fincash logo SOLUTIONS
EXPLORE FUNDS
CALCULATORS
fincash number+91-22-62820123
6 Best Performing Ultra Short Term Mutual Funds 2018 - 2019

Fincash » Mutual Funds » Best Ultra Short MF

6 Best Ultra Short Term Mutual Funds 2018 - 2019

Updated on November 18, 2018 , 1022 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, some of the best Ultra Short Term Mutual Funds have a residual maturity ranging from 6 months to 1 year.

Ultra Short Bond Funds are one of the best short term investments that offer good returns with very less market volatility. The investors who are looking for better returns than Liquid Funds should prefer Investing in Ultra Short Term Mutual Funds, as the returns of these funds are better than that of Liquid Mutual funds. Ultra Short Term fund are for investors who seek to invest money for say a month to a couple of months.

But before investing in Ultra Short Funds it is important to look for best Ultra Short Term Funds as per the current scenario. For the financial year 2018-2019, we have listed best Ultra Short Term Funds below, take a look.

Best-ultra-short-funds

Ready to Invest?
Talk to our investment specialist
Disclaimer:
By submitting this form I authorize Fincash.com to call/SMS/email me about its products and I accept the terms of Privacy Policy and Terms & Conditions.

Top 5 Ultra Short Term Funds for Investments in India FY 18 - 19

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)2017 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
Franklin India Ultra Short Bond Fund - Super Institutional Plan Growth ₹25.3038
↑ 0.01
₹14,6432.14.57.98.78.20%6M 21D
Aditya Birla Sun Life Savings Fund Growth ₹357.145
↑ 0.12
₹14,8761.94.16.97.97.28.58%3M 29D4M 10D
Indiabulls Ultra Short Term Fund Growth ₹1,758.3
↑ 0.39
₹5511.63.66.77.66.90%
UTI Ultra Short Term Fund Growth ₹2,945.08
↑ 0.78
₹5,3451.63.66.57.46.69.63%3M 9D5M 9D
SBI Magnum Ultra Short Duration Fund Growth ₹4,018.94
↑ 1.17
₹4,17324.17.67.36.68.1%2M 19D3M
Kotak Savings Fund Growth ₹29.0379
↑ 0.01
₹6,7831.83.86.87.36.78.48%4M 20D4M 28D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 20 Nov 18

1. 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 8.9% since its launch.  Return for 2017 was 8.2% , 2016 was 9.7% and 2015 was 9.7% .

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 (20 Nov 18) ₹25.3038 ↑ 0.01   (0.03 %)
Net Assets (Cr) ₹14,643 on 31 Oct 18
Category Debt - Ultrashort Bond
AMC Franklin Templeton Asst Mgmt(IND)Pvt Ltd
Rating
Risk Moderate
Expense Ratio 0.37
Sharpe Ratio 8.05
Information Ratio 3.35
Alpha Ratio -0.58
Min Investment 10,000
Exit Load NIL
Yield to Maturity 0%
Effective Maturity 6 Months 21 Days
Modified Duration

Growth of 10,000 investment over the years.

DateValue
31 Oct 13₹10,000
31 Oct 14₹11,010
31 Oct 15₹12,088
31 Oct 16₹13,253
31 Oct 17₹14,421
31 Oct 18₹15,524

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 20 Nov 18

DurationReturns
1 Month 0.9%
3 Month 2.1%
6 Month 4.5%
1 Year 7.9%
3 Year 8.7%
5 Year 9.2%
10 Year
15 Year
Since launch 8.9%
Historical performance (Yearly) on absolute basis
YearReturns
2017 8.2%
2016 9.7%
2015 9.7%
2014 10%
2013 10%
2012 10.3%
2011 9.4%
2010 5.9%
2009 6.1%
2008 10.1%
Fund Manager information for Franklin India Ultra Short Bond Fund - Super Institutional Plan
NameSinceTenure
Santosh Kamath25 Oct 180.02 Yr.
Pallab Roy1 Jun 0810.42 Yr.

