List Of Best Mutual Funds For Short Term For 1 Year English

List Of Best Mutual Funds For Short Term For 1 Year

The table below shows based on the List Of Best Mutual Funds For the Short Term For 1 Year AUM, NAV, and minimum SIP.

NameAUM (Cr)NAVMinimum SIP
ICICI Pru Short Term Fund16875.6859.115000.00
HDFC Short Term Debt Fund12914.9929.78100.00
Kotak Savings Fund12814.1741.13100.00
Aditya Birla SL Savings Fund12705.36509.271000.00
HDFC Ultra Short Term Fund12660.7914.175000.00
ICICI Pru Ultra Short Term Fund Fund12179.8427.39500.00
SBI Magnum Ultra Short Duration Fund9017.675571.801500.00
Nippon India Short Term Fund5986.4951.545000.00
Nippon India Ultra Short Duration Fund4332.444055.101500.00
Axis Ultra Short Term Fund4063.9914.281000.00

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Short Term Mutual Funds Meaning

Short-term mutual funds are investment vehicles that typically invest in securities with a maturity period of one year or less. These funds aim to offer investors liquidity and lower risk compared to long-term investment options.

These funds predominantly invest in debt instruments like treasury bills, commercial papers, and certificates of deposit, which are considered safer and less volatile. Investors benefit from steady returns and quick access to their money, making these funds ideal for emergency funds or short-term financial goals.

The focus of short-term mutual funds on lower-risk securities means they are particularly suitable for conservative investors or those nearing a financial goal. They provide a balance between maintaining capital safety and earning moderate returns, making them an appealing choice for cautious investors.

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Best Mutual Fund For Short Term For 1 Year In India

The table below shows based on Best Mutual Fund For Short Term For 1 Year In India the lowest to highest expense ratio.

NameExpense RatioMinimum SIP
ITI Ultra Short Duration Fund0.10500.00
HSBC Ultra Short Duration Fund0.221500.00
Mirae Asset Ultra Short Duration Fund0.22100.00
Sundaram Ultra Short Duration Fund0.24100.00
Invesco India Ultra Short Duration Fund0.241000.00
PGIM India Ultra Short Duration Fund0.261000.00
Bandhan Ultra Short Term Fund0.27100.00
Mahindra Manulife Ultra Short Duration Fund0.28100.00
Axis Ultra Short Term Fund0.291000.00
Mahindra Manulife Short Duration Fund0.291500.00

Mutual Fund For Short Term For 1 Year

The table below shows based on Mutual Fund For Short Term For 1 Year the Highest 3Y CAGR. 

NameCAGR 3Y %Minimum SIP
UTI Short Duration Fund7.64500.00
Nippon India Ultra Short Duration Fund7.551500.00
UTI Ultra Short Duration Fund6.72500.00
ICICI Pru Short Term Fund6.575000.00
ICICI Pru Ultra Short Term Fund Fund6.07500.00
Nippon India Short Term Fund6.005000.00
Axis Ultra Short Term Fund5.981000.00
Aditya Birla SL Savings Fund5.961000.00
HDFC Short Term Debt Fund5.90100.00
Baroda BNP Paribas Ultra Short Duration Fund5.89100.00

Best Mutual Fund For Short Term For 1 Year

The table below shows based on Best Mutual Fund For Short Term For 1 Year exit load, i.e., the fee that the AMC charges investors when they exit or redeem their fund units.

NameAMCExit Load
Mahindra Manulife Short Duration FundMahindra Manulife Investment Management Private Limited0.00
UTI Short Duration FundUTI Asset Management Company Private Limited0.00
Nippon India Short Term FundNippon Life India Asset Management Limited0.00
ICICI Pru Short Term FundICICI Prudential Asset Management Company Limited0.00
HDFC Short Term Debt FundHDFC Asset Management Company Limited0.00
Aditya Birla SL Savings FundAditya Birla Sun Life AMC Limited0.00
Nippon India Ultra Short Duration FundNippon Life India Asset Management Limited0.00
ICICI Pru Ultra Short Term Fund FundICICI Prudential Asset Management Company Limited0.00
Axis Ultra Short Term FundAxis Asset Management Company Ltd.0.00
Baroda BNP Paribas Short Duration FundBaroda BNP Paribas Asset Management India Pvt. Ltd.0.00

Mutual Funds For Short Term For 1 Year

The table below shows based on Mutual Funds For Short Term For 1 Year Absolute 1 Year Return and AMC.

