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6 Best Performing Ultra Short Term Mutual Funds 2021 for Investments

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6 Best Ultra Short Term Mutual Funds 2021

Updated on April 15, 2021 , 97393 views

Best Ultra short term funds are very short term Mutual Funds that invest in a combination of debt instruments including treasury bills, certificate of deposits, commercial papers and corporate Bonds. Generally, these funds have a residual maturity ranging from 6 months to 1 year.

Ultra Short Bond Funds generally offer good returns with very less market volatility. These funds are for investors who seek to invest money for say a month to a couple of months. Investors who are looking for better returns than Liquid Funds should prefer Investing in Ultra Short Term fund. But before investing in these funds, take a look at the best Ultra Short Term Funds for the financial year 2021-2022.

Best-ultra-short-funds

Why Best Ultra Short Term Funds Over Savings Account?

Conventional investors often restrict themselves from investing in Mutual Funds due to the market risks involved. They prefer Savings Account as they offer good returns with no volatility. Let's look at the illustration below to analyse the returns of both savings account and Ultra Short Funds to understand which is a better investment to choose.

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Illustration:

An investor invests INR 40,00,00 in both Ultra Short Term Funds and savings account with the interest rate 3.5% p.a. and 8% p.a. respectively. See how the returns differ-

Saving Account Ultra Short Funds
Amount Invested 40,00,00
Interest Earned (Profit) 14,000

Taxation Breakup (Saving Account) @ 3.5%

Tax Bracket Tax Net Income (Profit)
5% 200 13,800
20% 800 13,200
30% 1200 12,800

Taxation Breakup (Ultra Short Funds) @ 8%

Tax Bracket Tax Net Income (Profit)
5% 3200 28,800
20% 6400 25,600
30% 9600 22,400

The above table clearly portrays the difference in the net income from savings accounts and ultra short term funds. Even the investors falling under the maximum tax bracket of 30% can avail returns of INR 22,400 by investing in ultra short term funds, which is much more than INR 12,800 offered by a savings account.

Top 6 Ultra Short Term Funds for Investments in India FY 21 - 22

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)2020 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
Franklin India Ultra Short Bond Fund - Super Institutional Plan Growth ₹29.8523
↑ 0.01
₹5,1881.93.78.57.349.39%2M 23D1Y 7D
Aditya Birla Sun Life Savings Fund Growth ₹423.424
↑ 0.05
₹17,086126.57.374.19%5M 19D6M 7D
ICICI Prudential Ultra Short Term Fund Growth ₹21.6081
↑ 0.00
₹8,8531.12.16.17.16.54.91%4M 17D5M 5D
SBI Magnum Ultra Short Duration Fund Growth ₹4,684.07
↑ 0.95
₹10,6250.91.75.16.95.93.76%4M 17D5M 23D
Nippon India Ultra Short Duration Fund Growth ₹3,051.46
↑ 0.39
₹7331.22.55.14.14.95.27%3M 11D6M 18D
Kotak Savings Fund Growth ₹33.7743
↑ 0.00
₹11,9910.81.65.16.65.83.78%3M 29D4M 6D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 16 Apr 21
*List of Funds having AUM >= 500 Crore and sorted on last 1 Year Return.

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

Below is the key information for Franklin India Ultra Short Bond Fund - Super Institutional Plan

Franklin India Ultra Short Bond Fund - Super Institutional Plan
Growth
Launch Date 18 Dec 07
NAV (16 Apr 21) ₹29.8523 ↑ 0.01   (0.02 %)
Net Assets (Cr) ₹5,188 on 28 Feb 21
Category Debt - Ultrashort Bond
AMC Franklin Templeton Asst Mgmt(IND)Pvt Ltd
Rating
Risk Moderate
Expense Ratio 0.52
Sharpe Ratio 4.62
Information Ratio 0
Alpha Ratio 0
Min Investment 10,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 9.39%
Effective Maturity 1 Year 7 Days
Modified Duration 2 Months 23 Days

Growth of 10,000 investment over the years.

