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Top 5 Best Performing Ultra Short Term Debt Funds for SIP Investment FY 25 - 26
Top 5 Debt - Ultrashort Bond Funds

5 Best Ultra Short Term Debt Funds for SIP 2025

Updated on June 25, 2025 , 2885 views

Ultra short term Debt fund are a type of Mutual Funds that 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. These funds provide better returns and have a higher maturity than liquid debt funds, but are more volatile than Liquid Funds. Investors with a low-risk appetite tend to invest in ultra short term funds, as they have higher yields than other Money market funds. Thus, 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 choose funds for the below listed Best Ultra Short term SIP funds.

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Top 5 Best Performing Ultra Short Term Debt Funds for SIP Investment FY 25 - 26

Fund	NAV	Net Assets (Cr)	Min SIP Investment	3 MO (%)	6 MO (%)	1 YR (%)	3 YR (%)	2024 (%)	Debt Yield (YTM)	Mod. Duration	Eff. Maturity
Aditya Birla Sun Life Savings Fund Growth	₹548.606 ↑ 0.10	₹18,981	1,000	2.3	4.2	8.1	7.4	7.9	6.92%	4M 13D	5M 8D
ICICI Prudential Ultra Short Term Fund Growth	₹27.713 ↑ 0.00	₹16,269	1,000	2.1	4	7.6	7.1	7.5	6.88%	5M 12D	8M 8D
Invesco India Ultra Short Term Fund Growth	₹2,697.95 ↑ 0.56	₹1,227	1,000	2	3.9	7.5	6.9	7.5	6.59%	5M 16D	5M 24D
Kotak Savings Fund Growth	₹42.891 ↑ 0.01	₹15,401	1,000	2.1	3.9	7.4	6.9	7.2	6.63%	5M 23D	6M
Nippon India Ultra Short Duration Fund Growth	₹4,029.27 ↑ 0.53	₹8,772	100	2	3.8	7.4	6.8	7.2	6.98%	5M 16D	7M 25D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 27 Jun 25

*Above is list of best Ultra-Short funds are having AUM/Net Assets above 100 Crore. 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 2024 was 7.9% , 2023 was 7.2% and 2022 was 4.8% .

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 (27 Jun 25)	₹548.606 ↑ 0.10 (0.02 %)
Net Assets (Cr)	₹18,981 on 31 May 25
Category	Debt - Ultrashort Bond
AMC	Birla Sun Life Asset Management Co Ltd
Rating	☆☆☆☆☆
Risk	Moderately Low
Expense Ratio	0.54
Sharpe Ratio	3.11
Information Ratio	0
Alpha Ratio	0
Min Investment	1,000
Min SIP Investment	1,000
Exit Load	NIL
Yield to Maturity	6.92%
Effective Maturity	5 Months 8 Days
Modified Duration	4 Months 13 Days

Growth of 10,000 investment over the years.

Date	Value
31 May 20	₹10,000
31 May 21	₹10,553
31 May 22	₹10,948
31 May 23	₹11,646
31 May 24	₹12,512
31 May 25	₹13,520

Aditya Birla Sun Life Savings Fund SIP 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 27 Jun 25

Duration	Returns
1 Month	0.6%
3 Month	2.3%
6 Month	4.2%
1 Year	8.1%
3 Year	7.4%
5 Year	6.1%
10 Year
15 Year
Since launch	7.4%

Historical performance (Yearly) on absolute basis

Year	Returns
2024	7.9%
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%

Fund Manager information for Aditya Birla Sun Life Savings Fund

Name	Since	Tenure
Sunaina Cunha	20 Jun 14	10.95 Yr.
Kaustubh Gupta	15 Jul 11	13.89 Yr.
Monika Gandhi	22 Mar 21	4.2 Yr.

