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Ultra Short Term Funds Vs Liquid Funds

Updated on August 8, 2025 , 29605 views

Whenever we think of short-term investment in Mutual Funds, we often come across the terms such as ultra short term funds and Liquid Funds. Though both of them are categories of debt funds, however, they do possess the different characteristics. Ultra Short Term fund is a Debt fund category whose Portfolio consists of fixed Income securities with a maturity period ranging between 91 days to one year. On the other hand, the liquid fund is a debt fund category whose portfolio consists of Fixed Income securities with a maturity period of less than or equal to 91 days.

ultra-short-vs-liquid-funds

So, let us understand the differences between both ultra short term funds and liquid funds with respect to various parameters.

What is an Ultra Short Term Fund?

Ultra short term fund is a category of debt fund that invests its corpus in fixed income securities. The fund’s portfolio maturity tenure extends between 91 days and normally less than 1 year. These schemes were earlier referred as Liquid Plus Funds. Ultra Short Term Funds is suitable for investors who are willing to take a marginally higher level of risk to earn higher returns. These schemes are a notch above liquid funds with respect to risk and returns.

What is a Liquid Fund?

Liquid fund refers to the Mutual Fund scheme that invests its accumulated fund money in fixed income securities having a maturity period of less than 91 days. Liquid funds are part of debt funds and are considered to be one of the safe investment avenues. People having idle funds lying in their Bank account can choose to invest in the money in liquid funds and earn more returns. These schemes have higher liquidity as compared to ultra short term fund.

Difference Between Ultra Short Term Fund Vs Liquid Fund

The different parameters that differentiate ultra short term funds and liquid funds are as follows.

Maturity Tenure of Underlying Assets

The Maturity tenure of Underlying assets in case of liquid funds is less as compared to ultra short term funds. These securities in most cases have a maturity profile of less than or equal to 91 days. However, in case of ultra short term funds, the maturity tenure of its underlying securities are more than 91 days and less than 1 year.

Liquidity

The liquidity of liquid funds is high as compared to ultra short term funds. In case liquid funds, some of the Mutual Fund companies do provide an instant Redemption Facility. By opting for this facility, one can ensure that they get their proceeds credited to the bank account within 30 minutes. However, this facility is not available in case of ultra short term funds. In ultra short term funds people get their money back on the next working day if they place their order before the cut-off time.

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Returns

The returns in case of ultra short term funds are slightly higher as compared to liquid funds. This higher return is due to the marginally higher risk which is present in ultra short term funds as compared to liquid funds.

Risk

The risk in case of liquid funds is very low as compared to ultra short term funds. This is because the underlying securities in liquid funds are mostly held till maturity instead of trading due to very low maturity tenure. However, in case of ultra short term funds, the risk is marginally higher as compared to liquid funds.

Exit Load

Most of the liquid funds do not have any exit loads attached to it due to which people get the entire redemption proceeds at the time of withdrawals. However, ultra short term funds may or may not have exit loads. Exit load in case of ultra short term fund is generally applicable if the redemption is done within a short period of time.

Taxation

Since both ultra short-term funds and liquid funds are a part of the debt funds; the taxation rules are same for both of them. If both the funds are sold within three years from the date of purchase, then Short Term Capital Gain (STCG) is applicable which is charged as per the individual’s tax slab. On the contrary, if the units are redeemed after three years then Long Term Capital Gain (LTCG) is applicable which is charged at 20% along with indexation benefits.

Cut-off Time

The cut-off time for placing an order with respect to purchase or redemption in case of the liquid fund is 2 PM, while in case of ultra short term funds the cut-off time is 3 PM.

The table given below sums up the differences between liquid funds and ultra short term funds.

Parameters Liquid Funds Ultra Short Term Funds
Maturity Profile of Underlying Assets The maturity profile of the assets is less than or equal to 91 days The maturity profile of the assets is more than 91 days and less than one year
Liquidity High liquidity Low as compared to Liquid Funds
Returns Lower as compared to ultra short term funds Slightly higher than liquid funds
Risk Very low Marginally higher in comparison to liquid funds
Exit Load Mostly does not have exit load May or may not have exit loads
Taxation Short-term: Taxed as per individual’s slab rates Long-term: Taxed at 20% and had taxation benefits Same as Liquid Funds
Cut-off Time 2 PM 3 PM

Best Funds to Invest in FY 25 - 26

After understanding the differences between liquid funds and ultra short term funds, let us have a look at some of the Best Liquid Funds and Best Ultra Short term funds which may suit your requirements.

