LIC Housing Finance Limited
Commercial Paper | -
4%₹426 Cr9,000
↑ 9,000
RELIANCE INDUSTRIES LIMITED
Commercial Paper | -
3%₹393 Cr8,000
↓ -2,000
Axis Bank Limited
Certificate of Deposit | -
3%₹384 Cr40,000
↓ -10,000
L & T Finance Ltd
Debentures | -
3%₹301 Cr3,000
Bahadur Chand Investments Private Limited
Debentures | -
3%₹301 Cr3,000

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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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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