The below table shows a list Of the Top Performing Short Duration Funds in 1 Year Based on AUM, NAV and minimum SIP.
| Name | AUM (Cr) | NAV (Rs) | Minimum SIP (Rs) |
| ICICI Pru Short-Term Fund | 18228.37 | 60.92 | 5000 |
| Kotak Bond Short-Term Fund | 15045.22 | 53.30 | 100 |
| HDFC Short-Term Debt Fund | 13080.16 | 30.70 | 100 |
| SBI Short-Term Debt Fund | 12702.20 | 31.68 | 1000 |
| Bandhan Bond Fund – Short-Term Plan | 8618.01 | 56.80 | 100 |
| Axis Short-Term Fund | 8413.57 | 31.22 | 100 |
| Aditya Birla SL Short Term Fund | 8019.38 | 47.74 | 100 |
| Nippon India Short-Term Fund | 6213.47 | 53.12 | 5000 |
| HSBC Short Duration Fund | 3762.76 | 26.06 | 500 |
| DSP Short-Term Fund | 2809.47 | 47.04 | 100 |
Content:
- Introduction To Top Performing Short Duration Funds In 1 Year
- What Are Short Duration Funds?
- Features Of Top Performing Short Duration Funds in 1 Year
- Best Performing Short Duration Funds in 1 Year
- Top Performing Short Duration Funds in 1 Year In India
- Top Performing Short Duration Funds in 1 Year
- Factors To Consider When Investing In Top Performing Short Duration Funds in 1 Year
- How To Invest In Top Performing Short Duration Funds in 1 Year?
- Advantages Of Investing In Top Performing Short Duration Funds in 1 Year In India
- Risks Of Investing In Top Performing Short Duration Funds in 1 Year
- Importance of Short-Duration Funds
- How Long Can You Stay Invested in Short-Duration Funds?
- Tax Implications of Investing in Short-Duration Funds
- Future of Short-Duration Funds
- Top Performing Short Duration Funds in 1 Year – FAQs
Introduction To Top Performing Short Duration Funds In 1 Year
ICICI Prudential Short-Term Fund
ICICI Prudential Short Term Fund is a Short Duration mutual fund scheme from ICICI Prudential Mutual Fund. This fund has existed for 11 years and 7 months, having been launched on January 1, 2013.
ICICI Pru Short Term Fund is categorized under Short Duration Fund with an AUM of ₹18,228.37 Crores, a 5-year CAGR of 7.69%, an exit load of 0% and an expense ratio of 0.45%. SEBI rates the risk as Moderate. The asset allocation includes 0.53% in Commercial Paper, 3.76% in Cash & Equivalents, 5.50% in Certificate of Deposit, 8.14% in Government Securities and 51.76% in Corporate Debt.
Kotak Bond Short-Term Fund
Kotak Bond Short Term Fund is a Short-duration mutual fund scheme from Kotak Mahindra Mutual Fund. This fund has existed for 11 years and 8 months, having been launched on January 1, 2013.
Kotak Bond Short Term Fund is categorized under Short Duration Fund with an AUM of ₹15,045.22 Crores, a 5-year CAGR of 6.96%, an exit load of 0% and an expense ratio of 0.37%. SEBI rates the risk as Moderate. The asset allocation includes 0.24% in Commercial Paper, 0.62% in Secured Debt, 1.44% in Cash & Equivalents, 3.60% in Government Securities and 50.97% in Corporate Debt.
HDFC Short-Term Debt Fund
HDFC Short Term Debt Fund is a Short Duration mutual fund scheme from HDFC Mutual Fund. This fund has existed for 11 years and 8 months, having been launched on January 1, 2013.
HDFC Short Term Debt Fund is categorized under Short Duration Fund with an AUM of ₹13,080.16 Crores, a 5-year CAGR of 7.20%, an exit load of 0% and an expense ratio of 0.40%. SEBI rates the risk as Moderate. The asset allocation includes 0.26% in Certificate of Deposit, 0.68% in Secured Debt, 0.80% in Cash & Equivalents, 3.62% in Government Securities and 66.97% in Corporate Debt.
SBI Short-Term Debt Fund
SBI Short Term Debt Fund is a Short-duration mutual fund scheme from SBI Mutual Fund. This fund has existed for 11 years and 8 months, having been launched on January 1, 2013.