Data below for Aditya Birla Sun Life Savings Fund as on 31 May 25

Asset Allocation

Asset Class	Value
Cash	39.18%
Debt	60.56%
Other	0.26%

Debt Sector Allocation

Sector	Value
Corporate	65.93%
Cash Equivalent	22.75%
Government	11.05%

Credit Quality

Rating	Value
AA	34.49%
AAA	65.51%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
Bank of Baroda Debentures \| -	5%	₹827 Cr	17,000 ↑ 17,000
Shriram Finance Company Limited Debentures \| -	4%	₹611 Cr	60,000
Nirma Limited Debentures \| -	3%	₹488 Cr	48,500
364 DTB Sovereign Bonds \| -	3%	₹475 Cr	47,500,000
Small Industries Development Bank of India Debentures \| -	2%	₹425 Cr	9,000
182 DTB 29082025 Sovereign Bonds \| -	2%	₹343 Cr	35,000,000
National Bank For Agriculture And Rural Development Debentures \| -	2%	₹316 Cr	3,150 ↑ 500
Mankind Pharma Ltd Debentures \| -	2%	₹308 Cr	30,500
National Bank For Agriculture And Rural Development Debentures \| -	2%	₹305 Cr	30,000
Avanse Financial Services Ltd 9.40% Debentures \| -	2%	₹301 Cr	30,000

2. 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 2024 was 7.5% , 2023 was 6.9% and 2022 was 4.5% .

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 (27 Jun 25)	₹27.713 ↑ 0.00 (0.01 %)
Net Assets (Cr)	₹16,269 on 31 May 25
Category	Debt - Ultrashort Bond
AMC	ICICI Prudential Asset Management Company Limited
Rating	☆☆☆
Risk	Moderate
Expense Ratio	0.86
Sharpe Ratio	2.27
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	6.88%
Effective Maturity	8 Months 8 Days
Modified Duration	5 Months 12 Days

Growth of 10,000 investment over the years.

Date	Value
31 May 20	₹10,000
31 May 21	₹10,557
31 May 22	₹10,938
31 May 23	₹11,616
31 May 24	₹12,448
31 May 25	₹13,394

ICICI Prudential Ultra Short Term Fund SIP 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 27 Jun 25

Duration	Returns
1 Month	0.6%
3 Month	2.1%
6 Month	4%
1 Year	7.6%
3 Year	7.1%
5 Year	6%
10 Year
15 Year
Since launch	7.5%

Historical performance (Yearly) on absolute basis

Year	Returns
2024	7.5%
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%

Fund Manager information for ICICI Prudential Ultra Short Term Fund

Name	Since	Tenure
Manish Banthia	15 Nov 16	8.55 Yr.
Ritesh Lunawat	15 Jun 17	7.97 Yr.

Data below for ICICI Prudential Ultra Short Term Fund as on 31 May 25

Asset Allocation

Asset Class	Value
Cash	45.16%
Debt	54.6%
Other	0.24%

Debt Sector Allocation

Sector	Value
Corporate	58.73%
Government	21.33%
Cash Equivalent	19.69%

Credit Quality

Rating	Value
AA	18.56%
AAA	81.44%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
7.11% Govt Stock 2028 Sovereign Bonds \| -	7%	₹1,102 Cr	109,000,000
LIC Housing Finance Limited Debentures \| -	4%	₹602 Cr	6,000
182 Days Tbill Sovereign Bonds \| -	3%	₹491 Cr	50,000,000
Bharti Telecom Limited Debentures \| -	2%	₹347 Cr	34,500 ↑ 2,000
National Bank For Agriculture And Rural Development Debentures \| -	2%	₹308 Cr	30,500
Small Industries Development Bank Of India Debentures \| -	2%	₹300 Cr	3,000
National Bank For Agriculture And Rural Development Debentures \| -	2%	₹276 Cr	2,750 ↑ 250
Larsen And Toubro Limited Debentures \| -	2%	₹251 Cr	25,000
LIC Housing Finance Limited Debentures \| -	1%	₹226 Cr	2,250
HDFC Bank Ltd. Debentures \| -	1%	₹213 Cr	4,500

3. 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 2024 was 7.5% , 2023 was 6.6% and 2022 was 4.1% .

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 (27 Jun 25)	₹2,697.95 ↑ 0.56 (0.02 %)
Net Assets (Cr)	₹1,227 on 31 May 25
Category	Debt - Ultrashort Bond
AMC	Invesco Asset Management (India) Private Ltd
Rating	☆☆☆
Risk	Moderate
Expense Ratio	0.74
Sharpe Ratio	2.08
Information Ratio	0
Alpha Ratio	0
Min Investment	5,000
Min SIP Investment	1,000
Exit Load	NIL
Yield to Maturity	6.59%
Effective Maturity	5 Months 24 Days
Modified Duration	5 Months 16 Days

Growth of 10,000 investment over the years.