Data below for Franklin India Ultra Short Bond Fund - Super Institutional Plan as on 31 Oct 18

Asset Allocation
Asset ClassValue
Cash38.33%
Debt61.67%
Debt Sector Allocation
SectorValue
Corporate77.42%
Cash Equivalent17.33%
Government5.25%
Credit Quality
RatingValue
A32.58%
AA38.45%
AAA28.97%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Call, Cash & Other Assets
Commercial Paper | -
7%₹1,006 Cr
National Bank For Agriculture And Rural Development
Commercial Paper | -
5%₹669 Cr13,400
↑ 8,900
Renew Power Ventures Private Limited
Debentures | -
5%₹669 Cr6,740
Vodafone Mobile Services Limited
Debentures | -
4%₹584 Cr6,060
↑ 6,060
Adani Infra (India) Limited
Debentures | -
4%₹527 Cr500
↑ 500
Aditya Birla Retail Limited
Debentures | -
3%₹487 Cr400
Indostar Capital Finance Limited
Debentures | -
3%₹439 Cr4,400
↑ 4,400
Piramal Realty Private Limited
Debentures | -
2%₹350 Cr3,500
Bajaj Finance Limited
Commercial Paper | -
2%₹348 Cr7,000
National Bank For Agriculture And Rural Development
Commercial Paper | -
2%₹339 Cr6,900

2. 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 7.7% since its launch.  Ranked 6 in Ultrashort Bond category.  Return for 2017 was 7.2% , 2016 was 9.2% and 2015 was 8.9% .

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 (20 Nov 18) ₹357.145 ↑ 0.12   (0.03 %)
Net Assets (Cr) ₹14,876 on 31 Oct 18
Category Debt - Ultrashort Bond
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk Moderately Low
Expense Ratio 0.35
Sharpe Ratio 5.15
Information Ratio 1.11
Alpha Ratio 2.64
Min Investment 1,000
Exit Load NIL
Yield to Maturity 8.58%
Effective Maturity 4 Months 10 Days
Modified Duration 3 Months 29 Days

Growth of 10,000 investment over the years.

DateValue
31 Oct 13₹10,000
31 Oct 14₹10,971
31 Oct 15₹11,973
31 Oct 16₹13,078
31 Oct 17₹14,086
31 Oct 18₹15,033

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 20 Nov 18

DurationReturns
1 Month 0.7%
3 Month 1.9%
6 Month 4.1%
1 Year 6.9%
3 Year 7.9%
5 Year 8.5%
10 Year
15 Year
Since launch 7.7%
Historical performance (Yearly) on absolute basis
YearReturns
2017 7.2%
2016 9.2%
2015 8.9%
2014 9.7%
2013 9.5%
2012 9.7%
2011 9.2%
2010 5.8%
2009 5.8%
2008 9.3%
Fund Manager information for Aditya Birla Sun Life Savings Fund
NameSinceTenure
Sunaina Cunha11 Oct 144.06 Yr.
Kaustubh Gupta15 Jul 117.3 Yr.

Data below for Aditya Birla Sun Life Savings Fund as on 31 Oct 18

Asset Allocation
Asset ClassValue
Cash63.82%
Debt36.18%
Debt Sector Allocation
SectorValue
Corporate70.25%
Cash Equivalent22.83%
Government6.07%
Securitized0.85%
Credit Quality
RatingValue
AA24.61%
AAA75.39%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Indiabulls Housing Finance Limited
Commercial Paper | -
5%₹784 Cr16,000
7.80% Indusind Bank Limited (28/12/2018)
Certificate of Deposit | -
5%₹700 Cr
Vodafone Mobile Services Limited
Debentures | -
5%₹684 Cr6,950
Bharti Airtel Limited
Commercial Paper | -
4%₹565 Cr11,500
Housing Development Finance Corporation Limited
Commercial Paper | -
3%₹493 Cr10,000
THE TATA POWER COMPANY LIMITED
Commercial Paper | -
3%₹492 Cr10,000
↑ 10,000
National Bank For Agriculture And Rural Development
Debentures | -
3%₹490 Cr4,900
↑ 1,400
ONGC Petro Additions Limited
Debentures | -
3%₹459 Cr460
Edelweiss Commodities Services Limited
Debentures | -
3%₹397 Cr4,000
Reliance Industries Limited
Commercial Paper | -
3%₹394 Cr8,000
↓ -4,000

3. Indiabulls Ultra Short Term Fund

To provide liquidity with returns commensurate with low risk through a portfolio of money market and debt securities. However, there can be no assurance that the investment objective of the scheme will be achieved.

Indiabulls Ultra Short Term Fund is a Debt - Ultrashort Bond fund was launched on 6 Jan 12. It is a fund with Moderately Low risk and has given a CAGR/Annualized return of 8.6% since its launch.  Ranked 17 in Ultrashort Bond category.  Return for 2017 was 6.9% , 2016 was 8.8% and 2015 was 8.8% .

