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6 Best Ultra Short Term Mutual Funds 2018 - 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 2018-2019, we have listed best Ultra Short Term Funds below, take a look.
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Top 5 Ultra Short Term Funds for Investments in India FY 18 - 19
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2017 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity Franklin India Ultra Short Bond Fund - Super Institutional Plan Growth ₹25.3038
↑ 0.01 ₹14,643 2.1 4.5 7.9 8.7 8.2 0% 6M 21D Aditya Birla Sun Life Savings Fund Growth ₹357.145
↑ 0.12 ₹14,876 1.9 4.1 6.9 7.9 7.2 8.58% 3M 29D 4M 10D Indiabulls Ultra Short Term Fund Growth ₹1,758.3
↑ 0.39 ₹551 1.6 3.6 6.7 7.6 6.9 0% UTI Ultra Short Term Fund Growth ₹2,945.08
↑ 0.78 ₹5,345 1.6 3.6 6.5 7.4 6.6 9.63% 3M 9D 5M 9D SBI Magnum Ultra Short Duration Fund Growth ₹4,018.94
↑ 1.17 ₹4,173 2 4.1 7.6 7.3 6.6 8.1% 2M 19D 3M Kotak Savings Fund Growth ₹29.0379
↑ 0.01 ₹6,783 1.8 3.8 6.8 7.3 6.7 8.48% 4M 20D 4M 28D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 20 Nov 18
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 To provide liquidity with returns commensurate with low risk through a portfolio of money market and debt securities. However, there can be no assurance that the investment objective of the scheme will be achieved. Indiabulls Ultra Short Term Fund is a Debt - Ultrashort Bond fund was launched on 6 Jan 12. It is a fund with Moderately Low risk and has given a Below is the key information for Indiabulls Ultra Short Term 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 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 1. Franklin India Ultra Short Bond Fund - Super Institutional Plan
CAGR/Annualized return of 8.9% since its launch. Return for 2017 was 8.2% , 2016 was 9.7% and 2015 was 9.7% . Franklin India Ultra Short Bond Fund - Super Institutional Plan
Growth Launch Date 18 Dec 07 NAV (20 Nov 18) ₹25.3038 ↑ 0.01 (0.03 %) Net Assets (Cr) ₹14,643 on 31 Oct 18 Category Debt - Ultrashort Bond AMC Franklin Templeton Asst Mgmt(IND)Pvt Ltd Rating ☆☆☆☆☆ Risk Moderate Expense Ratio 0.37 Sharpe Ratio 8.05 Information Ratio 3.35 Alpha Ratio -0.58 Min Investment 10,000 Exit Load NIL Yield to Maturity 0% Effective Maturity 6 Months 21 Days Modified Duration Growth of 10,000 investment over the years.
Date Value 31 Oct 13 ₹10,000 31 Oct 14 ₹11,010 31 Oct 15 ₹12,088 31 Oct 16 ₹13,253 31 Oct 17 ₹14,421 31 Oct 18 ₹15,524 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 20 Nov 18 Duration Returns 1 Month 0.9% 3 Month 2.1% 6 Month 4.5% 1 Year 7.9% 3 Year 8.7% 5 Year 9.2% 10 Year 15 Year Since launch 8.9% Historical performance (Yearly) on absolute basis
Year Returns 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% 2008 10.1% Fund Manager information for Franklin India Ultra Short Bond Fund - Super Institutional Plan
Name Since Tenure Santosh Kamath 25 Oct 18 0.02 Yr. Pallab Roy 1 Jun 08 10.42 Yr. Data below for Franklin India Ultra Short Bond Fund - Super Institutional Plan as on 31 Oct 18
Asset Allocation
Asset Class Value Cash 38.33% Debt 61.67% Debt Sector Allocation
Sector Value Corporate 77.42% Cash Equivalent 17.33% Government 5.25% Credit Quality
Rating Value A 32.58% AA 38.45% AAA 28.97% Top Securities Holdings / Portfolio
Name Holding Value Quantity Call, Cash & Other Assets
Commercial Paper | -7% ₹1,006 Cr National Bank For Agriculture And Rural Development
Commercial Paper | -5% ₹669 Cr 13,400
↑ 8,900 Renew Power Ventures Private Limited