SBI Short Term Debt Fund is categorized under Short Duration Fund with an AUM of ₹12,702.20 Crores, a 5-year CAGR of 6.62%, an exit load of 0% and an expense ratio of 0.35%. SEBI rates the risk as Moderate. The asset allocation includes 0.26% in Cash & Equivalents, 4.17% in Government Securities and 66.18% in Corporate Debt.
Bandhan Bond Fund – Short-Term Plan
Bandhan Bond Fund – Short Term Plan is a Short Duration mutual fund scheme from Bandhan Mutual Fund. This fund has existed for 11 years and 8 months, having been launched on January 1, 2013.
Bandhan Bond Fund – Short Term Plan is categorized under Short Duration Fund with an AUM of ₹8,618.01 Crores, a 5-year CAGR of 6.63%, an exit load of 0% and an expense ratio of 0.33%. SEBI rates the risk as Moderate. The asset allocation includes 0.28% in Cash & Equivalents, 1.69% in Commercial Paper, 3.26% in Certificate of Deposit, 22.89% in Government Securities and 37.91% in Corporate Debt.
Axis Short-Term Fund
Axis Short Term Fund is a Short-duration mutual fund scheme from Axis Mutual Fund. This fund has existed for 11 years and 8 months, having been launched on January 1, 2013.
Axis Short Term Fund is categorized under Short Duration Fund with an AUM of ₹8,413.57 Crores, a 5-year CAGR of 7.10%, an exit load of 0% and an expense ratio of 0.35%. SEBI rates the risk as Moderate. The asset allocation includes 2.29% in Floating-rate Debt, 2.19% in Cash & Equivalents, 2.71% in Certificate of Deposit, 5.82% in Government Securities and 55.15% in Corporate Debt.
Aditya Birla Sun Life Short-Term Fund
Aditya Birla Sun Life Short Term Fund is a Short Duration mutual fund scheme from Aditya Birla Sun Life Mutual Fund. This fund has existed for 11 years and 8 months, having been launched on January 1, 2013.
Aditya Birla SL Short Term Fund is categorized under Short Duration Fund with an AUM of ₹8,019.38 Crores, a 5-year CAGR of 7.38%, an exit load of 0% and an expense ratio of 0.38%. SEBI rates the risk as Moderate. The asset allocation includes 2.60% in Certificate of Deposit, 2.85% in Floating-rate Debt, 4.68% in Cash & Equivalents, 4.75% in Government Securities and 55.22% in Corporate Debt.
Nippon India Short-Term Fund
Nippon India Short Term Fund is a Short Duration mutual fund scheme from Nippon India Mutual Fund. This fund has existed for 11 years and 8 months, having been launched on January 1, 2013.
Nippon India Short Term Fund is categorized under Short Duration Fund with an AUM of ₹6,213.47 Crores, a 5-year CAGR of 7.15%, an exit load of 0% and an expense ratio of 0.37%. SEBI rates the risk as Moderate. The asset allocation includes 1.16% in Secured Debt, 1.10% in Certificate of Deposit, 5.00% in Cash & Equivalents, 7.80% in Government Securities and 52.12% in Corporate Debt.
HSBC Short Duration Fund
HSBC Short Duration Fund is a Short Duration mutual fund scheme from HSBC Mutual Fund. This fund has existed for 11 years and 8 months, having been launched on January 1, 2013.
HSBC Short Duration Fund is categorized under Short Duration Fund with an AUM of ₹3,762.76 Crores, a 5-year CAGR of 6.39%, an exit load of 0% and an expense ratio of 0.27%. SEBI rates the risk as Moderate. The asset allocation includes 0.26% in Cash & Equivalents, 0.85% in Certificate of Deposit, 1.24% in Government Securities and 59.18% in Corporate Debt.
DSP Short-Term Fund
DSP Short Term Fund is a Short Duration mutual fund scheme from DSP Mutual Fund. This fund has existed for 11 years and 8 months, having been launched on January 1, 2013.
DSP Short Term Fund is categorized under Short Duration Fund with an AUM of ₹2,809.47 Crores, a 5-year CAGR of 6.54%, an exit load of 0% and an expense ratio of 0.34%. SEBI rates the risk as Moderate. The asset allocation includes 0.16% in Certificate of Deposit, 0.24% in Cash & Equivalents, 0.75% in Government Securities and 66.72% in Corporate Debt.
