List Of Best Mutual Funds For Short Term For 3 Years English

List Of Best Mutual Funds For Short Term For 3 Years

The table below shows a List Of The Best Mutual Funds For the Short Term For 3 Years based on AUM, NAV & Minimum SIP.

NameAUMNAVMinimum SIP
ICICI Pru Short Term Fund16875.6859.115000.00
Kotak Bond Short Term Fund14738.2351.67100.00
HDFC Short Term Debt Fund12914.9929.78100.00
SBI Short Term Debt Fund12838.6830.751000.00
Bandhan Bond Fund – Short Term Plan8711.6155.04100.00
Axis Short Term Fund8277.9130.30100.00
Aditya Birla SL Short Term Fund6767.4746.30100.00
Nippon India Short Term Fund5986.4951.545000.00
HSBC Short Duration Fund3600.4825.28500.00
DSP Short Term Fund2984.0545.64100.00

Content: 

Short Term Mutual Funds Meaning

Short-term mutual funds are investment vehicles that primarily invest in fixed-income securities with short maturities, typically less than 3 years. These funds aim to provide investors with regular income and capital preservation while offering higher liquidity compared to long-term investments. They are suitable for conservative investors seeking stable returns.3

Short-term mutual funds invest in a diversified portfolio of high-quality debt instruments, such as government bonds, corporate bonds, and money market instruments. By focusing on short-term securities, these funds minimize the impact of interest rate fluctuations, thereby reducing the overall risk profile of the investment.

Investors can benefit from the professional management and diversification offered by short-term mutual funds. These funds provide a convenient way to park surplus funds for a short period while earning better returns compared to traditional savings accounts, making them an attractive option for risk-averse investors.

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Best Mutual Fund For Short Term For 3 Years In India

The table below shows Best Mutual Fund For Short Term For 3 Years In India based on the lowest to highest expense ratio.

NameExpense RatioMinimum SIP
Franklin India ST Income Plan0.04100.00
HSBC Short Duration Fund0.27500.00
Sundaram Short Duration Fund0.29100.00
Bandhan Bond Fund – Short Term Plan0.30100.00
Tata ST Bond Fund0.33150.00
Mirae Asset Short Duration Fund0.331000.00
Axis Short Term Fund0.34100.00
DSP Short Term Fund0.34100.00
SBI Short Term Debt Fund0.351000.00
Invesco India Short Duration Fund0.35100.00

Mutual Fund For Short Term For 3 Years

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

NameCAGR 3YMinimum SIP
Bank of India Short Term Income Fund12.23100.00
UTI Short Duration Fund7.64500.00
ICICI Pru Short Term Fund6.575000.00
Franklin India ST Income Plan6.27100.00
Aditya Birla SL Short Term Fund6.19100.00
Nippon India Short Term Fund6.005000.00
HDFC Short Term Debt Fund5.90100.00
Axis Short Term Fund5.89100.00
Kotak Bond Short Term Fund5.79100.00
Sundaram Short Duration Fund5.71100.00

Best Mutual Fund For Short Term For 3 Years

The table below shows Best Mutual Fund For Short Term For 3 Years based on exit load, i.e., the fee that the AMC charges investors when they exit or redeem their fund units.

NameAMCExit Load
Bank of India Short Term Income FundBank of India Investment Managers Private Limited0.00
UTI Short Duration FundUTI Asset Management Company Private Limited0.00
ICICI Pru Short Term FundICICI Prudential Asset Management Company Limited0.00
Franklin India ST Income PlanFranklin Templeton Asset Management (India) Private Limited0.00
Aditya Birla SL Short Term FundAditya Birla Sun Life AMC Limited0.00
Nippon India Short Term FundNippon Life India Asset Management Limited0.00
HDFC Short Term Debt FundHDFC Asset Management Company Limited0.00
Axis Short Term FundAxis Asset Management Company Ltd.0.00
Kotak Bond Short Term FundKotak Mahindra Asset Management Company Limited0.00
Sundaram Short Duration FundSundaram Asset Management Company Limited0.00

Mutual Funds For Short Term For 3 Years

The table below shows Mutual Funds For Short Term For 3 Years based on Absolute 1 Year Return and AMC.

NameAMCAbsolute Returns – 1Y
ICICI Pru Short Term FundICICI Prudential Asset Management Company Limited7.84
UTI Short Duration FundUTI Asset Management Company Private Limited7.66
HDFC Short Term Debt FundHDFC Asset Management Company Limited7.41
Nippon India Short Term FundNippon Life India Asset Management Limited7.28
Baroda BNP Paribas Short Duration FundBaroda BNP Paribas Asset Management India Pvt. Ltd.7.28
Aditya Birla SL Short Term FundAditya Birla Sun Life AMC Limited7.28
Kotak Bond Short Term FundKotak Mahindra Asset Management Company Limited7.25
Axis Short Term FundAxis Asset Management Company Ltd.7.11
LIC MF Short Duration FundLIC Mutual Fund Asset Management Limited7.05
Mirae Asset Short Duration FundMirae Asset Investment Managers (India) Private Limited7.00

Who Should Invest In  Best Mutual Funds For 3 Years in the Short Term?