Debentures | -5% ₹669 Cr 6,740 Vodafone Mobile Services Limited
Debentures | -4% ₹584 Cr 6,060
↑ 6,060 Adani Infra (India) Limited
Debentures | -4% ₹527 Cr 500
↑ 500 Aditya Birla Retail Limited
Debentures | -3% ₹487 Cr 400 Indostar Capital Finance Limited
Debentures | -3% ₹439 Cr 4,400
↑ 4,400 Piramal Realty Private Limited
Debentures | -2% ₹350 Cr 3,500 Bajaj Finance Limited
Commercial Paper | -2% ₹348 Cr 7,000 National Bank For Agriculture And Rural Development
Commercial Paper | -2% ₹339 Cr 6,900 2. Aditya Birla Sun Life Savings Fund
CAGR/Annualized return of 7.7% since its launch. Ranked 6 in Ultrashort Bond category. Return for 2017 was 7.2% , 2016 was 9.2% and 2015 was 8.9% . Aditya Birla Sun Life Savings Fund
Growth Launch Date 16 Apr 03 NAV (20 Nov 18) ₹357.145 ↑ 0.12 (0.03 %) Net Assets (Cr) ₹14,876 on 31 Oct 18 Category Debt - Ultrashort Bond AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆☆☆ Risk Moderately Low Expense Ratio 0.35 Sharpe Ratio 5.15 Information Ratio 1.11 Alpha Ratio 2.64 Min Investment 1,000 Exit Load NIL Yield to Maturity 8.58% Effective Maturity 4 Months 10 Days Modified Duration 3 Months 29 Days Growth of 10,000 investment over the years.
Date Value 31 Oct 13 ₹10,000 31 Oct 14 ₹10,971 31 Oct 15 ₹11,973 31 Oct 16 ₹13,078 31 Oct 17 ₹14,086 31 Oct 18 ₹15,033 Returns for Aditya Birla Sun Life Savings Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 20 Nov 18 Duration Returns 1 Month 0.7% 3 Month 1.9% 6 Month 4.1% 1 Year 6.9% 3 Year 7.9% 5 Year 8.5% 10 Year 15 Year Since launch 7.7% Historical performance (Yearly) on absolute basis
Year Returns 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% 2008 9.3% Fund Manager information for Aditya Birla Sun Life Savings Fund
Name Since Tenure Sunaina Cunha 11 Oct 14 4.06 Yr. Kaustubh Gupta 15 Jul 11 7.3 Yr. Data below for Aditya Birla Sun Life Savings Fund as on 31 Oct 18
Asset Allocation
Asset Class Value Cash 63.82% Debt 36.18% Debt Sector Allocation
Sector Value Corporate 70.25% Cash Equivalent 22.83% Government 6.07% Securitized 0.85% Credit Quality
Rating Value AA 24.61% AAA 75.39% Top Securities Holdings / Portfolio
Name Holding Value Quantity Indiabulls Housing Finance Limited
Commercial Paper | -5% ₹784 Cr 16,000 7.80% Indusind Bank Limited (28/12/2018)
Certificate of Deposit | -5% ₹700 Cr Vodafone Mobile Services Limited
Debentures | -5% ₹684 Cr 6,950 Bharti Airtel Limited
Commercial Paper | -4% ₹565 Cr 11,500 Housing Development Finance Corporation Limited
Commercial Paper | -3% ₹493 Cr 10,000 THE TATA POWER COMPANY LIMITED
Commercial Paper | -3% ₹492 Cr 10,000
↑ 10,000 National Bank For Agriculture And Rural Development
Debentures | -3% ₹490 Cr 4,900
↑ 1,400 ONGC Petro Additions Limited
Debentures | -3% ₹459 Cr 460 Edelweiss Commodities Services Limited
Debentures | -3% ₹397 Cr 4,000 Reliance Industries Limited
Commercial Paper | -3% ₹394 Cr 8,000
↓ -4,000 3. Indiabulls Ultra Short Term Fund
CAGR/Annualized return of 8.6% since its launch. Ranked 17 in Ultrashort Bond category. Return for 2017 was 6.9% , 2016 was 8.8% and 2015 was 8.8% . Indiabulls Ultra Short Term Fund
Growth Launch Date 6 Jan 12 NAV (20 Nov 18) ₹1,758.3 ↑ 0.39 (0.02 %) Net Assets (Cr) ₹551 on 31 Oct 18 Category Debt - Ultrashort Bond AMC Indiabulls Asset Management Company Ltd. Rating ☆☆☆☆ Risk Moderately Low Expense Ratio 0.71 Sharpe Ratio 7.89 Information Ratio 0.89 Alpha Ratio -0.64 Min Investment 500 Exit Load NIL Yield to Maturity 0% Effective Maturity Modified Duration Growth of 10,000 investment over the years.
