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6 Best Performing Ultra Short Term Mutual Funds 2023 for Investments

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6 Best Ultra Short Term Mutual Funds 2023

Updated on January 30, 2023 , 131897 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 2023-2024.

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 23 - 24

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)2022 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
Aditya Birla Sun Life Savings Fund Growth ₹458.804
↑ 0.20
₹14,9481.72.955.24.87.4%5M 19D6M 4D
ICICI Prudential Ultra Short Term Fund Growth ₹23.3456
↑ 0.01
₹12,4721.62.94.854.57.32%4M 10D5M 1D
Nippon India Ultra Short Duration Fund Growth ₹3,413.41
↑ 0.91
₹4,7141.62.84.75.74.67.49%5M 4D5M 29D
SBI Magnum Ultra Short Duration Fund Growth ₹5,038.32
↑ 1.43
₹9,6911.72.94.74.64.57.08%4M 20D5M 1D
Kotak Savings Fund Growth ₹36.2816
↑ 0.01
₹12,0601.62.84.74.54.57.25%4M 6D6M 14D
UTI Ultra Short Term Fund Growth ₹3,593.24
↑ 1.00
₹2,0051.62.74.55.24.27.01%3M 28D4M 3D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 1 Feb 23
*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 7.4% since its launch.  Ranked 6 in Ultrashort Bond category.  Return for 2022 was 4.8% , 2021 was 3.9% and 2020 was 7% .

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 (01 Feb 23) ₹458.804 ↑ 0.20   (0.04 %)
Net Assets (Cr) ₹14,948 on 31 Dec 22
Category Debt - Ultrashort Bond
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk Moderately Low
Expense Ratio 0.49
Sharpe Ratio -0.52
Information Ratio 0
Alpha Ratio 0
Min Investment 1,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 7.4%
Effective Maturity 6 Months 4 Days
Modified Duration 5 Months 19 Days

Growth of 10,000 investment over the years.

DateValue
31 Jan 18₹10,000
31 Jan 19₹10,793
31 Jan 20₹11,684
31 Jan 21₹12,447
31 Jan 22₹12,963
31 Jan 23₹13,602

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 ₹200,132.
Net Profit of ₹20,132
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 1 Feb 23

DurationReturns
1 Month 0.6%
3 Month 1.7%
6 Month 2.9%
1 Year 5%
3 Year 5.2%
5 Year 6.4%
10 Year
15 Year
Since launch 7.4%
Historical performance (Yearly) on absolute basis
YearReturns
2022 4.8%
2021 3.9%
2020 7%
2019 8.5%
2018 7.6%
2017 7.2%
2016 9.2%
2015 8.9%
2014 9.7%
2013 9.5%
Fund Manager information for Aditya Birla Sun Life Savings Fund
NameSinceTenure
Sunaina Cunha14 Jun 148.56 Yr.
Kaustubh Gupta15 Jul 1111.47 Yr.
Monika Gandhi22 Mar 211.78 Yr.

Data below for Aditya Birla Sun Life Savings Fund as on 31 Dec 22

Asset Allocation
Asset ClassValue
Cash60.09%
Debt39.91%
Debt Sector Allocation
SectorValue
Corporate50.04%
Cash Equivalent29.26%
Government20.7%
Credit Quality
RatingValue
AA20.68%
AAA79.32%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Housing Development Finance Corporation Ltd
Debentures | -
4%₹597 Cr6,000
182 DTB 29062023
Sovereign Bonds | -
3%₹413 Cr42,504,130
Bharti Telecom Limited
Debentures | -
2%₹324 Cr3,250
Shriram Finance Limited
Debentures | -
2%₹277 Cr2,750
Reliance Industries Limited
Debentures | -
2%₹253 Cr2,500
Cholamandalam Investment And Fin. Co. Ltd
Debentures | -
2%₹249 Cr2,500
08.54 MH Sdl 2023
Sovereign Bonds | -
2%₹246 Cr24,500,000
Housing Development Finance Corporation Ltd
Debentures | -
2%₹244 Cr2,450
08.21 HR UDAY 2023
Domestic Bonds | -
2%₹236 Cr23,500,000
08.39 RJ UDAY 2023
Domestic Bonds | -
1%₹215 Cr21,477,000

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 7.5% since its launch.  Ranked 27 in Ultrashort Bond category.  Return for 2022 was 4.5% , 2021 was 4% and 2020 was 6.5% .

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 (01 Feb 23) ₹23.3456 ↑ 0.01   (0.03 %)
Net Assets (Cr) ₹12,472 on 31 Dec 22
Category Debt - Ultrashort Bond
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 0.93
Sharpe Ratio -1.49
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 7.32%
Effective Maturity 5 Months 1 Day
Modified Duration 4 Months 10 Days

Growth of 10,000 investment over the years.