Below is the key information for Indiabulls Ultra Short Term Fund

Indiabulls Ultra Short Term Fund
Growth
Launch Date 6 Jan 12
NAV (20 Nov 18) ₹1,758.3 ↑ 0.39   (0.02 %)
Net Assets (Cr) ₹551 on 31 Oct 18
Category Debt - Ultrashort Bond
AMC Indiabulls Asset Management Company Ltd.
Rating
Risk Moderately Low
Expense Ratio 0.71
Sharpe Ratio 7.89
Information Ratio 0.89
Alpha Ratio -0.64
Min Investment 500
Exit Load NIL
Yield to Maturity 0%
Effective Maturity
Modified Duration

Growth of 10,000 investment over the years.

DateValue
31 Oct 13₹10,000
31 Oct 14₹10,925
31 Oct 15₹11,917
31 Oct 16₹12,928
31 Oct 17₹13,922
31 Oct 18₹14,836

Returns for Indiabulls 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 20 Nov 18

DurationReturns
1 Month 0.6%
3 Month 1.6%
6 Month 3.6%
1 Year 6.7%
3 Year 7.6%
5 Year 8.2%
10 Year
15 Year
Since launch 8.6%
Historical performance (Yearly) on absolute basis
YearReturns
2017 6.9%
2016 8.8%
2015 8.8%
2014 9.3%
2013 8.8%
2012
2011
2010
2009
2008
Fund Manager information for Indiabulls Ultra Short Term Fund
NameSinceTenure
Malay Shah22 Aug 144.2 Yr.

Data below for Indiabulls Ultra Short Term Fund as on 31 Oct 18

Asset Allocation
Asset ClassValue
Cash78.44%
Debt21.56%
Debt Sector Allocation
SectorValue
Corporate75.66%
Cash Equivalent12.83%
Government11.51%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Tata Motors Finance Solutions Limited
Commercial Paper | -
9%₹50 Cr5,000,000
↑ 5,000,000
National Bank For Agriculture And Rural Development
Commercial Paper | -
9%₹50 Cr5,000,000
↑ 5,000,000
Indiabulls Housing Finance Limited
Debentures | -
9%₹50 Cr5,000,000
↑ 5,000,000
VEDANTA LIMITED
Commercial Paper | -
9%₹50 Cr5,000,000
↑ 5,000,000
Dewan Housing Finance Corporation Limited
Debentures | -
6%₹32 Cr2,050,000
Cblo 01/11/18- Mat - 011118
CBLO | -
5%₹29 Cr2,883,000
↑ 2,883,000
Yes Bank Limited
Certificate of Deposit | -
5%₹25 Cr2,500,000
AXIS FINANCE LIMITED
Commercial Paper | -
5%₹25 Cr2,500,000
IDFC Bank Limited
Certificate of Deposit | -
5%₹25 Cr2,500,000
↑ 2,500,000
ADITYA BIRLA CAPITAL LIMITED
Commercial Paper | -
5%₹25 Cr2,500,000

4. UTI Ultra Short Term Fund

(Erstwhile UTI - Floating Rate Fund - Short Term Plan)

To generate regular income through investment in a portfolio comprising substantially of floating rate debt / money market instruments, fixed rate debt / money market instruments swapped for floating rate returns. The Scheme may also invest a portion of its net assets in fixed rate debt securities and money market instruments .However there can be no assurance that the investment objective of the Scheme will be achieved. The Scheme does not guarantee / indicate any returns.

UTI Ultra Short Term Fund is a Debt - Ultrashort Bond fund was launched on 29 Aug 03. It is a fund with Moderately Low risk and has given a CAGR/Annualized return of 7.4% since its launch.  Ranked 27 in Ultrashort Bond category.  Return for 2017 was 6.6% , 2016 was 8.9% and 2015 was 8.5% .

Below is the key information for UTI Ultra Short Term Fund

UTI Ultra Short Term Fund
Growth
Launch Date 29 Aug 03
NAV (20 Nov 18) ₹2,945.08 ↑ 0.78   (0.03 %)
Net Assets (Cr) ₹5,345 on 31 Oct 18
Category Debt - Ultrashort Bond
AMC UTI Asset Management Company Ltd
Rating
Risk Moderately Low
Expense Ratio 1.16
Sharpe Ratio 6.46
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Exit Load NIL
Yield to Maturity 9.63%
Effective Maturity 5 Months 9 Days
Modified Duration 3 Months 9 Days

Growth of 10,000 investment over the years.

