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6 Best Ultra Short Term Mutual Funds 2019
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 2019-2020.
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 19 - 20
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 Below is the key information for Franklin India Ultra Short Bond Fund - Super Institutional Plan Returns up to 1 year are on 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 Below is the key information for Aditya Birla Sun Life Savings Fund Returns up to 1 year are on (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 Below is the key information for UTI Ultra Short Term Fund Returns up to 1 year are on (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 Below is the key information for ICICI Prudential Ultra Short Term Fund Returns up to 1 year are on (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 Below is the key information for SBI Magnum Ultra Short Duration Fund Returns up to 1 year are on (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 Below is the key information for Kotak Savings Fund Returns up to 1 year are on Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2018 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity Franklin India Ultra Short Bond Fund - Super Institutional Plan Growth ₹27.9109
↓ 0.00 ₹19,950 2.2 4.4 9.6 8.7 8.7 9.44% 5M 16D 6M 25D Aditya Birla Sun Life Savings Fund Growth ₹390.137
↑ 0.04 ₹15,840 1.8 4 8.7 7.6 7.6 5.99% 3M 22D 4M 6D UTI Ultra Short Term Fund Growth ₹3,059.24
↑ 0.69 ₹2,576 2.1 3.4 3.5 5.6 7 7.11% 3M 20D 4M 23D ICICI Prudential Ultra Short Term Fund Growth ₹19.9555
↑ 0.00 ₹5,995 2 4.1 8.6 7.5 7.5 7.5% 4M 20D 5M 5D SBI Magnum Ultra Short Duration Fund Growth ₹4,366.97
↑ 0.58 ₹10,925 1.7 3.8 8.2 7.5 7.9 5.9% 5M 1D 5M 12D Kotak Savings Fund Growth ₹31.5248
↑ 0.00 ₹11,281 1.7 3.7 8.1 7.3 7.4 6.1% 5M 16D 5M 23D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 6 Dec 19 1. Franklin India Ultra Short Bond Fund - Super Institutional Plan
CAGR/Annualized return of 9% since its launch. Return for 2018 was 8.7% , 2017 was 8.2% and 2016 was 9.7% . Franklin India Ultra Short Bond Fund - Super Institutional Plan
Growth Launch Date 18 Dec 07 NAV (06 Dec 19) ₹27.9109 ↓ 0.00 (0.00 %) Net Assets (Cr) ₹19,950 on 31 Oct 19 Category Debt - Ultrashort Bond AMC Franklin Templeton Asst Mgmt(IND)Pvt Ltd Rating ☆☆☆☆☆ Risk Moderate Expense Ratio 0.42 Sharpe Ratio 10.31 Information Ratio 0 Alpha Ratio 0 Min Investment 10,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 9.44% Effective Maturity 6 Months 25 Days Modified Duration 5 Months 16 Days Growth of 10,000 investment over the years.
Date Value 30 Nov 14 ₹10,000 30 Nov 15 ₹10,977 30 Nov 16 ₹12,075 30 Nov 17 ₹13,073 30 Nov 18 ₹14,142 30 Nov 19 ₹15,518 Returns for Franklin India Ultra Short Bond Fund - Super Institutional Plan
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Dec 19 Duration Returns 1 Month 0.8% 3 Month 2.2% 6 Month 4.4% 1 Year 9.6% 3 Year 8.7% 5 Year 9.2% 10 Year 15 Year Since launch 9% Historical performance (Yearly) on absolute basis