DateValue
31 Jan 18₹10,000
31 Jan 19₹10,773
31 Jan 20₹11,672
31 Jan 21₹12,379
31 Jan 22₹12,889
31 Jan 23₹13,502

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 ₹200,132.
Net Profit of ₹20,132
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 1 Feb 23

DurationReturns
1 Month 0.6%
3 Month 1.6%
6 Month 2.9%
1 Year 4.8%
3 Year 5%
5 Year 6.2%
10 Year
15 Year
Since launch 7.5%
Historical performance (Yearly) on absolute basis
YearReturns
2022 4.5%
2021 4%
2020 6.5%
2019 8.4%
2018 7.5%
2017 6.9%
2016 9.8%
2015 9.1%
2014 14.8%
2013 3.1%
Fund Manager information for ICICI Prudential Ultra Short Term Fund
NameSinceTenure
Manish Banthia15 Nov 166.13 Yr.
Ritesh Lunawat15 Jun 175.55 Yr.

Data below for ICICI Prudential Ultra Short Term Fund as on 31 Dec 22

Asset Allocation
Asset ClassValue
Cash61.45%
Debt38.55%
Debt Sector Allocation
SectorValue
Cash Equivalent38.83%
Corporate38.34%
Government22.83%
Credit Quality
RatingValue
AA18.56%
AAA81.44%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
182 DTB 29062023
Sovereign Bonds | -
5%₹680 Cr70,000,000
↑ 20,000,000
National Bank For Agriculture And Rural Development
Debentures | -
4%₹573 Cr5,750
182 DTB 06072023
Sovereign Bonds | -
3%₹460 Cr47,500,000
↑ 47,500,000
Housing Development Finance Corporation Ltd
Debentures | -
3%₹370 Cr3,700
National Bank For Agriculture And Rural Development
Debentures | -
2%₹325 Cr3,250
Housing Development Finance Corporation Ltd
Debentures | -
2%₹309 Cr3,100
Embassy Office Parks Reit
Debentures | -
2%₹271 Cr2,750
↑ 500
Canara Bank
Domestic Bonds | -
2%₹239 Cr5,000
↑ 5,000
Shriram Finance Limited
Debentures | -
1%₹200 Cr2,000
Ongc Petro Additions Limited
Debentures | -
1%₹190 Cr1,900

3. 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% since its launch.  Ranked 62 in Ultrashort Bond category.  Return for 2022 was 4.6% , 2021 was 7.8% and 2020 was 4.9% .

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 (01 Feb 23) ₹3,413.41 ↑ 0.91   (0.03 %)
Net Assets (Cr) ₹4,714 on 31 Dec 22
Category Debt - Ultrashort Bond
AMC Nippon Life Asset Management Ltd.
Rating
Risk Low
Expense Ratio 1.12
Sharpe Ratio -1.02
Information Ratio 0
Alpha Ratio 0
Min Investment 100
Min SIP Investment 100
Exit Load NIL
Yield to Maturity 7.49%
Effective Maturity 5 Months 29 Days
Modified Duration 5 Months 4 Days

Growth of 10,000 investment over the years.

DateValue
31 Jan 18₹10,000
31 Jan 19₹10,758
31 Jan 20₹10,846
31 Jan 21₹11,321
31 Jan 22₹12,223
31 Jan 23₹12,797

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 1 Feb 23

DurationReturns
1 Month 0.5%
3 Month 1.6%
6 Month 2.8%
1 Year 4.7%
3 Year 5.7%
5 Year 5.1%
10 Year
15 Year
Since launch 6%
Historical performance (Yearly) on absolute basis
YearReturns
2022 4.6%
2021 7.8%
2020 4.9%
2019 0.9%
2018 7.3%
2017 5.8%
2016 6.8%
2015 7.6%
2014 8.4%
2013 8.5%
Fund Manager information for Nippon India Ultra Short Duration Fund
NameSinceTenure
Vivek Sharma1 Oct 139.26 Yr.
Kinjal Desai25 May 184.61 Yr.

