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6 Best Performing Ultra Short Term Mutual Funds 2021 for Investments

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6 Best Ultra Short Term Mutual Funds 2021

Updated on July 25, 2021 , 107989 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 2021-2022.

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 21 - 22

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)2020 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
Nippon India Ultra Short Duration Fund Growth ₹3,196.95
↑ 1.07
₹1,2384.65.99.55.14.95.32%5M 5D6M 27D
Franklin India Ultra Short Bond Fund - Super Institutional Plan Growth ₹30.6278
↑ 0.01
₹2,1041.94.58.37.540%6M 19D
ICICI Prudential Ultra Short Term Fund Growth ₹21.8671
↑ 0.00
₹10,33812.24.86.96.54.72%4M 24D6M
Aditya Birla Sun Life Savings Fund Growth ₹428.813
↑ 0.10
₹18,7891.12.24.67.174.35%6M 7D6M 14D
UTI Ultra Short Term Fund Growth ₹3,294.65
↑ 0.57
₹2,1060.81.73.84.55.34.16%5M 9D6M 4D
SBI Magnum Ultra Short Duration Fund Growth ₹4,730.51
↑ 0.54
₹12,1420.91.83.76.55.93.76%4M 6D6M 4D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 27 Jul 21
*List of Funds having AUM >= 500 Crore and sorted on last 1 Year Return.

1. 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 6.1% since its launch.  Ranked 62 in Ultrashort Bond category.  Return for 2020 was 4.9% , 2019 was 0.9% and 2018 was 7.3% .

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 (27 Jul 21) ₹3,196.95 ↑ 1.07   (0.03 %)
Net Assets (Cr) ₹1,238 on 30 Jun 21
Category Debt - Ultrashort Bond
AMC Nippon Life Asset Management Ltd.
Rating
Risk Low
Expense Ratio 1.09
Sharpe Ratio 1.08
Information Ratio 0
Alpha Ratio 0
Min Investment 100
Min SIP Investment 100
Exit Load NIL
Yield to Maturity 5.32%
Effective Maturity 6 Months 27 Days
Modified Duration 5 Months 5 Days

Growth of 10,000 investment over the years.

DateValue
30 Jun 16₹10,000
30 Jun 17₹10,597
30 Jun 18₹11,253
30 Jun 19₹11,866
30 Jun 20₹12,098
30 Jun 21₹12,778

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 27 Jul 21

DurationReturns
1 Month 2.8%
3 Month 4.6%
6 Month 5.9%
1 Year 9.5%
3 Year 5.1%
5 Year 5.5%
10 Year
15 Year
Since launch 6.1%
Historical performance (Yearly) on absolute basis
YearReturns
2020 4.9%
2019 0.9%
2018 7.3%
2017 5.8%
2016 6.8%
2015 7.6%
2014 8.4%
2013 8.5%
2012 9.2%
2011 9%
Fund Manager information for Nippon India Ultra Short Duration Fund
NameSinceTenure
Vivek Sharma1 Oct 137.75 Yr.
Kinjal Desai25 May 183.1 Yr.

Data below for Nippon India Ultra Short Duration Fund as on 30 Jun 21

Asset Allocation
Asset ClassValue
Cash38.2%
Debt61.8%
Debt Sector Allocation
SectorValue
Corporate41.4%
Cash Equivalent34.26%
Government20.3%
Securitized4.04%
Credit Quality
RatingValue
A3.46%
AA24.67%
AAA71.86%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
8.35% Govt Stock 2022
Sovereign Bonds | -
8%₹104 Cr10,000,000
↑ 10,000,000
182 DTB 02122021
Sovereign Bonds | -
8%₹98 Cr10,000,000
↑ 10,000,000
Piramal Capital & Housing Finance Limited
Debentures | -
4%₹55 Cr675
↑ 675
Mobil Trust Series 19
Unlisted bonds | -
4%₹50 Cr500,000,000
↑ 500,000,000
182 DTB 25112021
Sovereign Bonds | -
4%₹49 Cr5,000,000
↑ 5,000,000
India Grid Trust
Debentures | -
4%₹48 Cr400
↑ 400
Shriram Transport Finance Company Limited
Debentures | -
4%₹45 Cr450
↑ 450
Bajaj Housing Finance Limited
Debentures | -
3%₹41 Cr400
↑ 400
Indinfravit Trust
Debentures | -
3%₹40 Cr400
↑ 400
Ahmedabad-Maliya Tollway Limited
Debentures | -
3%₹38 Cr380
↑ 380

2. 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 8.6% since its launch.  Return for 2020 was 4% , 2019 was 9.6% and 2018 was 8.7% .