Date Value 31 Oct 13 ₹10,000 31 Oct 14 ₹10,925 31 Oct 15 ₹11,917 31 Oct 16 ₹12,928 31 Oct 17 ₹13,922 31 Oct 18 ₹14,836 Returns for Indiabulls Ultra Short Term Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 20 Nov 18 Duration Returns 1 Month 0.6% 3 Month 1.6% 6 Month 3.6% 1 Year 6.7% 3 Year 7.6% 5 Year 8.2% 10 Year 15 Year Since launch 8.6% Historical performance (Yearly) on absolute basis
Year Returns 2017 6.9% 2016 8.8% 2015 8.8% 2014 9.3% 2013 8.8% 2012 2011 2010 2009 2008 Fund Manager information for Indiabulls Ultra Short Term Fund
Name Since Tenure Malay Shah 22 Aug 14 4.2 Yr. Data below for Indiabulls Ultra Short Term Fund as on 31 Oct 18
Asset Allocation
Asset Class Value Cash 78.44% Debt 21.56% Debt Sector Allocation
Sector Value Corporate 75.66% Cash Equivalent 12.83% Government 11.51% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Tata Motors Finance Solutions Limited
Commercial Paper | -9% ₹50 Cr 5,000,000
↑ 5,000,000 National Bank For Agriculture And Rural Development
Commercial Paper | -9% ₹50 Cr 5,000,000
↑ 5,000,000 Indiabulls Housing Finance Limited
Debentures | -9% ₹50 Cr 5,000,000
↑ 5,000,000 VEDANTA LIMITED
Commercial Paper | -9% ₹50 Cr 5,000,000
↑ 5,000,000 Dewan Housing Finance Corporation Limited
Debentures | -6% ₹32 Cr 2,050,000 Cblo 01/11/18- Mat - 011118
CBLO | -5% ₹29 Cr 2,883,000
↑ 2,883,000 Yes Bank Limited
Certificate of Deposit | -5% ₹25 Cr 2,500,000 AXIS FINANCE LIMITED
Commercial Paper | -5% ₹25 Cr 2,500,000 IDFC Bank Limited
Certificate of Deposit | -5% ₹25 Cr 2,500,000
↑ 2,500,000 ADITYA BIRLA CAPITAL LIMITED
Commercial Paper | -5% ₹25 Cr 2,500,000 4. UTI Ultra Short Term Fund
CAGR/Annualized return of 7.4% since its launch. Ranked 27 in Ultrashort Bond category. Return for 2017 was 6.6% , 2016 was 8.9% and 2015 was 8.5% . UTI Ultra Short Term Fund
Growth Launch Date 29 Aug 03 NAV (20 Nov 18) ₹2,945.08 ↑ 0.78 (0.03 %) Net Assets (Cr) ₹5,345 on 31 Oct 18 Category Debt - Ultrashort Bond AMC UTI Asset Management Company Ltd Rating ☆☆☆☆ Risk Moderately Low Expense Ratio 1.16 Sharpe Ratio 6.46 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Exit Load NIL Yield to Maturity 9.63% Effective Maturity 5 Months 9 Days Modified Duration 3 Months 9 Days Growth of 10,000 investment over the years.
