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Ultra Short Term Funds

  • Average Return 5.84%
  • No of Funds 23

What is Ultra Short Duration Mutual Fund

Ultra Short Duration Funds are debt funds that lend to companies for a period of 3 to 6 months. Although these are low-risk funds owing to their low lending duration, they are slightly above liquid funds in the risk spectrum but still one of the lowest risk categories of Schemes to invest in.

Advantages of Ultra Short Duration Funds

  • Ideal for anyone looking to keep aside money for a couple of weeks to a few months
  • Near zero risk of loss if someone invests for at least 3 months
  • These Schemes tend to give similar or slightly higher returns than Bank Fixed Deposits of equal or comparable investment tenure

Top schemes of Ultra Short Duration Mutual Funds sorted by ETM Rank

23 funds
ShowReturns forvia
ICICI Prudential

Fund Size

₹12,586 Crs

Return (p.a)

+ 6.82%+ 0.53% + 8.19%+ 1.29% + 8.1%+ 2.27% + 7.76%+ 4.12% + 6.86%+ 10.93% + 6.42%+ 17.59%

ETM Rank

#1 of 18
Axis

Fund Size

₹4,651 Crs

Return (p.a)

+ 6.86%+ 0.53% + 8.08%+ 1.27% + 8.03%+ 2.25% + 7.75%+ 4.12% + 6.86%+ 10.92% + 6.24%+ 17.04%

ETM Rank

#2 of 18
PGIM India

Fund Size

₹241 Crs

Return (p.a)

+ 6.81%+ 0.53% + 7.85%+ 1.24% + 7.76%+ 2.18% + 7.5%+ 3.99% + 6.63%+ 10.54% + 6.44%+ 17.64%

ETM Rank

#3 of 18
Sundaram

Fund Size

₹2,079 Crs

Return (p.a)

+ 6.71%+ 0.52% + 7.91%+ 1.25% + 7.86%+ 2.21% + 7.61%+ 4.05% + 6.74%+ 10.72% + 5.98%+ 16.3%

ETM Rank

#4 of 18
Invesco

Fund Size

₹663 Crs

Return (p.a)

+ 6.98%+ 0.54% + 7.9%+ 1.24% + 7.81%+ 2.19% + 7.56%+ 4.02% + 6.66%+ 10.59% + 5.96%+ 16.22%

ETM Rank

#5 of 18
Bank of India

Fund Size

₹146 Crs

Return (p.a)

+ 6.4%+ 0.49% + 7.3%+ 1.15% + 7.14%+ 2.01% + 6.86%+ 3.65% + 6.15%+ 9.76% + 5.5%+ 14.9%

ETM Rank

#6 of 18
Tata

Fund Size

₹2,712 Crs

Return (p.a)

+ 6.88%+ 0.53% + 7.91%+ 1.25% + 7.92%+ 2.22% + 7.71%+ 4.1% + 6.79%+ 10.8% + 6.07%+ 16.56%

ETM Rank

#7 of 18
UTI

Fund Size

₹2,349 Crs

Return (p.a)

+ 6.88%+ 0.53% + 8.05%+ 1.27% + 7.95%+ 2.23% + 7.66%+ 4.07% + 6.97%+ 11.1% + 6.56%+ 18.0%

ETM Rank

#8 of 18
Canara Robeco

Fund Size

₹526 Crs

Return (p.a)

+ 6.62%+ 0.51% + 7.52%+ 1.19% + 7.42%+ 2.09% + 7.18%+ 3.82% + 6.3%+ 9.99% + 5.55%+ 15.04%

ETM Rank

#9 of 18
HDFC

Fund Size

₹13,816 Crs

Return (p.a)

+ 6.88%+ 0.53% + 8.09%+ 1.27% + 7.96%+ 2.23% + 7.63%+ 4.06% + 6.69%+ 10.64% + 6.1%+ 16.64%

ETM Rank

#10 of 18
DSP

Fund Size

₹2,467 Crs

Return (p.a)

+ 6.71%+ 0.52% + 7.89%+ 1.24% + 7.83%+ 2.2% + 7.72%+ 4.1% + 6.74%+ 10.72% + 5.97%+ 16.26%

ETM Rank

#11 of 18
SBI

Fund Size

₹11,398 Crs

Return (p.a)

+ 6.71%+ 0.52% + 7.9%+ 1.24% + 7.81%+ 2.19% + 7.53%+ 4.0% + 6.57%+ 10.44% + 5.89%+ 16.04%

ETM Rank

#12 of 18
Baroda BNP Paribas

Fund Size

₹1,259 Crs

Return (p.a)

+ 6.7%+ 0.52% + 7.8%+ 1.23% + 7.75%+ 2.18% + 7.55%+ 4.01% + 6.78%+ 10.78% + 6.04%+ 16.46%