What Are Short Duration Funds?
Short Duration Funds are debt mutual funds that invest in fixed-income securities with a Macaulay duration between 1 to 3 years. These funds aim to provide relatively stable returns while maintaining lower interest rate risk compared to longer-duration funds. They offer a balance between liquidity and potential returns.
Short Duration Funds typically invest in a mix of government securities, corporate bonds, and money market instruments. This diversified portfolio helps manage credit risk while aiming for returns higher than traditional savings accounts or short-term deposits.
These funds can be suitable for investors with a short to medium-term investment horizon. They offer the potential for better returns than savings accounts while providing more stability than longer-duration debt funds or equity funds.
Features Of Top Performing Short Duration Funds in 1 Year
The main features of top-performing Short Duration Funds in 1 year include moderate interest rate sensitivity, potential for higher returns than savings accounts, diversified portfolio and professional management. These funds aim to balance yield and stability for short to medium-term investors.
- Moderate duration: Short Duration Funds maintain a Macaulay duration between 1 to 3 years, offering lower interest rate sensitivity compared to longer-duration funds. This helps manage volatility in returns.
- Diversified portfolio: These funds invest in a mix of government securities, corporate bonds, and money market instruments. This diversification helps spread credit risk and potentially enhance returns.
- Professional management: Short Duration Funds are managed by experienced fund managers who analyze credit quality, interest rate trends and market conditions to optimize the portfolio.
- Liquidity: These funds generally offer good liquidity, allowing investors to redeem their units on any business day, and providing flexibility to manage investments according to needs.
Best Performing Short Duration Funds in 1 Year
The table below shows the Best Performing Short Duration Funds in 1 Year Based on the lowest to highest expense ratio.
| Name | Expense Ratio (%) | Minimum SIP (Rs) |
| HSBC Short Duration Fund | 0.27 | 500 |
| Bandhan Bond Fund – Short-Term Plan | 0.33 | 100 |
| DSP Short-Term Fund | 0.34 | 100 |
| SBI Short-Term Debt Fund | 0.35 | 1000 |
| Axis Short-Term Fund | 0.35 | 100 |
| Kotak Bond Short-Term Fund | 0.37 | 100 |
| Nippon India Short-Term Fund | 0.37 | 5000 |
| Aditya Birla SL Short Term Fund | 0.38 | 100 |
| HDFC Short-Term Debt Fund | 0.4 | 100 |
| ICICI Pru Short-Term Fund | 0.45 | 5000 |
Top Performing Short Duration Funds in 1 Year In India
The table below shows Top Performing Short Duration Funds in 1 Year In India Based on the Highest 3Y CAGR.
| Name | CAGR 3Y (Cr) | Minimum SIP (Rs) |
| ICICI Pru Short-Term Fund | 6.91 | 5000 |
| Aditya Birla SL Short Term Fund | 6.50 | 100 |
| Axis Short-Term Fund | 6.25 | 100 |
| HDFC Short-Term Debt Fund | 6.20 | 100 |
| Nippon India Short-Term Fund | 6.19 | 5000 |
| Kotak Bond Short-Term Fund | 6.08 | 100 |
| SBI Short-Term Debt Fund | 5.92 | 1000 |
| Bandhan Bond Fund – Short-Term Plan | 5.82 | 100 |
| DSP Short-Term Fund | 5.73 | 100 |
| HSBC Short Duration Fund | 5.52 | 500 |
Top Performing Short Duration Funds in 1 Year
The table below shows Top Performing Short Duration Funds in 1 Year based on exit load, i.e., the fee that the AMC charges investors when they exit or redeem their fund units.
