Short Duration Mutual Funds

As the name suggests, short term mutual funds involve putting the funds in short term money market investments of high-quality and low risk. View More

They are open ended funds with a maturity time range of anything between 15 to 91 days, depending upon the maturity period of the underlying instruments.

Short term mutual funds have a moderately low interest rate risk and are a good option to park your surplus funds for short durations like a month or two. They are best for those looking for risk asset options as they are mainly debt-oriented mutual funds that are high-yielding but of low risk.

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Short Duration Mutual Funds List

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Who Should Invest in Short Term Funds?

Short term mutual funds are debt-oriented funds that restrict their portfolio investment to instruments that yield returns based on income derived from interest and have short-term maturities. Hence, these funds are best suited for those: View More

Having an investment horizon of shorter than three months- These funds provide a better option to invest surplus funds into, as they provide higher returns than bank deposits in savings accounts without compromising on the liquidity factor.
Investors are looking for risk-aversion- Since these funds attract low risk due to their shortened maturity of the underlying securities, it is best for investors who want their money to be safe yet earn a good percentage of returns on them. These funds have recorded returns to the tune of 6%-8% as per records.
However, before investing in short term funds, investors should keep the following points in mind:

Ensure that the duration of the fund matches your investment tenure
Check the credibility and ratings of the underlying investment securities in the scheme portfolio
With regard to credit risk management, check the track record of the fund manager and the fund house
Some of the best short term mutual funds include Edelweiss Banking and PSU debt fund- Direct Plan-Growth, Edelweiss Banking, PSU debt fund, HDFC Corporate Bond Fund- Direct Plan-Growth, HDFC Medium Term Debt Fund-Direct Plan Growth, and so on.

Popular Short Duration Mutual Funds

  • Min SIP Investment Amt
  • ₹ ₹ 1000
  • AUM (Cr.)
  • ₹ 109
  • 3Y Return
  • 14.47%

  • Min SIP Investment Amt
  • ₹ ₹ 1000
  • AUM (Cr.)
  • ₹ 20,112
  • 3Y Return
  • 7.70%

  • Min SIP Investment Amt
  • ₹ ₹ 1000
  • AUM (Cr.)
  • ₹ 8,689
  • 3Y Return
  • 7.30%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 8,825
  • 3Y Return
  • 7.04%

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 2,446
  • 3Y Return
  • 7.02%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 14,391
  • 3Y Return
  • 6.95%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 213
  • 3Y Return
  • 6.94%

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 66
  • 3Y Return
  • 6.91%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 6,340
  • 3Y Return
  • 6.89%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 17,188
  • 3Y Return
  • 6.86%

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