Top Performing Ultra Short Duration Funds in 10 Years

The table below shows a list Of the Top Performing Ultra Short Duration Funds in 10 Years Based on AUM, NAV and minimum SIP.

Introduction to Top Performing Ultra Short Duration Funds in 10 Years

Aditya Birla Sun Life Equity Savings Fund  

Aditya Birla Sun Life Equity Savings Fund is an Ultra Short Duration mutual fund scheme from Aditya Birla Sun Life Mutual Fund. This fund has been operational for 9 years and 10 months, having been launched on November 11, 2014.

Aditya Birla Sun Life Equity Savings Fund falls under the Ultra Short Duration Fund category with an AUM of ₹14,453.67 crores, a 5-year CAGR of 6.26%, an exit load of 0% and an expense ratio of 0.34%. The SEBI risk category is Moderate. Its asset allocation includes 42.78% in Corporate Debt, 22.23% in Certificate of Deposit, 11.45% in Commercial Paper, 10.74% in Floating-rate Debt, 6.01% in Government Securities and 6.79% in Others.

Kotak Savings Fund  

Kotak Savings Fund is an Ultra Short Duration mutual fund scheme from Kotak Mahindra Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

Kotak Savings Fund falls under the Ultra Short Duration Fund category with an AUM of ₹14,378.73 crores, a 5-year CAGR of 5.94%, an exit load of 0% and an expense ratio of 0.36%. The SEBI risk category is Moderately Low. Its asset allocation includes 48.86% in Corporate Debt, 27.93% in Certificate of Deposit, 11.32% in Commercial Paper, 8.41% in Treasury Bills, and -0.38% in Government Securities.

ICICI Prudential Ultra Short-Term Fund  

ICICI Prudential Ultra Short Term Fund is an Ultra Short Duration mutual fund scheme from ICICI Prudential Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

ICICI Prudential Ultra Short Term Fund falls under the Ultra Short Duration Fund category with an AUM of ₹12,285.99 crores, a 5-year CAGR of 6.48%, an exit load of 0% and an expense ratio of 0.39%. The SEBI risk category is Moderate. Its asset allocation includes 44.73% in Corporate Debt, 26.44% in Certificate of Deposit, 13.52% in Commercial Paper, 10.76% in Treasury Bills and 0.91% in Cash & Equivalents.

SBI Magnum Ultra Short Duration Fund  

SBI Magnum Ultra Short Duration Fund is an Ultra Short Duration mutual fund scheme from SBI Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

SBI Magnum Ultra Short Duration Fund falls under the Ultra Short Duration Fund category with an AUM of ₹11,568.49 crores, a 5-year CAGR of 5.80%, an exit load of 0% and an expense ratio of 0.31%. The SEBI risk category is Moderate. Its asset allocation includes 37.51% in Corporate Debt, 26.88% in Certificate of Deposit, 16.66% in Commercial Paper, 12.46% in Treasury Bills and 4.08% in Cash & Equivalents.

Nippon India Ultra Short Duration Fund  

Nippon India Ultra Short Duration Fund is an Ultra Short Duration mutual fund scheme from Nippon India Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on December 31, 2012.

Nippon India Ultra Short Duration Fund falls under the Ultra Short Duration Fund category with an AUM of ₹7,291.01 crores, a 5-year CAGR of 6.11%, an exit load of 0% and an expense ratio of 0.38%. The SEBI risk category is Moderate. Its asset allocation includes 36.22% in Corporate Debt, 33.17% in Certificate of Deposit, 11.71% in Commercial Paper, 9.13% in Treasury Bills, 6.81% in Floating-rate Debt and 2.95% in Others.

DSP Ultra Short Fund  

DSP Ultra Short Fund is an Ultra Short Duration mutual fund scheme from DSP Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

DSP Ultra Short Fund falls under the Ultra Short Duration Fund category with an AUM of ₹3,003.68 crores, a 5-year CAGR of 5.76%, an exit load of 0% and an expense ratio of 0.30%. The SEBI risk category is Moderately Low. Its asset allocation includes 46.06% in Corporate Debt, 21.93% in Certificate of Deposit, 19.21% in Commercial Paper, 11.53% in Treasury Bills and 1.02% in Cash & Equivalents.