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 (27 Jul 21) ₹30.6278 ↑ 0.01   (0.03 %)
Net Assets (Cr) ₹2,104 on 30 Jun 21
Category Debt - Ultrashort Bond
AMC Franklin Templeton Asst Mgmt(IND)Pvt Ltd
Rating
Risk Moderate
Expense Ratio 0.52
Sharpe Ratio 2.95
Information Ratio 0
Alpha Ratio 0
Min Investment 10,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 0%
Effective Maturity 6 Months 19 Days
Modified Duration

Growth of 10,000 investment over the years.

DateValue
30 Jun 16₹10,000
30 Jun 17₹10,936
30 Jun 18₹11,774
30 Jun 19₹12,901
30 Jun 20₹13,495
30 Jun 21₹14,610

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 ₹203,125.
Net Profit of ₹23,125
Invest Now

Purchase not allowed

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 27 Jul 21

DurationReturns
1 Month 1%
3 Month 1.9%
6 Month 4.5%
1 Year 8.3%
3 Year 7.5%
5 Year 7.9%
10 Year
15 Year
Since launch 8.6%
Historical performance (Yearly) on absolute basis
YearReturns
2020 4%
2019 9.6%
2018 8.7%
2017 8.2%
2016 9.7%
2015 9.7%
2014 10%
2013 10%
2012 10.3%
2011 9.4%
Fund Manager information for Franklin India Ultra Short Bond Fund - Super Institutional Plan
NameSinceTenure
Santosh Kamath25 Oct 182.68 Yr.
Pallab Roy1 Jun 0813.09 Yr.

Data below for Franklin India Ultra Short Bond Fund - Super Institutional Plan as on 30 Jun 21

Asset Allocation
Asset ClassValue
Cash49.67%
Debt50.33%
Debt Sector Allocation
SectorValue
Corporate50.33%
Cash Equivalent49.67%
Credit Quality
RatingValue
A57.08%
AA42.76%
AAA0.16%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
SBI Overnight Fund Dir Gr
Investment Fund | -
34%₹716 Cr2,120,378
↑ 289,887
Edelweiss Commodities Services Limited
Debentures | -
17%₹359 Cr3,650
↑ 3,650
Clix Capital Services Private Limited
Debentures | -
11%₹224 Cr2,350
↑ 2,350
PNB Housing Finance Limited
Debentures | -
9%₹191 Cr1,910
↑ 1,910
Clix Capital Services Private Limited
Debentures | -
9%₹191 Cr2,000
↑ 2,000
Clix Finance India Private Limited
Debentures | -
5%₹100 Cr1,000
↑ 1,000
Clix Capital Services Private Limited
Debentures | -
5%₹100 Cr1,000
↑ 1,000
Clix Capital Services Private Limited
Debentures | -
4%₹90 Cr900
↑ 900
U.P. Power Corporation Limited
Debentures | -
3%₹71 Cr938
↑ 938
Hinduja Leyland Finance Limited
Debentures | -
1%₹28 Cr280
↑ 280

3. 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 7.9% since its launch.  Ranked 27 in Ultrashort Bond category.  Return for 2020 was 6.5% , 2019 was 8.4% and 2018 was 7.5% .

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 (27 Jul 21) ₹21.8671 ↑ 0.00   (0.02 %)
Net Assets (Cr) ₹10,338 on 30 Jun 21
Category Debt - Ultrashort Bond
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 0.96
Sharpe Ratio 3.53
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 4.72%
Effective Maturity 6 Months
Modified Duration 4 Months 24 Days

Growth of 10,000 investment over the years.

DateValue
30 Jun 16₹10,000
30 Jun 17₹10,907
30 Jun 18₹11,612
30 Jun 19₹12,571
30 Jun 20₹13,559
30 Jun 21₹14,240

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 ₹203,125.
Net Profit of ₹23,125
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 27 Jul 21

DurationReturns
1 Month 0.4%
3 Month 1%
6 Month 2.2%
1 Year 4.8%
3 Year 6.9%
5 Year 7.2%
10 Year
15 Year
Since launch 7.9%
Historical performance (Yearly) on absolute basis
YearReturns
2020 6.5%
2019 8.4%
2018 7.5%
2017 6.9%
2016 9.8%
2015 9.1%
2014 14.8%
2013 3.1%
2012 9.4%
2011
Fund Manager information for ICICI Prudential Ultra Short Term Fund
NameSinceTenure
Manish Banthia15 Nov 164.62 Yr.
Ritesh Lunawat15 Jun 174.04 Yr.