Investors with a short-term investment horizon of around 3 years, who prioritize capital preservation and require easy access to their funds, should consider investing in the best mutual funds for the short term. These funds are suitable for conservative investors seeking stable returns with minimal risk exposure.

How To Invest in the  Mutual Funds For Short Term For 3 Years?

To invest in mutual funds for the short term (3 years) through Alice Blue, open a trading and Demat account with them. Research and select suitable short-term funds using their online platform. Place an order, monitor your investments regularly, and rebalance your portfolio if needed to align with your goals.

Performance Metrics Of Mutual Funds For Short Term For 3 Years

For short-term performance over three years, mutual funds exhibit varied metrics based on market conditions and fund strategies. Equity funds might show significant growth during bullish markets, while debt funds offer stable returns amidst economic fluctuations.

The performance of mutual funds in the short term can greatly influence investor decisions. Key metrics like return on investment (ROI), expense ratio, and fund volatility are critical for assessing potential gains. These factors help investors align their investment strategies with their financial goals.

Benefits of Investing in Best Mutual Funds For Short Term For 3 Years

The main benefits of investing in the best mutual funds for the short term (3 years) include capital preservation, stable returns, professional management, liquidity, and diversification. These funds provide investors with an attractive investment option that balances risk and reward over a shorter time horizon.

  • Capital Preservation: Short-term mutual funds prioritize capital preservation by investing in high-quality, low-risk debt instruments. These funds aim to minimize the potential for capital losses, making them suitable for investors who have a low-risk tolerance and seek to protect their principal investment over a 3-year period.
  • Stable Returns: By investing in a diversified portfolio of short-term debt securities, these funds provide investors with relatively stable returns. While the returns may not be as high as long-term or equity funds, short-term mutual funds offer predictable income and mitigate the impact of market volatility.
  • Professional Management: Investing in short-term mutual funds allows investors to benefit from the expertise of professional fund managers. These managers actively monitor market conditions, select suitable securities, and make informed investment decisions on behalf of the investors, thereby optimizing returns and managing risk effectively.
  • Liquidity: Short-term mutual funds offer high liquidity, allowing investors to easily redeem their investments when needed. With a shorter investment horizon of 3 years, these funds provide investors with the flexibility to access their money without incurring significant penalties or experiencing lengthy withdrawal processes.
  • Diversification: Short-term mutual funds invest in a diversified portfolio of debt instruments across various sectors, issuers, and maturities. This diversification helps to spread risk and mitigate the impact of any single investment underperforming. By investing in a well-diversified short-term fund, investors can potentially reduce their overall portfolio risk.

Challenges Of Investing In Mutual Funds For Short Term For 3 Years

The main challenges of investing in mutual funds for the short term (3 years) include market volatility, interest rate risk, credit risk, liquidity constraints, and opportunity cost. These factors can impact the performance and suitability of short-term mutual funds for investors with specific goals and risk tolerances.

  • Market Volatility: Short-term mutual funds are not immune to market fluctuations. Economic uncertainties, political events, and changing market sentiments can lead to volatility in the prices of debt securities held by these funds. This volatility can impact the fund’s NAV and the overall returns generated over the 3-year period.
  • Interest Rate Risk: Changes in interest rates can affect the value of debt securities held by short-term mutual funds. When interest rates rise, the prices of existing bonds fall, leading to a decline in the fund’s NAV. Conversely, falling interest rates can result in lower yields on new investments.
  • Credit Risk: Short-term mutual funds invest in debt instruments issued by various entities, such as corporations and governments. These investments carry credit risk, which is the possibility that the issuer may default on their obligations. If an issuer fails to make timely interest payments or repay the principal, it can negatively impact the fund’s performance.
  • Liquidity Constraints: While short-term mutual funds generally offer high liquidity, there may be instances where investors face liquidity constraints. During market downturns or periods of high redemption pressure, the fund manager may struggle to sell securities at favorable prices, potentially impacting the fund’s liquidity and the ability of investors to redeem their units.
  • Opportunity Cost: Investing in short-term mutual funds for a 3-year period may involve opportunity costs. By prioritizing capital preservation and stability, investors may miss out on potentially higher returns offered by other investment options, such as equity funds or longer-term debt funds, which may align better with their risk profile and investment objectives.

Introduction to List Of Best Mutual Funds For Short Term For 3 Years

List Of Best Mutual Funds For Short Term For 3 Years – 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.