NameAMCAbsolute Returns – 1Y %
ICICI Pru Short Term FundICICI Prudential Asset Management Company Limited7.84
Nippon India Ultra Short Duration FundNippon Life India Asset Management Limited7.73
Aditya Birla SL Savings FundAditya Birla Sun Life AMC Limited7.70
UTI Short Duration FundUTI Asset Management Company Private Limited7.66
ICICI Pru Ultra Short Term Fund FundICICI Prudential Asset Management Company Limited7.64
Axis Ultra Short Term FundAxis Asset Management Company Ltd.7.63
DSP Ultra Short FundDSP Investment Managers Private Limited7.62
Tata Ultra Short Term FundTata Asset Management Private Limited7.61
Mirae Asset Ultra Short Duration FundMirae Asset Investment Managers (India) Private Limited7.60
UTI Ultra Short Duration FundUTI Asset Management Company Private Limited7.53

Who Should Invest In  Best Mutual Funds For 1 Year in the Short Term?

Individuals looking for a safe parking space for their funds with a horizon of one year should consider investing in the best short-term mutual funds. These are ideal for investors seeking better returns than traditional savings with manageable risk levels.

How To Invest in Mutual Funds For A Short Term For 1 Year?

To invest in mutual funds for a short term of one year, start by assessing your risk tolerance and financial goals. Choose a reputable broker or financial platform, select mutual funds that specialize in short-term investments, such as liquid or ultra-short-term debt funds, and allocate funds accordingly.

Performance Metrics Of Mutual Funds For Short Term For 1 Year

For a short-term period of one year, mutual funds primarily focus on safety and liquidity. Metrics such as yield to maturity (YTM) and average maturity are important for gauging potential returns and the risk level of debt-oriented funds.

Performance metrics for mutual funds over one year also include the Sharpe ratio and alpha, which indicate risk-adjusted returns and the fund manager’s ability to generate excess returns, respectively. These indicators help investors evaluate the effectiveness of the fund management team and the fund’s overall performance stability.

Benefits of Investing in Best Mutual Funds For Short Term For 1 Year

The main benefits of investing in the best mutual funds for a short term of one year include enhanced liquidity, lower risk, and potentially higher returns compared to traditional savings accounts.

  • Enhanced Liquidity: Short-term mutual funds typically offer high liquidity, meaning you can easily withdraw your investment without significant penalties. This is particularly useful for investors who might need quick access to their funds due to unforeseen circumstances.
  • Lower Risk: These funds generally invest in instruments with shorter maturities, which are less exposed to the volatility of the stock market. This makes them a safer option for conservative investors looking to preserve capital while earning returns.
  • Flexible Investment Options: Investors have the flexibility to choose from a variety of funds based on their risk tolerance and financial goals. Whether it’s ultra-short-term debt funds or money market funds, there is a range of products suitable for short-term investment.
  • Potential for Better Returns: Compared to traditional savings mechanisms like bank fixed deposits, short-term mutual funds often offer better potential returns. These returns are achieved through a diversified portfolio of high-quality debt instruments.
  • Tax Efficiency: Certain short-term mutual funds, like debt funds, offer tax benefits over other investment options such as fixed deposits, especially when held for more than three years, due to indexation benefits. However, even for shorter durations, the tax treatment can be more favorable than interest income from a savings account.

Challenges Of Investing In Mutual Funds For Short Term For 1 Year

The main challenges of investing in mutual funds for a short term of one year include managing lower returns, facing exit loads, and dealing with market volatility.

  • Lower Returns: Short-term mutual funds generally offer lower returns compared to long-term investments due to their conservative investing strategies and focus on lower-risk securities. This may not appeal to investors seeking high growth.
  • Exit Loads: Some short-term mutual funds impose exit loads, which are fees charged for withdrawing funds before a certain period. This can eat into the profits, especially if the investment is withdrawn prematurely.
  • Interest Rate Sensitivity: Funds invested in debt instruments are sensitive to changes in interest rates. A rise in interest rates can lead to a decrease in the value of existing bonds within the fund, affecting the overall return.
  • Limited Growth Opportunities: By focusing on safety and liquidity, short-term funds often miss out on higher growth opportunities available in equity or longer-duration debt markets. This conservative approach limits the potential for significant capital appreciation.
  • Market Volatility: Even short-term investments can be affected by economic and geopolitical events, leading to potential volatility. While generally less than long-term equity investments, short-term funds can still experience fluctuations that impact returns.

