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Ultra Short Duration Mutual Funds

Find here some best Ultra Short Duration fund to invest

  • Annual Returns 6.04%
  • Average Risk Low
  • Total Funds 28

What is Ultra Short Duration Mutual Fund?

Ultra Short Duration Funds, as the name suggests, invest in fixed-income instruments which have short-term maturities. They can invest in securities with residual maturity period of less than 3-months to 1-year, although average maturity of the instruments should not be greater than 91 days. Ultra Short-term Funds help in avoiding interest rate risks and produce better yield than money market instruments. The income earned from this fund is the interest of underlying instruments.

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Top Performing Ultra Short Duration in India for High Return

AMC List

  • Kotak
  • Aditya Birla Sun Life
  • ICICI
  • Tata
  • HDFC
  • SBI
  • UTI
  • Nippon
  • Sundaram
  • Canara
  • Invesco
  • Axis
  • Baroda BNP Paribas
  • DSP
  • EDELWEISS
  • Franklin
  • HSBC
  • LIC
  • Mirae Asset
  • Motilal Oswal
  • Mahindra
  • PGIM
  • WOC
  • Bandhan
  • 360 One
  • Bajaj Finserv
  • Quant
  • Parag Parikh
  • ITI

Minimum SIP Amt.

  • ₹100 - ₹500
  • ₹500 - ₹1000
  • ₹1000 - ₹5000

Fund Option

  • Growth
  • Dividend
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Snapshot

Returns

Risk

Information

NAV Details

Compare Funds

Lumpsum 3Y P.a 6.39%
SIP 3Y P.a. 7.12%
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Lumpsum 3Y P.a 6.39%
SIP 3Y P.a. 7.12%
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Lumpsum 3Y P.a 6.38%
SIP 3Y P.a. 7.03%
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Lumpsum 3Y P.a 6.3%
SIP 3Y P.a. 7.03%
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Lumpsum 3Y P.a 6.15%
SIP 3Y P.a. 6.85%
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Lumpsum 3Y P.a 6.15%
SIP 3Y P.a. 6.86%
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Lumpsum 3Y P.a 6.12%
SIP 3Y P.a. 6.86%
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Lumpsum 3Y P.a 6.12%
SIP 3Y P.a. 6.85%
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Lumpsum 3Y P.a 6.11%
SIP 3Y P.a. 6.85%
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Lumpsum 3Y P.a 6.03%
SIP 3Y P.a. 6.65%
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Short Term

Long Term

SIP

Rolling Term

1 Week 0.13%
1 Month 0.64%
3 Months 1.92%
6 Months 3.81%
1 Year 7.73%
Invest
1 Week 0.13%
1 Month 0.64%
3 Months 1.92%
6 Months 3.81%
1 Year 7.73%
Invest
1 Week 0.12%
1 Month 0.57%
3 Months 1.82%
6 Months 3.71%
1 Year 7.47%
Invest
1 Week 0.13%
1 Month 0.6%
3 Months 1.85%
6 Months 3.8%
1 Year 7.65%
Invest
1 Week 0.11%
1 Month 0.58%
3 Months 1.78%
6 Months 3.63%
1 Year 7.45%
Invest
1 Week 0.11%
1 Month 0.57%
3 Months 1.78%
6 Months 3.66%
1 Year 7.42%
Invest
1 Week 0.11%
1 Month 0.57%
3 Months 1.79%
6 Months 3.65%
1 Year 7.43%
Invest
1 Week 0.11%
1 Month 0.57%
3 Months 1.78%
6 Months 3.66%
1 Year 7.44%
Invest
1 Week 0.12%
1 Month 0.57%
3 Months 1.8%
6 Months 3.68%
1 Year 7.45%
Invest
1 Week 0.13%
1 Month 0.55%
3 Months 1.76%
6 Months 3.53%
1 Year 7.15%
Invest
2 Years 7.43%
3 Years 6.39%
5 Years 6.08%
Annual Rt 7.3%
Invest
2 Years 7.43%
3 Years 6.39%
5 Years 6.08%
Annual Rt 7.4%
Invest
2 Years 7.34%
3 Years 6.38%
5 Years 5.62%
Annual Rt 6.12%
Invest
2 Years 7.35%
3 Years 6.3%
5 Years -
Annual Rt 5.43%
Invest
2 Years 7.17%
3 Years 6.15%
5 Years 5.9%
Annual Rt 7.45%
Invest
2 Years 7.19%
3 Years 6.15%
5 Years -
Annual Rt 5.41%
Invest
2 Years 7.22%
3 Years 6.12%
5 Years 5.51%
Annual Rt 6.04%
Invest
2 Years 7.17%
3 Years 6.12%
5 Years 5.71%
Annual Rt 6.16%
Invest
2 Years 7.2%
3 Years 6.11%
5 Years 5.58%
Annual Rt 7.07%
Invest
2 Years 6.95%
3 Years 6.03%
5 Years 6.25%
Annual Rt 6.05%
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Min SIP ₹1000
Min Lumpsum ₹5000
Expense Ratio 0.55%
Fund Manager Sunaina da Cunha
Launch Date 27-Nov 2001
Invest
Min SIP ₹1000
Min Lumpsum ₹1000
Expense Ratio 0.55%
Fund Manager Sunaina da Cunha
Launch Date 27-Nov 2001
Invest
Min SIP ₹500
Min Lumpsum ₹5000
Expense Ratio 0.48%
Fund Manager Mayank Prakash
Launch Date 29-May 2018
Invest
Min SIP ₹1000
Min Lumpsum ₹5000
Expense Ratio 0.49%
Fund Manager Basant Bafna
Launch Date 05-Oct 2020
Invest
Min SIP ₹1000
Min Lumpsum ₹5000
Expense Ratio 0.82%
Fund Manager Manish Banthia
Launch Date 01-May 2011
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Min SIP ₹1000
Min Lumpsum ₹5000
Expense Ratio 0.47%
Fund Manager Mahesh A Chhabria
Launch Date 29-Jan 2020
Invest
Min SIP ₹100
Min Lumpsum ₹100
Expense Ratio 0.46%
Fund Manager Harshal Joshi
Launch Date 01-Jul 2018
Invest
Min SIP ₹100
Min Lumpsum ₹100
Expense Ratio 0.69%
Fund Manager Anil Bamboli
Launch Date 05-Sep 2018
Invest
Min SIP ₹500
Min Lumpsum ₹5000
Expense Ratio 0.54%
Fund Manager R Arun
Launch Date 21-May 1999
Invest
Min SIP ₹100
Min Lumpsum ₹100
Expense Ratio 1.13%
Fund Manager Vivek Sharma
Launch Date 07-Dec 2001
Invest
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Comparison of Top Ultra Short Duration Funds

