fincash logo SOLUTIONS
EXPLORE FUNDS
CALCULATORS
LOG IN
SIGN UP

Fincash » Mutual Funds » Ultra Short Term Funds Vs Fixed Deposits

Ultra Short Term Funds V/s Fixed Deposits

Updated on October 17, 2020 , 3195 views

Are you Confused where to invest money for short-term? Do you get confused while choosing between Ultra short term funds and Fixed Deposits? Don’t worry, your questions will be answered here. Ultra Short Term Funds is a Mutual Fund category that invests in fixed income instruments having short maturity periods. Fixed Deposit or FD on the other hand, is an investment avenue in which people deposit a certain sum of money for a given timeframe and get it back on maturity along with interest. So, let us have a look at which one out of Ultra Short Term Funds and Fixed deposits is better to invest.

Ultra-Short-Term-Funds-VS-Fixed-Deposits

What are Ultra Short Term Funds?

Ultra Short Term Funds is a type of Debt fund. This scheme invests its corpus in fixed income instruments whose maturity tenure generally ranges between 91 days to 1 year. This scheme is considered a notch above Liquid Funds and people who are willing to take the marginally higher risk can choose to invest in Ultra Short Term Funds to earn more returns.

What are Fixed Deposits?

Fixed deposit or FD is a traditional source of investment where people need to keep a certain sum of money deposited for a particular tenure. This money invested earns interest. It can be chosen a good investment avenue for short-term as well as long-term tenure. The interest rate on FD is predetermined and its returns are taxable in the hands of investors.

Ultra Short Term Funds or Fixed Deposit: Which One is Better?

Since both the investment avenues have their own characteristics and features, let us check which investment avenue is the best based on various parameters.

Minimum Investment

The minimum investment in case of Fixed Deposits ranges between to₹1,000-₹10,000 depending on the bank. However, in case of Ultra Short Term Funds, the minimum investment is ₹500 through SIP mode of investment and ₹1,000 through lumpsum mode of investment.

Interest Rate

With respect to the interest rate, 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% approximately if the investment is kept for one year. However, in case of Ultra Short Term Funds, the returns ranged approximately more than 7% if the investment is held for one year.

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.

Tenure

FDs can be used as an investment for both short and long-term tenures. This is because it is considered to be the traditional investment avenue. On the contrary, Ultra Short Term fund is generally, used for a short-term investment tenure. People who have excess funds in their Savings Account can choose to invest in this scheme to earn more. During the investment tenure, people cannot withdraw their funds from the fixed deposit. Even if they need to withdraw, they need to pay certain fixed charges to the bank. On the other hand, people Investing their money in Ultra Short Term Funds can withdraw their money easily as compared fixed deposits. In many of the schemes, investors need not pay any exit load during redemption.

Risk-Appetite

FDs are considered to be risk-free investment avenue wherein; the deposits are considered to be safer. On the contrary, people choosing to invest in Ultra Short Term Funds are able to take a marginally higher level of risk to earn higher returns.

Liquidity

The liquidity in case of ultra short-term funds is higher as compared to fixed deposits. It is comparatively easier to withdraw money from these schemes as compared to a fixed deposit.

Taxation

The taxation rules for both ultra short-term funds and fixed deposits both are different. In case of interest earned on fixed deposit, the money is added to the investor’s income and is taxed as per the individual’s regular tax slab. However, the returns earned in case of the ultra short-term fund is taxable as per the debt funds. As per the rule, if the investment in the ultra short-term fund is held for more than three years then, long-term capital gains is applicable while if the tenure is less than three years, then short-term capital gains is applicable. In case of long-term Capital Gain, it is taxed at 20% with indexation benefits and for short-term capital gains, it is added to income and taxed as per individual’s slab rate.

The table given below summarizes the comparison between Ultra Short Term Funds and fixed deposits.

Parameters Ultra Short Term Funds Fixed Deposits
Returns Varies as per the Scheme’s performance Predetermined
Minimum Investment Starts with ₹500 in SIP and ₹1,000 in Lumpsum Ranges between ₹1,000-₹10,000
Tenure Generally used for short-term Both Short and Long-term tenure
Risk Marginally High Low
Liquidity High Low
Taxation Short-term: Taxed as per individual’s slab rates Long-term: Taxed at 20% and had taxation benefits Taxed as per individual’s slab rates

10 Best Performing Ultra Short Term Funds

1. 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% since its launch.  Ranked 62 in Ultrashort Bond category.  Return for 2019 was 0.9% , 2018 was 7.3% and 2017 was 5.8% .