Introduction to List Of Best Mutual Funds For Short Term For 1 Year

List Of Best Mutual Funds For Short Term For 1 Year – AUM, NAV.

ICICI Pru Short Term Fund

ICICI Prudential Short Term Fund Direct Plan Growth is a Debt Mutual Fund Scheme launched by ICICI Prudential Mutual Fund. This scheme was made available to investors on 12 Oct 1993.

ICICI Pru Short Term Fund, classified as a Short Duration Fund, holds assets under management (AUM) totaling ₹16875.68 crore. Over the past five years, it has achieved a compound annual growth rate (CAGR) of 7.92%. The exit load is 0%, and the expense ratio stands at 0.45%. This fund falls under the SEBI risk category of Moderate. The fund’s asset allocation is 99.81% in debt securities, with equity comprising a negligible percentage, and other assets representing a minor 0.19% allocation.

HDFC Short Term Debt Fund

HDFC Short Term Debt Fund Direct Plan-Growth is a Debt Mutual Fund Scheme launched by HDFC Mutual Fund. This scheme was made available to investors on 10 Dec 1999. 

HDFC Short Term Debt Fund, categorized as a Short Duration Fund, manages assets totaling ₹12914.99 crore. Over the last five years, it has achieved a compound annual growth rate (CAGR) of 7.37%. The fund does not impose an exit load, and its expense ratio is 0.37%. This fund falls under the SEBI risk category of Moderate. The fund’s asset allocation consists of 96.86% in debt securities, with a minor 3.14% allocation to other asset classes, while equity holdings represent an insignificant portion.

Kotak Savings Fund

Kotak Equity Savings Fund Direct Growth is a Hybrid Mutual Fund Scheme launched by Kotak Mahindra Mutual Fund. This scheme was made available to investors on 05 Aug 1994.

Kotak Savings Fund, categorized as an Ultra Short Duration Fund, manages assets worth ₹12814.17 crore. Over the past five years, it has achieved a compound annual growth rate (CAGR) of 6.05%. The fund imposes no exit load, and its expense ratio stands at 0.37%. This fund falls under the SEBI risk category of Moderately Low. The fund’s asset allocation consists entirely of debt securities, with no allocation to other asset classes such as equity. There is a 0% allocation to other categories.

Best Mutual Fund For Short Term For 1 Year In India – Expense Ratio

ITI Ultra Short Duration Fund

ITI Ultra Short Duration Fund Direct-Growth is a Debt Mutual Fund Scheme launched by ITI Mutual Fund. This scheme was made available to investors on 14 May 2018.

The ITI Ultra Short Duration Fund, classified as an Ultra Short Duration Fund, manages assets totaling ₹146.86 crore. Over the past five years, it has maintained a stable performance with a CAGR of 0%. There is no exit load, and the expense ratio stands at 0.10%. This fund belongs to the Moderately Low SEBI risk category. The fund primarily allocates 80.88% of its assets to debt securities, with a significant portion, 19.12%, dedicated to other asset classes, while equity holdings represent a negligible portion.

HSBC Ultra Short Duration Fund

HSBC Ultra Short Duration Fund Direct-Growth is a Debt Mutual Fund Scheme launched by HSBC Mutual Fund. This scheme was made available to investors on 27 May 2002.

The HSBC Ultra Short Duration Fund, categorized as an Ultra Short Duration Fund, manages assets totaling ₹2100.02 crore. Over the past five years, it has maintained a stable performance with a CAGR of 0%. There is no exit load, and the expense ratio stands at 0.22%. This fund belongs to the Moderately Low SEBI risk category. The fund predominantly allocates 96.9% of its assets to debt securities, with a minor 3.1% dedicated to other asset classes, while equity holdings constitute a negligible percentage.

Mirae Asset Ultra Short Duration Fund

Mirae Asset Ultra Short Duration Fund Direct-Growth is a Debt Mutual Fund Scheme launched by Mirae Asset Mutual Fund. This scheme was made available to investors on 30 Nov 2007.

The Mirae Asset Ultra Short Duration Fund, classified as an Ultra Short Duration Fund, manages assets totaling ₹1003.21 crore. Over the past five years, it has maintained a stable performance with a CAGR of 0%. There is no exit load, and the expense ratio stands at 0.22%. This fund belongs to the Moderately Low SEBI risk category. The fund primarily allocates 95.11% of its assets to debt securities, with a minor 4.89% allocated to other asset classes, while equity holdings represent an insignificant portion.

