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6 Best Performing Ultra Short Term Mutual Funds 2020 for Investments

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6 Best Ultra Short Term Mutual Funds 2020

Updated on September 23, 2020 , 75735 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 2020-2021.

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 20 - 21

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)2019 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
Aditya Birla Sun Life Savings Fund Growth ₹413.338
↑ 0.05
₹16,2181.65.57.67.78.54.52%6M6M 18D
ICICI Prudential Ultra Short Term Fund Growth ₹21.0651
↑ 0.00
₹6,9401.74.87.47.48.45.42%3M 18D4M 20D
SBI Magnum Ultra Short Duration Fund Growth ₹4,589.95
↑ 0.37
₹12,6351.14.56.77.584.08%5M 1D5M 12D
Kotak Savings Fund Growth ₹33.1166
↑ 0.00
₹11,1761.14.46.67.17.84.01%5M 12D5M 23D
Nippon India Ultra Short Duration Fund Growth ₹2,962.49
↑ 0.41
₹6210.836.14.30.99.16%5M 8D9M 13D
UTI Ultra Short Term Fund Growth ₹3,192.8
↑ 0.29
₹1,5391.13.86.15.23.35.33%3M 24D3M 26D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 25 Sep 20
*List of Funds having AUM >= 500 Crore and sorted on last 1 Year Return.

1. 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 2019 was 8.5% , 2018 was 7.6% and 2017 was 7.2% .

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 (25 Sep 20) ₹413.338 ↑ 0.05   (0.01 %)
Net Assets (Cr) ₹16,218 on 31 Aug 20
Category Debt - Ultrashort Bond
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk Moderately Low
Expense Ratio 0.35
Sharpe Ratio 2.52
Information Ratio 0
Alpha Ratio 0
Min Investment 1,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 4.52%
Effective Maturity 6 Months 18 Days
Modified Duration 6 Months

Growth of 10,000 investment over the years.

DateValue
31 Aug 15₹10,000
31 Aug 16₹10,922
31 Aug 17₹11,812
31 Aug 18₹12,580
31 Aug 19₹13,709
31 Aug 20₹14,759

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 25 Sep 20

DurationReturns
1 Month 0.4%
3 Month 1.6%
6 Month 5.5%
1 Year 7.6%
3 Year 7.7%
5 Year 8.1%
10 Year
15 Year
Since launch 7.8%
Historical performance (Yearly) on absolute basis
YearReturns
2019 8.5%
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%
Fund Manager information for Aditya Birla Sun Life Savings Fund
NameSinceTenure
Sunaina Cunha11 Oct 145.89 Yr.
Kaustubh Gupta15 Jul 119.14 Yr.

Data below for Aditya Birla Sun Life Savings Fund as on 31 Aug 20

Asset Allocation
Asset ClassValue
Cash47.34%
Debt52.66%
Debt Sector Allocation
SectorValue
Corporate54.18%
Cash Equivalent29.62%
Government15.41%
Securitized0.79%
Credit Quality
RatingValue
AA9.71%
AAA90.29%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Mahindra & Mahindra Financial Services Limited
Debentures | -
3%₹454 Cr4,450
↑ 4,450
8.12% Govt Stock 2020
Sovereign Bonds | -
2%₹405 Cr40,000,000
↑ 40,000,000
Shriram Transport Finance Company Limited
Debentures | -
2%₹366 Cr3,750
REC Limited
Debentures | -
2%₹330 Cr3,200
↑ 3,200
Housing Development Finance Corporation Limited
Debentures | -
2%₹297 Cr2,925
↑ 250
Rural Electrification Corporation Limited
Debentures | -
2%₹270 Cr2,650
6.81% MH SDL 2020
Sovereign Bonds | -
2%₹262 Cr26,000,000
Muthoot Finance Limited
Debentures | -
1%₹242 Cr2,350
Reliance Industries Limited
Debentures | -
1%₹234 Cr2,315
Rural Electrification Corporation Limited
Debentures | -
1%₹231 Cr2,250

2. 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 8.2% since its launch.  Ranked 27 in Ultrashort Bond category.  Return for 2019 was 8.4% , 2018 was 7.5% and 2017 was 6.9% .

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 (25 Sep 20) ₹21.0651 ↑ 0.00   (0.01 %)
Net Assets (Cr) ₹6,940 on 31 Aug 20
Category Debt - Ultrashort Bond
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 1.09
Sharpe Ratio 2.41
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 5.42%
Effective Maturity 4 Months 20 Days
Modified Duration 3 Months 18 Days

Growth of 10,000 investment over the years.