DateValue
31 Oct 13₹10,000
31 Oct 14₹10,884
31 Oct 15₹11,842
31 Oct 16₹12,871
31 Oct 17₹13,792
31 Oct 18₹14,663

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 20 Nov 18

DurationReturns
1 Month 0.7%
3 Month 1.6%
6 Month 3.6%
1 Year 6.5%
3 Year 7.4%
5 Year 8%
10 Year
15 Year
Since launch 7.4%
Historical performance (Yearly) on absolute basis
YearReturns
2017 6.6%
2016 8.9%
2015 8.5%
2014 8.8%
2013 9.8%
2012 9%
2011 8.2%
2010 5.4%
2009 6%
2008 9.8%
Fund Manager information for UTI Ultra Short Term Fund
NameSinceTenure
Sudhir Agarwal1 Jul 153.34 Yr.
Ritesh Nambiar1 Jul 153.34 Yr.

Data below for UTI Ultra Short Term Fund as on 31 Oct 18

Asset Allocation
Asset ClassValue
Cash61.72%
Debt38.28%
Debt Sector Allocation
SectorValue
Cash Equivalent52.44%
Corporate47.55%
Government0.01%
Credit Quality
RatingValue
AA62.05%
AAA37.95%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Net Current Assets
Net Current Assets | -
42%₹2,233 Cr00
Shriram Transport Finance Company Limited
Debentures | -
5%₹246 Cr2,500
Avanse Financial Services Limited
Debentures | -
4%₹233 Cr2,350
Edelweiss Commodities Services Limited
Debentures | -
4%₹199 Cr2,000
Business Broadcast News Holdings Limited
Debentures | -
3%₹158 Cr1,500
Shriram Transport Finance Company Limited
Debentures | -
3%₹150 Cr1,500
AU Small Finance Bank Limited
Certificate of Deposit | -
3%₹148 Cr1,500,000,000
Housing Development Finance Corporation Limited
Commercial Paper | -
3%₹148 Cr1,500,000,000
Small Industries Development Bank Of India
Debentures | -
2%₹125 Cr1,250
Future Retail Limited
Debentures | -
2%₹122 Cr1,200

5. SBI Magnum Ultra Short Duration Fund

(Erstwhile SBI Magnum InstaCash Fund)

To provide the investors an opportunity to earn returns through investment in debt & money market securities, while having the benefit of a very high degree of liquidity.

SBI Magnum Ultra Short Duration Fund is a Debt - Ultrashort Bond fund was launched on 21 May 99. It is a fund with Low risk and has given a CAGR/Annualized return of 7.4% since its launch.  Return for 2017 was 6.6% , 2016 was 7.7% and 2015 was 8.3% .

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 (20 Nov 18) ₹4,018.94 ↑ 1.17   (0.03 %)
Net Assets (Cr) ₹4,173 on 31 Oct 18
Category Debt - Ultrashort Bond
AMC SBI Funds Management Private Limited
Rating
Risk Low
Expense Ratio 0.22
Sharpe Ratio 13.31
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Exit Load NIL
Yield to Maturity 8.1%
Effective Maturity 3 Months
Modified Duration 2 Months 19 Days

Growth of 10,000 investment over the years.

DateValue
31 Oct 13₹10,000
31 Oct 14₹10,914
31 Oct 15₹11,840
31 Oct 16₹12,764
31 Oct 17₹13,616
31 Oct 18₹14,623

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 20 Nov 18

DurationReturns
1 Month 0.8%
3 Month 2%
6 Month 4.1%
1 Year 7.6%
3 Year 7.3%
5 Year 7.9%
10 Year
15 Year
Since launch 7.4%
Historical performance (Yearly) on absolute basis
YearReturns
2017 6.6%
2016 7.7%
2015 8.3%
2014 9%
2013 9.3%
2012 9.3%
2011 8.7%
2010 5.4%
2009 4.8%
2008 8.9%
Fund Manager information for SBI Magnum Ultra Short Duration Fund
NameSinceTenure
Rajeev Radhakrishnan1 May 108.51 Yr.