| Name | AMC | Exit Load (%) |
| ICICI Pru Short-Term Fund | ICICI Prudential Asset Management Company Limited | 0 |
| Aditya Birla SL Short Term Fund | Aditya Birla Sun Life AMC Limited | 0 |
| Axis Short-Term Fund | Axis Asset Management Company Ltd. | 0 |
| HDFC Short-Term Debt Fund | HDFC Asset Management Company Limited | 0 |
| Nippon India Short-Term Fund | Nippon Life India Asset Management Limited | 0 |
| Kotak Bond Short-Term Fund | Kotak Mahindra Asset Management Company Limited | 0 |
| SBI Short-Term Debt Fund | SBI Funds Management Limited | 0 |
| Bandhan Bond Fund – Short-Term Plan | Bandhan AMC Limited | 0 |
| DSP Short-Term Fund | DSP Investment Managers Private Limited | 0 |
| HSBC Short Duration Fund | HSBC Global Asset Management (India) Private Limited | 0 |
Factors To Consider When Investing In Top Performing Short Duration Funds in 1 Year
The main factors to consider when investing in top-performing Short Duration Funds in 1 year include credit quality, yield to maturity, expense ratio, fund manager’s expertise and your investment horizon. These factors can significantly impact the fund’s performance and suitability for your portfolio.
- Credit quality: Assess the fund’s portfolio composition and the credit ratings of its holdings. Higher credit quality generally implies lower risk but may offer slightly lower yields.
- Yield to maturity (YTM): Compare the YTM of different funds. A higher YTM indicates potential for better returns, but also consider the associated risks and the fund’s expense ratio.
- Expense ratio: Look for funds with lower expense ratios, as these costs directly impact your returns. However, also consider the fund’s performance and strategy alongside costs.
- Fund manager’s expertise: Evaluate the fund manager’s experience and track record in managing short duration funds. Their ability to navigate credit and interest rate risks is crucial.
- Your investment horizon: Ensure your investment timeframe aligns with the fund’s duration. Short Duration Funds are typically suitable for 1-3 year investment horizons.
How To Invest In Top Performing Short Duration Funds in 1 Year?
To invest in top-performing Short Duration Funds in 1 year, start by researching and comparing different funds based on their performance, credit quality and expense ratios. Once you’ve selected a fund that aligns with your financial goals and risk tolerance, you can invest through Alice Blue.
Alice Blue is a user-friendly online investment platform that provides tools and resources to help you make informed investment decisions. You can choose to invest a lump sum amount or opt for a Systematic Investment Plan (SIP), which allows you to invest a fixed amount regularly.
For most investors, a SIP is recommended as it helps in rupee cost averaging and reduces the impact of market volatility on your investment over time. Remember to review and rebalance your investment periodically to ensure it remains aligned with your financial goals.
Advantages Of Investing In Top Performing Short Duration Funds in 1 Year In India
The main advantages of investing in top-performing Short Duration Funds in 1 year in India include the potential for higher returns than savings accounts, moderate interest rate sensitivity, portfolio diversification and professional management. These funds offer a balance between yield and stability.
- Potential for higher returns: Short Duration Funds aim to provide better returns than traditional savings accounts or short-term deposits while maintaining relatively lower risk compared to longer-duration funds.
- Moderate interest rate sensitivity: With a Macaulay duration of 1-3 years, these funds have lower sensitivity to interest rate changes compared to longer-duration funds, potentially offering more stable returns.
- Portfolio diversification: Short Duration Funds invest in a mix of government securities, corporate bonds, and money market instruments, helping to spread credit risk and potentially enhance returns.
- Professional management: These funds are managed by experienced professionals who analyze market conditions and credit risks to optimize the portfolio, potentially leading to better risk-adjusted returns.
Risks Of Investing In Top Performing Short Duration Funds in 1 Year
The main risks of investing in top-performing Short Duration Funds in 1 year include interest rate risk, credit risk, liquidity risk and reinvestment risk. While these funds generally have moderate risk profiles, investors should be aware of potential factors that can impact returns.
- Interest rate risk: Although lower than longer-duration funds, Short Duration Funds are still affected by interest rate changes. Rising rates can lead to a temporary decline in fund value.
- Credit risk: The fund’s investments in corporate bonds carry the risk of default or credit rating downgrades, which can impact returns. Careful credit analysis by fund managers is crucial.
- Liquidity risk: In times of market stress, some bonds in the portfolio might face reduced liquidity, potentially affecting the fund’s ability to meet large redemption requests.
- Reinvestment risk: As short-term securities in the portfolio mature, there’s a risk that proceeds may be reinvested at lower rates if interest rates have fallen, impacting overall returns.
Importance of Short-Duration Funds
The main importance of Short Duration Funds lies in their ability to offer a balance between potential returns and stability, serve as a cash management tool, provide portfolio diversification and offer tax-efficient returns. These funds play a crucial role in many investors’ portfolios.
