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6 Best Performing Ultra Short Term Mutual Funds 2024

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6 Best Ultra Short Term Mutual Funds 2024

Updated on July 14, 2024 , 140920 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 2024-2025.

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 24 - 25

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)2023 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
Aditya Birla Sun Life Savings Fund Growth ₹509.539
↑ 0.08
₹13,5801.73.97.567.27.88%5M 16D7M 13D
SBI Magnum Ultra Short Duration Fund Growth ₹5,577.59
↑ 1.21
₹10,5481.73.77.25.777.54%5M 12D5M 26D
ICICI Prudential Ultra Short Term Fund Growth ₹25.8493
↑ 0.00
₹12,3021.73.87.25.86.97.7%5M 8D5M 26D
Invesco India Ultra Short Term Fund Growth ₹2,519.5
↑ 0.35
₹6561.73.87.25.46.67.45%4M 17D4M 24D
Nippon India Ultra Short Duration Fund Growth ₹3,767.27
↑ 0.65
₹6,3231.73.675.76.77.85%5M 12D6M 15D
Kotak Savings Fund Growth ₹40.0841
↑ 0.01
₹12,8411.73.675.66.87.73%6M7M 24D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 16 Jul 24
*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 2023 was 7.2% , 2022 was 4.8% and 2021 was 3.9% .

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 (16 Jul 24) ₹509.539 ↑ 0.08   (0.02 %)
Net Assets (Cr) ₹13,580 on 31 May 24
Category Debt - Ultrashort Bond
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk Moderately Low
Expense Ratio 0.52
Sharpe Ratio 1.47
Information Ratio 0
Alpha Ratio 0
Min Investment 1,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 7.88%
Effective Maturity 7 Months 13 Days
Modified Duration 5 Months 16 Days

Growth of 10,000 investment over the years.

DateValue
30 Jun 19₹10,000
30 Jun 20₹10,829
30 Jun 21₹11,353
30 Jun 22₹11,789
30 Jun 23₹12,562
30 Jun 24₹13,498

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 16 Jul 24

DurationReturns
1 Month 0.7%
3 Month 1.7%
6 Month 3.9%
1 Year 7.5%
3 Year 6%
5 Year 6.1%
10 Year
15 Year
Since launch 7.4%
Historical performance (Yearly) on absolute basis
YearReturns
2023 7.2%
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%
Fund Manager information for Aditya Birla Sun Life Savings Fund
NameSinceTenure
Sunaina Cunha20 Jun 149.95 Yr.
Kaustubh Gupta15 Jul 1112.89 Yr.
Monika Gandhi22 Mar 213.19 Yr.
Dhaval Joshi21 Nov 221.53 Yr.

Data below for Aditya Birla Sun Life Savings Fund as on 31 May 24

Asset Allocation
Asset ClassValue
Cash45.07%
Debt54.64%
Other0.29%
Debt Sector Allocation
SectorValue
Corporate61.45%
Cash Equivalent24.26%
Government13.88%
Securitized0.11%
Credit Quality
RatingValue
AA24.72%
AAA75.28%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
HDFC Bank Limited
Debentures | -
4%₹598 Cr6,000
Nirma Limited
Debentures | -
4%₹499 Cr50,000
National Housing Bank 7.78%
Debentures | -
3%₹400 Cr40,000
Tata Realty And Infrastructure Limited
Debentures | -
3%₹360 Cr36,000
Bharti Telecom Limited
Debentures | -
2%₹325 Cr3,250
Bajaj Housing Finance Ltd. 8%
Debentures | -
2%₹300 Cr30,000
Nirma Limited 8.3%
Debentures | -
2%₹250 Cr25,000
Cholamandalam Investment And Finance Company Limited
Debentures | -
2%₹249 Cr2,500
91 DTB 25072024
Sovereign Bonds | -
2%₹248 Cr25,000,000
National Bank For Agriculture And Rural Development
Debentures | -
2%₹245 Cr2,500

2. 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 2023 was 7% , 2022 was 4.5% and 2021 was 3.4% .

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 (16 Jul 24) ₹5,577.59 ↑ 1.21   (0.02 %)
Net Assets (Cr) ₹10,548 on 31 May 24
Category Debt - Ultrashort Bond
AMC SBI Funds Management Private Limited
Rating
Risk Low
Expense Ratio 0.49
Sharpe Ratio 0.37
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 7.54%
Effective Maturity 5 Months 26 Days
Modified Duration 5 Months 12 Days

Growth of 10,000 investment over the years.