UTI Ultra Short Duration Fund  

UTI Ultra Short Duration Fund is an Ultra Short Duration mutual fund scheme from UTI Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

UTI Ultra Short Duration Fund falls under the Ultra Short Duration Fund category with an AUM of ₹2,139.50 crores, a 5-year CAGR of 6.55%, an exit load of 0% and an expense ratio of 0.37%. The SEBI risk category is Moderate. Its asset allocation includes 49.02% in Corporate Debt, 30.49% in Certificate of Deposit, 12.01% in Commercial Paper, 7.51% in Treasury Bills and 0.27% in Cash & Equivalents.

Invesco India Ultra Short Duration Fund  

Invesco India Ultra Short Duration Fund is an Ultra Short Duration mutual fund scheme from Invesco India Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

Invesco India Ultra Short Duration Fund falls under the Ultra Short Duration Fund category with an AUM of ₹703.51 crores, a 5-year CAGR of 5.80%, an exit load of 0% and an expense ratio of 0.24%. The SEBI risk category is Moderately Low. Its asset allocation includes 51.49% in Corporate Debt, 23.59% in Certificate of Deposit, 11.73% in Commercial Paper, 7.66% in Treasury Bills and 2.84% in Others.

PGIM India Ultra Short Duration Fund  

PGIM India Ultra Short Duration Fund is an Ultra Short Duration mutual fund scheme from PGIM India Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

PGIM India Ultra Short Duration Fund falls under the Ultra Short Duration Fund category with an AUM of ₹237.12 crores, a 5-year CAGR of 6.32%, an exit load of 0% and an expense ratio of 0.27%. The SEBI risk category is Moderately Low. Its asset allocation includes 36.09% in Corporate Debt, 34.32% in Certificate of Deposit, 13.53% in Commercial Paper, 8.21% in Treasury Bills and 3.80% in Cash & Equivalents.

Bank of India Ultra Short Duration Fund  

Bank of India Ultra Short Duration Fund is an Ultra Short Duration mutual fund scheme from Bank of India Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

Bank of India Ultra Short Duration Fund falls under the Ultra Short Duration Fund category with an AUM of ₹160.55 crores, a 5-year CAGR of 5.36%, an exit load of 0% and an expense ratio of 0.39%. The SEBI risk category is Moderately Low. Its asset allocation includes 46.85% in Corporate Debt, 20.97% in Certificate of Deposit, 16.55% in Commercial Paper, 9.13% in Treasury Bills and 6.24% in Cash & Equivalents.

What Are Ultra Short Duration Funds?

Ultra Short Duration Funds are a category of debt mutual funds that invest in fixed-income securities with a Macaulay duration between 3 to 6 months. These funds aim to provide relatively stable returns while maintaining high liquidity and lower interest rate risk compared to longer-duration debt funds.

Ultra Short Duration Funds typically invest in a mix of money market instruments, corporate bonds, and government securities with short maturities. This diversified portfolio helps manage credit risk while aiming for returns higher than savings accounts or liquid funds.

These funds can be suitable for investors with a short-term investment horizon, typically 3 to 6 months. They offer the potential for slightly better returns than savings accounts or liquid funds while providing more stability than longer-duration debt funds.

Features Of Top Performing Ultra Short Duration Funds in 10 Years

The main features of top-performing Ultra Short Duration Funds in 10 years include short-duration investments, the potential for higher returns than savings accounts, high liquidity and professional management. These funds aim to balance yield and stability for short-term investors.

• Short duration: Ultra Short Duration Funds maintain a Macaulay duration between 3 to 6 months, offering lower interest rate sensitivity compared to longer-duration funds.

• Diversified portfolio: These funds invest in a mix of money market instruments, corporate bonds and government securities with short maturities, helping to spread credit risk.

• Professional management: Experienced fund managers analyse credit quality, interest rate trends and market conditions to optimise the portfolio for short-term returns.

• High liquidity: These funds generally offer good liquidity, allowing investors to redeem their units on short notice and providing flexibility for cash management.

Best Performing Ultra Short Duration Funds in 10 Years

The table below shows the Best Performing Ultra Short Duration Funds in 10 Years Based on the lowest to highest expense ratio.

Top Performing Ultra Short Duration Funds in 10 Years In India

The table below shows the Top Performing Ultra Short Duration Funds in 10 Years In India Based on the Highest 3Y CAGR.

Top Performing Ultra Short Duration Funds in 10 Years List

The table below shows the Top Performing Ultra Short Duration Funds in 10 Years List based on exit load, i.e., the fee that the AMC charges investors when they exit or redeem their fund units.