Data below for ICICI Prudential Ultra Short Term Fund as on 30 Jun 21

Asset Allocation
Asset ClassValue
Cash49.41%
Debt50.59%
Debt Sector Allocation
SectorValue
Corporate42.93%
Cash Equivalent42.47%
Government14.6%
Credit Quality
RatingValue
A2.29%
AA31.49%
AAA66.23%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
182 DTB 19082021
Sovereign Bonds | -
6%₹622 Cr62,500,000
↑ 62,500,000
182 DTB 09122021
Sovereign Bonds | -
5%₹492 Cr50,000,000
↑ 50,000,000
182 DTB 16122021
Sovereign Bonds | -
5%₹492 Cr50,000,000
↑ 50,000,000
Embassy Office Parks Reit
Debentures | -
3%₹356 Cr2,887
↑ 2,887
182 DTB 23122021
Sovereign Bonds | -
3%₹295 Cr30,000,000
↑ 30,000,000
Talwandi Sabo Power Limited
Debentures | -
2%₹237 Cr2,362
↑ 2,362
The Tata Power Company Limited
Debentures | -
2%₹221 Cr2,084
↑ 2,084
Housing Development Finance Corporation Limited
Debentures | -
2%₹215 Cr2,130
↑ 2,130
Reliance Ports and Terminals Limited
Debentures | -
2%₹204 Cr2,019
↑ 2,019
Manappuram Finance Limited
Debentures | -
2%₹203 Cr2,000
↑ 2,000

4. 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 7.6% since its launch.  Ranked 6 in Ultrashort Bond category.  Return for 2020 was 7% , 2019 was 8.5% and 2018 was 7.6% .

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 (27 Jul 21) ₹428.813 ↑ 0.10   (0.02 %)
Net Assets (Cr) ₹18,789 on 30 Jun 21
Category Debt - Ultrashort Bond
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk Moderately Low
Expense Ratio 0.39
Sharpe Ratio 2.49
Information Ratio 0
Alpha Ratio 0
Min Investment 1,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 4.35%
Effective Maturity 6 Months 14 Days
Modified Duration 6 Months 7 Days

Growth of 10,000 investment over the years.

DateValue
30 Jun 16₹10,000
30 Jun 17₹10,854
30 Jun 18₹11,577
30 Jun 19₹12,567
30 Jun 20₹13,608
30 Jun 21₹14,267

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 ₹203,125.
Net Profit of ₹23,125
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 27 Jul 21

DurationReturns
1 Month 0.4%
3 Month 1.1%
6 Month 2.2%
1 Year 4.6%
3 Year 7.1%
5 Year 7.2%
10 Year
15 Year
Since launch 7.6%
Historical performance (Yearly) on absolute basis
YearReturns
2020 7%
2019 8.5%
2018 7.6%
2017 7.2%
2016 9.2%
2015 8.9%
2014 9.7%
2013 9.5%
2012 9.7%
2011 9.2%
Fund Manager information for Aditya Birla Sun Life Savings Fund
NameSinceTenure
Sunaina Cunha11 Oct 146.72 Yr.
Kaustubh Gupta15 Jul 119.97 Yr.
Monika Gandhi22 Mar 210.27 Yr.

Data below for Aditya Birla Sun Life Savings Fund as on 30 Jun 21

Asset Allocation
Asset ClassValue
Cash42.1%
Debt57.9%
Debt Sector Allocation
SectorValue
Corporate45.27%
Cash Equivalent28.71%
Government26.02%
Credit Quality
RatingValue
AA11.84%
AAA88.16%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
8.79% Govt Stock 2021
Sovereign Bonds | -
12%₹2,169 Cr213,100,000
↑ 213,100,000
Reliance Industries Limited
Debentures | -
4%₹761 Cr7,401
↑ 7,401
8.83% Govt Stock 2023
Sovereign Bonds | -
3%₹522 Cr48,000,000
↑ 48,000,000
Citicorp Finance (India) Limited
Debentures | -
3%₹501 Cr5,000
↑ 5,000
REC Limited
Debentures | -
2%₹328 Cr3,200
↑ 3,200
Rural Electrification Corporation Limited
Debentures | -
2%₹319 Cr3,150
↑ 3,150
Shriram Transport Finance Company Limited
Debentures | -
1%₹276 Cr2,750
↑ 2,750
8.21% HR SDL Spl 2023
Domestic Bonds | -
1%₹243 Cr23,000,000
↑ 23,000,000
Muthoot Finance Limited
Debentures | -
1%₹240 Cr2,350
↑ 2,350
Rural Electrification Corporation Limited
Debentures | -
1%₹227 Cr2,250
↑ 2,250

5. 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 6.9% since its launch.  Ranked 27 in Ultrashort Bond category.  Return for 2020 was 5.3% , 2019 was 3.3% and 2018 was 7% .

