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Top Ultra Short Debt Funds Rated by FINCASH for 2024 - 2025

Updated on October 4, 2024 , 2266 views

Ultra Short Term Debt fund are highly suitable for a short-term Investment plan. These funds invest in debt instruments that have an average maturity of more than 91 days. Comparitive to Fixed Depoists, these funds provide better returns. FDs have a predetermined interest rate which does not change with the due course of time. However, in case of Ultra short term funds, the returns are variable depending on the performance of the scheme. Currently, as per FY 2017-18, the FD rates Range between 6%-7% p.a. whereas, in case of Ultra Short Term fund, the returns ranged approximately more than 7.4% p.a.

Investors who are looking to park their money for a year or less can ideally invest in this scheme. To earn better returns, one can invest in below-mentioned top-performing Ultra Short Term Debt Funds that have constantly performed well in the Market.

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Top Rated Ultra Short Debt Funds

Fund	NAV	Net Assets (Cr)	Rating	3 MO (%)	6 MO (%)	1 YR (%)	3 YR (%)	2023 (%)	Debt Yield (YTM)	Mod. Duration	Eff. Maturity	Exit Load
Aditya Birla Sun Life Savings Fund Growth	₹517.796 ↑ 0.19	₹13,259	☆☆☆☆☆	1.8	3.7	7.6	6.2	7.2	7.82%	5M 1D	6M 25D	NIL
Kotak Savings Fund Growth	₹40.6941 ↑ 0.01	₹12,644	☆☆☆	1.7	3.5	7.1	5.9	6.8	7.61%	5M 12D	7M 2D	NIL
SBI Magnum Ultra Short Duration Fund Growth	₹5,665.01 ↑ 1.43	₹12,828	☆☆☆	1.8	3.6	7.4	6	7	7.46%	4M 24D	5M 5D	NIL
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 4 Oct 24

Why Are These Top Performers?

Fincash has employed the following parameters for shortlisting the top performing funds:

Past Returns: Return analysis of last 3 years
Parameters & Weights: Information ratio with some modifications for our ratings and rankings
Qualitative & Quantitative Analysis: Quantitative measures like average maturity, credit quality, expense ratio, etc., including fund age and the size of the fund has been considered. Qualitative analysis like the reputation of the fund along with the fund manager is one of the important parameters that you would see in the listed funds.
Asset Size: The minimum AUM criteria for debt Mutual Funds are INR 100 Crores with some exceptions at times for new funds that are doing well in the market.
Performance with Respect to Benchmark: Peer average

Smart Tips to Invest in Ultra Short Debt Funds

Some of the important tips to consider while Investing in ultra-short funds are:

Investment Tenure: Investors planning to invest in ultra-short debt funds should stay invested for minimum 3 months and more.
Invest via a SIP: SIP or Systematic Investment Plan is the most efficient way to invest in a Mutual Fund. They not only provide a systematic way of investing, but also ensures regular investment growth. You can invest in a SIP with an amount as low as INR 500.

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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Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing. Past performance is not indicative of future returns. Please consider your specific investment requirements before choosing a fund, or designing a portfolio that suits your needs.

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