Date Value 31 Oct 13 ₹10,000 31 Oct 14 ₹10,884 31 Oct 15 ₹11,842 31 Oct 16 ₹12,871 31 Oct 17 ₹13,792 31 Oct 18 ₹14,663 Returns for UTI Ultra Short Term Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 20 Nov 18 Duration Returns 1 Month 0.7% 3 Month 1.6% 6 Month 3.6% 1 Year 6.5% 3 Year 7.4% 5 Year 8% 10 Year 15 Year Since launch 7.4% Historical performance (Yearly) on absolute basis
Year Returns 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% 2008 9.8% Fund Manager information for UTI Ultra Short Term Fund
Name Since Tenure Sudhir Agarwal 1 Jul 15 3.34 Yr. Ritesh Nambiar 1 Jul 15 3.34 Yr. Data below for UTI Ultra Short Term Fund as on 31 Oct 18
Asset Allocation
Asset Class Value Cash 61.72% Debt 38.28% Debt Sector Allocation
Sector Value Cash Equivalent 52.44% Corporate 47.55% Government 0.01% Credit Quality
Rating Value AA 62.05% AAA 37.95% Top Securities Holdings / Portfolio
Name Holding Value Quantity Net Current Assets
Net Current Assets | -42% ₹2,233 Cr 00 Shriram Transport Finance Company Limited
Debentures | -5% ₹246 Cr 2,500 Avanse Financial Services Limited
Debentures | -4% ₹233 Cr 2,350 Edelweiss Commodities Services Limited
Debentures | -4% ₹199 Cr 2,000 Business Broadcast News Holdings Limited
Debentures | -3% ₹158 Cr 1,500 Shriram Transport Finance Company Limited
Debentures | -3% ₹150 Cr 1,500 AU Small Finance Bank Limited
Certificate of Deposit | -3% ₹148 Cr 1,500,000,000 Housing Development Finance Corporation Limited
Commercial Paper | -3% ₹148 Cr 1,500,000,000 Small Industries Development Bank Of India
Debentures | -2% ₹125 Cr 1,250 Future Retail Limited
Debentures | -2% ₹122 Cr 1,200 5. SBI Magnum Ultra Short Duration Fund
CAGR/Annualized return of 7.4% since its launch. Return for 2017 was 6.6% , 2016 was 7.7% and 2015 was 8.3% . SBI Magnum Ultra Short Duration Fund
Growth Launch Date 21 May 99 NAV (20 Nov 18) ₹4,018.94 ↑ 1.17 (0.03 %) Net Assets (Cr) ₹4,173 on 31 Oct 18 Category Debt - Ultrashort Bond AMC SBI Funds Management Private Limited Rating ☆☆☆ Risk Low Expense Ratio 0.22 Sharpe Ratio 13.31 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Exit Load NIL Yield to Maturity 8.1% Effective Maturity 3 Months Modified Duration 2 Months 19 Days Growth of 10,000 investment over the years.
Date Value 31 Oct 13 ₹10,000 31 Oct 14 ₹10,914 31 Oct 15 ₹11,840 31 Oct 16 ₹12,764 31 Oct 17 ₹13,616 31 Oct 18 ₹14,623 Returns for SBI Magnum Ultra Short Duration Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 20 Nov 18 Duration Returns 1 Month 0.8% 3 Month 2% 6 Month 4.1% 1 Year 7.6% 3 Year 7.3% 5 Year 7.9% 10 Year 15 Year Since launch 7.4% Historical performance (Yearly) on absolute basis
Year Returns 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% 2008 8.9% Fund Manager information for SBI Magnum Ultra Short Duration Fund
Name Since Tenure Rajeev Radhakrishnan 1 May 10 8.51 Yr. Data below for SBI Magnum Ultra Short Duration Fund as on 31 Oct 18
Asset Allocation
Asset Class Value Cash 67.66% Debt 32.34% Debt Sector Allocation
Sector Value Corporate 67.91% Cash Equivalent 21.01% Government 11.08% Credit Quality
Rating Value AA 13.41% AAA 86.59% Top Securities Holdings / Portfolio
Name Holding Value Quantity Novy MIR Lightweighting Solutions Private Limited
Debentures | -5% ₹209 Cr 42 National Housing Bank
Debentures | -5% ₹200 Cr 2,000
↑ 750 VEDANTA LIMITED
Commercial Paper | -5% ₹198 Cr 4,000 VEDANTA LIMITED
Commercial Paper | -5% ₹197 Cr 4,000
↑ 4,000 Housing And Urban Development Corporation Ltd.
Commercial Paper | -5% ₹196 Cr 4,000 RMZ Infotech Private Limited
Debentures | -4% ₹181 Cr 1,750 Small Industries Development Bank Of India
Debentures | -4% ₹175 Cr 1,750
↑ 1,250 Rural Electrification Corporation Limited
Debentures | -4% ₹160 Cr 1,600 Daimler Financial Services India Private Limited
Debentures | -4% ₹150 Cr 1,500 JSW STEEL LIMITED
Commercial Paper | -4% ₹147 Cr 3,000
↑ 3,000 6. Kotak Savings Fund
CAGR/Annualized return of 7.8% since its launch. Ranked 44 in Ultrashort Bond category. Return for 2017 was 6.7% , 2016 was 8.2% and 2015 was 8.6% . Kotak Savings Fund
Growth Launch Date 13 Aug 04 NAV (20 Nov 18) ₹29.0379 ↑ 0.01 (0.03 %) Net Assets (Cr) ₹6,783 on 31 Oct 18 Category Debt - Ultrashort Bond AMC Kotak Mahindra Asset Management Co Ltd Rating ☆☆☆ Risk Moderately Low Expense Ratio 0.39 Sharpe Ratio 6.63 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Exit Load NIL Yield to Maturity 8.48% Effective Maturity 4 Months 28 Days Modified Duration 4 Months 20 Days Growth of 10,000 investment over the years.