DateValue
31 Aug 15₹10,000
31 Aug 16₹10,947
31 Aug 17₹11,866
31 Aug 18₹12,618
31 Aug 19₹13,696
31 Aug 20₹14,717

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 25 Sep 20

DurationReturns
1 Month 0.5%
3 Month 1.7%
6 Month 4.8%
1 Year 7.4%
3 Year 7.4%
5 Year 8%
10 Year
15 Year
Since launch 8.2%
Historical performance (Yearly) on absolute basis
YearReturns
2019 8.4%
2018 7.5%
2017 6.9%
2016 9.8%
2015 9.1%
2014 14.8%
2013 3.1%
2012 9.4%
2011
2010
Fund Manager information for ICICI Prudential Ultra Short Term Fund
NameSinceTenure
Manish Banthia15 Nov 163.79 Yr.
Ritesh Lunawat15 Jun 173.21 Yr.

Data below for ICICI Prudential Ultra Short Term Fund as on 31 Aug 20

Asset Allocation
Asset ClassValue
Cash57.63%
Debt42.37%
Debt Sector Allocation
SectorValue
Corporate59.93%
Cash Equivalent39.12%
Government0.51%
Securitized0.44%
Credit Quality
RatingValue
A4.38%
AA31.63%
AAA63.99%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Manappuram Finance Limited
Debentures | -
3%₹205 Cr2,000
↑ 2,000
JSW Energy Limited
Debentures | -
3%₹200 Cr2,000
Rural Electrification Corporation Limited
Debentures | -
3%₹175 Cr1,750
Housing Development Finance Corporation Limited
Debentures | -
2%₹152 Cr1,500
↑ 250
Tata Value Homes Limited
Debentures | -
2%₹152 Cr1,500
Aspire Home Finance Corporation Limited
Debentures | -
2%₹151 Cr1,500
Reliance Industries Limited
Debentures | -
2%₹141 Cr1,400
Bharti Telecom Limited
Debentures | -
2%₹127 Cr1,250
Bahadur Chand Investments Private Limited
Debentures | -
2%₹126 Cr1,250
RELIABLE DEVICES TRUST
Unlisted bonds | -
2%₹116 Cr986

3. 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 2019 was 8% , 2018 was 7.9% and 2017 was 6.6% .

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 (25 Sep 20) ₹4,589.95 ↑ 0.37   (0.01 %)
Net Assets (Cr) ₹12,635 on 31 Aug 20
Category Debt - Ultrashort Bond
AMC SBI Funds Management Private Limited
Rating
Risk Low
Expense Ratio 0.28
Sharpe Ratio 2.96
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 4.08%
Effective Maturity 5 Months 12 Days
Modified Duration 5 Months 1 Day

Growth of 10,000 investment over the years.

DateValue
31 Aug 15₹10,000
31 Aug 16₹10,796
31 Aug 17₹11,526
31 Aug 18₹12,358
31 Aug 19₹13,411
31 Aug 20₹14,324

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 25 Sep 20

DurationReturns
1 Month 0.3%
3 Month 1.1%
6 Month 4.5%
1 Year 6.7%
3 Year 7.5%
5 Year 7.4%
10 Year
15 Year
Since launch 7.4%
Historical performance (Yearly) on absolute basis
YearReturns
2019 8%
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%
Fund Manager information for SBI Magnum Ultra Short Duration Fund
NameSinceTenure
Rajeev Radhakrishnan1 May 1010.34 Yr.

Data below for SBI Magnum Ultra Short Duration Fund as on 31 Aug 20

Asset Allocation
Asset ClassValue
Cash67.81%
Debt32.19%
Debt Sector Allocation
SectorValue
Corporate44.99%
Cash Equivalent38.89%
Government15.32%
Securitized0.8%
Credit Quality
RatingValue
AA4.17%
AAA95.83%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
91 DTB 24092020
Sovereign Bonds | -
8%₹998 Cr100,000,000
182 DTB 29092020
Sovereign Bonds | -
6%₹798 Cr80,000,000
Rural Electrification Corporation Limited
Debentures | -
5%₹689 Cr6,750
↓ -500
364 DTB 29072021
Sovereign Bonds | -
4%₹484 Cr50,000,000
Housing Development Finance Corporation Limited
Debentures | -
3%₹380 Cr3,750
Mahindra & Mahindra Financial Services Limited
Debentures | -
3%₹371 Cr3,000
↑ 3,000
182 DTB 04022021
Sovereign Bonds | -
3%₹345 Cr35,000,000
↑ 35,000,000
Housing Development Finance Corporation Limited
Debentures | -
2%₹231 Cr2,250
↑ 1,250
Muthoot Finance Limited
Debentures | -
2%₹216 Cr2,130,000
↑ 800,000
Power Finance Corporation Limited
Debentures | -
1%₹175 Cr1,750
↑ 1,750

4. 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 7.7% since its launch.  Ranked 44 in Ultrashort Bond category.  Return for 2019 was 7.8% , 2018 was 7.4% and 2017 was 6.7% .