DateValue
30 Jun 19₹10,000
30 Jun 20₹10,769
30 Jun 21₹11,178
30 Jun 22₹11,554
30 Jun 23₹12,291
30 Jun 24₹13,174

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 16 Jul 24

DurationReturns
1 Month 0.7%
3 Month 1.7%
6 Month 3.7%
1 Year 7.2%
3 Year 5.7%
5 Year 5.6%
10 Year
15 Year
Since launch 7.1%
Historical performance (Yearly) on absolute basis
YearReturns
2023 7%
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%
Fund Manager information for SBI Magnum Ultra Short Duration Fund
NameSinceTenure
Arun R.1 Jun 213 Yr.
Ardhendu Bhattacharya1 Dec 230.5 Yr.
Pradeep Kesavan1 Dec 230.5 Yr.

Data below for SBI Magnum Ultra Short Duration Fund as on 31 May 24

Asset Allocation
Asset ClassValue
Cash67.82%
Debt31.92%
Other0.26%
Debt Sector Allocation
SectorValue
Corporate58.81%
Cash Equivalent38.65%
Government2.28%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
91 DTB 02082024
Sovereign Bonds | -
7%₹793 Cr80,000,000
↑ 80,000,000
182 DTB 11072024
Sovereign Bonds | -
4%₹448 Cr45,000,000
Panatone Finvest Ltd
Debentures | -
3%₹286 Cr6,000
Power Finance Corporation Limited
Debentures | -
3%₹284 Cr2,850
Kotak Mahindra Bank Ltd.
Debentures | -
3%₹270 Cr5,500
182 DTB 25072024
Sovereign Bonds | -
2%₹248 Cr25,000,000
LIC Housing Finance Ltd
Debentures | -
2%₹248 Cr2,500
RBL Bank Ltd.
Debentures | -
2%₹241 Cr5,000
Equitas Small Finance Bank Ltd.
Debentures | -
2%₹241 Cr5,000
Tata Capital Housing Finance Limited
Debentures | -
2%₹220 Cr2,200
↑ 500

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 7.5% since its launch.  Ranked 27 in Ultrashort Bond category.  Return for 2023 was 6.9% , 2022 was 4.5% and 2021 was 4% .

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 (16 Jul 24) ₹25.8493 ↑ 0.00   (0.02 %)
Net Assets (Cr) ₹12,302 on 15 May 24
Category Debt - Ultrashort Bond
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 0.86
Sharpe Ratio 0.35
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 7.7%
Effective Maturity 5 Months 26 Days
Modified Duration 5 Months 8 Days

Growth of 10,000 investment over the years.

DateValue
30 Jun 19₹10,000
30 Jun 20₹10,786
30 Jun 21₹11,328
30 Jun 22₹11,744
30 Jun 23₹12,494
30 Jun 24₹13,387

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 ₹197,169.
Net Profit of ₹17,169
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 16 Jul 24

DurationReturns
1 Month 0.6%
3 Month 1.7%
6 Month 3.8%
1 Year 7.2%
3 Year 5.8%
5 Year 6%
10 Year
15 Year
Since launch 7.5%
Historical performance (Yearly) on absolute basis
YearReturns
2023 6.9%
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%
Fund Manager information for ICICI Prudential Ultra Short Term Fund
NameSinceTenure
Manish Banthia15 Nov 167.55 Yr.
Ritesh Lunawat15 Jun 176.96 Yr.

Data below for ICICI Prudential Ultra Short Term Fund as on 15 May 24

Asset Allocation
Asset ClassValue
Cash60.4%
Debt39.33%
Other0.27%
Debt Sector Allocation
SectorValue
Corporate49.98%
Cash Equivalent39.07%
Government10.69%
Credit Quality
RatingValue
AA14.19%
AAA85.81%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
India (Republic of)
- | -
3%₹383 Cr40,000,000
364 DTB 13032025
Sovereign Bonds | -
3%₹380 Cr40,000,000
↑ 40,000,000
Bharti Telecom Limited
Debentures | -
3%₹340 Cr34,000
India (Republic of)
- | -
2%₹290 Cr30,000,000
HDFC Bank Ltd.
Debentures | -
2%₹285 Cr6,000
Indusind Bank Ltd.
Debentures | -
2%₹239 Cr5,000
Bank of India
Debentures | -
2%₹238 Cr5,000
↑ 5,000
Indusind Bank Ltd.
Debentures | -
2%₹214 Cr4,500
182 DTB 25072024
Sovereign Bonds | -
2%₹199 Cr20,000,000
182 DTB 18102024
Sovereign Bonds | -
2%₹195 Cr20,000,000

4. Invesco India Ultra Short Term Fund

(Erstwhile Invesco India Medium Term Bond Fund)

The objective is to generate regular income and capital appreciation by investing in a portfolio of medium term debt and money market instruments.