Below is the key information for UTI Ultra Short Term Fund

UTI Ultra Short Term Fund
Growth
Launch Date 29 Aug 03
NAV (27 Jul 21) ₹3,294.65 ↑ 0.57   (0.02 %)
Net Assets (Cr) ₹2,106 on 30 Jun 21
Category Debt - Ultrashort Bond
AMC UTI Asset Management Company Ltd
Rating
Risk Moderately Low
Expense Ratio 0.95
Sharpe Ratio 1.26
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 2,500
Exit Load NIL
Yield to Maturity 4.16%
Effective Maturity 6 Months 4 Days
Modified Duration 5 Months 9 Days

Growth of 10,000 investment over the years.

DateValue
30 Jun 16₹10,000
30 Jun 17₹10,803
30 Jun 18₹11,479
30 Jun 19₹11,875
30 Jun 20₹12,651
30 Jun 21₹13,152

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 ₹197,169.
Net Profit of ₹17,169
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 27 Jul 21

DurationReturns
1 Month 0.3%
3 Month 0.8%
6 Month 1.7%
1 Year 3.8%
3 Year 4.5%
5 Year 5.5%
10 Year
15 Year
Since launch 6.9%
Historical performance (Yearly) on absolute basis
YearReturns
2020 5.3%
2019 3.3%
2018 7%
2017 6.6%
2016 8.9%
2015 8.5%
2014 8.8%
2013 9.8%
2012 9%
2011 8.2%
Fund Manager information for UTI Ultra Short Term Fund
NameSinceTenure
Sudhir Agarwal1 Jul 156 Yr.
Ritesh Nambiar1 Jul 156 Yr.

Data below for UTI Ultra Short Term Fund as on 30 Jun 21

Asset Allocation
Asset ClassValue
Cash56.11%
Debt43.89%
Debt Sector Allocation
SectorValue
Corporate40.41%
Cash Equivalent39.61%
Government19.99%
Credit Quality
RatingValue
A3.21%
AA13.9%
AAA82.89%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
91 DTB 15072021
Sovereign Bonds | -
9%₹200 Cr2,000,000,000
↑ 2,000,000,000
8.20% Govt Stock 2022
Sovereign Bonds | -
6%₹118 Cr1,150,000,000
↑ 1,150,000,000
182 DTB 02122021
Sovereign Bonds | -
5%₹98 Cr1,000,000,000
↑ 1,000,000,000
6.17% Govt Stock 2021
Sovereign Bonds | -
5%₹95 Cr950,000,000
↑ 950,000,000
Hindalco Industries Limited
Debentures | -
4%₹78 Cr750
↑ 750
Avanse Financial Services Limited
Debentures | -
3%₹65 Cr650
↑ 650
Reliance Industries Limited
Debentures | -
2%₹51 Cr500
↑ 500
Housing Development Finance Corporation Limited
Debentures | -
2%₹51 Cr500
↑ 500
Power Finance Corporation Limited
Debentures | -
2%₹50 Cr500
↑ 500
91 DTB 26082021
Sovereign Bonds | -
2%₹50 Cr500,000,000
↑ 500,000,000

6. 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 7.2% since its launch.  Return for 2020 was 5.9% , 2019 was 8% and 2018 was 7.9% .

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 (27 Jul 21) ₹4,730.51 ↑ 0.54   (0.01 %)
Net Assets (Cr) ₹12,142 on 30 Jun 21
Category Debt - Ultrashort Bond
AMC SBI Funds Management Private Limited
Rating
Risk Low
Expense Ratio 0.52
Sharpe Ratio 0.56
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 3.76%
Effective Maturity 6 Months 4 Days
Modified Duration 4 Months 6 Days

Growth of 10,000 investment over the years.

DateValue
30 Jun 16₹10,000
30 Jun 17₹10,687
30 Jun 18₹11,432
30 Jun 19₹12,374
30 Jun 20₹13,325
30 Jun 21₹13,832

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 ₹200,132.
Net Profit of ₹20,132
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 27 Jul 21

DurationReturns
1 Month 0.3%
3 Month 0.9%
6 Month 1.8%
1 Year 3.7%
3 Year 6.5%
5 Year 6.7%
10 Year
15 Year
Since launch 7.2%
Historical performance (Yearly) on absolute basis
YearReturns
2020 5.9%
2019 8%
2018 7.9%
2017 6.6%
2016 7.7%
2015 8.3%
2014 9%
2013 9.3%
2012 9.3%
2011 8.7%
Fund Manager information for SBI Magnum Ultra Short Duration Fund
NameSinceTenure
Arun R.1 Jul 210 Yr.