Best Liquid Funds

FundNAVNet Assets (Cr)1 MO (%)3 MO (%)6 MO (%)1 YR (%)2024 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
BOI AXA Liquid Fund Growth ₹3,026.37
↑ 0.46
₹2,0880.51.63.47.17.45.85%1M 28D1M 24D
Axis Liquid Fund Growth ₹2,926.02
↑ 0.45
₹33,5290.51.53.47.17.45.96%1M 27D2M 1D
DSP Liquidity Fund Growth ₹3,751.7
↑ 0.57
₹16,9260.51.53.377.45.95%1M 28D2M 1D
Canara Robeco Liquid Growth ₹3,162.94
↑ 0.48
₹5,3830.51.53.477.45.85%1M 24D1M 27D
Invesco India Liquid Fund Growth ₹3,611.92
↑ 0.54
₹12,3200.51.53.377.46.19%1M 22D1M 22D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 10 Aug 25

Research Highlights & Commentary of 5 Funds showcased

CommentaryBOI AXA Liquid FundAxis Liquid FundDSP Liquidity FundCanara Robeco LiquidInvesco India Liquid Fund
Point 1Bottom quartile AUM (₹2,088 Cr).Highest AUM (₹33,529 Cr).Upper mid AUM (₹16,926 Cr).Bottom quartile AUM (₹5,383 Cr).Lower mid AUM (₹12,320 Cr).
Point 2Established history (17+ yrs).Established history (15+ yrs).Oldest track record among peers (19 yrs).Established history (17+ yrs).Established history (18+ yrs).
Point 3Rating: 3★ (lower mid).Top rated.Rating: 3★ (bottom quartile).Rating: 3★ (bottom quartile).Rating: 4★ (upper mid).
Point 4Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.
Point 51Y return: 7.07% (top quartile).1Y return: 7.05% (upper mid).1Y return: 7.03% (lower mid).1Y return: 7.03% (bottom quartile).1Y return: 7.03% (bottom quartile).
Point 61M return: 0.46% (top quartile).1M return: 0.46% (lower mid).1M return: 0.46% (upper mid).1M return: 0.45% (bottom quartile).1M return: 0.46% (bottom quartile).
Point 7Sharpe: 4.68 (top quartile).Sharpe: 3.87 (bottom quartile).Sharpe: 4.37 (upper mid).Sharpe: 3.61 (bottom quartile).Sharpe: 3.96 (lower mid).
Point 8Information ratio: 0.31 (top quartile).Information ratio: 0.00 (upper mid).Information ratio: 0.00 (lower mid).Information ratio: -0.21 (bottom quartile).Information ratio: 0.00 (bottom quartile).
Point 9Yield to maturity (debt): 5.85% (bottom quartile).Yield to maturity (debt): 5.96% (upper mid).Yield to maturity (debt): 5.95% (lower mid).Yield to maturity (debt): 5.85% (bottom quartile).Yield to maturity (debt): 6.19% (top quartile).
Point 10Modified duration: 0.16 yrs (bottom quartile).Modified duration: 0.16 yrs (lower mid).Modified duration: 0.16 yrs (bottom quartile).Modified duration: 0.15 yrs (upper mid).Modified duration: 0.15 yrs (top quartile).

BOI AXA Liquid Fund

  • Bottom quartile AUM (₹2,088 Cr).
  • Established history (17+ yrs).
  • Rating: 3★ (lower mid).
  • Risk profile: Low.
  • 1Y return: 7.07% (top quartile).
  • 1M return: 0.46% (top quartile).
  • Sharpe: 4.68 (top quartile).
  • Information ratio: 0.31 (top quartile).
  • Yield to maturity (debt): 5.85% (bottom quartile).
  • Modified duration: 0.16 yrs (bottom quartile).

