Short Duration Mutual Funds
If you’re looking for a way to invest that offers a good balance between safety and returns, short duration funds are worth considering. These funds typically invest in fixed-income securities that mature within 1 to 3 years. Because of their shorter time frame, they handle interest rate changes more smoothly than longer-term debt funds, making them a solid choice for investors who prefer a cautious approach. View More
List of Short Duration Mutual Funds
| Fund Name | Fund Size (Cr.) | 3Y Returns | 5Y Returns | |
|---|---|---|---|---|
 ICICI Pru Short Term Fund - Direct Growth | 19,260 | 8.06% | 7.32% | |
 Mahindra Manulife Short Duration Fund - Dir Growth | 82 | 8.01% | 6.80% | |
 AXIS Short Duration Fund - Direct Growth | 8,010 | 7.97% | 6.91% | |
 Nippon India Short Duration Fund - Direct Growth | 7,189 | 7.92% | 6.85% | |
 Bandhan Short Duration Fund - Direct Growth | 9,287 | 7.92% | 6.59% | |
 Aditya Birla SL Short Term Fund-DirGrowth | 5,831 | 7.88% | 7.00% | |
 Bank of India Short Term Income - Direct Growth | 272 | 7.81% | 10.85% | |
 HDFC Short Term Debt Fund - Direct Growth | 15,081 | 7.76% | 6.74% | |
 LIC MF Short Duration Fund - Direct Growth | 128 | 7.74% | 6.63% | |
 Kotak Bond - Short Term Fund - Direct Growth | 14,292 | 7.68% | 6.64% |
| Fund Name | 1Y Returns | Rating | Fund Size (Cr.) |
|---|---|---|---|
| ICICI Pru Short Term Fund - Direct Growth | 6.81% Fund Size (Cr.) - 19,260 | ||
| Mahindra Manulife Short Duration Fund - Dir Growth | 6.64% Fund Size (Cr.) - 82 | ||
| AXIS Short Duration Fund - Direct Growth | 6.46% Fund Size (Cr.) - 8,010 | ||
| Nippon India Short Duration Fund - Direct Growth | 6.25% Fund Size (Cr.) - 7,189 | ||
| Bandhan Short Duration Fund - Direct Growth | 6.53% Fund Size (Cr.) - 9,287 | ||
| Aditya Birla SL Short Term Fund-DirGrowth | 6.44% Fund Size (Cr.) - 5,831 | ||
| Bank of India Short Term Income - Direct Growth | 5.87% Fund Size (Cr.) - 272 | ||
| HDFC Short Term Debt Fund - Direct Growth | 6.22% Fund Size (Cr.) - 15,081 | ||
| LIC MF Short Duration Fund - Direct Growth | 6.13% Fund Size (Cr.) - 128 | ||
| Kotak Bond - Short Term Fund - Direct Growth | 5.99% Fund Size (Cr.) - 14,292 |
What is a Short Duration Mutual Fund?
Short Duration Mutual Fund meaning are a category of debt funds that invest in fixed income instruments with Macaulay duration between 1 to 3 years. As per SEBI guidelines, these funds must maintain this duration range at all times. They primarily invest in corporate bonds, government securities, commercial papers, and certificates of deposit.
They are considered low to moderate risk and offer higher returns than liquid or ultra-Short Duration Funds, typically in the range of 6.5% to 7.5% annually. Their risk-reward profile makes them ideal for investors with a short to medium investment horizon who seek better returns than savings accounts or FDs.