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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.
Min SIP
₹ 5,000
5 Yrs Return
+ 7.39 % p.a. + 8.47 % p.a. + 9.03 % + 6.73 % p.a. + 8.28 % p.a. + 9.63 % + 8.71 % p.a. + 4.94 %
#1 of 20
Fund Size
₹7,944 Crs
Return (p.a)
+ 9.16%+ 0.7% + 8.06%+ 1.26% + 8.13%+ 2.26% + 7.68%+ 4.08% + 6.73%+ 10.71% + 6.61%+ 18.13%
ETM Rank
#1 of 20#2 of 20
Fund Size
₹18,092 Crs
Return (p.a)
+ 9.91%+ 0.75% + 8.59%+ 1.33% + 8.26%+ 2.3% + 8.04%+ 4.27% + 7.4%+ 11.82% + 7.25%+ 20.06%
ETM Rank
#2 of 20#3 of 20
Fund Size
₹12,825 Crs
Return (p.a)
+ 9.11%+ 0.7% + 7.97%+ 1.24% + 7.81%+ 2.18% + 7.4%+ 3.93% + 6.44%+ 10.23% + 6.18%+ 16.88%
ETM Rank
#3 of 20Fund Size
₹7,274 Crs
Return (p.a)
+ 9.52%+ 0.73% + 8.05%+ 1.25% + 8.1%+ 2.26% + 7.78%+ 4.13% + 6.96%+ 11.09% + 6.96%+ 19.18%
ETM Rank
#4 of 20#5 of 20
Fund Size
₹12,948 Crs
Return (p.a)
+ 8.92%+ 0.68% + 7.86%+ 1.23% + 8.01%+ 2.23% + 7.72%+ 4.1% + 6.73%+ 10.72% + 6.65%+ 18.25%
ETM Rank
#5 of 20#6 of 20
Fund Size
₹346 Crs
Return (p.a)
+ 9.03%+ 0.69% + 7.88%+ 1.23% + 7.95%+ 2.22% + 7.46%+ 3.96% + 6.45%+ 10.25% + 6.17%+ 16.86%
ETM Rank
#6 of 20Fund Size
₹218 Crs
Return (p.a)
+ 9.6%+ 0.73% + 7.93%+ 1.23% + 7.96%+ 2.22% + 7.62%+ 4.05% + 6.66%+ 10.59% + 6.27%+ 17.15%
ETM Rank
#7 of 20Fund Size
₹392 Crs
Return (p.a)
+ 8.96%+ 0.68% + 7.74%+ 1.21% + 7.54%+ 2.11% + 7.15%+ 3.8% + 6.06%+ 9.61% + 5.82%+ 15.83%
ETM Rank
#8 of 20#9 of 20
Fund Size
₹187 Crs
Return (p.a)
+ 9.45%+ 0.72% + 7.78%+ 1.21% + 7.78%+ 2.17% + 7.42%+ 3.94% + 7.24%+ 11.55% + 7.59%+ 21.07%
ETM Rank
#9 of 20#10 of 20
Fund Size
₹2,680 Crs
Return (p.a)
+ 8.01%+ 0.61% + 7.34%+ 1.15% + 8.06%+ 2.25% + 7.9%+ 4.19% + 7.35%+ 11.72% + 7.55%+ 20.95%
ETM Rank
#10 of 20#11 of 20
Fund Size
₹3,648 Crs
Return (p.a)
+ 9.53%+ 0.73% + 7.69%+ 1.2% + 7.45%+ 2.08% + 7.22%+ 3.83% + 6.08%+ 9.65% + 5.87%+ 15.96%
ETM Rank
#11 of 20#12 of 20
Fund Size
₹14,804 Crs
Return (p.a)
+ 9.5%+ 0.72% + 8.17%+ 1.27% + 8.08%+ 2.25% + 7.68%+ 4.08% + 6.59%+ 10.48% + 6.43%+ 17.6%
ETM Rank
#12 of 20#13 of 20
Fund Size
₹77 Crs
Return (p.a)
+ 9.18%+ 0.7% + 7.23%+ 1.13% + 7.31%+ 2.04% + 6.91%+ 3.67% + 11.49%+ 18.73% + 9.91%+ 28.29%
ETM Rank
#13 of 20#14 of 20
Fund Size
₹113 Crs
Return (p.a)
+ 9.79%+ 0.75% + 8.04%+ 1.25% + 8.07%+ 2.25% + 7.63%+ 4.05% + 6.29%+ 9.98% + 5.9%+ 16.05%
ETM Rank
#14 of 20#15 of 20
Fund Size
₹2,956 Crs
Return (p.a)
+ 8.86%+ 0.68% + 7.67%+ 1.2% + 7.65%+ 2.13% + 7.27%+ 3.86% + 6.3%+ 10.0% + 6.07%+ 16.55%
ETM Rank
#15 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 2024?
These are top 5 Short Duration funds you can invest in 2024
Fund Name | Fund Category | ETM Rank | Consistency | 5 Year Return (Annualized) |
---|---|---|---|---|
Bank of India Short Term Income Fund | Debt | # 13 of 20 | 4.34 % p.a. | |
HDFC Short Term Debt Fund | Debt | # 5 of 20 | 7.4 % p.a. | |
Nippon India Short-term Fund | Debt | Unranked | 7.39 % p.a. | |
Mirae Asset Short Duration Fund | Debt | # 6 of 20 | 6.78 % p.a. | |
Baroda BNP Paribas Short Duration Fund | Debt | # 7 of 20 | 6.72 % 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 7.04% p.a. returns in the last 1 year. Their 3 and 5 year annualized returns are 6.2% and 6.75%. p.a.