Date	Value
31 May 20	₹10,000
31 May 21	₹10,354
31 May 22	₹10,654
31 May 23	₹11,277
31 May 24	₹12,077
31 May 25	₹12,978

Invesco India Ultra Short Term Fund SIP 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 27 Jun 25

Duration	Returns
1 Month	0.6%
3 Month	2%
6 Month	3.9%
1 Year	7.5%
3 Year	6.9%
5 Year	5.4%
10 Year
15 Year
Since launch	7.1%

Historical performance (Yearly) on absolute basis

Year	Returns
2024	7.5%
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%

Fund Manager information for Invesco India Ultra Short Term Fund

Name	Since	Tenure
Krishna Cheemalapati	4 Jan 20	5.41 Yr.
Vikas Garg	27 Jul 21	3.85 Yr.

Data below for Invesco India Ultra Short Term Fund as on 31 May 25

Asset Allocation

Asset Class	Value
Cash	55.43%
Debt	44.25%
Other	0.32%

Debt Sector Allocation

Sector	Value
Corporate	59.76%
Cash Equivalent	28.11%
Government	11.81%

Credit Quality

Rating	Value
AA	29.71%
AAA	70.29%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
08.24 Tn SDL 2025sep Sovereign Bonds \| -	4%	₹50 Cr	5,000,000
National Bank For Agriculture And Rural Development Debentures \| -	4%	₹50 Cr	5,000,000
Export Import Bank Of India Debentures \| -	3%	₹40 Cr	4,000,000
Cholamandalam Investment And Finance Company Limited Debentures \| -	3%	₹30 Cr	3,000,000
Tata Projects Ltd. Debentures \| -	2%	₹25 Cr	2,500,000
Torrent Power Limited Debentures \| -	2%	₹25 Cr	2,500,000
Godrej Industries Limited Debentures \| -	2%	₹25 Cr	2,500,000
Bharti Telecom Limited Debentures \| -	2%	₹25 Cr	2,500,000
Tata Realty And Infrastructure Limited Debentures \| -	2%	₹25 Cr	2,500,000
Bharti Telecom Limited Debentures \| -	2%	₹25 Cr	2,500,000

4. 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 2024 was 7.2% , 2023 was 6.8% and 2022 was 4.5% .

Below is the key information for Kotak Savings Fund

Kotak Savings Fund Growth
Launch Date	13 Aug 04
NAV (27 Jun 25)	₹42.891 ↑ 0.01 (0.02 %)
Net Assets (Cr)	₹15,401 on 31 May 25
Category	Debt - Ultrashort Bond
AMC	Kotak Mahindra Asset Management Co Ltd
Rating	☆☆☆
Risk	Moderately Low
Expense Ratio	0.8
Sharpe Ratio	1.66
Information Ratio	0
Alpha Ratio	0
Min Investment	5,000
Min SIP Investment	1,000
Exit Load	NIL
Yield to Maturity	6.63%
Effective Maturity	6 Months
Modified Duration	5 Months 23 Days

Growth of 10,000 investment over the years.

Date	Value
31 May 20	₹10,000
31 May 21	₹10,414
31 May 22	₹10,755
31 May 23	₹11,410
31 May 24	₹12,204
31 May 25	₹13,108

Kotak Savings Fund SIP 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 27 Jun 25

Duration	Returns
1 Month	0.6%
3 Month	2.1%
6 Month	3.9%
1 Year	7.4%
3 Year	6.9%
5 Year	5.5%
10 Year
15 Year
Since launch	7.2%

Historical performance (Yearly) on absolute basis

Year	Returns
2024	7.2%
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%

Fund Manager information for Kotak Savings Fund

Name	Since	Tenure
Deepak Agrawal	15 Apr 08	17.14 Yr.
Manu Sharma	1 Nov 22	2.58 Yr.