Year Returns 2018 8.7% 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% Fund Manager information for Franklin India Ultra Short Bond Fund - Super Institutional Plan
Name Since Tenure Santosh Kamath 25 Oct 18 1.02 Yr. Pallab Roy 1 Jun 08 11.42 Yr. Data below for Franklin India Ultra Short Bond Fund - Super Institutional Plan as on 31 Oct 19
Asset Allocation
Asset Class Value Cash 13.11% Debt 70.53% Other 16.36% Debt Sector Allocation
Sector Value Corporate 75.81% Cash Equivalent 6.83% Government 1% Credit Quality
Rating Value A 30.75% AA 57.92% AAA 11.32% Top Securities Holdings / Portfolio
Name Holding Value Quantity Call, Cash & Other Assets
Receivables | -16% ₹3,265 Cr Vedanta Limited
Debentures | -4% ₹796 Cr 7,900 Vodafone Mobile Services Limited
Debentures | -4% ₹709 Cr 7,990 Renew Power Ventures Private Limited
Debentures | -3% ₹674 Cr 6,740 Bharti Airtel Limited
Debentures | -3% ₹552 Cr 5,500
↑ 5,500 JM FINANCIAL CREDIT SOLUTIONS LIMITED
Debentures | -3% ₹541 Cr 5,400 REC LIMITED
Commercial Paper | -2% ₹468 Cr 9,500 Indostar Capital Finance Limited
Debentures | -2% ₹441 Cr 4,400 Bharti Airtel Limited
Debentures | -2% ₹401 Cr 4,000 INDOSTAR CAPITAL FINANCE LIMITED
Debentures | -2% ₹391 Cr 3,900
↑ 3,900 2. Aditya Birla Sun Life Savings Fund
CAGR/Annualized return of 7.8% since its launch. Ranked 6 in Ultrashort Bond category. Return for 2018 was 7.6% , 2017 was 7.2% and 2016 was 9.2% . Aditya Birla Sun Life Savings Fund
Growth Launch Date 16 Apr 03 NAV (06 Dec 19) ₹390.137 ↑ 0.04 (0.01 %) Net Assets (Cr) ₹15,840 on 31 Oct 19 Category Debt - Ultrashort Bond AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆☆☆ Risk Moderately Low Expense Ratio 0.35 Sharpe Ratio 10.25 Information Ratio 0 Alpha Ratio 0 Min Investment 1,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 5.99% Effective Maturity 4 Months 6 Days Modified Duration 3 Months 22 Days Growth of 10,000 investment over the years.
Date Value 30 Nov 14 ₹10,000 30 Nov 15 ₹10,900 30 Nov 16 ₹11,970 30 Nov 17 ₹12,801 30 Nov 18 ₹13,705 30 Nov 19 ₹14,917 Returns for Aditya Birla Sun Life Savings Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Dec 19 Duration Returns 1 Month 0.5% 3 Month 1.8% 6 Month 4% 1 Year 8.7% 3 Year 7.6% 5 Year 8.3% 10 Year 15 Year Since launch 7.8% Historical performance (Yearly) on absolute basis
Year Returns 2018 7.6% 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% Fund Manager information for Aditya Birla Sun Life Savings Fund
Name Since Tenure Sunaina Cunha 11 Oct 14 4.98 Yr. Kaustubh Gupta 15 Jul 11 8.22 Yr. Data below for Aditya Birla Sun Life Savings Fund as on 31 Oct 19
Asset Allocation
Asset Class Value Cash 55.91% Debt 44.09% Debt Sector Allocation
Sector Value Corporate 45.21% Cash Equivalent 35.43% Government 18.6% Securitized 0.76% Credit Quality
Rating Value AA 13.4% AAA 86.6% Top Securities Holdings / Portfolio
Name Holding Value Quantity 8.19% Govt Stock 2020
Sovereign Bonds | -7% ₹1,126 Cr 111,904,300
↑ 111,904,300 6.35% Govt Stock 2020
Sovereign Bonds | -6% ₹967 Cr 96,500,000
↑ 33,500,000 National Bank For Agriculture And Rural Development
Debentures | -3% ₹538 Cr 5,350 Power Finance Corporation Ltd.