Factors To Consider When Investing In Top Performing Ultra Short Duration Funds in 10 Years

The main factors to consider when investing in top-performing Ultra Short Duration Funds in 10 years include credit quality, yield to maturity, expense ratio, fund manager’s expertise and 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 ultra-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 ultra-short duration nature. These funds are typically suitable for 3-6 month investment horizons.

How To Invest In Top Performing Ultra Short Duration Funds in 10 Years?

To invest in top-performing Ultra Short Duration Funds in 10 years, 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 lump sum investment is common for Ultra Short Duration Funds due to their short-term nature. However, SIPs can also be used for regular cash management. Remember to review your investment periodically to ensure it remains aligned with your short-term financial needs.

Advantages Of Investing In Top Performing Ultra Short Duration Funds in 10 Years?

The main advantages of investing in top-performing Ultra Short Duration Funds in 10 years include the potential for higher returns than savings accounts, high liquidity, lower interest rate risk and professional management. These funds offer a balance between yield and stability for short-term investments.

• Higher return potential: Ultra Short Duration Funds aim to provide better returns than savings accounts or liquid funds while maintaining relatively low risk.

• High liquidity: These funds offer easy redemption, usually within one business day, making them suitable for short-term cash management needs.

• Lower interest rate risk: With a Macaulay duration of 3-6 months, these funds have lower sensitivity to interest rate changes compared to longer-duration funds.

• Professional management: Experienced fund managers analyse market conditions and credit risks to optimise the portfolio for short-term returns.

Risks Of Investing In Top Performing Ultra Short Duration Funds in 10 Years?

The main risks of investing in top-performing Ultra Short Duration Funds in 10 years include credit risk, interest rate risk, reinvestment risk and the potential for lower returns compared to longer-duration funds. While these funds generally have low-risk profiles, investors should be aware of potential factors that can impact returns.

• Credit risk: There’s a risk that issuers of the underlying securities may default on their payments, which can impact the fund’s returns.

• Interest rate risk: Although lower than longer-duration funds, Ultra Short short-duration funds are still affected by interest rate changes to some extent.

• Reinvestment risk: As securities in the portfolio mature frequently, there’s a risk that proceeds may be reinvested at lower rates if interest rates decline.

• Lower return potential: While offering better returns than savings accounts, these funds may underperform longer-duration funds in certain market conditions.

Importance of Ultra Short Duration Funds

The main importance of Ultra Short Duration Funds lies in their ability to offer a balance between liquidity and returns, serve as a cash management tool, provide portfolio diversification and offer a low-risk investment option. These funds play a crucial role in many investors’ short-term financial planning.

• Cash management: Ultra Short Duration Funds offer an efficient way to manage short-term surplus cash, providing potentially higher returns than savings accounts while maintaining high liquidity.

• Low-risk investment: These funds provide a relatively low-risk investment option for conservative investors or those looking to park funds temporarily.

• Portfolio diversification: Including Ultra Short Duration Funds in an investment portfolio can help balance overall risk, especially when combined with longer-term investments.

• Stepping stone: These funds can serve as a stepping stone for investors looking to move from traditional savings products to other debt mutual funds.

How Long to Stay Invested in Ultra Short Duration Funds?

The ideal investment horizon for Ultra Short Duration Funds typically ranges from 3 to 6 months. 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 and credit risks effectively.

However, the exact duration can vary based on individual financial goals and cash flow needs. Some investors use these funds as part of their regular cash management strategy, while others may hold them for slightly longer periods. Regular review of your investment is important to ensure it aligns with your short-term financial objectives.

Tax Implications of Investing in Ultra Short-Duration Funds

Ultra 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.

Given the short-term nature of Ultra Short Duration Funds, most investors will fall under the short-term capital gains tax category. It’s important to note that the taxation of debt funds is generally less favourable than equity funds for short-term investments, which should be considered when comparing returns with other investment options.

Future of Ultra Short-Duration Funds

The future of Ultra Short Duration Funds in India looks promising, driven by factors such as increasing awareness about debt mutual funds, the need for efficient short-term cash management solutions and the potential for slightly better returns than traditional savings accounts. As investors seek alternatives to low-yielding savings products, these funds are likely to gain more traction.

However, their performance will continue to be influenced by short-term interest rate movements and credit market conditions. Innovations in fund management strategies and the introduction of new short-term investment products could further enhance the appeal of Ultra Short Duration Funds in the coming years.

Top Performing Ultra Short Duration Funds in 10 Years – FAQs   

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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.