DateValue
31 Mar 16₹10,000
31 Mar 17₹10,953
31 Mar 18₹11,833
31 Mar 19₹12,923
31 Mar 20₹13,532
31 Mar 21₹14,624

Franklin India Ultra Short Bond Fund - Super Institutional Plan SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹203,125.
Net Profit of ₹23,125
Invest Now

Purchase not allowed

Returns for Franklin India Ultra Short Bond Fund - Super Institutional Plan

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 16 Apr 21

DurationReturns
1 Month 0.8%
3 Month 1.9%
6 Month 3.7%
1 Year 8.5%
3 Year 7.3%
5 Year 7.9%
10 Year
15 Year
Since launch 8.6%
Historical performance (Yearly) on absolute basis
YearReturns
2020 4%
2019 9.6%
2018 8.7%
2017 8.2%
2016 9.7%
2015 9.7%
2014 10%
2013 10%
2012 10.3%
2011 9.4%
Fund Manager information for Franklin India Ultra Short Bond Fund - Super Institutional Plan
NameSinceTenure
Santosh Kamath25 Oct 182.44 Yr.
Pallab Roy1 Jun 0812.84 Yr.

Data below for Franklin India Ultra Short Bond Fund - Super Institutional Plan as on 28 Feb 21

Asset Allocation
Asset ClassValue
Cash25.19%
Debt74.81%
Debt Sector Allocation
SectorValue
Corporate74.81%
Cash Equivalent25.19%
Credit Quality
RatingValue
A40.45%
AA59.5%
AAA0.05%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
JM Financial Credit Solutions Limited
Debentures | -
10%₹532 Cr5,400
Indostar Capital Finance Limited
Debentures | -
9%₹441 Cr4,400
Edelweiss Commodities Services Limited
Debentures | -
7%₹368 Cr7,500
Edelweiss Commodities Services Limited
Debentures | -
7%₹363 Cr3,650
Tata Realty and Infrastructure Limited
Debentures | -
5%₹237 Cr2,000
Clix Capital Services Private Limited
Debentures | -
5%₹234 Cr2,350
Clix Capital Services Private Limited
Debentures | -
4%₹200 Cr2,000
PNB Housing Finance Limited
Debentures | -
4%₹192 Cr1,910
Indostar Capital Finance Limited
Debentures | -
3%₹131 Cr1,301
↓ -866
Clix Capital Services Private Limited
Debentures | -
2%₹100 Cr1,000

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 2020 was 7% , 2019 was 8.5% and 2018 was 7.6% .

Below is the key information for Aditya Birla Sun Life Savings Fund

Aditya Birla Sun Life Savings Fund
Growth
Launch Date 16 Apr 03
NAV (16 Apr 21) ₹423.424 ↑ 0.05   (0.01 %)
Net Assets (Cr) ₹17,086 on 28 Feb 21
Category Debt - Ultrashort Bond
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk Moderately Low
Expense Ratio 0.39
Sharpe Ratio 1.95
Information Ratio 0
Alpha Ratio 0
Min Investment 1,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 4.19%
Effective Maturity 6 Months 7 Days
Modified Duration 5 Months 19 Days

Growth of 10,000 investment over the years.

DateValue
31 Mar 16₹10,000
31 Mar 17₹10,881
31 Mar 18₹11,668
31 Mar 19₹12,599
31 Mar 20₹13,574
31 Mar 21₹14,434

Aditya Birla Sun Life Savings Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹203,125.
Net Profit of ₹23,125
Invest Now

Returns for Aditya Birla Sun Life Savings Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 16 Apr 21

DurationReturns
1 Month 0.5%
3 Month 1%
6 Month 2%
1 Year 6.5%
3 Year 7.3%
5 Year 7.5%
10 Year
15 Year
Since launch 7.7%
Historical performance (Yearly) on absolute basis
YearReturns
2020 7%
2019 8.5%
2018 7.6%
2017 7.2%
2016 9.2%
2015 8.9%
2014 9.7%
2013 9.5%
2012 9.7%
2011 9.2%
Fund Manager information for Aditya Birla Sun Life Savings Fund
NameSinceTenure
Sunaina Cunha11 Oct 146.48 Yr.
Kaustubh Gupta15 Jul 119.72 Yr.
Monika Gandhi22 Mar 210.03 Yr.