Debentures | -3% ₹469 Cr 4,650 Net Receivables / (Payables)
Net Current Assets | -3% ₹437 Cr Rural Electrification Corporation Limited
Debentures | -3% ₹429 Cr 4,263 Bharti Telecom Limited
Debentures | -3% ₹402 Cr 3,500 Reliance Jio Infocomm Limited
Commercial Paper | -2% ₹349 Cr 7,000
↑ 7,000 Clearing Corporation Of India Limited
CBLO | -2% ₹317 Cr POWER FINANCE CORPORATION LIMITED
Debentures | -2% ₹310 Cr 3,050 3. UTI Ultra Short Term Fund
CAGR/Annualized return of 7.1% since its launch. Ranked 27 in Ultrashort Bond category. Return for 2018 was 7% , 2017 was 6.6% and 2016 was 8.9% . UTI Ultra Short Term Fund
Growth Launch Date 29 Aug 03 NAV (06 Dec 19) ₹3,059.24 ↑ 0.69 (0.02 %) Net Assets (Cr) ₹2,576 on 31 Oct 19 Category Debt - Ultrashort Bond AMC UTI Asset Management Company Ltd Rating ☆☆☆☆ Risk Moderately Low Expense Ratio 0.99 Sharpe Ratio 0.1 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 2,500 Exit Load NIL Yield to Maturity 7.11% Effective Maturity 4 Months 23 Days Modified Duration 3 Months 20 Days Growth of 10,000 investment over the years.
Date Value 30 Nov 14 ₹10,000 30 Nov 15 ₹10,870 30 Nov 16 ₹11,865 30 Nov 17 ₹12,647 30 Nov 18 ₹13,478 30 Nov 19 ₹13,956 Returns for UTI Ultra Short Term Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Dec 19 Duration Returns 1 Month 0.5% 3 Month 2.1% 6 Month 3.4% 1 Year 3.5% 3 Year 5.6% 5 Year 6.9% 10 Year 15 Year Since launch 7.1% Historical performance (Yearly) on absolute basis
Year Returns 2018 7% 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% Fund Manager information for UTI Ultra Short Term Fund
Name Since Tenure Sudhir Agarwal 1 Jul 15 3.75 Yr. Ritesh Nambiar 1 Jul 15 3.75 Yr. Data below for UTI Ultra Short Term Fund as on 31 Oct 19
Asset Allocation
Asset Class Value Cash 79.33% Debt 20.67% Debt Sector Allocation
Sector Value Corporate 45.34% Cash Equivalent 40.32% Government 14.34% Credit Quality
Rating Value A 11.49% AA 17.32% AAA 71.19% Top Securities Holdings / Portfolio
Name Holding Value Quantity Net Current Assets
Net Current Assets | -21% ₹548 Cr 00 Avanse Financial Services Limited
Debentures | -9% ₹232 Cr 2,350 Edelweiss Commodities Services Limited
Debentures | -8% ₹198 Cr 2,000 HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED
Commercial Paper | -7% ₹192 Cr 2,000,000,000 NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Certificate of Deposit | -5% ₹123 Cr 1,250,000,000 Andhra Bank
Certificate of Deposit | -5% ₹123 Cr 1,250,000,000
↑ 500,000,000 AXIS BANK LIMITED
Certificate of Deposit | -4% ₹100 Cr 1,000,000,000 AXIS BANK LIMITED
Certificate of Deposit | -4% ₹99 Cr 1,000,000,000 IndusInd Bank Limited
Certificate of Deposit | -4% ₹98 Cr 1,000,000,000 INDIAN OIL CORPORATION LIMITED
Commercial Paper | -3% ₹75 Cr 750,000,000 4. ICICI Prudential Ultra Short Term Fund
CAGR/Annualized return of 8.4% since its launch. Ranked 27 in Ultrashort Bond category. Return for 2018 was 7.5% , 2017 was 6.9% and 2016 was 9.8% . ICICI Prudential Ultra Short Term Fund
Growth Launch Date 3 May 11 NAV (06 Dec 19) ₹19.9555 ↑ 0.00 (0.01 %) Net Assets (Cr) ₹5,995 on 31 Oct 19 Category Debt - Ultrashort Bond AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆ Risk Moderate Expense Ratio 1.09 Sharpe Ratio 10.2 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 7.5% Effective Maturity 5 Months 5 Days Modified Duration 4 Months 20 Days Growth of 10,000 investment over the years.