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 (19 Oct 20) ₹2,979.12 ↑ 1.60   (0.05 %)
Net Assets (Cr) ₹577 on 30 Sep 20
Category Debt - Ultrashort Bond
AMC Nippon Life Asset Management Ltd.
Rating
Risk Low
Expense Ratio 1.09
Sharpe Ratio 0.21
Information Ratio 0
Alpha Ratio 0
Min Investment 100
Min SIP Investment 100
Exit Load NIL
Yield to Maturity 7.95%
Effective Maturity 9 Months 26 Days
Modified Duration 6 Months 1 Day

Growth of 10,000 investment over the years.

DateValue
30 Sep 15₹10,000
30 Sep 16₹10,712
30 Sep 17₹11,335
30 Sep 18₹12,067
30 Sep 19₹12,209
30 Sep 20₹12,843

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 ₹197,169.
Net Profit of ₹17,169
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 19 Oct 20

DurationReturns
1 Month 0.7%
3 Month 2.1%
6 Month 2.5%
1 Year 5.3%
3 Year 4.3%
5 Year 5.2%
10 Year
15 Year
Since launch 6%
Historical performance (Yearly) on absolute basis
YearReturns
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%
2010 4.5%
Fund Manager information for Nippon India Ultra Short Duration Fund
NameSinceTenure
Vivek Sharma1 Oct 137 Yr.
Kinjal Desai25 May 182.35 Yr.

Data below for Nippon India Ultra Short Duration Fund as on 30 Sep 20

Asset Allocation
Asset ClassValue
Cash49.64%
Debt50.36%
Debt Sector Allocation
SectorValue
Cash Equivalent49.64%
Corporate45.86%
Government4.51%
Credit Quality
RatingValue
A27.71%
AA46.05%
AAA26.25%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
182 DTB 22102020
Sovereign Bonds | -
13%₹75 Cr7,500,000
↑ 7,500,000
U.P. Power Corporation Limited
Debentures | -
11%₹65 Cr650
Vedanta Limited
Debentures | -
10%₹57 Cr600
Piramal Enterprises Limited
Debentures | -
8%₹47 Cr468
↓ -30
Ahmedabad-Maliya Tollway Limited
Debentures | -
7%₹38 Cr380
Asirvad Micro Finance Private Limited
Debentures | -
6%₹34 Cr335
INDIAN RECEIVABLE TRUST 18 FEB 2019
Unlisted bonds | -
5%₹28 Cr900
8.86 %Tamil Nadu SDL 2022
Sovereign Bonds | -
5%₹27 Cr2,500,000
↑ 2,500,000
Indinfravit Trust
Unlisted bonds | -
4%₹25 Cr250
Clix Finance India Private Limited
Debentures | -
3%₹15 Cr150
↓ -150

2. 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 2019 was 9.6% , 2018 was 8.7% and 2017 was 8.2% .

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 (19 Oct 20) ₹28.8199 ↑ 0.02   (0.07 %)
Net Assets (Cr) ₹9,993 on 30 Sep 20
Category Debt - Ultrashort Bond
AMC Franklin Templeton Asst Mgmt(IND)Pvt Ltd
Rating
Risk Moderate
Expense Ratio 0.52
Sharpe Ratio -0.05
Information Ratio 0
Alpha Ratio 0
Min Investment 10,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 7.79%
Effective Maturity 9 Months 25 Days
Modified Duration 2 Months 23 Days

Growth of 10,000 investment over the years.

DateValue
30 Sep 15₹10,000
30 Sep 16₹10,975
30 Sep 17₹11,942
30 Sep 18₹12,841
30 Sep 19₹14,132
30 Sep 20₹14,766

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 ₹206,148.
Net Profit of ₹26,148
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 19 Oct 20

DurationReturns
1 Month 0.7%
3 Month 2.2%
6 Month 4.6%
1 Year 4.5%
3 Year 7.4%
5 Year 8.1%
10 Year
15 Year
Since launch 8.6%
Historical performance (Yearly) on absolute basis
YearReturns
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%
2010 5.9%
Fund Manager information for Franklin India Ultra Short Bond Fund - Super Institutional Plan
NameSinceTenure
Santosh Kamath25 Oct 181.93 Yr.
Pallab Roy1 Jun 0812.34 Yr.

