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6 Best Performing Ultra Short Term Mutual Funds 2023

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6 Best Ultra Short Term Mutual Funds 2023

Updated on September 27, 2023 , 138287 views

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 term 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 ₹477.445
↑ 0.09
₹14,7831.73.76.85.14.87.39%5M 1D5M 8D
ICICI Prudential Ultra Short Term Fund Growth ₹24.2611
↑ 0.00
₹13,8151.63.66.654.57.37%4M 17D5M 8D
SBI Magnum Ultra Short Duration Fund Growth ₹5,235.11
↑ 0.88
₹15,0301.63.66.64.64.57.19%5M 12D5M 26D
Kotak Savings Fund Growth ₹37.7024
↑ 0.01
₹13,0661.63.56.54.54.57.29%5M 19D8M 12D
Nippon India Ultra Short Duration Fund Growth ₹3,542.95
↑ 0.67
₹5,8541.63.46.36.44.67.46%4M 21D5M 5D
UTI Ultra Short Term Fund Growth ₹3,730.09
↑ 0.71
₹2,4941.63.56.35.54.27.49%5M 9D5M 16D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 22 Aug 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 (22 Aug 23) ₹477.445 ↑ 0.09   (0.02 %)
Net Assets (Cr) ₹14,783 on 31 Jul 23
Category Debt - Ultrashort Bond
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk Moderately Low
Expense Ratio 0.52
Sharpe Ratio 1.11
Information Ratio 0
Alpha Ratio 0
Min Investment 1,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 7.39%
Effective Maturity 5 Months 8 Days
Modified Duration 5 Months 1 Day

Growth of 10,000 investment over the years.

DateValue
31 Aug 18₹10,000
31 Aug 19₹10,897
31 Aug 20₹11,732
31 Aug 21₹12,264
31 Aug 22₹12,745
31 Aug 23₹13,620

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 22 Aug 23

DurationReturns
1 Month 0.6%
3 Month 1.7%
6 Month 3.7%
1 Year 6.8%
3 Year 5.1%
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 Cunha20 Jun 149.21 Yr.
Kaustubh Gupta15 Jul 1112.14 Yr.
Monika Gandhi22 Mar 212.45 Yr.
Dhaval Joshi21 Nov 220.78 Yr.

Data below for Aditya Birla Sun Life Savings Fund as on 31 Jul 23

Asset Allocation
Asset ClassValue
Cash54.34%
Debt45.66%
Debt Sector Allocation
SectorValue
Corporate46.88%
Cash Equivalent30.31%
Government22.81%
Credit Quality
RatingValue
AA20.68%
AAA79.32%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
HDFC Bank Limited
Debentures | -
4%₹597 Cr6,000
182 DTB 21122023
Sovereign Bonds | -
3%₹465 Cr47,500,000
Tata Realty And Infrastructure Limited
Debentures | -
2%₹360 Cr36,000
Hindalco Industries Limited
Debentures | -
2%₹350 Cr35,000
Bharti Telecom Limited
Debentures | -
2%₹325 Cr3,250
182 DTB 07122023
Sovereign Bonds | -
2%₹295 Cr30,000,000
Cholamandalam Investment And Fin. Co. Ltd
Debentures | -
2%₹250 Cr2,500
HDFC Bank Limited
Debentures | -
2%₹245 Cr2,450
India (Republic of)
- | -
1%₹173 Cr17,500,000
Reliance Industries Limited
Debentures | -
1%₹150 Cr1,500

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 (22 Aug 23) ₹24.2611 ↑ 0.00   (0.02 %)
Net Assets (Cr) ₹13,815 on 31 Jul 23
Category Debt - Ultrashort Bond
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 0.86
Sharpe Ratio 0.23
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 7.37%
Effective Maturity 5 Months 8 Days
Modified Duration 4 Months 17 Days

Growth of 10,000 investment over the years.

DateValue
31 Aug 18₹10,000
31 Aug 19₹10,855
31 Aug 20₹11,664
31 Aug 21₹12,198
31 Aug 22₹12,661
31 Aug 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 22 Aug 23

DurationReturns
1 Month 0.5%
3 Month 1.6%
6 Month 3.6%
1 Year 6.6%
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 166.8 Yr.
Ritesh Lunawat15 Jun 176.22 Yr.