Data below for Nippon India Ultra Short Duration Fund as on 31 Dec 22

Asset Allocation
Asset ClassValue
Cash64.99%
Debt35.01%
Debt Sector Allocation
SectorValue
Corporate50.35%
Cash Equivalent38.53%
Government11.12%
Credit Quality
RatingValue
AA24.39%
AAA75.61%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
The Tata Power Company Limited
Debentures | -
3%₹165 Cr1,650
Tata Realty And Infrastructure Limited
Debentures | -
3%₹149 Cr1,500
Jamnagar Utilities & Power Private Limited
Debentures | -
3%₹145 Cr1,450
↑ 900
91 DTB 09022023
Sovereign Bonds | -
3%₹134 Cr13,500,000
National Housing Bank
Debentures | -
2%₹124 Cr1,250
↑ 1,250
08.39 RJ UDAY 2024
Domestic Bonds | -
2%₹101 Cr10,000,000
Reliance Industries Limited
Debentures | -
2%₹101 Cr1,000
Shriram Housing Finance Limited
Debentures | -
2%₹101 Cr1,000
National Housing Bank
Debentures | -
2%₹100 Cr1,000
182 DTB 22062023
Sovereign Bonds | -
2%₹97 Cr10,000,000
↑ 10,000,000

4. 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 7.1% since its launch.  Return for 2022 was 4.5% , 2021 was 3.4% and 2020 was 5.9% .

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 (01 Feb 23) ₹5,038.32 ↑ 1.43   (0.03 %)
Net Assets (Cr) ₹9,691 on 31 Dec 22
Category Debt - Ultrashort Bond
AMC SBI Funds Management Private Limited
Rating
Risk Low
Expense Ratio 0.49
Sharpe Ratio -1.1
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 7.08%
Effective Maturity 5 Months 1 Day
Modified Duration 4 Months 20 Days

Growth of 10,000 investment over the years.

DateValue
31 Jan 18₹10,000
31 Jan 19₹10,812
31 Jan 20₹11,649
31 Jan 21₹12,288
31 Jan 22₹12,724
31 Jan 23₹13,318

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 ₹197,169.
Net Profit of ₹17,169
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 1 Feb 23

DurationReturns
1 Month 0.6%
3 Month 1.7%
6 Month 2.9%
1 Year 4.7%
3 Year 4.6%
5 Year 5.9%
10 Year
15 Year
Since launch 7.1%
Historical performance (Yearly) on absolute basis
YearReturns
2022 4.5%
2021 3.4%
2020 5.9%
2019 8%
2018 7.9%
2017 6.6%
2016 7.7%
2015 8.3%
2014 9%
2013 9.3%
Fund Manager information for SBI Magnum Ultra Short Duration Fund
NameSinceTenure
Mohit Jain30 Nov 175.09 Yr.
Arun R.1 Jul 211.5 Yr.

Data below for SBI Magnum Ultra Short Duration Fund as on 31 Dec 22

Asset Allocation
Asset ClassValue
Cash76.01%
Debt23.99%
Debt Sector Allocation
SectorValue
Cash Equivalent43.34%
Corporate39.8%
Government16.86%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.37% Govt Stock 2023
Sovereign Bonds | -
4%₹411 Cr41,000,000
Indian Railway Finance Corporation Limited
Debentures | -
3%₹309 Cr3,100
7.10% Govt Stock 2029
Sovereign Bonds | -
3%₹248 Cr25,000,000
Union Bank of India
Domestic Bonds | -
2%₹232 Cr5,000
↑ 5,000
Ntpc Limited
Debentures | -
2%₹224 Cr2,250
182 DTB 30032023
Sovereign Bonds | -
2%₹223 Cr22,550,400
91 DTB 16022023
Sovereign Bonds | -
2%₹199 Cr20,000,000
7.16% Govt Stock 2023
Sovereign Bonds | -
2%₹150 Cr15,000,000
Mahindra And Mahindra Limited
Debentures | -
2%₹150 Cr1,500
↑ 500
National Bank For Agriculture And Rural Development
Debentures | -
2%₹149 Cr1,500

5. 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 7.2% since its launch.  Ranked 44 in Ultrashort Bond category.  Return for 2022 was 4.5% , 2021 was 3.2% and 2020 was 5.8% .

Below is the key information for Kotak Savings Fund

Kotak Savings Fund
Growth
Launch Date 13 Aug 04
NAV (01 Feb 23) ₹36.2816 ↑ 0.01   (0.04 %)
Net Assets (Cr) ₹12,060 on 31 Dec 22
Category Debt - Ultrashort Bond
AMC Kotak Mahindra Asset Management Co Ltd
Rating
Risk Moderately Low
Expense Ratio 0.44
Sharpe Ratio -1.44
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 7.25%
Effective Maturity 6 Months 14 Days
Modified Duration 4 Months 6 Days

Growth of 10,000 investment over the years.