- Balancing returns and stability: Short Duration Funds aim to provide better returns than savings accounts while maintaining lower volatility compared to longer-duration funds. This makes them suitable for short to medium-term financial goals.
- Cash management: These funds can be effective tools for managing surplus cash, offering potentially higher returns than traditional savings accounts while maintaining good liquidity.
- Portfolio diversification: Including Short Duration Funds in an investment portfolio can help balance overall risk, especially when combined with equity investments or longer-duration debt funds.
- Tax efficiency: For holding periods over 3 years, gains from Short Duration Funds are treated as long-term capital gains and taxed at 20% with indexation benefits, potentially offering tax advantages over fixed deposits.
How Long Can You Stay Invested in Short-Duration Funds?
The ideal investment horizon for Short Duration Funds typically ranges from 1 to 3 years. This timeframe aligns with the Macaulay duration of these funds and allows investors to potentially benefit from the fund’s strategy while managing interest rate risk effectively.
However, the exact duration can vary based on individual financial goals and market conditions. Some investors use these funds for shorter periods as part of their cash management strategy, while others may hold them for slightly longer periods. Regular review of your investment aligns with your financial objectives.
Tax Implications of Investing in Short-Duration Funds
Short Duration Funds are taxed as debt mutual funds in India. For holding periods up to 3 years, gains are considered short-term capital gains and taxed at the investor’s income tax slab rate. For holding periods over 3 years, gains are treated as long-term capital gains.
Long-term capital gains from Short Duration Funds are taxed at 20% with indexation benefits. Indexation adjusts the purchase price for inflation, potentially reducing the tax liability. This tax treatment can make Short Duration Funds more tax-efficient for periods over 3 years compared to fixed deposits.
Future of Short-Duration Funds
The future of Short Duration Funds in India looks promising, driven by factors such as increasing financialization of savings, growing awareness about debt mutual funds and the need for effective cash management tools. As investors seek alternatives to traditional savings products, these funds are likely to gain more traction.
However, their performance will continue to be influenced by interest rate movements and credit market conditions. Innovations in fund management strategies and the introduction of new fixed-income products could further enhance the appeal of Short Duration Funds in the coming years.
Top Performing Short Duration Funds in 1 Year – FAQs
Short Duration Funds are debt mutual funds that invest in instruments with a maturity period ranging from 1 to 3 years. These funds offer moderate returns and are less sensitive to interest rate fluctuations, making them suitable for conservative investors seeking stable, short-term income.
Top Performing Short Duration Funds in 1 Year #1: ICICI Pru Short Term Fund
Top Performing Short Duration Funds in 1 Year #2: Kotak Bond Short-Term Fund
Top Performing Short Duration Funds in 1 Year #3: HDFC Short Term Debt Fund
Top Performing Short Duration Funds in 1 Year #4: SBI Short-Term Debt Fund
Top Performing Short Duration Funds in 1 Year #5: Bandhan Bond Fund – Short-Term Plan
These funds are listed based on the Highest AUM.
The best performing Short Duration Funds based on expense ratio are the HSBC Short Duration Fund, Bandhan Bond Fund – Short Term Plan, DSP Short Term Fund, SBI Short Term Debt Fund and Axis Short Term Fund. These funds offer competitive returns with lower expense ratios, ensuring efficient cost management for investors.
Investing in top-performing Short Duration Funds can be good for short to medium-term goals. They offer the potential for better returns than savings accounts with moderate risk. However, consider your investment horizon, risk tolerance and overall financial plan before investing.
Fixed Deposits (FDs) offer fixed returns and are not market-linked, while Short Duration Funds are market-linked with potentially higher returns. Short Duration Funds offer better liquidity and can be more tax-efficient for periods over 3 years, but carry slightly higher risk than FDs.
Short Duration Funds offer a balance between returns and stability. They provide the potential for higher yields than savings accounts, lower interest rate risk than longer-duration funds and good liquidity and tax efficiency for holding periods over 3 years. They’re suitable for short to medium-term goals.
To invest in top-performing Short Duration Funds, research funds using financial websites and compare their returns and expense ratios. Then, open an account with Alice Blue, a user-friendly investment platform. Choose between a lump sum investment or starting a Systematic Investment Plan (SIP) for regular investing.
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.