Data below for ICICI Prudential Ultra Short Term Fund as on 31 Jul 23

Asset Allocation
Asset ClassValue
Cash57.55%
Debt42.45%
Debt Sector Allocation
SectorValue
Corporate51.42%
Government26.23%
Cash Equivalent22.35%
Credit Quality
RatingValue
AA12.68%
AAA87.32%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
8.83% Govt Stock 2023
Sovereign Bonds | -
4%₹502 Cr50,000,000
Embassy Office Parks Reit
Debentures | -
3%₹418 Cr4,200
↓ -250
182 DTB 21122023
Sovereign Bonds | -
2%₹314 Cr32,000,000
LIC Housing Finance Limited
Debentures | -
2%₹296 Cr2,950
182 DTB 07122023
Sovereign Bonds | -
2%₹295 Cr30,000,000
National Bank For Agriculture And Rural Development
Debentures | -
2%₹275 Cr2,750
National Bank For Agriculture And Rural Development
Debentures | -
2%₹258 Cr2,600
08.35 SBI RT SB 2024
Domestic Bonds | -
2%₹252 Cr25,000,000
Mahindra Rural Housing Finance Limited
Debentures | -
2%₹201 Cr2,000
Apollo Building Products Private Limited
Debentures | -
1%₹199 Cr20,000

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 7.1% 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 (22 Aug 23) ₹5,235.11 ↑ 0.88   (0.02 %)
Net Assets (Cr) ₹15,030 on 31 Jul 23
Category Debt - Ultrashort Bond
AMC SBI Funds Management Private Limited
Rating
Risk Low
Expense Ratio 0.49
Sharpe Ratio 0.28
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 7.19%
Effective Maturity 5 Months 26 Days
Modified Duration 5 Months 12 Days

Growth of 10,000 investment over the years.

DateValue
31 Aug 18₹10,000
31 Aug 19₹10,853
31 Aug 20₹11,591
31 Aug 21₹12,020
31 Aug 22₹12,451
31 Aug 23₹13,277

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 22 Aug 23

DurationReturns
1 Month 0.5%
3 Month 1.6%
6 Month 3.6%
1 Year 6.6%
3 Year 4.6%
5 Year 5.8%
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 175.76 Yr.
Arun R.1 Jul 212.17 Yr.

Data below for SBI Magnum Ultra Short Duration Fund as on 31 Jul 23

Asset Allocation
Asset ClassValue
Cash71.33%
Debt28.67%
Debt Sector Allocation
SectorValue
Corporate46.12%
Cash Equivalent35.04%
Government18.84%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
08.35 SBI RT SB 2024
Domestic Bonds | -
4%₹504 Cr50,000,000
182 DTB 22092023
Sovereign Bonds | -
3%₹448 Cr45,000,000
National Bank For Agriculture And Rural Development
Debentures | -
3%₹385 Cr3,850
LIC Housing Finance Limited
Debentures | -
2%₹276 Cr2,750
Rural Electrification Corporation Limited
Debentures | -
2%₹227 Cr2,300
91 DTB 12102023
Sovereign Bonds | -
2%₹223 Cr22,500,000
Bajaj Finance Limited
Debentures | -
2%₹206 Cr2,050
Larsen And Toubro Limited
Debentures | -
2%₹200 Cr20,000
182 DTB 14092023
Sovereign Bonds | -
2%₹200 Cr20,000,000
182 DTB 05102023
Sovereign Bonds | -
1%₹199 Cr20,000,000

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 7.2% 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 (22 Aug 23) ₹37.7024 ↑ 0.01   (0.02 %)
Net Assets (Cr) ₹13,066 on 31 Jul 23
Category Debt - Ultrashort Bond
AMC Kotak Mahindra Asset Management Co Ltd
Rating
Risk Moderately Low
Expense Ratio 0.47
Sharpe Ratio -0.12
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 7.29%
Effective Maturity 8 Months 12 Days
Modified Duration 5 Months 19 Days

Growth of 10,000 investment over the years.

DateValue
31 Aug 18₹10,000
31 Aug 19₹10,831
31 Aug 20₹11,554
31 Aug 21₹11,969
31 Aug 22₹12,397
31 Aug 23₹13,209

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 22 Aug 23

DurationReturns
1 Month 0.5%
3 Month 1.6%
6 Month 3.5%
1 Year 6.5%
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 0815.39 Yr.
Manu Sharma1 Nov 220.83 Yr.
Palha Khanna3 Jul 230.16 Yr.

Data below for Kotak Savings Fund as on 31 Jul 23

Asset Allocation
Asset ClassValue
Cash73.73%
Debt26.27%
Debt Sector Allocation
SectorValue
Corporate43.58%
Government32.59%
Cash Equivalent23.83%
Credit Quality
RatingValue
AA7.09%
AAA92.91%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
182 DTB 14092023
Sovereign Bonds | -
5%₹638 Cr64,000,010
↓ -5,000,000
91 DTB 12102023
Sovereign Bonds | -
4%₹496 Cr50,000,000
6.97% Govt Stock 2024
Sovereign Bonds | -
3%₹390 Cr39,000,000
Mahindra & Mahindra Financial Services Ltd
Debentures | -
3%₹350 Cr3,500
182 DTB 29022024
Sovereign Bonds | -
2%₹309 Cr31,981,000
↑ 31,981,000
182 DTB 25012024
Sovereign Bonds | -
2%₹243 Cr25,000,000
182 DTB 08022024
Sovereign Bonds | -
2%₹243 Cr25,000,000
↑ 25,000,000
Rural Electrification Corporation Limited
Debentures | -
2%₹209 Cr2,100
08.30 FERT BND 2023
Domestic Bonds | -
1%₹176 Cr17,565,000
HDFC Bank Limited
Debentures | -
1%₹175 Cr1,750