Axis Liquid Fund

  • Highest AUM (₹33,529 Cr).
  • Established history (15+ yrs).
  • Top rated.
  • Risk profile: Low.
  • 1Y return: 7.05% (upper mid).
  • 1M return: 0.46% (lower mid).
  • Sharpe: 3.87 (bottom quartile).
  • Information ratio: 0.00 (upper mid).
  • Yield to maturity (debt): 5.96% (upper mid).
  • Modified duration: 0.16 yrs (lower mid).

DSP Liquidity Fund

  • Upper mid AUM (₹16,926 Cr).
  • Oldest track record among peers (19 yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: Low.
  • 1Y return: 7.03% (lower mid).
  • 1M return: 0.46% (upper mid).
  • Sharpe: 4.37 (upper mid).
  • Information ratio: 0.00 (lower mid).
  • Yield to maturity (debt): 5.95% (lower mid).
  • Modified duration: 0.16 yrs (bottom quartile).

Canara Robeco Liquid

  • Bottom quartile AUM (₹5,383 Cr).
  • Established history (17+ yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: Low.
  • 1Y return: 7.03% (bottom quartile).
  • 1M return: 0.45% (bottom quartile).
  • Sharpe: 3.61 (bottom quartile).
  • Information ratio: -0.21 (bottom quartile).
  • Yield to maturity (debt): 5.85% (bottom quartile).
  • Modified duration: 0.15 yrs (upper mid).

Invesco India Liquid Fund

  • Lower mid AUM (₹12,320 Cr).
  • Established history (18+ yrs).
  • Rating: 4★ (upper mid).
  • Risk profile: Low.
  • 1Y return: 7.03% (bottom quartile).
  • 1M return: 0.46% (bottom quartile).
  • Sharpe: 3.96 (lower mid).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 6.19% (top quartile).
  • Modified duration: 0.15 yrs (top quartile).

Best Ultra Short Term Funds

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)2024 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
Aditya Birla Sun Life Savings Fund Growth ₹553.023
↑ 0.11
₹20,22824.18.17.47.96.72%5M 26D6M 29D
ICICI Prudential Ultra Short Term Fund Growth ₹27.9186
↑ 0.00
₹16,0511.83.97.57.17.56.79%5M 12D7M 24D
SBI Magnum Ultra Short Duration Fund Growth ₹6,019.96
↑ 0.96
₹16,4081.73.87.57.17.46.26%5M 1D6M 4D
Invesco India Ultra Short Term Fund Growth ₹2,717.28
↑ 0.32
₹1,0061.73.87.46.97.56.59%5M 16D5M 24D
Kotak Savings Fund Growth ₹43.2017
↑ 0.01
₹15,5271.83.87.36.97.26.49%5M 12D5M 19D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 8 Aug 25

Research Highlights & Commentary of 5 Funds showcased

CommentaryAditya Birla Sun Life Savings FundICICI Prudential Ultra Short Term FundSBI Magnum Ultra Short Duration FundInvesco India Ultra Short Term FundKotak Savings Fund
Point 1Highest AUM (₹20,228 Cr).Lower mid AUM (₹16,051 Cr).Upper mid AUM (₹16,408 Cr).Bottom quartile AUM (₹1,006 Cr).Bottom quartile AUM (₹15,527 Cr).
Point 2Established history (22+ yrs).Established history (14+ yrs).Oldest track record among peers (26 yrs).Established history (14+ yrs).Established history (21+ yrs).
Point 3Top rated.Rating: 3★ (upper mid).Rating: 3★ (lower mid).Rating: 3★ (bottom quartile).Rating: 3★ (bottom quartile).
Point 4Risk profile: Moderately Low.Risk profile: Moderate.Risk profile: Low.Risk profile: Moderate.Risk profile: Moderately Low.
Point 51Y return: 8.07% (top quartile).1Y return: 7.55% (upper mid).1Y return: 7.47% (lower mid).1Y return: 7.41% (bottom quartile).1Y return: 7.32% (bottom quartile).
Point 61M return: 0.50% (top quartile).1M return: 0.48% (upper mid).1M return: 0.47% (lower mid).1M return: 0.45% (bottom quartile).1M return: 0.46% (bottom quartile).
Point 7Sharpe: 3.55 (top quartile).Sharpe: 2.79 (upper mid).Sharpe: 2.74 (lower mid).Sharpe: 2.72 (bottom quartile).Sharpe: 2.10 (bottom quartile).
Point 8Information ratio: 0.00 (top quartile).Information ratio: 0.00 (upper mid).Information ratio: 0.00 (lower mid).Information ratio: 0.00 (bottom quartile).Information ratio: 0.00 (bottom quartile).
Point 9Yield to maturity (debt): 6.72% (upper mid).Yield to maturity (debt): 6.79% (top quartile).Yield to maturity (debt): 6.26% (bottom quartile).Yield to maturity (debt): 6.59% (lower mid).Yield to maturity (debt): 6.49% (bottom quartile).
Point 10Modified duration: 0.49 yrs (bottom quartile).Modified duration: 0.45 yrs (upper mid).Modified duration: 0.42 yrs (top quartile).Modified duration: 0.46 yrs (bottom quartile).Modified duration: 0.45 yrs (lower mid).