Mutual Fund For Short Term For 1 Year – Highest 3Y CAGR

UTI Short Duration Fund

UTI Short Duration Direct-Growth is a Debt Mutual Fund Scheme launched by UTI Mutual Fund. This scheme was made available to investors on 14 Nov 2002. 

UTI Short Duration Fund, classified as a Short Duration Fund, manages assets worth ₹2689.14 crore. Over the past five years, it has achieved a compound annual growth rate (CAGR) of 5.66%. The fund does not impose an exit load, and its expense ratio is 0.37%. This fund falls under the SEBI risk category of Moderate. The fund predominantly allocates 95.47% of its assets to debt securities, with a minor 4.53% dedicated to Other, while equity holdings represent an insignificant portion.

Nippon India Ultra Short Duration Fund

Nippon India Ultra Short Duration Fund Direct-Growth is a Debt Mutual Fund Scheme launched by Nippon India Mutual Fund. This scheme was made available to investors on 30 Jun 1995.

The Nippon India Ultra Short Duration Fund, classified as an Ultra Short Duration Fund, manages assets worth ₹4332.44 crore. Over the past five years, it has achieved a compound annual growth rate (CAGR) of 5.71%. The fund imposes no exit load, and its expense ratio stands at 0.38%. This fund falls under the SEBI risk category of Moderate. The fund’s asset allocation is entirely in debt securities, with no allocation to other asset classes. There is a 0% allocation to categories outside of debt.

UTI Ultra Short Duration Fund

UTI Ultra Short Duration Fund Direct-Growth is a Debt Mutual Fund Scheme launched by UTI Mutual Fund. This scheme was made available to investors on 14 Nov 2002. 

The UTI Ultra Short Duration Fund, categorized as an Ultra Short Duration Fund, manages assets totaling ₹2196.92 crore. Over the past five years, it has achieved a compound annual growth rate (CAGR) of 5.70%. The fund imposes no exit load, and its expense ratio is 0.43%. This fund falls under the SEBI risk category of Moderate. The fund primarily allocates 93.12% of its assets to debt securities, with a minor 6.88% allocated to other asset classes, while equity holdings represent an insignificant portion.

Best Mutual Fund For Short Term For 1 Year – Exit Load

Mahindra Manulife Short Duration Fund

Mahindra Manulife Short Duration Fund Direct Growth is a Debt Mutual Fund Scheme launched by Mahindra Mutual Fund. This scheme was made available to investors on 04 Feb 2016.

The Mahindra Manulife Short Duration Fund, categorized as a Short Duration Fund, currently manages an AUM (Assets Under Management) of ₹47.83 Crore. Over the past five years, it has maintained a CAGR (Compound Annual Growth Rate) of 0%. There is no exit load for investors. The expense ratio stands at 0.29%, ensuring cost-effectiveness. Additionally, the fund falls into the Moderate risk category according to the SEBI classification. This fund’s asset allocation comprises 0% in Equity, 93.32% in Debt, and 6.68% in Other. It indicates a predominant focus on debt securities with a smaller portion allocated to other assets.

Nippon India Short Term Fund

Nippon India Short Term Fund Direct Growth is a Debt Mutual Fund Scheme launched by Nippon India Mutual Fund. This scheme was made available to investors on 30 June 1995. 

The Nippon India Short Term Fund, categorized as a Short Duration Fund, currently manages an AUM (Assets Under Management) of ₹5986.49 Crore. Over the past five years, it has achieved a CAGR (Compound Annual Growth Rate) of 7.38%. Investors can redeem without any exit load, providing flexibility. The expense ratio stands at 0.37%, ensuring cost-effectiveness. Additionally, the fund falls into the Moderate risk category according to the SEBI classification. The fund allocates assets as follows: 0% in Equity, 92.85% in Debt, and 7.15% in Other. This suggests a strong emphasis on debt securities, with a smaller allocation to other asset classes.

Baroda BNP Paribas Short Duration Fund

Baroda BNP Paribas Short Duration Direct Fund Growth is a Debt Mutual Fund Scheme launched by Baroda Mutual Fund. This scheme was made available to investors on 24 Nov 1994.

