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Short term funds are debt funds that lend to companies for a period of 1 to 3 years. These funds mostly take exposure only in quality companies that have proven record of repaying their loans on time as well as have sufficient cash flows from their business operations to justify the borrowing.
#20 of 20
Fund Size
₹76 Crs
Return (p.a)
+ 8.86% + 24.97% + 6.30% + 38.16% + 1.62% + 1.62% + 13.83% + 22.80% + 0.71% + 0.71% + 14.85% + 15.82% + 5.09% + 5.09% + 0.35% + 0.35%
ETM Rank
#20 of 20Min SIP
₹ 5,000
5 Yrs Return
+ 7.44 % p.a. + 8.54 % p.a. + 5.92 % + 5.13 % p.a. + 4.98 % p.a. + 2.03 % + 6.52 % p.a. -1.19 %
#2 of 20
Fund Size
₹18,245 Crs
Return (p.a)
+ 7.30% + 20.20% + 8.03% + 51.31% + 2.35% + 2.35% + 6.54% + 10.40% + 1.18% + 1.18% + 7.15% + 7.51% + 4.32% + 4.32% + 0.61% + 0.61%
ETM Rank
#2 of 20#16 of 20
Fund Size
₹200 Crs
Return (p.a)
+ 7.08% + 19.56% + 6.77% + 41.65% + 2.05% + 2.05% + 7.35% + 11.73% + 0.92% + 0.92% + 6.71% + 7.05% + 3.91% + 3.91% + 0.45% + 0.45%
ETM Rank
#16 of 20Fund Size
₹6,040 Crs
Return (p.a)
+ 7.00% + 19.29% + 7.80% + 49.49% + 2.14% + 2.14% + 6.10% + 9.67% + 1.00% + 1.00% + 6.52% + 6.85% + 3.99% + 3.99% + 0.49% + 0.49%
ETM Rank
#8 of 20#11 of 20
Fund Size
₹2,383 Crs
Return (p.a)
+ 6.85% + 18.86% + 6.56% + 40.05% + 2.15% + 2.15% + 7.03% + 11.20% + 1.02% + 1.02% + 6.71% + 7.05% + 4.02% + 4.02% + 0.54% + 0.54%
ETM Rank
#11 of 20Unranked
Fund Size
₹6,164 Crs
Return (p.a)
+ 6.66% + 18.28% + 7.43% + 46.62% + 2.12% + 2.12% + 5.80% + 9.18% + 0.95% + 0.95% + 6.11% + 6.41% + 3.95% + 3.95% + 0.49% + 0.49%
ETM Rank
Unranked#5 of 20
Fund Size
₹12,412 Crs
Return (p.a)
+ 6.63% + 18.21% + 7.45% + 46.76% + 2.18% + 2.18% + 5.72% + 9.05% + 1.04% + 1.04% + 6.21% + 6.51% + 4.02% + 4.02% + 0.52% + 0.52%
ETM Rank
#5 of 20#1 of 20
Fund Size
₹7,490 Crs
Return (p.a)
+ 6.60% + 18.13% + 7.54% + 47.43% + 2.01% + 2.01% + 5.70% + 9.02% + 0.88% + 0.88% + 6.17% + 6.47% + 3.86% + 3.86% + 0.46% + 0.46%
ETM Rank
#1 of 20#6 of 20
Fund Size
₹13,225 Crs
Return (p.a)
+ 6.41% + 17.54% + 7.41% + 46.46% + 2.15% + 2.15% + 5.50% + 8.70% + 1.02% + 1.02% + 5.98% + 6.27% + 3.89% + 3.89% + 0.57% + 0.57%
ETM Rank
#6 of 20#19 of 20
Fund Size
₹2,291 Crs
Return (p.a)
+ 6.14% + 16.76% + 6.54% + 39.95% + 2.01% + 2.01% + 5.41% + 8.54% + 0.83% + 0.83% + 5.99% + 6.28% + 3.90% + 3.90% + 0.43% + 0.43%
ETM Rank
#19 of 20#7 of 20
Fund Size
₹13,349 Crs
Return (p.a)
+ 6.13% + 16.73% + 7.11% + 44.17% + 2.05% + 2.05% + 5.35% + 8.45% + 0.96% + 0.96% + 5.92% + 6.21% + 3.85% + 3.85% + 0.50% + 0.50%
ETM Rank
#7 of 20#3 of 20
Fund Size
₹417 Crs
Return (p.a)
+ 6.10% + 16.66% N.A. N.A. + 2.07% + 2.07% + 5.42% + 8.57% + 0.97% + 0.97% + 5.95% + 6.24% + 3.84% + 3.84% + 0.51% + 0.51%
ETM Rank
#3 of 20#15 of 20
Fund Size
₹3,165 Crs