Data below for Franklin India Ultra Short Bond Fund - Super Institutional Plan as on 30 Sep 20

Asset Allocation
Asset ClassValue
Cash42.67%
Debt57.33%
Debt Sector Allocation
SectorValue
Corporate57.33%
Cash Equivalent42.67%
Credit Quality
RatingValue
A40.67%
AA59.29%
AAA0.04%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
JM Financial Credit Solutions Limited
Debentures | -
5%₹541 Cr5,400
Indostar Capital Finance Limited
Debentures | -
4%₹436 Cr4,400
Indostar Capital Finance Limited
Debentures | -
4%₹390 Cr3,900
Edelweiss Commodities Services Limited
Debentures | -
4%₹371 Cr7,500
Edelweiss Commodities Services Limited
Debentures | -
4%₹360 Cr3,650
Bharti Telecom Limited
Debentures | -
3%₹302 Cr2,400
Renew Power Ventures Private Limited
Debentures | -
3%₹288 Cr2,890
Piramal Enterprises Limited
Debentures | -
3%₹255 Cr2,550
Clix Capital Services Private Limited
Debentures | -
2%₹234 Cr2,350
Tata Realty and Infrastructure Limited
Debentures | -
2%₹228 Cr2,000

3. 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% since its launch.  Ranked 27 in Ultrashort Bond category.  Return for 2019 was 3.3% , 2018 was 7% and 2017 was 6.6% .

Below is the key information for UTI Ultra Short Term Fund

UTI Ultra Short Term Fund
Growth
Launch Date 29 Aug 03
NAV (19 Oct 20) ₹3,205.24 ↑ 1.14   (0.04 %)
Net Assets (Cr) ₹1,569 on 30 Sep 20
Category Debt - Ultrashort Bond
AMC UTI Asset Management Company Ltd
Rating
Risk Moderately Low
Expense Ratio 0.99
Sharpe Ratio 1.53
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 2,500
Exit Load NIL
Yield to Maturity 5.36%
Effective Maturity 4 Months 6 Days
Modified Duration 4 Months 4 Days

Growth of 10,000 investment over the years.

DateValue
30 Sep 15₹10,000
30 Sep 16₹10,880
30 Sep 17₹11,668
30 Sep 18₹12,394
30 Sep 19₹12,857
30 Sep 20₹13,594

UTI 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 ₹200,132.
Net Profit of ₹20,132
Invest Now

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 19 Oct 20

DurationReturns
1 Month 0.5%
3 Month 1.1%
6 Month 2.9%
1 Year 5.6%
3 Year 5.2%
5 Year 6.3%
10 Year
15 Year
Since launch 7%
Historical performance (Yearly) on absolute basis
YearReturns
2019 3.3%
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%
Fund Manager information for UTI Ultra Short Term Fund
NameSinceTenure
Sudhir Agarwal1 Jul 155.26 Yr.
Ritesh Nambiar1 Jul 155.26 Yr.

Data below for UTI Ultra Short Term Fund as on 30 Sep 20

Asset Allocation
Asset ClassValue
Cash66.46%
Debt33.54%
Debt Sector Allocation
SectorValue
Cash Equivalent50.76%
Corporate38.08%
Government11.17%
Credit Quality
RatingValue
A13.19%
AA1.26%
AAA85.55%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Edelweiss Commodities Services Limited
Debentures | -
8%₹121 Cr1,250
364 DTB 04032021
Sovereign Bonds | -
5%₹74 Cr750,000,000
↑ 750,000,000
Avanse Financial Services Limited
Debentures | -
4%₹65 Cr650
8.12% Govt Stock 2020
Sovereign Bonds | -
4%₹55 Cr550,000,000
Housing Development Finance Corporation Limited
Debentures | -
3%₹51 Cr500
↑ 500
Tata Capital Housing Finance Limited
Debentures | -
3%₹51 Cr500
06.99% AP SDL 2020
Sovereign Bonds | -
3%₹50 Cr500,000,000
Mahindra & Mahindra Financial Services Limited
Debentures | -
3%₹50 Cr500
National Bank For Agriculture and Rural Development
Debentures | -
3%₹41 Cr400
↑ 150
6.17% Govt Stock 2021
Sovereign Bonds | -
2%₹36 Cr350,000,000
↑ 350,000,000

4. 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 8.2% since its launch.  Ranked 27 in Ultrashort Bond category.  Return for 2019 was 8.4% , 2018 was 7.5% and 2017 was 6.9% .