Below is the key information for Kotak Savings Fund

Kotak Savings Fund
Growth
Launch Date 13 Aug 04
NAV (25 Sep 20) ₹33.1166 ↑ 0.00   (0.01 %)
Net Assets (Cr) ₹11,176 on 31 Aug 20
Category Debt - Ultrashort Bond
AMC Kotak Mahindra Asset Management Co Ltd
Rating
Risk Moderately Low
Expense Ratio 0.48
Sharpe Ratio 2.61
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 4.01%
Effective Maturity 5 Months 23 Days
Modified Duration 5 Months 12 Days

Growth of 10,000 investment over the years.

DateValue
31 Aug 15₹10,000
31 Aug 16₹10,829
31 Aug 17₹11,624
31 Aug 18₹12,389
31 Aug 19₹13,419
31 Aug 20₹14,314

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 25 Sep 20

DurationReturns
1 Month 0.3%
3 Month 1.1%
6 Month 4.4%
1 Year 6.6%
3 Year 7.1%
5 Year 7.4%
10 Year
15 Year
Since launch 7.7%
Historical performance (Yearly) on absolute basis
YearReturns
2019 7.8%
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%
Fund Manager information for Kotak Savings Fund
NameSinceTenure
Deepak Agrawal15 Apr 0812.39 Yr.

Data below for Kotak Savings Fund as on 31 Aug 20

Asset Allocation
Asset ClassValue
Cash30.13%
Debt69.87%
Debt Sector Allocation
SectorValue
Corporate38.04%
Government34.13%
Cash Equivalent24.02%
Securitized3.81%
Credit Quality
RatingValue
AA9.05%
AAA90.95%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
8.12% Govt Stock 2020
Sovereign Bonds | -
13%₹1,433 Cr141,500,000
↑ 131,500,000
7.80% GOI Floating Rate Bonds 2020
Sovereign Bonds | -
12%₹1,322 Cr132,100,000
↑ 128,000,000
Bharti Telecom Limited
Debentures | -
5%₹550 Cr5,400
↑ 1,000
Housing Development Finance Corporation Limited
Debentures | -
4%₹459 Cr4,500
↑ 1,000
Rural Electrification Corporation Limited
Debentures | -
4%₹421 Cr4,100
Kotak Mahindra Prime Limited
Debentures | -
3%₹371 Cr3,000
Bajaj Housing Finance Limited
Debentures | -
3%₹349 Cr3,000
↑ 3,000
Power Finance Corporation Limited
Debentures | -
3%₹320 Cr3,050
↑ 3,050
364 DTB 10092020
Sovereign Bonds | -
3%₹300 Cr30,000,000
↑ 30,000,000
Rent a Device Trust
Unlisted bonds | -
2%₹218 Cr1,754

5. Nippon India Ultra Short Duration Fund

(Erstwhile Reliance Liquid Fund - Cash Plan)

The investment objective of the Scheme is to generate optimal returns consistent with moderate levels of risk and high liquidity. Accordingly, investments shall predominantly be made in Debt and Money Market Instruments.

Nippon India Ultra Short Duration Fund is a Debt - Ultrashort Bond fund was launched on 7 Dec 01. It is a fund with Low risk and has given a CAGR/Annualized return of 5.9% since its launch.  Ranked 62 in Ultrashort Bond category.  Return for 2019 was 0.9% , 2018 was 7.3% and 2017 was 5.8% .

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

Nippon India Ultra Short Duration Fund
Growth
Launch Date 7 Dec 01
NAV (25 Sep 20) ₹2,962.49 ↑ 0.41   (0.01 %)
Net Assets (Cr) ₹621 on 31 Aug 20
Category Debt - Ultrashort Bond
AMC Nippon Life Asset Management Ltd.
Rating
Risk Low
Expense Ratio 1.09
Sharpe Ratio -0.88
Information Ratio 0
Alpha Ratio 0
Min Investment 100
Min SIP Investment 100
Exit Load NIL
Yield to Maturity 9.16%
Effective Maturity 9 Months 13 Days
Modified Duration 5 Months 8 Days

Growth of 10,000 investment over the years.

DateValue
31 Aug 15₹10,000
31 Aug 16₹10,721
31 Aug 17₹11,348
31 Aug 18₹12,091
31 Aug 19₹12,801
31 Aug 20₹12,855

Nippon India Ultra Short Duration Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹197,169.
Net Profit of ₹17,169
Invest Now

Returns for Nippon India Ultra Short Duration Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 25 Sep 20

DurationReturns
1 Month 0.6%
3 Month 0.8%
6 Month 3%
1 Year 6.1%
3 Year 4.3%
5 Year 5.1%
10 Year
15 Year
Since launch 5.9%
Historical performance (Yearly) on absolute basis
YearReturns
2019 0.9%
2018 7.3%
2017 5.8%
2016 6.8%
2015 7.6%
2014 8.4%
2013 8.5%
2012 9.2%
2011 9%
2010 4.5%
Fund Manager information for Nippon India Ultra Short Duration Fund
NameSinceTenure
Vivek Sharma1 Oct 136.92 Yr.
Kinjal Desai25 May 182.27 Yr.