Data below for Aditya Birla Sun Life Savings Fund as on 28 Feb 21

Asset Allocation
Asset ClassValue
Cash52.32%
Debt47.68%
Debt Sector Allocation
SectorValue
Corporate45.01%
Cash Equivalent34.23%
Government20.38%
Securitized0.38%
Credit Quality
RatingValue
AA12.06%
AAA87.94%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
8.79% Govt Stock 2021
Sovereign Bonds | -
4%₹625 Cr60,500,000
↑ 57,500,000
182 DTB 04032021
Sovereign Bonds | -
3%₹500 Cr50,000,000
364 DTB 07052021
Sovereign Bonds | -
3%₹497 Cr50,000,000
Mahindra & Mahindra Financial Services Limited
Debentures | -
3%₹446 Cr4,450
182 DTB 11032021
Sovereign Bonds | -
2%₹400 Cr40,000,000
National Bank For Agriculture And Rural Development
Debentures | -
2%₹399 Cr4,000
↑ 4,000
Shriram Transport Finance Company Limited
Debentures | -
2%₹375 Cr3,750
8.83% Govt Stock 2023
Sovereign Bonds | -
2%₹334 Cr30,500,000
REC Limited
Debentures | -
2%₹329 Cr3,200
Rural Electrification Corporation Limited
Debentures | -
2%₹320 Cr3,150

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 8% since its launch.  Ranked 27 in Ultrashort Bond category.  Return for 2020 was 6.5% , 2019 was 8.4% and 2018 was 7.5% .

Below is the key information for ICICI Prudential Ultra Short Term Fund

ICICI Prudential Ultra Short Term Fund
Growth
Launch Date 3 May 11
NAV (16 Apr 21) ₹21.6081 ↑ 0.00   (0.01 %)
Net Assets (Cr) ₹8,853 on 28 Feb 21
Category Debt - Ultrashort Bond
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 0.96
Sharpe Ratio 1.71
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 1,000
Exit Load 0-1 Months (0.5%),1 Months and above(NIL)
Yield to Maturity 4.91%
Effective Maturity 5 Months 5 Days
Modified Duration 4 Months 17 Days

Growth of 10,000 investment over the years.

DateValue
31 Mar 16₹10,000
31 Mar 17₹10,944
31 Mar 18₹11,704
31 Mar 19₹12,604
31 Mar 20₹13,601
31 Mar 21₹14,403

ICICI Prudential Ultra Short Term Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹203,125.
Net Profit of ₹23,125
Invest Now

Returns for ICICI Prudential Ultra Short Term Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 16 Apr 21

DurationReturns
1 Month 0.5%
3 Month 1.1%
6 Month 2.1%
1 Year 6.1%
3 Year 7.1%
5 Year 7.5%
10 Year
15 Year
Since launch 8%
Historical performance (Yearly) on absolute basis
YearReturns
2020 6.5%
2019 8.4%
2018 7.5%
2017 6.9%
2016 9.8%
2015 9.1%
2014 14.8%
2013 3.1%
2012 9.4%
2011
Fund Manager information for ICICI Prudential Ultra Short Term Fund
NameSinceTenure
Manish Banthia15 Nov 164.38 Yr.
Ritesh Lunawat15 Jun 173.8 Yr.

Data below for ICICI Prudential Ultra Short Term Fund as on 28 Feb 21

Asset Allocation
Asset ClassValue
Cash41.25%
Debt58.75%
Debt Sector Allocation
SectorValue
Corporate64.5%
Cash Equivalent24.17%
Government11.33%
Credit Quality
RatingValue
A1.5%
AA39.16%
AAA59.34%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
182 DTB 19082021
Sovereign Bonds | -
7%₹615 Cr62,500,000
↑ 62,500,000
REC Limited
Debentures | -
3%₹289 Cr2,850
Reliance Ports and Terminals Limited
Debentures | -
2%₹207 Cr2,019
Manappuram Finance Limited
Debentures | -
2%₹205 Cr2,000
Housing Development Finance Corporation Limited
Debentures | -
2%₹152 Cr1,500
Tata Value Homes Limited
Debentures | -
2%₹150 Cr1,500
Aspire Home Finance Corporation Limited
Debentures | -
2%₹150 Cr1,500
Tata Realty and Infrastructure Limited
Debentures | -
2%₹148 Cr1,250
Power Finance Corporation Limited
Debentures | -
2%₹137 Cr1,350
6.17% Govt Stock 2021
Sovereign Bonds | -
1%₹131 Cr13,000,000
↑ 13,000,000

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 7.3% since its launch.  Return for 2020 was 5.9% , 2019 was 8% and 2018 was 7.9% .

Below is the key information for SBI Magnum Ultra Short Duration Fund

SBI Magnum Ultra Short Duration Fund
Growth
Launch Date 21 May 99
NAV (16 Apr 21) ₹4,684.07 ↑ 0.95   (0.02 %)
Net Assets (Cr) ₹10,625 on 28 Feb 21
Category Debt - Ultrashort Bond
AMC SBI Funds Management Private Limited
Rating
Risk Low
Expense Ratio 0.52
Sharpe Ratio 1.92
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 3.76%
Effective Maturity 5 Months 23 Days
Modified Duration 4 Months 17 Days

Growth of 10,000 investment over the years.