Data below for Kotak Savings Fund as on 31 May 25

Asset Allocation

Asset Class	Value
Cash	57.12%
Debt	42.62%
Other	0.26%

Debt Sector Allocation

Sector	Value
Corporate	57.04%
Government	22.14%
Cash Equivalent	20.56%

Credit Quality

Rating	Value
AA	8.83%
AAA	91.17%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
8.2% Govt Stock 2025 Sovereign Bonds \| -	5%	₹806 Cr	80,000,000 ↑ 80,000,000
Bajaj Housing Finance Limited Debentures \| -	4%	₹600 Cr	5,950 ↑ 3,800
National Bank For Agriculture And Rural Development Debentures \| -	4%	₹563 Cr	56,000 ↑ 10,000
Rural Electrification Corporation Limited Debentures \| -	3%	₹478 Cr	47,500
Mankind Pharma Ltd Debentures \| -	2%	₹303 Cr	30,000
182 Days Tbill Sovereign Bonds \| -	2%	₹245 Cr	25,000,000 ↑ 25,000,000
364 DTB 19mar2026 Sovereign Bonds \| -	2%	₹238 Cr	25,000,000
National Bank For Agriculture And Rural Development Debentures \| -	1%	₹232 Cr	2,310 ↑ 10
Bharti Telecom Limited Debentures \| -	1%	₹226 Cr	2,250
08.49 Tn SDL 2026 Sovereign Bonds \| -	1%	₹204 Cr	20,080,000

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 6.1% since its launch. Ranked 62 in Ultrashort Bond category. Return for 2024 was 7.2% , 2023 was 6.7% and 2022 was 4.6% .

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 (27 Jun 25)	₹4,029.27 ↑ 0.53 (0.01 %)
Net Assets (Cr)	₹8,772 on 31 May 25
Category	Debt - Ultrashort Bond
AMC	Nippon Life Asset Management Ltd.
Rating	☆☆
Risk	Low
Expense Ratio	1.14
Sharpe Ratio	1.78
Information Ratio	0
Alpha Ratio	0
Min Investment	100
Min SIP Investment	100
Exit Load	NIL
Yield to Maturity	6.98%
Effective Maturity	7 Months 25 Days
Modified Duration	5 Months 16 Days

Growth of 10,000 investment over the years.

Date	Value
31 May 20	₹10,000
31 May 21	₹10,473
31 May 22	₹11,244
31 May 23	₹11,924
31 May 24	₹12,747
31 May 25	₹13,687

Nippon India Ultra Short Duration Fund SIP Returns

Total investment amount is ₹180,000
expected amount after 3 Years is ₹200,132.
Net Profit of ₹20,132 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 27 Jun 25

Duration	Returns
1 Month	0.6%
3 Month	2%
6 Month	3.8%
1 Year	7.4%
3 Year	6.8%
5 Year	6.5%
10 Year
15 Year
Since launch	6.1%

Historical performance (Yearly) on absolute basis

Year	Returns
2024	7.2%
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%

Fund Manager information for Nippon India Ultra Short Duration Fund

Name	Since	Tenure
Vivek Sharma	1 Oct 13	11.67 Yr.
Kinjal Desai	25 May 18	7.02 Yr.
Akshay Sharma	1 Dec 22	2.5 Yr.

Data below for Nippon India Ultra Short Duration Fund as on 31 May 25

Asset Allocation

Asset Class	Value
Cash	53.8%
Debt	45.95%
Other	0.25%

Debt Sector Allocation

Sector	Value
Corporate	57.31%
Cash Equivalent	27.3%
Government	15.15%

Credit Quality

Rating	Value
AA	13.57%
AAA	86.43%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
National Bank For Agriculture And Rural Development Debentures \| -	4%	₹311 Cr	3,100
182 Days Tbill Sovereign Bonds \| -	3%	₹246 Cr	25,000,000
182 DTB 12062025 Sovereign Bonds \| -	3%	₹244 Cr	24,500,000
Small Industries Development Bank Of India Debentures \| -	2%	₹201 Cr	2,000
Piramal Finance Limited 9.3% Debentures \| -	2%	₹200 Cr	20,000 ↑ 20,000
182 Days Tbill Sovereign Bonds \| -	2%	₹196 Cr	20,000,000
Indinfravit Trust Debentures \| -	2%	₹187 Cr	19,500
Rec Limited Debentures \| -	2%	₹184 Cr	1,850
Vedanta Limited Debentures \| -	2%	₹165 Cr	16,500
HDFC Credila Financial Services Ltd Debentures \| -	2%	₹156 Cr	15,500 ↓ -1,000

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.