Date Value 31 Oct 13 ₹10,000 31 Oct 14 ₹10,959 31 Oct 15 ₹11,922 31 Oct 16 ₹12,894 31 Oct 17 ₹13,816 31 Oct 18 ₹14,727 Returns for Kotak Savings Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 20 Nov 18 Duration Returns 1 Month 0.7% 3 Month 1.8% 6 Month 3.8% 1 Year 6.8% 3 Year 7.3% 5 Year 8.1% 10 Year 15 Year Since launch 7.8% Historical performance (Yearly) on absolute basis
Year Returns 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% 2008 9.2% Fund Manager information for Kotak Savings Fund
Name Since Tenure Deepak Agrawal 15 Apr 08 10.55 Yr. Data below for Kotak Savings Fund as on 31 Oct 18
Asset Allocation
Asset Class Value Cash 59.97% Debt 40.03% Debt Sector Allocation
Sector Value Corporate 73.52% Government 16.31% Cash Equivalent 8.96% Securitized 1.22% Credit Quality
Rating Value AA 13.21% AAA 86.79% Top Securities Holdings / Portfolio
Name Holding Value Quantity NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Commercial Paper | -6% ₹426 Cr 8,660
↑ 8,660 ONGC Mangalore Petrochemicals Limited
Debentures | -6% ₹398 Cr 4,000 Axis Bank Limited
Certificate of Deposit | -5% ₹360 Cr 37,000 HDFC Bank Limited
Certificate of Deposit | -5% ₹341 Cr 35,000 RELIANCE INDUSTRIES LIMITED
Commercial Paper | -4% ₹292 Cr 6,000
↑ 6,000 AXIS BANK LIMITED
Certificate of Deposit | -4% ₹246 Cr 25,000
↑ 25,000 Reliance Jio Infocomm Limited
Debentures | -4% ₹243 Cr 2,450 Indiabulls Housing Finance Limited
Commercial Paper | -4% ₹239 Cr 4,900 L & T Finance Ltd
Commercial Paper | -3% ₹228 Cr 4,660
↑ 4,660 Piramal Housing Finance Limited
Commercial Paper | -3% ₹210 Cr 4,500
Taxation On Best Ultra Short Term Funds
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).
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.
Why Best Ultra Short Term Funds Over Savings Account?
Conventional investors often restrict themselves from investing in Mutual Funds due to the market risks involved. They prefer Savings Account over Mutual Funds like Ultra Short Term Funds that offer good returns with very less volatility. So, we have illustrated an example below to analyse the returns of both savings account and Ultra Short Funds to understand which is a better investment.
Illustration:
An investor invests INR 40,00,00 in both Ultra Short Term Funds and Savings Account with the interest rate 3.5% p.a. and 8% p.a. respectively. See how the returns differ-
| Saving Account | Ultra Short Funds |
|---|---|
| Amount Invested | 40,00,00 |
| Interest Earned (Profit) | 14,000 |
Taxation Breakup (Saving Account) @ 3.5%
| Tax Bracket | Tax | Net Income (Profit) |
|---|---|---|
| 5% | 200 | 13,800 |
| 20% | 800 | 13,200 |
| 30% | 1200 | 12,800 |
Taxation Breakup (Ultra Short Funds) @ 8%
| Tax Bracket | Tax | Net Income (Profit) |
|---|---|---|
| 5% | 3200 | 28,800 |
| 20% | 6400 | 25,600 |
| 30% | 9600 | 22,400 |
The above table clearly portrays the difference in the net income from savings accounts and ultra short term funds. Even the investors falling under the maximum tax bracket of 30% can avail returns of INR 22,400 by investing in ultra short term funds, which is much more than INR 12,800 offered by a savings account.
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.
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