Aditya Birla Sun Life Savings Fund

  • Highest AUM (₹20,228 Cr).
  • Established history (22+ yrs).
  • Top rated.
  • Risk profile: Moderately Low.
  • 1Y return: 8.07% (top quartile).
  • 1M return: 0.50% (top quartile).
  • Sharpe: 3.55 (top quartile).
  • Information ratio: 0.00 (top quartile).
  • Yield to maturity (debt): 6.72% (upper mid).
  • Modified duration: 0.49 yrs (bottom quartile).

ICICI Prudential Ultra Short Term Fund

  • Lower mid AUM (₹16,051 Cr).
  • Established history (14+ yrs).
  • Rating: 3★ (upper mid).
  • Risk profile: Moderate.
  • 1Y return: 7.55% (upper mid).
  • 1M return: 0.48% (upper mid).
  • Sharpe: 2.79 (upper mid).
  • Information ratio: 0.00 (upper mid).
  • Yield to maturity (debt): 6.79% (top quartile).
  • Modified duration: 0.45 yrs (upper mid).

SBI Magnum Ultra Short Duration Fund

  • Upper mid AUM (₹16,408 Cr).
  • Oldest track record among peers (26 yrs).
  • Rating: 3★ (lower mid).
  • Risk profile: Low.
  • 1Y return: 7.47% (lower mid).
  • 1M return: 0.47% (lower mid).
  • Sharpe: 2.74 (lower mid).
  • Information ratio: 0.00 (lower mid).
  • Yield to maturity (debt): 6.26% (bottom quartile).
  • Modified duration: 0.42 yrs (top quartile).

Invesco India Ultra Short Term Fund

  • Bottom quartile AUM (₹1,006 Cr).
  • Established history (14+ yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: Moderate.
  • 1Y return: 7.41% (bottom quartile).
  • 1M return: 0.45% (bottom quartile).
  • Sharpe: 2.72 (bottom quartile).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 6.59% (lower mid).
  • Modified duration: 0.46 yrs (bottom quartile).

Kotak Savings Fund

  • Bottom quartile AUM (₹15,527 Cr).
  • Established history (21+ yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: Moderately Low.
  • 1Y return: 7.32% (bottom quartile).
  • 1M return: 0.46% (bottom quartile).
  • Sharpe: 2.10 (bottom quartile).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 6.49% (bottom quartile).
  • Modified duration: 0.45 yrs (lower mid).

*Above is the detailed list of Liquid / Ultrashort funds having Net Assets more than 1000 Crore and have been managing funds for atleast 3 Years. Sorted based on 1 Year returns.

*Below is the detailed list of Liquid / Ultrashort funds having Net Assets more than 1000 Crore and have been managing funds for atleast 3 Years. Sorted based on last yield to maturity.

1. 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.