Kotak Bond Short Term Fund

Kotak Bond Short Term Fund Direct Growth is a Debt Mutual Fund Scheme launched by Kotak Mahindra Mutual Fund. This scheme was made available to investors on 05 Aug 1994.

Kotak Bond Short Term Fund, classified as a Short Duration Fund, manages assets worth ₹14738.23 crore. Over the past five years, it has achieved a compound annual growth rate (CAGR) of 7.21%. 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 predominantly allocates 97.73% of its assets to debt securities, with a minor 2.28% dedicated to other asset classes, while equity holds negligible representation.

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.

Best Mutual Fund For Short Term For 3 Years In India – Expense Ratio

Franklin India ST Income Plan

Franklin India Short term Income Plan Direct Growth is a Debt Mutual Fund Scheme launched by Franklin Templeton Mutual Fund. This scheme was made available to investors on 19 Feb 1996.

Franklin India ST Income Plan, categorized as a Short Duration Fund, manages assets worth ₹12.51 crore. Over the past five years, it has achieved a compound annual growth rate (CAGR) of 4.32%. The fund imposes no exit load, and its expense ratio stands at 0.04%. This fund falls under the SEBI risk category of Very High. The fund’s asset allocation includes 0% in debt securities, with cash representing the entire allocation at 100%, while equity holds negligible representation.

HSBC Short Duration Fund

HSBC 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.

HSBC Short Duration Fund, classified as a Short Duration Fund, manages assets totaling ₹3600.48 crore. Over the past five years, it has achieved a compound annual growth rate (CAGR) of 6.61%. The fund does not impose an exit load, and its expense ratio is 0.27%. This fund falls under the SEBI risk category of Moderate. The fund allocates a significant portion of 96.86% to debt securities, with a minor 3.14% allocated to cash, while equity holds a negligible share.

Sundaram Short Duration Fund

Sundaram Short Duration Fund Direct Growth is a Debt Mutual Fund Scheme launched by Sundaram Mutual Fund. This scheme was made available to investors on 26 Feb 1996.

Sundaram Short Duration Fund, categorized as a Short Duration Fund, manages assets worth ₹191.48 crore. Over the past five years, it has achieved a compound annual growth rate (CAGR) of 4.82%. 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 allocates a majority, 92.19%, to debt securities, with a smaller portion, 7.81%, dedicated to cash, while equity holds a negligible share.

Mutual Fund For Short Term For 3 Years – Highest 3Y CAGR.

Bank of India Short Term Income Fund

Bank of India Short Term Income Fund Direct Growth is a Debt Mutual Fund Scheme launched by Bank of India Mutual Fund. This scheme was made available to investors on 31 Mar 2008.

Bank of India Short Term Income Fund, categorized as a Short Duration Fund, manages assets totaling ₹82.25 crore. Over the past five years, it has achieved a compound annual growth rate (CAGR) of 4.02%. The fund does not impose an exit load, and its expense ratio stands at 0.52%. This fund falls under the SEBI risk category of Moderate. The fund allocates the majority, 73.02%, to debt securities, with a smaller portion, 26.98%, dedicated to Other, while equity holds a negligible share.

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.

Aditya Birla SL Short Term Fund

Aditya Birla Sun Life Short Term Direct Fund 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.

Aditya Birla SL Short Term Fund, categorized as a Short Duration Fund, manages assets totaling ₹6767.47 crore. Over the past five years, it has achieved a compound annual growth rate (CAGR) of 7.62%. 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 primarily allocates 96.39% of its assets to debt securities, with a minor 3.61% dedicated to other asset classes, while equity holdings represent a negligible portion.

Best Mutual Fund For Short Term For 3 Years – Exit Load

DSP Short Term Fund

DSP Short Term Direct Plan Growth is a Debt Mutual Fund Scheme launched by DSP Mutual Fund. This scheme was made available to investors on 16 Dec 1996.

The DSP Short Term Fund, classified as a Short Duration Fund, currently manages an AUM (Assets Under Management) of ₹2984.05 Crore. Over the past five years, it has achieved a CAGR (Compound Annual Growth Rate) of 6.81%. Investors benefit from a zero exit load, offering flexibility in managing their investments. The expense ratio stands at 0.34%, ensuring cost-effectiveness. Additionally, the fund falls into the Moderate risk category according to SEBI classification, suggesting a balanced risk-return profile. The fund’s asset allocation comprises Equity at 0%, Debt at 98.37%, and Other at 1.63%. This indicates a predominantly debt-oriented investment strategy with a minor allocation to other asset classes.

SBI Short Term Debt Fund

SBI Short Term Debt Fund Direct Growth is a Debt Mutual Fund Scheme launched by SBI Mutual Fund. This scheme was made available to investors on 29 Jun 1987.