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 (19 Oct 20) ₹21.1709 ↑ 0.01   (0.05 %)
Net Assets (Cr) ₹7,413 on 30 Sep 20
Category Debt - Ultrashort Bond
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 0.96
Sharpe Ratio 2.42
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 5.24%
Effective Maturity 6 Months
Modified Duration 5 Months 8 Days

Growth of 10,000 investment over the years.

DateValue
30 Sep 15₹10,000
30 Sep 16₹10,952
30 Sep 17₹11,818
30 Sep 18₹12,566
30 Sep 19₹13,656
30 Sep 20₹14,655

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 19 Oct 20

DurationReturns
1 Month 0.6%
3 Month 1.5%
6 Month 3.8%
1 Year 7.2%
3 Year 7.5%
5 Year 7.9%
10 Year
15 Year
Since launch 8.2%
Historical performance (Yearly) on absolute basis
YearReturns
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
2010
Fund Manager information for ICICI Prudential Ultra Short Term Fund
NameSinceTenure
Manish Banthia15 Nov 163.88 Yr.
Ritesh Lunawat15 Jun 173.3 Yr.

Data below for ICICI Prudential Ultra Short Term Fund as on 30 Sep 20

Asset Allocation
Asset ClassValue
Cash54.17%
Debt45.83%
Debt Sector Allocation
SectorValue
Corporate54.84%
Cash Equivalent41.9%
Government3.26%
Credit Quality
RatingValue
A2.97%
AA28.79%
AAA68.24%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
REC Limited
Debentures | -
4%₹293 Cr2,850
↑ 2,850
Reliance Ports and Terminals Limited
Debentures | -
3%₹212 Cr2,019
↑ 992
Manappuram Finance Limited
Debentures | -
3%₹206 Cr2,000
Housing Development Finance Corporation Limited
Debentures | -
2%₹153 Cr1,500
↑ 1,500
Housing Development Finance Corporation Limited
Debentures | -
2%₹152 Cr1,500
Tata Value Homes Limited
Debentures | -
2%₹151 Cr1,500
Aspire Home Finance Corporation Limited
Debentures | -
2%₹151 Cr1,500
LIC Housing Finance Limited
Debentures | -
2%₹147 Cr1,450
↑ 450
Reliance Industries Limited
Debentures | -
2%₹141 Cr1,400
Power Finance Corporation Limited
Debentures | -
2%₹139 Cr1,350
↑ 1,350

5. 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 7.8% since its launch.  Ranked 6 in Ultrashort Bond category.  Return for 2019 was 8.5% , 2018 was 7.6% and 2017 was 7.2% .

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 (19 Oct 20) ₹415.352 ↑ 0.20   (0.05 %)
Net Assets (Cr) ₹14,532 on 30 Sep 20
Category Debt - Ultrashort Bond
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk Moderately Low
Expense Ratio 0.35
Sharpe Ratio 2.52
Information Ratio 0
Alpha Ratio 0
Min Investment 1,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 4.51%
Effective Maturity 6 Months 18 Days
Modified Duration 5 Months 26 Days

Growth of 10,000 investment over the years.

DateValue
30 Sep 15₹10,000
30 Sep 16₹10,926
30 Sep 17₹11,772
30 Sep 18₹12,546
30 Sep 19₹13,688
30 Sep 20₹14,715

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 ₹206,148.
Net Profit of ₹26,148
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 19 Oct 20

DurationReturns
1 Month 0.6%
3 Month 1.4%
6 Month 4.3%
1 Year 7.4%
3 Year 7.7%
5 Year 8%
10 Year
15 Year
Since launch 7.8%
Historical performance (Yearly) on absolute basis
YearReturns
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%
2010 5.8%
Fund Manager information for Aditya Birla Sun Life Savings Fund
NameSinceTenure
Sunaina Cunha11 Oct 145.98 Yr.
Kaustubh Gupta15 Jul 119.22 Yr.