ETM Rank

#13 of 18
Aditya Birla SL

Fund Size

₹12,060 Crs

Return (p.a)

+ 7.01%+ 0.54% + 8.37%+ 1.32% + 8.19%+ 2.3% + 7.81%+ 4.15% + 6.82%+ 10.86% + 6.29%+ 17.2%

ETM Rank

#14 of 18
Nippon India

Fund Size

₹5,654 Crs

Return (p.a)

+ 7.06%+ 0.54% + 8.24%+ 1.3% + 8.13%+ 2.28% + 7.85%+ 4.17% + 7.16%+ 11.42% + 6.99%+ 19.27%

ETM Rank

#15 of 18
Kotak

Fund Size

₹13,375 Crs

Return (p.a)

+ 6.69%+ 0.52% + 7.99%+ 1.26% + 7.87%+ 2.21% + 7.55%+ 4.01% + 6.68%+ 10.62% + 6.04%+ 16.45%

ETM Rank

#16 of 18
Motilal Oswal

Fund Size

₹170 Crs

Return (p.a)

+ 6.14%+ 0.47% + 6.62%+ 1.05% + 6.63%+ 1.87% + 6.67%+ 3.55% + 5.83%+ 9.23% + 5.12%+ 13.79%

ETM Rank

#17 of 18
Bandhan

Fund Size

₹3,962 Crs

Return (p.a)

+ 6.68%+ 0.51% + 7.91%+ 1.25% + 7.81%+ 2.19% + 7.51%+ 3.99% + 6.56%+ 10.43% + 5.84%+ 15.87%

ETM Rank

#18 of 18
HSBC

Fund Size

₹2,352 Crs

Return (p.a)

+ 6.69%+ 0.52% + 7.91%+ 1.25% + 7.83%+ 2.2% + 7.56%+ 4.02% + 6.66%+ 10.59% N.A.N.A.

ETM Rank

Unranked
LIC MF

Fund Size

₹189 Crs

Return (p.a)

+ 6.65%+ 0.51% + 7.75%+ 1.22% + 7.67%+ 2.15% + 7.24%+ 3.85% + 6.11%+ 9.69% N.A.N.A.

ETM Rank

Unranked
Mahindra Manulife

Fund Size

₹220 Crs

Return (p.a)

+ 7.3%+ 0.56% + 8.12%+ 1.28% + 7.95%+ 2.23% + 7.64%+ 4.06% + 6.7%+ 10.66% N.A.N.A.

ETM Rank

Unranked
Mirae Asset

Fund Size

₹1,464 Crs

Return (p.a)

+ 6.98%+ 0.54% + 8.02%+ 1.26% + 7.98%+ 2.24% + 7.72%+ 4.1% + 6.74%+ 10.72% N.A.N.A.

ETM Rank

Unranked
WhiteOak Capital

Fund Size

₹298 Crs

Return (p.a)

+ 6.71%+ 0.52% + 7.63%+ 1.2% + 7.56%+ 2.13% + 7.33%+ 3.9% + 6.47%+ 10.28% N.A.N.A.

ETM Rank

Unranked

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Ultra Short Duration Funds Returns Calculator

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ICICI Prudential Ultra Short Term Fund
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How to invest in Ultra Short Duration Funds?

It is quite easy to invest in Ultra Short Duration mutual funds on ET Money. Here are the steps that you have to follow.

  • Register online on ET Money app or website
  • Head to Mutual Funds sections and choose the Ultra Short Duration fund you want to invest in.
  • Click on invest and choose the amount and mode of investment (SIP or Lumpsum)
  • Provide your KYC details (Pan number, Bank details) and complete your investment.

Frequently Asked Questions

Which are the best Ultra Short Duration Mutual Funds to invest in 2024?

These are top 5 Ultra Short Duration funds you can invest in 2024

Fund NameFund CategoryETM RankConsistency5 Year Return (Annualized)
Baroda BNP Paribas Ultra Short Duration FundDebt# 13 of 18
5.86 % p.a.
WhiteOak Capital Ultra Short Duration FundDebtUnranked
NA
Sundaram Ultra Short Duration FundDebt# 4 of 18
5.81 % p.a.
PGIM India Ultra Short Duration FundDebt# 3 of 18
7.2 % p.a.
Nippon India Ultra Short Duration FundDebt# 15 of 18
5.96 % p.a.

Ultra Short Duration Debt Mutual Funds are ideal for an investment horizon of 6 months to 1 year.

Ultra Short Duration Funds lend for 3 to 6 months. They mostly lend to borrowers who are financially strong and also to the government.

Ultra Short Duration Funds are low-risk funds owing to their low lending duration. Although the risk is slightly higher than liquid funds.

Ultra Short Duration Funds have on an average delivered 7.38% p.a. returns in the last 1 year. Their 3 and 5 year annualized returns are 5.84% and 5.94%. p.a.

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