Invesco India Ultra Short Term Fund is a Debt - Ultrashort Bond fund was launched on 30 Dec 10. It is a fund with Moderate risk and has given a CAGR/Annualized return of 7.1% since its launch.  Ranked 40 in Ultrashort Bond category.  Return for 2023 was 6.6% , 2022 was 4.1% and 2021 was 3% .

Below is the key information for Invesco India Ultra Short Term Fund

Invesco India Ultra Short Term Fund
Growth
Launch Date 30 Dec 10
NAV (16 Jul 24) ₹2,519.5 ↑ 0.35   (0.01 %)
Net Assets (Cr) ₹656 on 15 May 24
Category Debt - Ultrashort Bond
AMC Invesco Asset Management (India) Private Ltd
Rating
Risk Moderate
Expense Ratio 0.89
Sharpe Ratio 0.03
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 7.45%
Effective Maturity 4 Months 24 Days
Modified Duration 4 Months 17 Days

Growth of 10,000 investment over the years.

DateValue
30 Jun 19₹10,000
30 Jun 20₹10,705
30 Jun 21₹11,052
30 Jun 22₹11,389
30 Jun 23₹12,071
30 Jun 24₹12,930

Invesco India 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 Invesco India 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 16 Jul 24

DurationReturns
1 Month 0.6%
3 Month 1.7%
6 Month 3.8%
1 Year 7.2%
3 Year 5.4%
5 Year 5.2%
10 Year
15 Year
Since launch 7.1%
Historical performance (Yearly) on absolute basis
YearReturns
2023 6.6%
2022 4.1%
2021 3%
2020 5.1%
2019 7.6%
2018 7.3%
2017 7.1%
2016 9.1%
2015 8.3%
2014 10.1%
Fund Manager information for Invesco India Ultra Short Term Fund
NameSinceTenure
Krishna Cheemalapati4 Jan 204.41 Yr.
Vikas Garg27 Jul 212.85 Yr.

Data below for Invesco India Ultra Short Term Fund as on 15 May 24

Asset Allocation
Asset ClassValue
Cash58.48%
Debt41.23%
Other0.29%
Debt Sector Allocation
SectorValue
Corporate66.41%
Cash Equivalent16.95%
Government16.36%
Credit Quality
RatingValue
AA17.98%
AAA82.02%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
India (Republic of)
- | -
5%₹34 Cr3,500,000
Bharti Telecom Limited
Debentures | -
3%₹25 Cr2,500,000
National Housing Bank
Debentures | -
3%₹25 Cr2,500,000
↑ 1,000,000
Kotak Mahindra Bank Ltd.
Debentures | -
3%₹25 Cr2,500,000
182 DTB 28112024
Sovereign Bonds | -
3%₹24 Cr2,500,000
↑ 2,500,000
182 DTB 12122024
Sovereign Bonds | -
3%₹24 Cr2,500,000
↑ 2,500,000
HDFC Bank Ltd.
Debentures | -
3%₹24 Cr2,500,000
Indian Bank
Domestic Bonds | -
3%₹24 Cr2,500,000
LIC Housing Finance Ltd
Debentures | -
3%₹20 Cr2,000,000
PNb Housing Finance Limited
Debentures | -
2%₹15 Cr1,500,000

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 2023 was 6.7% , 2022 was 4.6% and 2021 was 7.8% .

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 (16 Jul 24) ₹3,767.27 ↑ 0.65   (0.02 %)
Net Assets (Cr) ₹6,323 on 31 May 24
Category Debt - Ultrashort Bond
AMC Nippon Life Asset Management Ltd.
Rating
Risk Low
Expense Ratio 1.17
Sharpe Ratio -0.92
Information Ratio 0
Alpha Ratio 0
Min Investment 100
Min SIP Investment 100
Exit Load NIL
Yield to Maturity 7.85%
Effective Maturity 6 Months 15 Days
Modified Duration 5 Months 12 Days

Growth of 10,000 investment over the years.