Data below for Aditya Birla Sun Life Savings Fund as on 30 Sep 20

Asset Allocation
Asset ClassValue
Cash50.75%
Debt49.25%
Debt Sector Allocation
SectorValue
Corporate53.51%
Cash Equivalent32.97%
Government13.01%
Securitized0.51%
Credit Quality
RatingValue
AA10.3%
AAA89.7%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Mahindra & Mahindra Financial Services Limited
Debentures | -
3%₹453 Cr4,450
Shriram Transport Finance Company Limited
Debentures | -
3%₹371 Cr3,750
REC Limited
Debentures | -
2%₹331 Cr3,200
Housing Development Finance Corporation Limited
Debentures | -
2%₹295 Cr2,925
Rural Electrification Corporation Limited
Debentures | -
2%₹270 Cr2,650
6.81% MH SDL 2020
Sovereign Bonds | -
2%₹261 Cr26,000,000
Muthoot Finance Limited
Debentures | -
2%₹242 Cr2,350
182 DTB 17122020
Sovereign Bonds | -
2%₹233 Cr23,500,000
↑ 23,500,000
Reliance Industries Limited
Debentures | -
2%₹233 Cr2,315
Rural Electrification Corporation Limited
Debentures | -
2%₹231 Cr2,250

6. IDBI Ultra Short Term Fund

The objective of the Scheme will be to provide investors with regular income for their investment by investing in debt and money market instruments with relatively lower interest rate risk, such that the Macaulay duration of the portfolio is maintained between 3 months to 6 months. However, there can be no assurance that the investment objective of the Scheme will be realized.

IDBI Ultra Short Term Fund is a Debt - Ultrashort Bond fund was launched on 3 Sep 10. It is a fund with Moderately Low risk and has given a CAGR/Annualized return of 7.7% since its launch.  Ranked 78 in Ultrashort Bond category.  Return for 2019 was 6.9% , 2018 was 6.9% and 2017 was 5.8% .

Below is the key information for IDBI Ultra Short Term Fund

IDBI Ultra Short Term Fund
Growth
Launch Date 3 Sep 10
NAV (19 Oct 20) ₹2,129.32 ↑ 1.29   (0.06 %)
Net Assets (Cr) ₹251 on 30 Sep 20
Category Debt - Ultrashort Bond
AMC IDBI Asset Management Limited
Rating
Risk Moderately Low
Expense Ratio 0.73
Sharpe Ratio 0.71
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 4.35%
Effective Maturity 4 Months 25 Days
Modified Duration 4 Months 6 Days

Growth of 10,000 investment over the years.

DateValue
30 Sep 15₹10,000
30 Sep 16₹10,782
30 Sep 17₹11,445
30 Sep 18₹12,135
30 Sep 19₹13,023
30 Sep 20₹13,753

IDBI 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 ₹200,132.
Net Profit of ₹20,132
Invest Now

Returns for IDBI 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 19 Oct 20

DurationReturns
1 Month 0.4%
3 Month 1.2%
6 Month 2.7%
1 Year 5.5%
3 Year 6.3%
5 Year 6.6%
10 Year
15 Year
Since launch 7.7%
Historical performance (Yearly) on absolute basis
YearReturns
2019 6.9%
2018 6.9%
2017 5.8%
2016 7.9%
2015 7.8%
2014 8.7%
2013 9.2%
2012 9.7%
2011 9.3%
2010
Fund Manager information for IDBI Ultra Short Term Fund
NameSinceTenure
Bhupesh Kalyani1 Feb 173.66 Yr.