DateValue
31 Mar 16₹10,000
31 Mar 17₹10,722
31 Mar 18₹11,442
31 Mar 19₹12,393
31 Mar 20₹13,300
31 Mar 21₹13,986

SBI Magnum Ultra Short Duration Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹200,132.
Net Profit of ₹20,132
Invest Now

Returns for SBI Magnum Ultra Short Duration Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 16 Apr 21

DurationReturns
1 Month 0.4%
3 Month 0.9%
6 Month 1.7%
1 Year 5.1%
3 Year 6.9%
5 Year 6.9%
10 Year
15 Year
Since launch 7.3%
Historical performance (Yearly) on absolute basis
YearReturns
2020 5.9%
2019 8%
2018 7.9%
2017 6.6%
2016 7.7%
2015 8.3%
2014 9%
2013 9.3%
2012 9.3%
2011 8.7%
Fund Manager information for SBI Magnum Ultra Short Duration Fund
NameSinceTenure
Rajeev Radhakrishnan1 May 1010.93 Yr.

Data below for SBI Magnum Ultra Short Duration Fund as on 28 Feb 21

Asset Allocation
Asset ClassValue
Cash60.78%
Debt39.22%
Debt Sector Allocation
SectorValue
Corporate39.01%
Cash Equivalent35.82%
Government25.17%
Credit Quality
RatingValue
AA4.84%
AAA95.16%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Rural Electrification Corporation Limited
Debentures | -
6%₹635 Cr6,250
↓ -500
8.20% Govt Stock 2022
Sovereign Bonds | -
4%₹416 Cr40,000,000
7.80% Govt Stock 2021
Sovereign Bonds | -
4%₹402 Cr40,000,000
Mahindra & Mahindra Financial Services Limited
Debentures | -
4%₹381 Cr3,000
05.54 MP SDL 2021
Sovereign Bonds | -
3%₹298 Cr29,500,000
Bharti Telecom Limited
Debentures | -
3%₹281 Cr2,800
↑ 2,800
Housing Development Finance Corporation Limited
Debentures | -
2%₹234 Cr2,300
Housing Development Finance Corporation Limited
Debentures | -
2%₹228 Cr2,250
06.10 KA SDL 2021
Sovereign Bonds | -
2%₹219 Cr21,509,800
Muthoot Finance Limited
Debentures | -
2%₹190 Cr1,880,000

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 5.9% since its launch.  Ranked 62 in Ultrashort Bond category.  Return for 2020 was 4.9% , 2019 was 0.9% and 2018 was 7.3% .

Below is the key information for Nippon India Ultra Short Duration Fund

Nippon India Ultra Short Duration Fund
Growth
Launch Date 7 Dec 01
NAV (16 Apr 21) ₹3,051.46 ↑ 0.39   (0.01 %)
Net Assets (Cr) ₹733 on 28 Feb 21
Category Debt - Ultrashort Bond
AMC Nippon Life Asset Management Ltd.
Rating
Risk Low
Expense Ratio 1.09
Sharpe Ratio 0.02
Information Ratio 0
Alpha Ratio 0
Min Investment 100
Min SIP Investment 100
Exit Load NIL
Yield to Maturity 5.27%
Effective Maturity 6 Months 18 Days
Modified Duration 3 Months 11 Days

Growth of 10,000 investment over the years.

DateValue
31 Mar 16₹10,000
31 Mar 17₹10,634
31 Mar 18₹11,265
31 Mar 19₹12,164
31 Mar 20₹12,134
31 Mar 21₹12,733

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 ₹194,235.
Net Profit of ₹14,235
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 Apr 21

DurationReturns
1 Month 0.6%
3 Month 1.2%
6 Month 2.5%
1 Year 5.1%
3 Year 4.1%
5 Year 4.9%
10 Year
15 Year
Since launch 5.9%
Historical performance (Yearly) on absolute basis
YearReturns
2020 4.9%
2019 0.9%
2018 7.3%
2017 5.8%
2016 6.8%
2015 7.6%
2014 8.4%
2013 8.5%
2012 9.2%
2011 9%
Fund Manager information for Nippon India Ultra Short Duration Fund
NameSinceTenure
Vivek Sharma1 Oct 137.5 Yr.
Kinjal Desai25 May 182.85 Yr.