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  • Invested Amount ₹43,855
  • Interest Earned ₹6,145

Ultra-Short Term Debt Funds are the Perfect Answer to Volatile Market

Are you having surplus money and want to gain maximum profit out of it? Are you worried about the market volatility? Put all your tensions aside. Now, you have the perfect solution to all your questions. Ultra-Short Term Debt Funds provide the benefit of investing in the fixed-income instruments and for a short-period. There is no lock-in period which makes it more popular among the short-term investors. The Ultra-Short Term Debt Fund invests in bonds and securities of corporate as well as government organizations. The maturity period of Ultra-Short Term Debt Fund is above 91 days.

The interest rate and the bond prices are inversely proportionate to each other. As the rate of interest rises the bond value falls and vise-versa. Thus, the best time to invest in Ultra-Short Term Debt Fund is when the interest rates are low. 

Benefits of investing in Ultra Short Term Debt Fund

There are following benefits of investing in the Ultra-Short Term Debt Funds:

  • Increased returns: When you invest in Ultra-Short Term Debt Fund you get much increased returns as compared to any other bank deposit schemes. Where the interest on savings bank account is 3-4%, the return on Ultra-Short Term Debt Fund amounts to 8-10% approximately. So, within the tenure of a little more than 91 days you are getting a fairly good rate of return than any other short-term scheme.
  • Reduced time-period: In Ultra-Short Term Debt Fund the time period of investment is within one year. So, the investors who want to invest for a relatively shorter period can make a good return on their investments. For example, Mohan has got a surplus of Rs. 50,000 due to the maturity of a fixed deposit. Now, he wants that money to be invested in a scheme for a period less than one year. He knows equity is not an appropriate option for him because equity-oriented schemes give returns over a long period of time. He also doesn’t want to keep his money in the bank account. Here, Ultra-Short Term Debt Fund is a good option for Mohan as the period of investment is short and the returns are phenomenal. So, Ultra-Short Term Debt Fund caters to both the needs of Mohan at the same time.

Thus, Ultra-Short Term Debt Fund can prove to be a better option for short-term investors. Our experts recommend Ultra-Short Term Debt Fund for those who want secured investment for a short period of time. There is advantage of choosing various mutual fund schemes and also calculate your returns with the help of sip calculator.

Frequently Asked Questions

Who should invest in Ultra Short Duration Mutual Funds?
Ultra Short Duration funds are suitable for the investors who can digest high risk in search for higher returns. Moreover, these funds are not suitable for the investors who are stepping in the finance market with a short term investment perspective as they might end up delivering negative returns.
What is the minimum investment required for investing in Ultra Short Duration funds?
The minimum investment depends from one scheme to another. In general, for lumpsum investment the minimum investment can range from Rs. 500 to Rs. 5000. Whereas, in case of SIP, the range may vary between Rs. 500 to Rs. 1000. For authentic information, never forget to check the scheme related documents.
What is the investment philosophy followed by Ultra Short Duration companies?
The fund manager of Ultra Short Duration fund targets the best small sized companies having the potential to generate excellent gains in the future. Such companies do not have much resources as the large cap or mid cap companies but have high potential to outperform many big companies.
Why to invest in Ultra Short Duration funds?
Ultra Short Duration funds have more tendency of providing exceptional returns than the other categories of funds. Moreover, they can also be a suitable option for providing diversification to your portfolio.
How risky are Ultra Short Duration funds?
Ultra Short Duration funds are one of the riskiest mutual funds. But at the same time rewards are also high. Therefore, an investor who is willing to expose his corpus towards risk for fetching higher returns should invest in Ultra Short Duration funds.
Are Ultra Short Duration Funds for long term investment?
Yes, Ultra Short Duration funds are a suitable choice for generating long term capital appreciation. Moreover, in short term these funds can cause double digit losses to the investors. Thus, always maintain a long term investment perspective while investing in Ultra Short Duration mutual funds.
What is the benchmark of Ultra Short Duration Fund?
Benchmark is a standard with which a mutual fund competes in terms of growth & performance. Different Ultra Short Duration funds have different benchmark. Thus, read the mutual fund document carefully to know the benchmark.
What are the taxes applied on Ultra Short Duration Mutual Funds?
Ultra Short Duration funds are eligible for two types of taxes- STCG (Short Term Capital Gain) and LTCG (Long Term Capital Gain). STCG is the capital gain generated on the units which are hold for up to 1 year. The STCG tax imposed by the Government of India is 15%. LTCG is the profit generated on the units which are hold for more than one years. The LTCG levied is 10% for the profit above Rs. 1 Lakh.

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