Data below for IDBI Ultra Short Term Fund as on 30 Sep 20

Asset Allocation
Asset ClassValue
Cash56.98%
Debt43.02%
Debt Sector Allocation
SectorValue
Cash Equivalent49.06%
Government33.17%
Corporate17.78%
Credit Quality
RatingValue
A7.39%
AA10.88%
AAA81.72%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
182 DTB 03122020
Sovereign Bonds | -
20%₹50 Cr5,000,000
182 DTB 07012021
Sovereign Bonds | -
14%₹35 Cr3,500,000
↑ 3,500,000
182 DTB 21012021
Sovereign Bonds | -
10%₹25 Cr2,500,000
↑ 2,500,000
Punjab National Bank
Debentures | -
7%₹17 Cr1,700,000
J.K.Cement Limited
Debentures | -
4%₹11 Cr3,500,000
Vedanta Limited
Debentures | -
4%₹10 Cr1,050,000
182 DTB 31122020
Sovereign Bonds | -
2%₹5 Cr500,000
↑ 500,000
Axis Bank Limited
Debentures | -
1%₹4 Cr370,000
Power Finance Corporation Limited
Debentures | -
1%₹2 Cr200,000
↓ -400,000
Housing Development Finance Corporation Limited
Commercial Paper | -
10%₹25 Cr2,500,000
↑ 2,500,000

7. 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 7.7% since its launch.  Ranked 44 in Ultrashort Bond category.  Return for 2019 was 7.8% , 2018 was 7.4% and 2017 was 6.7% .

Below is the key information for Kotak Savings Fund

Kotak Savings Fund
Growth
Launch Date 13 Aug 04
NAV (19 Oct 20) ₹33.2441 ↑ 0.01   (0.03 %)
Net Assets (Cr) ₹11,072 on 30 Sep 20
Category Debt - Ultrashort Bond
AMC Kotak Mahindra Asset Management Co Ltd
Rating
Risk Moderately Low
Expense Ratio 0.48
Sharpe Ratio 2.57
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 4.1%
Effective Maturity 5 Months 26 Days
Modified Duration 5 Months 16 Days

Growth of 10,000 investment over the years.

DateValue
30 Sep 15₹10,000
30 Sep 16₹10,828
30 Sep 17₹11,595
30 Sep 18₹12,350
30 Sep 19₹13,391
30 Sep 20₹14,262

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 ₹203,125.
Net Profit of ₹23,125
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 19 Oct 20

DurationReturns
1 Month 0.5%
3 Month 1%
6 Month 3.3%
1 Year 6.3%
3 Year 7.1%
5 Year 7.3%
10 Year
15 Year
Since launch 7.7%
Historical performance (Yearly) on absolute basis
YearReturns
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%
2010 5.7%
Fund Manager information for Kotak Savings Fund
NameSinceTenure
Deepak Agrawal15 Apr 0812.47 Yr.

Data below for Kotak Savings Fund as on 30 Sep 20

Asset Allocation
Asset ClassValue
Cash55.84%
Debt44.16%
Debt Sector Allocation
SectorValue
Cash Equivalent48.76%
Corporate38.12%
Government10.56%
Securitized2.56%
Credit Quality
RatingValue
AA11.7%
AAA88.3%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.80% GOI Floating Rate Bonds 2020
Sovereign Bonds | -
12%₹1,321 Cr132,100,000
8.12% Govt Stock 2020
Sovereign Bonds | -
7%₹721 Cr71,500,000
↓ -70,000,000
Housing Development Finance Corporation Limited
Debentures | -
5%₹586 Cr5,750
↑ 1,250
Bharti Telecom Limited
Debentures | -
5%₹549 Cr5,400
Rural Electrification Corporation Limited
Debentures | -
4%₹421 Cr4,100
Bajaj Housing Finance Limited
Debentures | -
3%₹350 Cr3,000
Power Finance Corporation Limited
Debentures | -
3%₹320 Cr3,050
182 DTB 29102020
Sovereign Bonds | -
3%₹299 Cr30,000,000
↑ 30,000,000
182 DTB 17122020
Sovereign Bonds | -
2%₹248 Cr25,000,000
↑ 25,000,000
Kotak Mahindra Prime Limited
Debentures | -
2%₹248 Cr2,000
↓ -1,000

8. 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 2019 was 8% , 2018 was 7.9% and 2017 was 6.6% .

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 (19 Oct 20) ₹4,607.26 ↑ 1.55   (0.03 %)
Net Assets (Cr) ₹10,122 on 30 Sep 20
Category Debt - Ultrashort Bond
AMC SBI Funds Management Private Limited
Rating
Risk Low
Expense Ratio 0.28
Sharpe Ratio 2.85
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 4%
Effective Maturity 5 Months 19 Days
Modified Duration 5 Months 8 Days

Growth of 10,000 investment over the years.