Data below for Nippon India Ultra Short Duration Fund as on 28 Feb 21

Asset Allocation
Asset ClassValue
Cash60%
Debt40%
Debt Sector Allocation
SectorValue
Corporate50.67%
Cash Equivalent45.86%
Government3.47%
Credit Quality
RatingValue
A12.12%
AA21.96%
AAA65.93%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
182 DTB 18032021
Sovereign Bonds | -
14%₹100 Cr10,000,000
U.P. Power Corporation Limited
Debentures | -
7%₹49 Cr650
Bajaj Housing Finance Limited
Debentures | -
6%₹41 Cr400
↑ 400
Ahmedabad-Maliya Tollway Limited
Debentures | -
5%₹38 Cr380
Asirvad Micro Finance Private Limited
Debentures | -
5%₹34 Cr335
Manappuram Finance Limited
Debentures | -
4%₹31 Cr300
↑ 300
REC Limited
Debentures | -
4%₹26 Cr250
Power Finance Corporation Limited
Debentures | -
3%₹25 Cr250
↑ 250
Indinfravit Trust
Unlisted bonds | -
3%₹25 Cr250
L&T Infrastructure Finance Company Limited
Debentures | -
2%₹11 Cr110
↑ 110

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 7.6% since its launch.  Ranked 44 in Ultrashort Bond category.  Return for 2020 was 5.8% , 2019 was 7.8% and 2018 was 7.4% .

Below is the key information for Kotak Savings Fund

Kotak Savings Fund
Growth
Launch Date 13 Aug 04
NAV (16 Apr 21) ₹33.7743 ↑ 0.00   (0.01 %)
Net Assets (Cr) ₹11,991 on 28 Feb 21
Category Debt - Ultrashort Bond
AMC Kotak Mahindra Asset Management Co Ltd
Rating
Risk Moderately Low
Expense Ratio 0.48
Sharpe Ratio 1.72
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 3.78%
Effective Maturity 4 Months 6 Days
Modified Duration 3 Months 29 Days

Growth of 10,000 investment over the years.

DateValue
31 Mar 16₹10,000
31 Mar 17₹10,784
31 Mar 18₹11,503
31 Mar 19₹12,407
31 Mar 20₹13,291
31 Mar 21₹13,968

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 ₹200,132.
Net Profit of ₹20,132
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 Apr 21

DurationReturns
1 Month 0.4%
3 Month 0.8%
6 Month 1.6%
1 Year 5.1%
3 Year 6.6%
5 Year 6.9%
10 Year
15 Year
Since launch 7.6%
Historical performance (Yearly) on absolute basis
YearReturns
2020 5.8%
2019 7.8%
2018 7.4%
2017 6.7%
2016 8.2%
2015 8.6%
2014 9.4%
2013 8.9%
2012 9.6%
2011 9.2%
Fund Manager information for Kotak Savings Fund
NameSinceTenure
Deepak Agrawal15 Apr 0812.97 Yr.

Data below for Kotak Savings Fund as on 28 Feb 21

Asset Allocation
Asset ClassValue
Cash63.13%
Debt36.87%
Debt Sector Allocation
SectorValue
Cash Equivalent42.94%
Corporate36.64%
Government20.07%
Securitized0.35%
Credit Quality
RatingValue
AA9.36%
AAA90.64%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
182 DTB 03062021
Sovereign Bonds | -
13%₹1,582 Cr159,500,000
Bharti Telecom Limited
Debentures | -
5%₹541 Cr5,400
Housing Development Finance Corporation Limited
Debentures | -
4%₹481 Cr4,750
182 DTB 06052021
Sovereign Bonds | -
3%₹349 Cr35,059,430
↑ 35,059,430
91 DTB 01042021
Sovereign Bonds | -
2%₹288 Cr28,863,460
↓ -2,886,540
Housing Development Finance Corporation Limited
Debentures | -
2%₹279 Cr2,750
5.09% Govt Stock 2022
Sovereign Bonds | -
2%₹233 Cr23,000,000
↓ -15,000,000
7.80% Govt Stock 2021
Sovereign Bonds | -
2%₹226 Cr22,500,000
Rent a Device Trust
Unlisted bonds | -
2%₹223 Cr1,754
7.94% Govt Stock 2021
Sovereign Bonds | -
2%₹215 Cr21,250,000
↓ -35,000,000

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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