Date Value 30 Nov 14 ₹10,000 30 Nov 15 ₹10,927 30 Nov 16 ₹12,051 30 Nov 17 ₹12,868 30 Nov 18 ₹13,755 30 Nov 19 ₹14,955 Returns for ICICI Prudential Ultra Short Term Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Dec 19 Duration Returns 1 Month 0.6% 3 Month 2% 6 Month 4.1% 1 Year 8.6% 3 Year 7.5% 5 Year 8.4% 10 Year 15 Year Since launch 8.4% Historical performance (Yearly) on absolute basis
Year Returns 2018 7.5% 2017 6.9% 2016 9.8% 2015 9.1% 2014 14.8% 2013 3.1% 2012 9.4% 2011 2010 2009 Fund Manager information for ICICI Prudential Ultra Short Term Fund
Name Since Tenure Manish Banthia 15 Nov 16 2.96 Yr. Ritesh Lunawat 15 Jun 17 2.38 Yr. Data below for ICICI Prudential Ultra Short Term Fund as on 31 Oct 19
Asset Allocation
Asset Class Value Cash 31.33% Debt 68.67% Debt Sector Allocation
Sector Value Corporate 71.14% Cash Equivalent 20.61% Government 8.26% Credit Quality
Rating Value A 6.8% AA 57.58% AAA 35.62% Top Securities Holdings / Portfolio
Name Holding Value Quantity Treps
CBLO/Reverse Repo | -7% ₹434 Cr National Bank For Agriculture And Rural Development
Debentures | -4% ₹267 Cr 2,650 NIRCHEM Cement Limited
Debentures | -3% ₹208 Cr 2,060 MANAPPURAM FINANCE LIMITED
Debentures | -3% ₹200 Cr 2,000 Writers And Publishers Private Limited
Debentures | -3% ₹179 Cr 1,782 NABHA POWER LIMITED
Debentures | -3% ₹166 Cr 1,650
↑ 1,650 JSW Steel Limited
Debentures | -3% ₹160 Cr 1,595 Ashoka Buildcon Ltd.
Debentures | -3% ₹151 Cr 1,500 Bahadur Chand Investments Private Limited
Debentures | -3% ₹150 Cr 1,500 Tata Value Homes Limited
Debentures | -3% ₹150 Cr 1,500 5. SBI Magnum Ultra Short Duration Fund
CAGR/Annualized return of 7.4% since its launch. Return for 2018 was 7.9% , 2017 was 6.6% and 2016 was 7.7% . SBI Magnum Ultra Short Duration Fund
Growth Launch Date 21 May 99 NAV (06 Dec 19) ₹4,366.97 ↑ 0.58 (0.01 %) Net Assets (Cr) ₹10,925 on 31 Oct 19 Category Debt - Ultrashort Bond AMC SBI Funds Management Private Limited Rating ☆☆☆ Risk Low Expense Ratio 0.28 Sharpe Ratio 9.68 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment Exit Load NIL Yield to Maturity 5.9% Effective Maturity 5 Months 12 Days Modified Duration 5 Months 1 Day Growth of 10,000 investment over the years.