Data below for Nippon India Ultra Short Duration Fund as on 31 Aug 20

Asset Allocation
Asset ClassValue
Cash32.85%
Debt67.15%
Debt Sector Allocation
SectorValue
Corporate67.33%
Cash Equivalent25.61%
Government7.06%
Credit Quality
RatingValue
A45.7%
AA39.14%
AAA15.16%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
U.P. Power Corporation Limited
Debentures | -
10%₹65 Cr650
Vedanta Limited
Debentures | -
9%₹57 Cr600
Aqua Space Developers Pvt. Limited
Debentures | -
8%₹50 Cr502
↑ 502
Piramal Enterprises Limited
Debentures | -
8%₹50 Cr498
↓ -252
Ahmedabad-Maliya Tollway Limited
Debentures | -
6%₹38 Cr380
↑ 40
Asirvad Micro Finance Private Limited
Debentures | -
5%₹34 Cr335
INDIAN RECEIVABLE TRUST 18 FEB 2019
Unlisted bonds | -
5%₹32 Cr900
Clix Finance India Private Limited
Debentures | -
5%₹30 Cr300
↑ 300
Indinfravit Trust
Unlisted bonds | -
4%₹25 Cr250
Northern Arc Capital Limited
Debentures | -
4%₹25 Cr250
↓ -250

6. 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% since its launch.  Ranked 27 in Ultrashort Bond category.  Return for 2019 was 3.3% , 2018 was 7% and 2017 was 6.6% .

Below is the key information for UTI Ultra Short Term Fund

UTI Ultra Short Term Fund
Growth
Launch Date 29 Aug 03
NAV (25 Sep 20) ₹3,192.8 ↑ 0.29   (0.01 %)
Net Assets (Cr) ₹1,539 on 31 Aug 20
Category Debt - Ultrashort Bond
AMC UTI Asset Management Company Ltd
Rating
Risk Moderately Low
Expense Ratio 0.99
Sharpe Ratio 1.87
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 2,500
Exit Load NIL
Yield to Maturity 5.33%
Effective Maturity 3 Months 26 Days
Modified Duration 3 Months 24 Days

Growth of 10,000 investment over the years.

DateValue
31 Aug 15₹10,000
31 Aug 16₹10,876
31 Aug 17₹11,702
31 Aug 18₹12,442
31 Aug 19₹12,817
31 Aug 20₹13,642

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 25 Sep 20

DurationReturns
1 Month 0.3%
3 Month 1.1%
6 Month 3.8%
1 Year 6.1%
3 Year 5.2%
5 Year 6.4%
10 Year
15 Year
Since launch 7%
Historical performance (Yearly) on absolute basis
YearReturns
2019 3.3%
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%
Fund Manager information for UTI Ultra Short Term Fund
NameSinceTenure
Sudhir Agarwal1 Jul 155.17 Yr.
Ritesh Nambiar1 Jul 155.17 Yr.

Data below for UTI Ultra Short Term Fund as on 31 Aug 20

Asset Allocation
Asset ClassValue
Cash68.18%
Debt31.82%
Debt Sector Allocation
SectorValue
Cash Equivalent47.26%
Corporate43.54%
Government9.2%
Credit Quality
RatingValue
A13.58%
AA1.29%
AAA85.14%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Edelweiss Commodities Services Limited
Debentures | -
8%₹120 Cr1,250
Avanse Financial Services Limited
Debentures | -
4%₹65 Cr650
8.12% Govt Stock 2020
Sovereign Bonds | -
4%₹56 Cr550,000,000
91 DTB 22102020
Sovereign Bonds | -
4%₹55 Cr550,000,000
↑ 550,000,000
Tata Capital Housing Finance Limited
Debentures | -
3%₹51 Cr500
06.99% AP SDL 2020
Sovereign Bonds | -
3%₹50 Cr500,000,000
182 DTB 03092020
Sovereign Bonds | -
3%₹50 Cr500,000,000
Mahindra & Mahindra Financial Services Limited
Debentures | -
3%₹49 Cr500
↑ 500
6.17% Govt Stock 2021
Sovereign Bonds | -
2%₹36 Cr350,000,000
↑ 350,000,000
HDB Financial Services Limited
Debentures | -
2%₹31 Cr250

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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POST A COMMENT

Srinivas, posted on 3 Jul 20 5:07 PM

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

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

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

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

Very good information

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

Presentation is very good

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