Data below for SBI Magnum Ultra Short Duration Fund as on 30 Jun 21

Asset Allocation
Asset ClassValue
Cash54.18%
Debt45.82%
Debt Sector Allocation
SectorValue
Cash Equivalent42.68%
Government29.66%
Corporate27.66%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
91 DTB 09092021
Sovereign Bonds | -
8%₹994 Cr100,000,000
↑ 100,000,000
182 DTB 12112021
Sovereign Bonds | -
6%₹740 Cr75,000,000
↑ 75,000,000
Rural Electrification Corporation Limited
Debentures | -
5%₹632 Cr6,250
↑ 6,250
8.20% Govt Stock 2022
Sovereign Bonds | -
3%₹411 Cr40,000,000
↑ 40,000,000
8.79% Govt Stock 2021
Sovereign Bonds | -
3%₹407 Cr40,000,000
↑ 40,000,000
Mahindra & Mahindra Financial Services Limited
Debentures | -
3%₹386 Cr3,000
↑ 3,000
Reliance Industries Limited
Debentures | -
3%₹355 Cr3,450
↑ 3,450
9.05% M.P. GS 2021
Sovereign Bonds | -
3%₹305 Cr30,000,000
↑ 30,000,000
05.54 MP SDL 2021
Sovereign Bonds | -
2%₹297 Cr29,500,000
↑ 29,500,000
91 DTB 26082021
Sovereign Bonds | -
2%₹249 Cr25,000,000
↑ 25,000,000

Features Of Ultra Short Term Funds

  • Fund Type: Open-ended

  • Fund Category: Debt fund

  • Minimum Amount: INR 5,000 - 10,000

  • Risk Involved: Low -risk

  • Redemption: T+1, meaning that if you register the redemption request before 3 PM, you shall get the redemption amount after a day. However, if the redemption request is sent after 3 PM, the redemption request shall be processed day after.

Things to Consider as an Investor

1. Risk

Unlike other debt funds, the ultra-short term funds are somewhat immune to interest rate risks because of the short maturity of their underlying assets. However, as compared to liquid funds, these funds are pretty risky. The investment strategy of the fund manager may introduce credit risk when he incorporates low-credit rated securities in the expectation of an upgrade in future. Moreover, the introduction of government securities may increase the volatility of the fund more than expected.

2. Return

An investor can expect returns of around 7-9% from this fund in a stable interest rate environment. This return is moderately higher than what a liquid fund offers. However, even though these funds are fixed-income havens, they may not offer guaranteed returns. You need to look at Yield to Maturity (ytm) to understand what to expect with the investments at the time of investment.

3. Cost

Ultra short-term funds charge a fee to manage your money called an expense ratio. Till now the Securities and Exchange Board of India (SEBI) had mandated the upper limit of expense ratio to be 2.25% (might change time to time). Considering the overall returns generated by these funds as compared to liquid funds, a long-term holding period and lower expense ratio would help in recovering the money gone out by way of interest rate fluctuations.

4. Investment Horizon

Ultra short-term funds earn from the coupon of short-term instruments. The prices of these securities may change on a day-to-day Basis and have a relatively longer maturity. These are much more volatile than liquid funds and a short time frame may seem inadequate to generate sufficient returns. As compared to liquid funds, you need to hold these funds for comparatively longer horizon owing to a higher average maturity of the underlying securities.

5. Financial Goals

You may use these funds for a variety of purposes. If you need to park money for a period of 3 months to a year, then these funds may come handy. Additionally, you may want these to transfer your funds to a riskier haven like Equity Funds. Put a lump sum in these funds and initiate a Systematic Transfer Plan (STP) to equity funds. You may look at them as an additional haven to be used as an emergency fund. If you need monthly income, then invest a portion of your superannuation portfolio in these and initiate a systematic withdrawal plan (SWP).

6. Taxation

Dividends of Ultra Short Term Funds in India are tax-free in the hands of the investor. The AMC deducts a Dividend Distribution Tax (DDT) on behalf of the investor before it sends the dividend to the investor. If the investor has invested in a growth fund and redeemed his/her investment within 1 year, he/she may have to pay Short Term Capital Gains Tax (STCG).

How to Invest in Ultra Short Term Funds Online?

  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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