DateValue
30 Sep 15₹10,000
30 Sep 16₹10,788
30 Sep 17₹11,512
30 Sep 18₹12,340
30 Sep 19₹13,392
30 Sep 20₹14,277

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 ₹203,125.
Net Profit of ₹23,125
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 19 Oct 20

DurationReturns
1 Month 0.4%
3 Month 1.1%
6 Month 3.3%
1 Year 6.4%
3 Year 7.4%
5 Year 7.4%
10 Year
15 Year
Since launch 7.4%
Historical performance (Yearly) on absolute basis
YearReturns
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%
2010 5.4%
Fund Manager information for SBI Magnum Ultra Short Duration Fund
NameSinceTenure
Rajeev Radhakrishnan1 May 1010.42 Yr.

Data below for SBI Magnum Ultra Short Duration Fund as on 30 Sep 20

Asset Allocation
Asset ClassValue
Cash66.57%
Debt33.43%
Debt Sector Allocation
SectorValue
Corporate40.34%
Cash Equivalent39.72%
Government19.16%
Securitized0.78%
Credit Quality
RatingValue
AA5.3%
AAA94.7%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Rural Electrification Corporation Limited
Debentures | -
7%₹689 Cr6,750
364 DTB 29072021
Sovereign Bonds | -
5%₹486 Cr50,000,000
91 DTB 03122020
Sovereign Bonds | -
4%₹398 Cr40,000,000
↑ 40,000,000
Housing Development Finance Corporation Limited
Debentures | -
4%₹379 Cr3,750
Mahindra & Mahindra Financial Services Limited
Debentures | -
4%₹373 Cr3,000
182 DTB 04022021
Sovereign Bonds | -
3%₹346 Cr35,000,000
Housing Development Finance Corporation Limited
Debentures | -
2%₹231 Cr2,250
Muthoot Finance Limited
Debentures | -
2%₹191 Cr1,880,000
↓ -250,000
Manappuram Finance Limited
Debentures | -
2%₹165 Cr1,650
LIC Housing Finance Limited
Debentures | -
1%₹152 Cr1,500

9. 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 7.9% since its launch.  Ranked 40 in Ultrashort Bond category.  Return for 2019 was 7.6% , 2018 was 7.3% and 2017 was 7.1% .

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 (19 Oct 20) ₹2,101.88 ↑ 0.69   (0.03 %)
Net Assets (Cr) ₹589 on 30 Sep 20
Category Debt - Ultrashort Bond
AMC Invesco Asset Management (India) Private Ltd
Rating
Risk Moderate
Expense Ratio 0.53
Sharpe Ratio 1.52
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 3.91%
Effective Maturity 5 Months 7 Days
Modified Duration 4 Months 30 Days

Growth of 10,000 investment over the years.

DateValue
30 Sep 15₹10,000
30 Sep 16₹10,934
30 Sep 17₹11,787
30 Sep 18₹12,541
30 Sep 19₹13,577
30 Sep 20₹14,364

Invesco India 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 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 19 Oct 20

DurationReturns
1 Month 0.4%
3 Month 0.8%
6 Month 2.8%
1 Year 5.6%
3 Year 6.8%
5 Year 7.5%
10 Year
15 Year
Since launch 7.9%
Historical performance (Yearly) on absolute basis
YearReturns
2019 7.6%
2018 7.3%
2017 7.1%
2016 9.1%
2015 8.3%
2014 10.1%
2013 6.1%
2012 8.9%
2011 8.2%
2010
Fund Manager information for Invesco India Ultra Short Term Fund
NameSinceTenure
Sujoy Das4 Jan 200.74 Yr.
Krishna Cheemalapati4 Jan 200.74 Yr.

Data below for Invesco India Ultra Short Term Fund as on 30 Sep 20

Asset Allocation
Asset ClassValue
Cash58.72%
Debt41.28%
Debt Sector Allocation
SectorValue
Corporate36.82%
Cash Equivalent36.34%
Government26.83%
Credit Quality
RatingValue
AA1.78%
AAA98.22%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
182 DTB 07012021
Sovereign Bonds | -
7%₹40 Cr4,000,000
↓ -5,000,000
HDB Financial Services Limited
Debentures | -
6%₹38 Cr3,000,000
8.66% Maharashtra GS 2021
Sovereign Bonds | -
5%₹31 Cr3,005,600
Kotak Mahindra Prime Limited
Debentures | -
5%₹31 Cr2,500,000
National Bank For Agriculture and Rural Development
Debentures | -
4%₹26 Cr2,500,000
↓ -1,000,000
07.03% GJ SDL 2021
Sovereign Bonds | -
4%₹26 Cr2,500,000
Housing and Urban Development Corporation Limited
Debentures | -
4%₹25 Cr2,500,000
Small Industries Development Bank of India
Debentures | -
4%₹25 Cr2,500,000
Reliance Industries Limited
Debentures | -
4%₹25 Cr2,500,000
Reliance Industries Limited
Debentures | -
4%₹25 Cr2,500,000