The SBI Short Term Debt Fund, categorized as a Short Duration Fund, currently manages an AUM (Assets Under Management) of ₹12838.68 Crore. Over the past five years, it has achieved a CAGR (Compound Annual Growth Rate) of 6.92%. Investors can redeem without any exit load, making it flexible. The expense ratio stands at 0.35%, ensuring cost-effectiveness. Additionally, the fund falls into the Moderate risk category according to the SEBI classification.

The fund’s asset allocation consists of Equity at 0%, Debt at 93.62%, and Other at 6.38%. This suggests a significant focus on debt securities with a small proportion allocated to other assets.

Invesco India Short Duration Fund

Invesco India Short Duration Fund Direct Growth is a Debt Mutual Fund Scheme launched by Invesco Mutual Fund. This scheme was made available to investors on 24 Jul 2006.

The Invesco India Short Duration Fund, categorized as a Short Duration Fund, currently manages an AUM (Assets Under Management) of ₹467.71 Crore. Over the past five years, it has achieved a CAGR (Compound Annual Growth Rate) of 6.75%. Investors can redeem without any exit load, providing flexibility. The expense ratio stands at 0.35%, ensuring cost-effectiveness. Additionally, the fund falls into the Moderate risk category according to the SEBI classification. The fund predominantly allocates assets as follows: 0% in Equity, 96.5% in Debt, and 3.5% in Other. This indicates a strong emphasis on debt instruments, with only a minor allocation to other asset types.

Mutual Funds For Short Term For 3 Years – Absolute 1-Year Return

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 Jun 1995.

Nippon India Short Term Fund, classified as a Short Duration Fund, manages assets worth ₹5986.49 crore. Over the past five years, it has achieved a compound annual growth rate (CAGR) of 7.38%. The fund imposes no exit load, and its expense ratio stands at 0.37%. This fund falls under the SEBI risk category of Moderate. The fund predominantly allocates 92.85% of its assets to debt securities, with a minor 7.15% dedicated to other asset classes, while equity holdings represent an insignificant portion.

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.

Baroda BNP Paribas Short Duration Fund, categorized as a Short Duration Fund, manages assets totaling ₹219.29 crore. Over the past five years, it has achieved a compound annual growth rate (CAGR) of 6.70%. The fund does not impose an exit load, and its expense ratio is 0.38%. This fund falls under the SEBI risk category of Moderate. The fund mainly allocates 93.23% of its assets to debt securities, with a smaller portion, 6.77%, dedicated to other asset classes, while equity holdings comprise a negligible percentage.

Axis Short Term Fund

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

Axis Short Term Fund, classified as a Short Duration Fund, manages assets totaling ₹8277.91 crore. Over the past five years, it has achieved a compound annual growth rate (CAGR) of 7.34%. 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 primarily allocates 98.63% of its assets to debt securities, with a minor 1.37% dedicated to other asset classes, while equity holdings represent a negligible portion.

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Best Mutual Funds For Short Term For 3 Years – FAQ

Which are the Best Mutual Funds For Short Term For 3 Years?

 Best Mutual Funds For Short Term For 3 Years # 1:ICICI Pru Short Term Fund

 Best Mutual Funds For Short Term For 3 Years # 2:Kotak Bond Short Term Fund

 Best Mutual Funds For Short Term For 3 Years # 3:HDFC Short Term Debt Fund

 Best Mutual Funds For Short Term For 3 Years # 4:SBI Short Term Debt Fund

 Best Mutual Funds For Short Term For 3 Years # 5:Bandhan Bond Fund – Short Term Plan

These funds are listed based on the Highest AUM.

What are the Top Mutual Funds For Short Term For 3 Years?

Here are the Top mutual funds for short-term investments over 3 years: Bank of India Short Term Income Fund, UTI Short Duration Fund, ICICI Pru Short Term Fund, Franklin India ST Income Plan, and Aditya Birla SL Short Term Fund. These funds offer stability and potential returns suitable for investors with a shorter investment horizon.

Can I Invest In Mutual Funds For Short Term For 3 Years?

Yes, you can invest in mutual funds for a short term of three years. Choose funds with strategies aligned to short-term goals, like debt funds or balanced funds, to optimize your investment outcomes.

Is It Good To Invest In Mutual Funds For Short Term For 3 Years?

Investing in mutual funds for three years can be beneficial if chosen wisely. Short-term funds or debt funds are suitable, offering stability and reasonable returns compared to more volatile long-term investments.

How To Invest in the Mutual Funds For Short Term For 3 Years?

To invest in mutual funds for three years using Alice Blue as your broker, first create an account on their platform, choose suitable short-term funds, and allocate your funds based on your investment 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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