Data below for SBI Magnum Ultra Short Duration Fund as on 31 Oct 18

Asset Allocation
Asset ClassValue
Cash67.66%
Debt32.34%
Debt Sector Allocation
SectorValue
Corporate67.91%
Cash Equivalent21.01%
Government11.08%
Credit Quality
RatingValue
AA13.41%
AAA86.59%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Novy MIR Lightweighting Solutions Private Limited
Debentures | -
5%₹209 Cr42
National Housing Bank
Debentures | -
5%₹200 Cr2,000
↑ 750
VEDANTA LIMITED
Commercial Paper | -
5%₹198 Cr4,000
VEDANTA LIMITED
Commercial Paper | -
5%₹197 Cr4,000
↑ 4,000
Housing And Urban Development Corporation Ltd.
Commercial Paper | -
5%₹196 Cr4,000
RMZ Infotech Private Limited
Debentures | -
4%₹181 Cr1,750
Small Industries Development Bank Of India
Debentures | -
4%₹175 Cr1,750
↑ 1,250
Rural Electrification Corporation Limited
Debentures | -
4%₹160 Cr1,600
Daimler Financial Services India Private Limited
Debentures | -
4%₹150 Cr1,500
JSW STEEL LIMITED
Commercial Paper | -
4%₹147 Cr3,000
↑ 3,000

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 7.8% since its launch.  Ranked 44 in Ultrashort Bond category.  Return for 2017 was 6.7% , 2016 was 8.2% and 2015 was 8.6% .

Below is the key information for Kotak Savings Fund

Kotak Savings Fund
Growth
Launch Date 13 Aug 04
NAV (20 Nov 18) ₹29.0379 ↑ 0.01   (0.03 %)
Net Assets (Cr) ₹6,783 on 31 Oct 18
Category Debt - Ultrashort Bond
AMC Kotak Mahindra Asset Management Co Ltd
Rating
Risk Moderately Low
Expense Ratio 0.39
Sharpe Ratio 6.63
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Exit Load NIL
Yield to Maturity 8.48%
Effective Maturity 4 Months 28 Days
Modified Duration 4 Months 20 Days

Growth of 10,000 investment over the years.

DateValue
31 Oct 13₹10,000
31 Oct 14₹10,959
31 Oct 15₹11,922
31 Oct 16₹12,894
31 Oct 17₹13,816
31 Oct 18₹14,727

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 20 Nov 18

DurationReturns
1 Month 0.7%
3 Month 1.8%
6 Month 3.8%
1 Year 6.8%
3 Year 7.3%
5 Year 8.1%
10 Year
15 Year
Since launch 7.8%
Historical performance (Yearly) on absolute basis
YearReturns
2017 6.7%
2016 8.2%
2015 8.6%
2014 9.4%
2013 8.9%
2012 9.6%
2011 9.2%
2010 5.7%
2009 5.9%
2008 9.2%
Fund Manager information for Kotak Savings Fund
NameSinceTenure
Deepak Agrawal15 Apr 0810.55 Yr.

Data below for Kotak Savings Fund as on 31 Oct 18

Asset Allocation
Asset ClassValue
Cash59.97%
Debt40.03%
Debt Sector Allocation
SectorValue
Corporate73.52%
Government16.31%
Cash Equivalent8.96%
Securitized1.22%
Credit Quality
RatingValue
AA13.21%
AAA86.79%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Commercial Paper | -
6%₹426 Cr8,660
↑ 8,660
ONGC Mangalore Petrochemicals Limited
Debentures | -
6%₹398 Cr4,000
Axis Bank Limited
Certificate of Deposit | -
5%₹360 Cr37,000
HDFC Bank Limited
Certificate of Deposit | -
5%₹341 Cr35,000
RELIANCE INDUSTRIES LIMITED
Commercial Paper | -
4%₹292 Cr6,000
↑ 6,000
AXIS BANK LIMITED
Certificate of Deposit | -
4%₹246 Cr25,000
↑ 25,000
Reliance Jio Infocomm Limited
Debentures | -
4%₹243 Cr2,450
Indiabulls Housing Finance Limited
Commercial Paper | -
4%₹239 Cr4,900
L & T Finance Ltd
Commercial Paper | -
3%₹228 Cr4,660
↑ 4,660
Piramal Housing Finance Limited
Commercial Paper | -
3%₹210 Cr4,500

Taxation On Best Ultra Short Term Funds

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).

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.

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 over Mutual Funds like Ultra Short Term Funds that offer good returns with very less volatility. So, we have illustrated an example below to analyse the returns of both savings account and Ultra Short Funds to understand which is a better investment.

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.

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.
How helpful was this page ?
Rated 4.7, based on 7 reviews.
POST A COMMENT