Research Highlights for ICICI Prudential Ultra Short Term Fund

  • Upper mid AUM (₹16,051 Cr).
  • Established history (14+ yrs).
  • Rating: 3★ (upper mid).
  • Risk profile: Moderate.
  • 1Y return: 7.55% (upper mid).
  • 1M return: 0.48% (upper mid).
  • Sharpe: 2.79 (upper mid).
  • Information ratio: 0.00 (top quartile).
  • Yield to maturity (debt): 6.79% (top quartile).
  • Modified duration: 0.45 yrs (top quartile).
  • Average maturity: 0.65 yrs (bottom quartile).
  • Exit load: 0-1 Months (0.5%),1 Months and above(NIL).
  • Top sector: Energy.
  • Top bond sector: Corporate.
  • Conservative stance with elevated cash (~49%).
  • High-quality debt (AAA/AA ~100%).
  • Largest holding 7.11% Govt Stock 2028 (~4.8%).

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 (08 Aug 25) ₹27.9186 ↑ 0.00   (0.01 %)
Net Assets (Cr) ₹16,051 on 30 Jun 25
Category Debt - Ultrashort Bond
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 0.86
Sharpe Ratio 2.79
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 6.79%
Effective Maturity 7 Months 24 Days
Modified Duration 5 Months 12 Days

Growth of 10,000 investment over the years.

DateValue
31 Jul 20₹10,000
31 Jul 21₹10,473
31 Jul 22₹10,862
31 Jul 23₹11,576
31 Jul 24₹12,411
31 Jul 25₹13,351

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 ₹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 8 Aug 25

DurationReturns
1 Month 0.5%
3 Month 1.8%
6 Month 3.9%
1 Year 7.5%
3 Year 7.1%
5 Year 6%
10 Year
15 Year
Since launch 7.5%
Historical performance (Yearly) on absolute basis
YearReturns
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
NameSinceTenure
Manish Banthia15 Nov 168.71 Yr.
Ritesh Lunawat15 Jun 178.13 Yr.

Data below for ICICI Prudential Ultra Short Term Fund as on 30 Jun 25

Asset Allocation
Asset ClassValue
Cash48.61%
Debt51.13%
Other0.26%
Debt Sector Allocation
SectorValue
Corporate57.81%
Cash Equivalent25.49%
Government16.45%
Credit Quality
RatingValue
AA18.42%
AAA81.58%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.11% Govt Stock 2028
Sovereign Bonds | -
5%₹835 Cr82,500,000
LIC Housing Finance Ltd
Debentures | -
3%₹603 Cr6,000
National Bank For Agriculture And Rural Development
Debentures | -
3%₹581 Cr57,500
↑ 10,000
182 Days Tbill
Sovereign Bonds | -
3%₹496 Cr50,000,000
National Bank For Agriculture And Rural Development
Debentures | -
2%₹377 Cr3,750
Vedanta Limited
Debentures | -
2%₹301 Cr30,000
Piramal Finance Limited
Debentures | -
2%₹275 Cr27,500
Small Industries Development Bank Of India
Debentures | -
1%₹253 Cr25,000
Larsen And Toubro Limited
Debentures | -
1%₹251 Cr25,000
LIC Housing Finance Ltd
Debentures | -
1%₹226 Cr2,250

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.

Research Highlights for Aditya Birla Sun Life Savings Fund

  • Highest AUM (₹20,228 Cr).
  • Established history (22+ yrs).
  • Top rated.
  • Risk profile: Moderately Low.
  • 1Y return: 8.07% (top quartile).
  • 1M return: 0.50% (top quartile).
  • Sharpe: 3.55 (top quartile).
  • Information ratio: 0.00 (upper mid).
  • Yield to maturity (debt): 6.72% (upper mid).
  • Modified duration: 0.49 yrs (bottom quartile).
  • Average maturity: 0.58 yrs (lower mid).
  • Exit load: NIL.
  • Higher exposure to Financial Services vs peer median.
  • Top bond sector: Corporate.
  • Conservative stance with elevated cash (~36%).
  • High-quality debt (AAA/AA ~100%).
  • Largest holding Shriram Finance Limited (~3.0%).

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 (08 Aug 25) ₹553.023 ↑ 0.11   (0.02 %)
Net Assets (Cr) ₹20,228 on 15 Jul 25
Category Debt - Ultrashort Bond
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk Moderately Low
Expense Ratio 0.54
Sharpe Ratio 3.55
Information Ratio 0
Alpha Ratio 0
Min Investment 1,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 6.72%
Effective Maturity 6 Months 29 Days
Modified Duration 5 Months 26 Days

Growth of 10,000 investment over the years.