DateValue
31 Jan 18₹10,000
31 Jan 19₹10,767
31 Jan 20₹11,586
31 Jan 21₹12,217
31 Jan 22₹12,631
31 Jan 23₹13,216

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 ₹197,169.
Net Profit of ₹17,169
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 1 Feb 23

DurationReturns
1 Month 0.5%
3 Month 1.6%
6 Month 2.8%
1 Year 4.7%
3 Year 4.5%
5 Year 5.7%
10 Year
15 Year
Since launch 7.2%
Historical performance (Yearly) on absolute basis
YearReturns
2022 4.5%
2021 3.2%
2020 5.8%
2019 7.8%
2018 7.4%
2017 6.7%
2016 8.2%
2015 8.6%
2014 9.4%
2013 8.9%
Fund Manager information for Kotak Savings Fund
NameSinceTenure
Deepak Agrawal15 Apr 0814.72 Yr.
Vihag Mishra30 Apr 220.67 Yr.
Manu Sharma1 Nov 220.17 Yr.

Data below for Kotak Savings Fund as on 31 Dec 22

Asset Allocation
Asset ClassValue
Cash71.22%
Debt28.78%
Debt Sector Allocation
SectorValue
Corporate43.43%
Cash Equivalent35.3%
Government21.27%
Credit Quality
RatingValue
AA11.81%
AAA88.19%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
182 DTB 09032023
Sovereign Bonds | -
4%₹496 Cr50,000,000
182 DTB 16032023
Sovereign Bonds | -
4%₹495 Cr50,000,000
182 DTB 01062023
Sovereign Bonds | -
4%₹488 Cr50,000,000
Mahindra & Mahindra Financial Services Ltd
Debentures | -
3%₹349 Cr3,500
7.16% Govt Stock 2023
Sovereign Bonds | -
2%₹251 Cr25,000,000
Shriram Finance Limited
Debentures | -
2%₹247 Cr2,450
The Tata Power Company Limited
Debentures | -
2%₹200 Cr2,000
364 Dtb 15062023
Sovereign Bonds | -
2%₹195 Cr20,000,000
Housing Development Finance Corporation Ltd
Debentures | -
1%₹174 Cr1,750
Tata Capital Housing Finance Limited
Debentures | -
1%₹170 Cr1,700

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 6.8% since its launch.  Ranked 27 in Ultrashort Bond category.  Return for 2022 was 4.2% , 2021 was 6.1% and 2020 was 5.3% .

Below is the key information for UTI Ultra Short Term Fund

UTI Ultra Short Term Fund
Growth
Launch Date 29 Aug 03
NAV (01 Feb 23) ₹3,593.24 ↑ 1.00   (0.03 %)
Net Assets (Cr) ₹2,005 on 31 Dec 22
Category Debt - Ultrashort Bond
AMC UTI Asset Management Company Ltd
Rating
Risk Moderately Low
Expense Ratio 0.95
Sharpe Ratio -1.9
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 7.01%
Effective Maturity 4 Months 3 Days
Modified Duration 3 Months 28 Days

Growth of 10,000 investment over the years.

DateValue
31 Jan 18₹10,000
31 Jan 19₹10,717
31 Jan 20₹11,058
31 Jan 21₹11,600
31 Jan 22₹12,315
31 Jan 23₹12,864

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 1 Feb 23

DurationReturns
1 Month 0.5%
3 Month 1.6%
6 Month 2.7%
1 Year 4.5%
3 Year 5.2%
5 Year 5.2%
10 Year
15 Year
Since launch 6.8%
Historical performance (Yearly) on absolute basis
YearReturns
2022 4.2%
2021 6.1%
2020 5.3%
2019 3.3%
2018 7%
2017 6.6%
2016 8.9%
2015 8.5%
2014 8.8%
2013 9.8%
Fund Manager information for UTI Ultra Short Term Fund
NameSinceTenure
Ritesh Nambiar1 Jul 157.51 Yr.

Data below for UTI Ultra Short Term Fund as on 31 Dec 22

Asset Allocation
Asset ClassValue
Cash65.46%
Debt34.54%
Debt Sector Allocation
SectorValue
Corporate44.86%
Cash Equivalent41.03%
Government14.11%
Credit Quality
RatingValue
AA17.5%
AAA82.5%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
91 DTB 02022023
Sovereign Bonds | -
5%₹100 Cr1,000,000,000
↑ 1,000,000,000
National Bank For Agriculture And Rural Development
Debentures | -
2%₹50 Cr500
Indian Railway Finance Corporation Limited
Debentures | -
2%₹50 Cr500
National Bank For Agriculture And Rural Development
Debentures | -
2%₹50 Cr500
Grasim Industries Limited
Debentures | -
2%₹50 Cr500
Kotak Mahindra Prime Limited
Debentures | -
2%₹49 Cr500
Embassy Office Parks Reit
Debentures | -
2%₹49 Cr500
↑ 500
Canara Bank
Domestic Bonds | -
2%₹48 Cr500,000,000
↑ 500,000,000
Federal Bank
Debentures | -
2%₹48 Cr500,000,000
↑ 500,000,000
Canara Bank
Domestic Bonds | -
2%₹48 Cr500,000,000
↑ 500,000,000

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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