The Baroda BNP Paribas Short Duration Fund, categorized as a Short Duration Fund, currently manages an AUM (Assets Under Management) of ₹219.29 Crore. Over the past five years, it has achieved a CAGR (Compound Annual Growth Rate) of 6.70%. Investors can redeem without any exit load, providing flexibility. The expense ratio stands at 0.38%, ensuring cost-effectiveness. Additionally, the fund falls into the Moderate risk category according to the SEBI classification. This fund’s asset distribution includes 0% in Equity, 93.23% in Debt, and 6.77% in Other. It indicates a primary focus on debt instruments, with a minor allocation to other assets.

Mutual Funds For Short Term For 1 Year – 1 Year Return

Aditya Birla SL Savings Fund

Aditya Birla Sun Life Savings Direct Growth is a Debt Mutual Fund Scheme launched by Aditya Birla Sun Life Mutual Fund. This scheme was made available to investors on 23 Dec 1994.

The Aditya Birla SL Savings Fund, classified as an Ultra Short Duration Fund, manages assets totaling ₹12705.36 crore. Over the past five years, it has achieved a compound annual growth rate (CAGR) of 6.40%. The fund imposes no exit load, and its expense ratio stands at 0.34%. This fund falls under the SEBI risk category of Moderate. The fund’s asset allocation is entirely in debt securities, with no allocation to other asset classes. There is a 0% allocation to categories other than debt.

ICICI Pru Ultra Short Term Fund Fund

ICICI Prudential Ultra Short Term Fund Direct Growth is a Debt Mutual Fund Scheme launched by ICICI Prudential Mutual Fund. This scheme was made available to investors on 12 Oct 1993.

The ICICI Pru Ultra Short Term Fund, categorized as an Ultra Short Duration Fund, manages assets totaling ₹12179.84 crore. Over the past five years, it has achieved a compound annual growth rate (CAGR) of 6.61%. The fund imposes no exit load, and its expense ratio stands at 0.39%. This fund falls under the SEBI risk category of Moderate. The fund primarily allocates 84.03% of its assets to debt securities, with a significant portion, 15.97%, dedicated to other asset classes, while equity holdings constitute a negligible percentage.

Axis Ultra Short Term Fund

Axis Ultra Short Term Fund Direct-Growth is a Debt Mutual Fund Scheme launched by Axis Mutual Fund. This scheme was made available to investors on 04 Sep 2009. 

The Axis Ultra Short Term Fund categorized as an Ultra Short Duration Fund, manages assets totaling ₹4063.99 crore. Over the past five years, it has achieved a compound annual growth rate (CAGR) of 6.24%. The fund imposes no exit load, and its expense ratio stands at 0.29%. This fund falls under the SEBI risk category of Moderate. The fund predominantly allocates 99.51% of its assets to debt securities, with a minor 0.49% allocated to other asset classes, while equity holdings represent an insignificant portion.

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Best Mutual Funds For Short Term For 1 Year – FAQ

1. Which are the Best Mutual Funds For Short Term For 1 Year?

Best Mutual Funds For Short Term For 1 Year # 1:ICICI Pru Short Term Fund
Best Mutual Funds For Short Term For 1 Year # 2: HDFC Short Term Debt Fund
Best Mutual Funds For Short Term For 1 Year # 3: Kotak Savings Fund
Best Mutual Funds For Short Term For 1 Year # 4: Aditya Birla SL Savings Fund
Best Mutual Funds For Short Term For 1 Year # 5: HDFC Ultra Short Term Fund

These funds are listed based on the Highest AUM.

2. What are the Top Mutual Funds For Short Term For 1 Year?

Based on 1-year returns, Mutual Funds For Short Term For 1 Year include ICICI Pru Short Term Fund, Nippon India Ultra Short Duration Fund, Aditya Birla SL Savings Fund, UTI Short Duration Fund, and ICICI Pru Ultra Short Term Fund Fund.

3. Can I Invest In Mutual Funds For Short Term For 1 Year?

Yes, you can invest in mutual funds for a short term of one year. Consider liquid or ultra-short-term debt funds, which are designed for lower risk and quick accessibility.

4. Is It Good To Invest In Mutual Funds For Short Term For 1 Year?

Investing in mutual funds for one year can be suitable if you select funds tailored for short-term goals, like liquid or ultra-short-term funds, offering modest returns with relatively low risk.

4. How To Invest in Mutual Funds For Short Term For 1 Year?

To invest in mutual funds for one year with Alice Blue, set up an account, explore and select suitable short-term mutual funds, and allocate your investment according to your financial goals.

Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.

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