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

Short duration funds are particularly well-suited for those with medium-term goals — whether you’re saving for a future expense or simply want your money to grow steadily without locking it away for too long. They usually offer better returns than traditional savings accounts or fixed deposits, while keeping risks relatively moderate.

So, whether you’re putting together an emergency fund or planning for income over the next few years, getting to know the best short duration funds can help you make smart, confident investment decisions that match your financial needs.

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List of Short Duration Mutual Funds

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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.

 

Popular Short Duration Mutual Funds

  • Min SIP Investment Amt
  • ₹ ₹ 1000
  • AUM (Cr.)
  • ₹ 137
  • 3Y Return
  • 10.43%

  • Min SIP Investment Amt
  • ₹ ₹ 1000
  • AUM (Cr.)
  • ₹ 21,284
  • 3Y Return
  • 8.78%

  • Min SIP Investment Amt
  • ₹ ₹ 1000
  • AUM (Cr.)
  • ₹ 9,193
  • 3Y Return
  • 8.41%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 7,058
  • 3Y Return
  • 8.36%

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 199
  • 3Y Return
  • 8.34%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 9,494
  • 3Y Return
  • 8.31%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 15,486
  • 3Y Return
  • 8.27%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 17,541
  • 3Y Return
  • 8.27%

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 77
  • 3Y Return
  • 8.21%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 10,116
  • 3Y Return
  • 8.18%

FAQs

Macaulay duration is the weighted average time before a bondholder receives the bond's cash flows. For Short Duration Funds, it's between 1 to 3 years.

Check historical returns, credit quality of holdings, expense ratio, and compare them against peers and benchmark indices.

Ideally, for at least 1 to 3 years to optimise returns and reduce the impact of short-term interest rate movements.

They are suitable when you have short-term goals or expect interest rates to rise moderately.

Yes, if you seek better returns than FDs with relatively low risk for a 1–3 year horizon.

Depends on your short-term goal and risk appetite. Typically, investors allocate emergency funds or idle cash here.

No, they are considered to be moderate risk instruments, much safer than equity or long-duration debt funds.

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