Date Value 30 Nov 14 ₹10,000 30 Nov 15 ₹10,838 30 Nov 16 ₹11,680 30 Nov 17 ₹12,452 30 Nov 18 ₹13,407 30 Nov 19 ₹14,523 Returns for SBI Magnum Ultra Short Duration Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Dec 19 Duration Returns 1 Month 0.5% 3 Month 1.7% 6 Month 3.8% 1 Year 8.2% 3 Year 7.5% 5 Year 7.7% 10 Year 15 Year Since launch 7.4% Historical performance (Yearly) on absolute basis
Year Returns 2018 7.9% 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% Fund Manager information for SBI Magnum Ultra Short Duration Fund
Name Since Tenure Rajeev Radhakrishnan 1 May 10 9.51 Yr. Data below for SBI Magnum Ultra Short Duration Fund as on 31 Oct 19
Asset Allocation
Asset Class Value Cash 58.43% Debt 41.34% Other 0.23% Debt Sector Allocation
Sector Value Corporate 54.7% Government 22.64% Cash Equivalent 19.75% Securitized 2.68% Credit Quality
Rating Value AA 4.88% AAA 95.12% Top Securities Holdings / Portfolio
Name Holding Value Quantity INDIAN BANK
Certificate of Deposit | -7% ₹748 Cr 75,000
↑ 75,000 Treps
CBLO/Reverse Repo | -6% ₹690 Cr POWER FINANCE CORPORATION LIMITED
Debentures | -4% ₹406 Cr 4,000
↑ 1,750 NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Certificate of Deposit | -3% ₹339 Cr 35,000 Bank Of Baroda
Debentures | -3% ₹329 Cr 3,283
↑ 3,283 ASHOK LEYLAND LIMITED
Commercial Paper | -2% ₹244 Cr 5,000 ANDHRA BANK
Certificate of Deposit | -2% ₹243 Cr 25,000 BANK OF BARODA
Certificate of Deposit | -2% ₹243 Cr 25,000 HDFC Bank Limited
Certificate of Deposit | -2% ₹236 Cr 24,000 HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED
Commercial Paper | -2% ₹210 Cr 4,280 6. Kotak Savings Fund
CAGR/Annualized return of 7.8% since its launch. Ranked 44 in Ultrashort Bond category. Return for 2018 was 7.4% , 2017 was 6.7% and 2016 was 8.2% . Kotak Savings Fund
Growth Launch Date 13 Aug 04 NAV (06 Dec 19) ₹31.5248 ↑ 0.00 (0.01 %) Net Assets (Cr) ₹11,281 on 31 Oct 19 Category Debt - Ultrashort Bond AMC Kotak Mahindra Asset Management Co Ltd Rating ☆☆☆ Risk Moderately Low Expense Ratio 0.68 Sharpe Ratio 8.96 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 6.1% Effective Maturity 5 Months 23 Days Modified Duration 5 Months 16 Days Growth of 10,000 investment over the years.
Date Value 30 Nov 14 ₹10,000 30 Nov 15 ₹10,874 30 Nov 16 ₹11,784 30 Nov 17 ₹12,575 30 Nov 18 ₹13,451 30 Nov 19 ₹14,558 Returns for Kotak Savings Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Dec 19 Duration Returns 1 Month 0.5% 3 Month 1.7% 6 Month 3.7% 1 Year 8.1% 3 Year 7.3% 5 Year 7.8% 10 Year 15 Year Since launch 7.8% Historical performance (Yearly) on absolute basis
Year Returns 2018 7.4% 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% Fund Manager information for Kotak Savings Fund
Name Since Tenure Deepak Agrawal 15 Apr 08 11.38 Yr. Data below for Kotak Savings Fund as on 31 Oct 19
Asset Allocation
Asset Class Value Cash 73.33% Debt 26.67% Debt Sector Allocation
Sector Value Corporate 52.58% Cash Equivalent 34.89% Government 11.71% Securitized 0.82% Credit Quality
Rating Value AA 6.51% AAA 93.49% Top Securities Holdings / Portfolio
Name Holding Value Quantity 91 DTB 23012020
Sovereign Bonds | -9% ₹1,023 Cr 103,500,000
↑ 103,500,000 National Bank For Agriculture And Rural Development
Commercial Paper | -6% ₹687 Cr 14,000 LARSEN AND TOUBRO LIMITED
Commercial Paper | -5% ₹590 Cr 12,000
↑ 12,000 Power Finance Corporation Ltd.
Commercial Paper | -5% ₹515 Cr 10,500 SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA
Certificate of Deposit | -4% ₹480 Cr 50,000 LIC Housing Finance Limited
Commercial Paper | -4% ₹426 Cr 9,000
↑ 9,000 RELIANCE INDUSTRIES LIMITED
Commercial Paper | -3% ₹393 Cr 8,000
↓ -2,000 Axis Bank Limited
Certificate of Deposit | -3% ₹384 Cr 40,000
↓ -10,000 L & T Finance Ltd
Debentures | -3% ₹301 Cr 3,000 Bahadur Chand Investments Private Limited
Debentures | -3% ₹301 Cr 3,000
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?
Open Free Investment Account for Lifetime at Fincash.com.
Complete your Registration and KYC Process
Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!
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!
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Very good information
Presentation is very good