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 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 (22 Aug 23) ₹3,542.95 ↑ 0.67   (0.02 %)
Net Assets (Cr) ₹5,854 on 31 Jul 23
Category Debt - Ultrashort Bond
AMC Nippon Life Asset Management Ltd.
Rating
Risk Low
Expense Ratio 1.17
Sharpe Ratio -0.54
Information Ratio 0
Alpha Ratio 0
Min Investment 100
Min SIP Investment 100
Exit Load NIL
Yield to Maturity 7.46%
Effective Maturity 5 Months 5 Days
Modified Duration 4 Months 21 Days

Growth of 10,000 investment over the years.

DateValue
31 Aug 18₹10,000
31 Aug 19₹10,587
31 Aug 20₹10,631
31 Aug 21₹11,564
31 Aug 22₹12,019
31 Aug 23₹12,786

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 22 Aug 23

DurationReturns
1 Month 0.5%
3 Month 1.6%
6 Month 3.4%
1 Year 6.3%
3 Year 6.4%
5 Year 5%
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 139.92 Yr.
Kinjal Desai25 May 185.27 Yr.
Akshay Sharma1 Dec 220.75 Yr.

Data below for Nippon India Ultra Short Duration Fund as on 31 Jul 23

Asset Allocation
Asset ClassValue
Cash73.38%
Debt26.62%
Debt Sector Allocation
SectorValue
Cash Equivalent46.48%
Corporate32.72%
Government20.8%
Credit Quality
RatingValue
AA23.98%
AAA76.02%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
182 DTB 07122023
Sovereign Bonds | -
4%₹246 Cr25,000,000
182 DTB 18012024
Sovereign Bonds | -
4%₹244 Cr25,000,000
364 DTB 27102023
Sovereign Bonds | -
3%₹198 Cr20,000,000
Tata Realty And Infrastructure Limited
Debentures | -
3%₹175 Cr1,750
↓ -250
Embassy Office Parks Reit
Debentures | -
3%₹150 Cr1,500
Samvardhana Motherson International Limited
Debentures | -
2%₹135 Cr1,350
Piramal Capital & Housing Finance Ltd
Debentures | -
2%₹120 Cr12,000
TATA Motors Limited
Debentures | -
2%₹110 Cr1,100
08.39 RJ UDAY 2024
Domestic Bonds | -
2%₹101 Cr10,000,000
Shriram Transport Finance Company Limited
Debentures | -
1%₹75 Cr7,500

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 (22 Aug 23) ₹3,730.09 ↑ 0.71   (0.02 %)
Net Assets (Cr) ₹2,494 on 31 Jul 23
Category Debt - Ultrashort Bond
AMC UTI Asset Management Company Ltd
Rating
Risk Moderately Low
Expense Ratio 0.95
Sharpe Ratio -0.72
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 7.49%
Effective Maturity 5 Months 16 Days
Modified Duration 5 Months 9 Days

Growth of 10,000 investment over the years.

DateValue
31 Aug 18₹10,000
31 Aug 19₹10,301
31 Aug 20₹10,965
31 Aug 21₹11,384
31 Aug 22₹12,093
31 Aug 23₹12,866

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 22 Aug 23

DurationReturns
1 Month 0.5%
3 Month 1.6%
6 Month 3.5%
1 Year 6.3%
3 Year 5.5%
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 158.18 Yr.

Data below for UTI Ultra Short Term Fund as on 31 Jul 23

Asset Allocation
Asset ClassValue
Cash71.98%
Debt28.02%
Debt Sector Allocation
SectorValue
Corporate46.93%
Cash Equivalent43.04%
Government10.02%
Credit Quality
RatingValue
AA19.68%
AAA80.32%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
91 DTB 12102023
Sovereign Bonds | -
7%₹174 Cr1,750,000,000
Embassy Office Parks Reit
Debentures | -
3%₹75 Cr750
182 DTB 29092023
Sovereign Bonds | -
2%₹60 Cr600,000,000
↓ -310,000,000
Reliance Industries Limited
Debentures | -
2%₹50 Cr500
LIC Housing Finance Limited
Debentures | -
2%₹50 Cr500
↑ 500
Torrent Power Limited
Debentures | -
2%₹50 Cr500
National Bank For Agriculture And Rural Development
Debentures | -
2%₹50 Cr500
G R Infraprojects Limited
Debentures | -
2%₹49 Cr500
182 DTB 14092023
Sovereign Bonds | -
2%₹45 Cr450,000,000
TATA Motors Finance Solutions Limited
Debentures | -
2%₹39 Cr390

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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