Return (p.a)
+ 6.03% + 16.43% + 7.04% + 43.60% + 2.10% + 2.10% + 5.23% + 8.25% + 0.94% + 0.94% + 5.80% + 6.08% + 3.86% + 3.86% + 0.48% + 0.48%
ETM Rank
#15 of 20#12 of 20
Fund Size
₹8,880 Crs
Return (p.a)
+ 5.98% + 16.31% + 7.04% + 43.66% + 1.85% + 1.85% + 5.06% + 7.98% + 0.77% + 0.77% + 5.57% + 5.83% + 3.63% + 3.63% + 0.38% + 0.38%
ETM Rank
#12 of 20#17 of 20
Fund Size
₹386 Crs
Return (p.a)
+ 5.87% + 15.98% + 6.87% + 42.38% + 1.86% + 1.86% + 4.94% + 7.78% + 0.80% + 0.80% + 5.42% + 5.68% + 3.57% + 3.57% + 0.41% + 0.41%
ETM Rank
#17 of 20Show all funds
See what your investment would have yielded in
To understand how short-duration funds work, it is necessary first to understand the concept of duration and how it impacts the funds' investment decisions and returns.
Investors earn dividend income and capital gains from short duration funds. From the financial year 2020-21, investors will pay tax on dividends as per their tax bracket. Capital gains- or the difference between the purchase price and the selling price of the fund- are taxable. How capital gains are taxed depends on the length of time for which an investor holds the units of a debt fund before sale or redemption.
It is quite easy to invest in Short Duration mutual funds on ET Money. Here are the steps that you have to follow.
Which are the best Short Duration Mutual Funds to invest in 2023?
These are top 5 Short Duration funds you can invest in 2023
Fund Name | Fund Category | ETM Rank | Consistency | 5 Year Return (Annualized) |
---|---|---|---|---|
Bank of India Short Term Income Fund | Debt | # 11 of 23 | 4.02 % p.a. | |
ICICI Prudential Short Term Fund | Debt | # 1 of 23 | 8.02 % p.a. | |
Sundaram Short Duration Fund | Debt | # 15 of 23 | 5.94 % p.a. | |
Aditya Birla Sun Life Short Term Fund | Debt | # 5 of 23 | 7.8 % p.a. | |
UTI Short-term Income Fund | Debt | # 6 of 23 | 5.57 % p.a. |
How long should I stay invested in Short Duration Mutual Funds?
Since Short Duration Funds lend for the medium duration, you should invest in these funds for at least 1 to 1.5 years.
Where do Short Duration Mutual Funds invest?
Short Term Funds lend to companies for a period of 1 to 3 years. These funds mostly take exposure only in quality companies.
Are Short Duration Mutual Funds high risk?
Short Term Debt Funds primarily lend to good companies that have a proven record of repaying their loans on time. Their lending duration is also not too long. While you might see some volatility in the really short-term, they typically are a good option for at least a 1-2 year investment period.
What kind of returns can i earn from Short Duration ?
Short Duration Funds have on an average delivered 7.09% p.a. returns in the last 1 year. Their 3 and 5 year annualized returns are 5.67% and 6.68%. p.a.