DateValue
31 Jul 20₹10,000
31 Jul 21₹10,459
31 Jul 22₹10,860
31 Jul 23₹11,598
31 Jul 24₹12,461
31 Jul 25₹13,467

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 ₹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 8 Aug 25

DurationReturns
1 Month 0.5%
3 Month 2%
6 Month 4.1%
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
YearReturns
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
NameSinceTenure
Sunaina Cunha20 Jun 1411.12 Yr.
Kaustubh Gupta15 Jul 1114.06 Yr.
Monika Gandhi22 Mar 214.36 Yr.

Data below for Aditya Birla Sun Life Savings Fund as on 15 Jul 25

Asset Allocation
Asset ClassValue
Cash36.33%
Debt63.4%
Other0.27%
Debt Sector Allocation
SectorValue
Corporate64.44%
Cash Equivalent20.11%
Government15.18%
Credit Quality
RatingValue
AA36.06%
AAA64.07%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Shriram Finance Limited
Debentures | -
3%₹614 Cr60,000
Nirma Limited
Debentures | -
2%₹489 Cr48,500
Gujarat (Government of)
- | -
2%₹378 Cr37,500,000
Axis Bank Ltd.
Debentures | -
2%₹366 Cr7,500
↑ 500
Bharti Telecom Limited
Debentures | -
2%₹362 Cr3,600
Mankind Pharma Limited
Debentures | -
2%₹349 Cr34,500
Bharti Telecom Limited
Debentures | -
2%₹322 Cr3,200
↑ 500
National Bank For Agriculture And Rural Development
Debentures | -
2%₹317 Cr3,150
Avanse Financial Services Limited
Debentures | -
1%₹302 Cr30,000
ICICI Home Finance Company Limited
Debentures | -
1%₹270 Cr27,000

3. 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.

Research Highlights for Nippon India Ultra Short Duration Fund

  • Bottom quartile AUM (₹9,543 Cr).
  • Oldest track record among peers (23 yrs).
  • Rating: 2★ (bottom quartile).
  • Risk profile: Low.
  • 1Y return: 7.29% (bottom quartile).
  • 1M return: 0.47% (lower mid).
  • Sharpe: 2.26 (bottom quartile).
  • Information ratio: 0.00 (lower mid).
  • Yield to maturity (debt): 6.71% (lower mid).
  • Modified duration: 0.45 yrs (lower mid).
  • Average maturity: 0.66 yrs (bottom quartile).
  • Exit load: NIL.
  • Top sector: Financial Services.
  • Top bond sector: Corporate.
  • Conservative stance with elevated cash (~47%).
  • High-quality debt (AAA/AA ~100%).
  • Largest holding Bank of India Ltd. (~5.0%).

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 (08 Aug 25) ₹4,058.29 ↑ 0.53   (0.01 %)
Net Assets (Cr) ₹9,543 on 30 Jun 25
Category Debt - Ultrashort Bond
AMC Nippon Life Asset Management Ltd.
Rating
Risk Low
Expense Ratio 1.14
Sharpe Ratio 2.26
Information Ratio 0
Alpha Ratio 0
Min Investment 100
Min SIP Investment 100
Exit Load NIL
Yield to Maturity 6.71%
Effective Maturity 7 Months 29 Days
Modified Duration 5 Months 14 Days

Growth of 10,000 investment over the years.

DateValue
31 Jul 20₹10,000
31 Jul 21₹10,943
31 Jul 22₹11,358
31 Jul 23₹12,082
31 Jul 24₹12,928
31 Jul 25₹13,871

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 ₹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 8 Aug 25

DurationReturns
1 Month 0.5%
3 Month 1.7%
6 Month 3.7%
1 Year 7.3%
3 Year 6.9%
5 Year 6.8%
10 Year
15 Year
Since launch 6.1%
Historical performance (Yearly) on absolute basis
YearReturns
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
NameSinceTenure
Vivek Sharma1 Oct 1311.84 Yr.
Kinjal Desai25 May 187.19 Yr.
Akshay Sharma1 Dec 222.67 Yr.

