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Low Duration Funds are debt funds that lend to companies for a period of 6 to 12 months. There relatively longer lending duration makes them a little more volatile than liquid or Ultra Short Duration Funds, but they don't have any Stock Market or Equity Instruments & hence are relatively safer funds to invest.
Min 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 %
#14 of 21
Fund Size
₹416 Crs
Return (p.a)
+ 6.78% + 18.64% + 6.38% + 38.76% + 2.13% + 2.13% + 7.71% + 12.32% + 1.16% + 1.16% + 7.02% + 7.38% + 3.97% + 3.97% + 0.55% + 0.55%
ETM Rank
#14 of 21#15 of 21
Fund Size
₹173 Crs
Return (p.a)
+ 6.67% + 18.33% + 6.27% + 37.94% + 2.04% + 2.04% + 5.33% + 8.42% + 1.12% + 1.12% + 5.96% + 6.25% + 3.71% + 3.71% + 0.53% + 0.53%
ETM Rank
#15 of 21Fund Size
₹12,577 Crs
Return (p.a)
+ 6.42% + 17.58% + 7.29% + 45.49% + 2.23% + 2.23% + 6.02% + 9.55% + 1.21% + 1.21% + 6.58% + 6.91% + 4.06% + 4.06% + 0.56% + 0.56%
ETM Rank
#3 of 21#5 of 21
Fund Size
₹15,908 Crs
Return (p.a)
+ 6.35% + 17.38% + 7.07% + 43.86% + 2.36% + 2.36% + 5.98% + 9.48% + 1.31% + 1.31% + 6.56% + 6.89% + 4.18% + 4.18% + 0.67% + 0.67%
ETM Rank
#5 of 21#7 of 21
Fund Size
₹10,952 Crs
Return (p.a)
+ 6.30% + 17.24% + 7.37% + 46.10% + 2.24% + 2.24% + 5.85% + 9.27% + 1.22% + 1.22% + 6.44% + 6.75% + 4.07% + 4.07% + 0.60% + 0.60%
ETM Rank
#7 of 21#6 of 21
Fund Size
₹21,607 Crs
Return (p.a)
+ 6.26% + 17.10% + 7.06% + 43.79% + 2.41% + 2.41% + 5.91% + 9.37% + 1.37% + 1.37% + 6.59% + 6.92% + 4.25% + 4.25% + 0.68% + 0.68%
ETM Rank
#6 of 21#12 of 21
Fund Size
₹3,490 Crs
Return (p.a)
+ 6.22% + 16.99% + 6.00% + 36.02% + 2.12% + 2.12% + 6.90% + 10.98% + 1.14% + 1.14% + 6.59% + 6.92% + 3.86% + 3.86% + 0.54% + 0.54%
ETM Rank
#12 of 21#9 of 21
Fund Size
₹7,445 Crs
Return (p.a)
+ 6.18% + 16.87% + 6.88% + 42.47% + 2.16% + 2.16% + 5.90% + 9.34% + 1.14% + 1.14% + 6.34% + 6.65% + 3.94% + 3.94% + 0.55% + 0.55%
ETM Rank
#9 of 21#4 of 21
Fund Size
₹5,865 Crs
Return (p.a)
+ 6.03% + 16.44% + 6.93% + 42.81% + 2.16% + 2.16% + 5.71% + 9.04% + 1.15% + 1.15% + 6.31% + 6.62% + 3.95% + 3.95% + 0.55% + 0.55%
ETM Rank
#4 of 21#19 of 21
Fund Size
₹156 Crs
Return (p.a)
+ 5.99% + 16.33% + 6.83% + 42.09% + 2.17% + 2.17% + 5.65% + 8.94% + 1.20% + 1.20% + 6.21% + 6.52% + 3.95% + 3.95% + 0.59% + 0.59%
ETM Rank
#19 of 21Fund Size
₹417 Crs
Return (p.a)
+ 5.87% + 15.97% N.A. N.A. + 2.21% + 2.21% + 5.65% + 8.93% + 1.22% + 1.22% + 6.28% + 6.59% + 3.99% + 3.99% + 0.61% + 0.61%
ETM Rank
#2 of 21#1 of 21
Fund Size
₹10,849 Crs
Return (p.a)
+ 5.82% + 15.82% + 6.67% + 40.85% + 2.14% + 2.14% + 5.56% + 8.80% + 1.14% + 1.14% + 6.21% + 6.52% + 3.93% + 3.93% + 0.54% + 0.54%
ETM Rank
#1 of 21#13 of 21
Fund Size
₹491 Crs
Return (p.a)
+ 5.78% + 15.72% + 6.68% + 40.99% + 2.27% + 2.27% + 5.72% + 9.05% + 1.28% + 1.28% + 6.33% + 6.64% + 4.04% + 4.04% + 0.66% + 0.66%
ETM Rank
#13 of 21#16 of 21
Fund Size
₹3,525 Crs
Return (p.a)
+ 5.78% + 15.71% N.A. N.A. + 2.13% + 2.13% + 5.51% + 8.71% + 1.14% + 1.14% + 6.14% + 6.44% + 3.90% + 3.90% + 0.54% + 0.54%
ETM Rank
#16 of 21Fund Size
₹1,224 Crs
Return (p.a)
+ 5.77% + 15.67% + 6.71% + 41.21% + 2.10% + 2.10% + 5.40% + 8.53% + 1.12% + 1.12% + 6.00% + 6.29% + 3.82% + 3.82% + 0.54% + 0.54%
ETM Rank
#8 of 21Show all funds
See what your investment would have yielded in
To understand how low-duration funds work, it is necessary first to understand the concept of duration. That is because the duration of a fund affects its investment decisions as well as the type and amount of returns earned by it.
Investors earn dividend income and capital gains from low duration funds. Dividend income is not taxable for investors. However, capital gain, which is the difference between the purchase price and selling price of the units, is taxable. The rate of tax on capital gains depends on how long the investor has held the units of the low duration fund.
It is quite easy to invest in Low Duration mutual funds on ET Money. Here are the steps that you have to follow.
Which are the best Low Duration Mutual Funds to invest in 2023?
These are top 5 Low Duration funds you can invest in 2023
Fund Name | Fund Category | ETM Rank | Consistency | 5 Year Return (Annualized) |
---|---|---|---|---|
Sundaram Low Duration Fund | Debt | # 20 of 24 | 5.32 % p.a. | |
JM Low Duration Fund | Debt | # 19 of 24 | 5.35 % p.a. | |
Aditya Birla Sun Life Low Duration Fund | Debt | # 5 of 24 | 7.06 % p.a. | |
HDFC Low Duration Fund | Debt | # 1 of 24 | 6.86 % p.a. | |
Kotak Low Duration Fund | Debt | # 4 of 24 | 6.94 % p.a. |
How long should I stay invested in Low Duration Mutual Funds?
Low Duration Debt Mutual Funds are ideal for an investment horizon of at least 1 year.
Where do Low Duration Mutual Funds invest?
Low Duration Funds lend for 6 to 12 months. They mostly lend to good quality borrowers like highly-rated companies and the government.
Are Low Duration Mutual Funds high risk?
Low Duration Fund's relatively longer lending duration makes them somewhat susceptible to interest rate movements, and as a result, they can be relatively more volatile. However, they are still a low-risk investment avenue.
What kind of returns can i earn from Low Duration ?
Low Duration Funds have on an average delivered 6.95% p.a. returns in the last 1 year. Their 3 and 5 year annualized returns are 5.33% and 5.98%. p.a.