DateValue
30 Jun 19₹10,000
30 Jun 20₹10,195
30 Jun 21₹10,769
30 Jun 22₹11,448
30 Jun 23₹12,156
30 Jun 24₹12,996

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 16 Jul 24

DurationReturns
1 Month 0.6%
3 Month 1.7%
6 Month 3.6%
1 Year 7%
3 Year 5.7%
5 Year 5.3%
10 Year
15 Year
Since launch 6%
Historical performance (Yearly) on absolute basis
YearReturns
2023 6.7%
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%
Fund Manager information for Nippon India Ultra Short Duration Fund
NameSinceTenure
Vivek Sharma1 Oct 1310.67 Yr.
Kinjal Desai25 May 186.02 Yr.
Akshay Sharma1 Dec 221.5 Yr.

Data below for Nippon India Ultra Short Duration Fund as on 31 May 24

Asset Allocation
Asset ClassValue
Cash57.28%
Debt42.51%
Other0.22%
Debt Sector Allocation
SectorValue
Corporate63.89%
Cash Equivalent24.76%
Government10.52%
Securitized0.61%
Credit Quality
RatingValue
AA16.34%
AAA83.66%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
India (Republic of)
- | -
8%₹492 Cr50,000,000
Power Finance Corporation Limited
Debentures | -
4%₹266 Cr2,650
Dlf Cyber City Developers Ltd
Debentures | -
4%₹258 Cr2,590
↑ 1,200
Indinfravit Trust
Debentures | -
3%₹215 Cr22,000
182 DTB 22082024
Sovereign Bonds | -
3%₹193 Cr19,500,000
Rec Limited
Debentures | -
3%₹180 Cr1,850
↑ 500
India (Republic of)
- | -
2%₹103 Cr10,500,000
Shriram Finance Limited
Debentures | -
2%₹100 Cr1,000
National Housing Bank
Debentures | -
2%₹100 Cr10,000
PNb Housing Finance Limited
Debentures | -
2%₹100 Cr10,000

6. 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 2023 was 6.8% , 2022 was 4.5% and 2021 was 3.2% .

Below is the key information for Kotak Savings Fund

Kotak Savings Fund
Growth
Launch Date 13 Aug 04
NAV (16 Jul 24) ₹40.0841 ↑ 0.01   (0.02 %)
Net Assets (Cr) ₹12,841 on 31 May 24
Category Debt - Ultrashort Bond
AMC Kotak Mahindra Asset Management Co Ltd
Rating
Risk Moderately Low
Expense Ratio 0.47
Sharpe Ratio -0.59
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 7.73%
Effective Maturity 7 Months 24 Days
Modified Duration 6 Months

Growth of 10,000 investment over the years.

DateValue
30 Jun 19₹10,000
30 Jun 20₹10,750
30 Jun 21₹11,148
30 Jun 22₹11,525
30 Jun 23₹12,247
30 Jun 24₹13,097

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 16 Jul 24

DurationReturns
1 Month 0.6%
3 Month 1.7%
6 Month 3.6%
1 Year 7%
3 Year 5.6%
5 Year 5.5%
10 Year
15 Year
Since launch 7.2%
Historical performance (Yearly) on absolute basis
YearReturns
2023 6.8%
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%
Fund Manager information for Kotak Savings Fund
NameSinceTenure
Deepak Agrawal15 Apr 0816.14 Yr.
Manu Sharma1 Nov 221.58 Yr.
Palha Khanna3 Jul 230.91 Yr.

Data below for Kotak Savings Fund as on 31 May 24

Asset Allocation
Asset ClassValue
Cash59.38%
Debt40.41%
Other0.21%
Debt Sector Allocation
SectorValue
Corporate54.02%
Cash Equivalent26.36%
Government19.42%
Credit Quality
RatingValue
AA9.4%
AAA90.6%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
India (Republic of)
- | -
7%₹1,000 Cr101,500,010
↑ 41,500,000
182 DTB 12122024
Sovereign Bonds | -
3%₹483 Cr50,000,000
↑ 50,000,000
Rural Electrification Corporation Limited
Debentures | -
3%₹459 Cr4,600
India (Republic of)
- | -
3%₹394 Cr40,000,000
India (Republic of)
- | -
3%₹383 Cr40,000,000
Mahindra And Mahindra Financial Services Limited
Debentures | -
2%₹350 Cr3,500
182 DTB 22082024
Sovereign Bonds | -
2%₹296 Cr30,000,000
LIC Housing Finance Ltd
Debentures | -
2%₹296 Cr3,000
Nirma Limited 0.083%
Debentures | -
2%₹250 Cr25,000
182 DTB 29082024
Sovereign Bonds | -
2%₹247 Cr25,000,000

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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