10. DSP BlackRock Money Manager Fund

"The primary investment objective of the Scheme is to seek to generate reasonable returns commensurate with low risk and a high degree of liquidity, from a portfolio constituted of money market securities and high quality debt securities. However, there can be no assurance that the investment objective of the Scheme will be realized."

DSP BlackRock Money Manager Fund is a Debt - Ultrashort Bond fund was launched on 31 Jul 06. It is a fund with Moderately Low risk and has given a CAGR/Annualized return of 7.2% since its launch.  Ranked 75 in Ultrashort Bond category.  Return for 2019 was 7.3% , 2018 was 5% and 2017 was 6% .

Below is the key information for DSP BlackRock Money Manager Fund

DSP BlackRock Money Manager Fund
Growth
Launch Date 31 Jul 06
NAV (19 Oct 20) ₹2,671.58 ↑ 0.77   (0.03 %)
Net Assets (Cr) ₹2,621 on 30 Sep 20
Category Debt - Ultrashort Bond
AMC DSP BlackRock Invmt Managers Pvt. Ltd.
Rating
Risk Moderately Low
Expense Ratio 0.98
Sharpe Ratio 1.08
Information Ratio 0
Alpha Ratio 0
Min Investment 1,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 3.78%
Effective Maturity 5 Months 16 Days
Modified Duration 5 Months 8 Days

Growth of 10,000 investment over the years.

DateValue
30 Sep 15₹10,000
30 Sep 16₹10,757
30 Sep 17₹11,440
30 Sep 18₹12,067
30 Sep 19₹12,864
30 Sep 20₹13,557

DSP BlackRock Money Manager 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 DSP BlackRock Money Manager Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 19 Oct 20

DurationReturns
1 Month 0.4%
3 Month 0.9%
6 Month 2.5%
1 Year 5.2%
3 Year 5.8%
5 Year 6.3%
10 Year
15 Year
Since launch 7.2%
Historical performance (Yearly) on absolute basis
YearReturns
2019 7.3%
2018 5%
2017 6%
2016 7.5%
2015 7.9%
2014 8.8%
2013 9.2%
2012 8.9%
2011 8.5%
2010 5%
Fund Manager information for DSP BlackRock Money Manager Fund
NameSinceTenure
Kedar Karnik17 Jul 164.21 Yr.

Data below for DSP BlackRock Money Manager Fund as on 30 Sep 20

Asset Allocation
Asset ClassValue
Cash60.89%
Debt39.11%
Debt Sector Allocation
SectorValue
Cash Equivalent46.46%
Corporate36.55%
Government16.99%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
182 DTB 18032021
Sovereign Bonds | -
11%₹295 Cr30,000,000
↑ 30,000,000
Housing Development Finance Corporation Limited
Debentures | -
7%₹176 Cr1,700
↑ 480
LIC Housing Finance Limited
Debentures | -
5%₹124 Cr1,200
↑ 1,200
REC Limited
Debentures | -
4%₹105 Cr1,000
Power Finance Corporation Limited
Debentures | -
4%₹98 Cr950
↑ 950
LIC Housing Finance Limited
Debentures | -
2%₹52 Cr500
↑ 500
Power Finance Corporation Limited
Debentures | -
2%₹52 Cr500
↑ 500
REC Limited
Debentures | -
2%₹52 Cr500
↑ 500
Rural Electrification Corporation Limited
Debentures | -
2%₹50 Cr473
↑ 23
Small Industries Development Bank of India
Debentures | -
1%₹21 Cr200

Thus, from the above-given parameters, we can conclude that Ultra Short Term Funds are a better option as compared to fixed deposits.

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 5, based on 2 reviews.
POST A COMMENT