Data below for Nippon India Ultra Short Duration Fund as on 30 Jun 25

Asset Allocation
Asset ClassValue
Cash46.67%
Debt53.05%
Other0.28%
Debt Sector Allocation
SectorValue
Corporate60.71%
Cash Equivalent27.11%
Government11.9%
Credit Quality
RatingValue
AA15.55%
AAA84.45%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Bank of India Ltd.
Debentures | -
5%₹495 Cr10,000
National Bank For Agriculture And Rural Development
Debentures | -
5%₹453 Cr45,000
Power Finance Corporation Limited
Debentures | -
4%₹353 Cr35,000
↑ 17,500
182 Days Tbill
Sovereign Bonds | -
3%₹248 Cr25,000,000
Vedanta Limited
Debentures | -
2%₹242 Cr24,000
LIQUID GOLD SERIES 10
Unlisted bonds | -
2%₹206 Cr82
National Bank For Agriculture And Rural Development
Debentures | -
2%₹202 Cr20,000
Small Industries Development Bank Of India
Debentures | -
2%₹201 Cr2,000
182 Days Tbill
Sovereign Bonds | -
2%₹198 Cr20,000,000
Piramal Finance Limited
Debentures | -
2%₹195 Cr19,500
↑ 9,500

4. 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.

Research Highlights for Invesco India Ultra Short Term Fund

  • Bottom quartile AUM (₹1,006 Cr).
  • Established history (14+ yrs).
  • Rating: 3★ (lower mid).
  • Risk profile: Moderate.
  • 1Y return: 7.41% (lower mid).
  • 1M return: 0.45% (bottom quartile).
  • Sharpe: 2.72 (lower mid).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 6.59% (bottom quartile).
  • Modified duration: 0.46 yrs (bottom quartile).
  • Average maturity: 0.48 yrs (upper mid).
  • Exit load: NIL.
  • Top bond sector: Corporate.
  • Conservative stance with elevated cash (~51%).
  • High-quality debt (AAA/AA ~100%).
  • Largest holding India (Republic of) (~4.4%).

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 (08 Aug 25) ₹2,717.28 ↑ 0.32   (0.01 %)
Net Assets (Cr) ₹1,006 on 30 Jun 25
Category Debt - Ultrashort Bond
AMC Invesco Asset Management (India) Private Ltd
Rating
Risk Moderate
Expense Ratio 0.74
Sharpe Ratio 2.72
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.

DateValue
31 Jul 20₹10,000
31 Jul 21₹10,318
31 Jul 22₹10,639
31 Jul 23₹11,299
31 Jul 24₹12,109
31 Jul 25₹13,009

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 ₹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 8 Aug 25

DurationReturns
1 Month 0.5%
3 Month 1.7%
6 Month 3.8%
1 Year 7.4%
3 Year 6.9%
5 Year 5.4%
10 Year
15 Year
Since launch 7.1%
Historical performance (Yearly) on absolute basis
YearReturns
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
NameSinceTenure
Krishna Cheemalapati4 Jan 205.58 Yr.
Vikas Garg27 Jul 214.02 Yr.

Data below for Invesco India Ultra Short Term Fund as on 30 Jun 25

Asset Allocation
Asset ClassValue
Cash50.52%
Debt49.13%
Other0.35%
Debt Sector Allocation
SectorValue
Corporate60.06%
Cash Equivalent28.53%
Government11.06%
Credit Quality
RatingValue
AA24.4%
AAA75.6%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
India (Republic of)
- | -
4%₹49 Cr5,000,000
India (Republic of)
- | -
4%₹49 Cr5,000,000
↑ 5,000,000
Summit Digitel Infrastructure Limited
Debentures | -
4%₹40 Cr4,000,000
↑ 2,500,000
Power Finance Corporation Limited
Debentures | -
2%₹25 Cr2,500,000
↑ 2,500,000
Rural Electrification Corporation Limited
Debentures | -
2%₹25 Cr2,500,000
↑ 2,500,000
ICICI Home Finance Company Limited
Debentures | -
2%₹25 Cr2,500,000
↑ 2,500,000
Cholamandalam Investment And Finance Company Limited
Debentures | -
2%₹25 Cr2,500,000
TATA Projects Limited
Debentures | -
2%₹25 Cr2,500,000
Torrent Power Limited
Debentures | -
2%₹25 Cr2,500,000
Godrej Industries Limited
Debentures | -
2%₹25 Cr2,500,000

5. 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.

Research Highlights for Kotak Savings Fund

  • Lower mid AUM (₹15,527 Cr).
  • Established history (21+ yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: Moderately Low.
  • 1Y return: 7.32% (bottom quartile).
  • 1M return: 0.46% (bottom quartile).
  • Sharpe: 2.10 (bottom quartile).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 6.49% (bottom quartile).
  • Modified duration: 0.45 yrs (upper mid).
  • Average maturity: 0.47 yrs (top quartile).
  • Exit load: NIL.
  • Higher exposure to Financial Services vs peer median.
  • Top bond sector: Corporate.
  • Conservative stance with elevated cash (~59%).
  • High-quality debt (AAA/AA ~99%).
  • Largest holding 8.2% Govt Stock 2025 (~5.0%).

Below is the key information for Kotak Savings Fund

Kotak Savings Fund
Growth
Launch Date 13 Aug 04
NAV (08 Aug 25) ₹43.2017 ↑ 0.01   (0.02 %)
Net Assets (Cr) ₹15,527 on 30 Jun 25
Category Debt - Ultrashort Bond
AMC Kotak Mahindra Asset Management Co Ltd
Rating
Risk Moderately Low
Expense Ratio 0.8
Sharpe Ratio 2.1
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 6.49%
Effective Maturity 5 Months 19 Days
Modified Duration 5 Months 12 Days

Growth of 10,000 investment over the years.

DateValue
31 Jul 20₹10,000
31 Jul 21₹10,357
31 Jul 22₹10,712
31 Jul 23₹11,406
31 Jul 24₹12,203
31 Jul 25₹13,100

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 ₹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 8 Aug 25

DurationReturns
1 Month 0.5%
3 Month 1.8%
6 Month 3.8%
1 Year 7.3%
3 Year 6.9%
5 Year 5.6%
10 Year
15 Year
Since launch 7.2%
Historical performance (Yearly) on absolute basis
YearReturns
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
NameSinceTenure
Deepak Agrawal15 Apr 0817.31 Yr.
Manu Sharma1 Nov 222.75 Yr.

Data below for Kotak Savings Fund as on 30 Jun 25

Asset Allocation
Asset ClassValue
Cash58.64%
Debt41.09%
Other0.28%
Debt Sector Allocation
SectorValue
Corporate59.25%
Cash Equivalent23.38%
Government17.09%
Credit Quality
RatingValue
AA7.9%
AAA90.97%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
8.2% Govt Stock 2025
Sovereign Bonds | -
5%₹804 Cr80,000,000
Bajaj Housing Finance Limited
Debentures | -
4%₹648 Cr6,420
National Bank For Agriculture And Rural Development
Debentures | -
4%₹615 Cr61,000
↑ 5,000
Rec Limited
Debentures | -
3%₹478 Cr47,500
Mankind Pharma Limited
Debentures | -
2%₹303 Cr30,000
364 DTB 19mar2026
Sovereign Bonds | -
1%₹241 Cr25,000,000
India (Republic of)
- | -
1%₹239 Cr25,000,000
Bharti Telecom Limited
Debentures | -
1%₹226 Cr2,250
08.49 Tn SDL 2026
Sovereign Bonds | -
1%₹204 Cr20,080,000
Vedanta Limited
Debentures | -
1%₹202 Cr20,000

Conclusion

To conclude, it can be said that both ultra short term funds and liquid funds have their own set of characteristics. However, people while choosing any scheme should check and ensure whether the scheme is in-line with their determined objective. They should also check the modalities of the scheme completely. Moreover, they may even consult a financial advisor if required to ensure that their investment helps them to attain their desired objectives.

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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Harsh, posted on 3 Dec 18 1:27 AM

Great alternative for FD - Fixed Deposit Investment. Nice article explains each fund very well.

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