Who Should Invest in Ultra Short-Term Funds?
Ultra short term funds are fixed income mutual fund schemes that invest in debt and money market securities. They are less volatile and produce more stable income in comparison to longer duration investments. Ultra short duration fund is best suited for those having surplus funds to park for 1-9 months and earn dividends on them. View More
Features of Ultra Short Term Funds
Ultra short term funds are excellent for investors with an investment horizon of 6 months and a lower risk preference. These funds offer better returns than keeping your money in a savings bank account. While investing, you should keep your financial objectives and investment plans in mind. Some of the features of ultra short term funds are: View More
Factors to consider while investing in Ultra Short Term Funds
Here is a list of factors to be considered before investing in Ultra Short Term funds: View More
Taxability of Ultra Short Term Funds
Having low maturities, the returns from ultra short term funds are predictable. The return is calculated on the rise and fall of the NAV. Gains from ultra short term mutual funds are taxable. The duration of the investment determines the tax ratio. View More
Risks Involved With Ultra Short Term Funds
Even with the best ultra short term funds, there are certain risks involved, despite having a lower interest rate risk owing to their short maturity. They carry the same category of risks, just like any other mutual fund. View More
Advantage of Ultra Short Term Mutual Funds
Ultra short term funds invest in very short term debt funds and are practically free of any kind of market risk or interest rate risk. View More
Popular Ultra Short Duration Funds
- Fund Name
- Min SIP Investment Amt
- AUM (Cr.)
- 3Y Return
ICICI Pru Ultra Short Term Fund – Direct Growth is an Ultra Short Duration scheme that was launched on 09-01-13 and is currently under the management of our experienced fund manager Manish Banthia. With an impressive AUM of ₹12,413 Crores, this scheme's latest NAV is ₹26.5771 as of 08-12-23.
ICICI Pru Ultra Short Term Fund – Direct Growth scheme has delivered a return performance of 7.4% in the last 1 year, 5.6% in the last 3 years, and an 8.1% since its launch. With a minimum SIP investment of just ₹5,000, this scheme offers a great investment opportunity for those looking to invest in Ultra Short Duration funds.
- Min SIP Investment Amt
- ₹5,000
- AUM (Cr.)
- ₹12,413
- 3Y Return
- 7.4%
Aditya Birla SL Savings Fund – Direct Growth is an Ultra Short Duration scheme that was launched on 01-01-13 and is currently under the management of our experienced fund manager Kaustubh Gupta. With an impressive AUM of ₹13,710 Crores, this scheme's latest NAV is ₹493.9835 as of 08-12-23.
Aditya Birla SL Savings Fund – Direct Growth scheme has delivered a return performance of 7.3% in the last 1 year, 5.3% in the last 3 years, and an 8% since its launch. With a minimum SIP investment of just ₹1,000, this scheme offers a great investment opportunity for those looking to invest in Ultra Short Duration funds.
- Min SIP Investment Amt
- ₹1,000
- AUM (Cr.)
- ₹13,710
- 3Y Return
- 7.3%
L&T Ultra Short Term Fund – Direct Growth is an Ultra Short Duration scheme that was launched on 02-01-13 and is currently under the management of our experienced fund manager Jalpan Shah. With an impressive AUM of ₹1,504 Crores, this scheme's latest NAV is ₹37.4717 as of 25-11-22.
L&T Ultra Short Term Fund – Direct Growth scheme has delivered a return performance of 14.6% in the last 1 year, 21.6% in the last 3 years, and an - since its launch. With a minimum SIP investment of just ₹10,000, this scheme offers a great investment opportunity for those looking to invest in Ultra Short Duration funds.
- Min SIP Investment Amt
- ₹10,000
- AUM (Cr.)
- ₹1,504
- 3Y Return
- 14.6%
Canara Robeco Ultra Short Term Fund – Dir Growth is an Ultra Short Duration scheme that was launched on 02-01-13 and is currently under the management of our experienced fund manager Suman Prasad. With an impressive AUM of ₹536 Crores, this scheme's latest NAV is ₹3607.565 as of 08-12-23.
Canara Robeco Ultra Short Term Fund – Dir Growth scheme has delivered a return performance of 6.9% in the last 1 year, 4.7% in the last 3 years, and an 6.9% since its launch. With a minimum SIP investment of just ₹500, this scheme offers a great investment opportunity for those looking to invest in Ultra Short Duration funds.
- Min SIP Investment Amt
- ₹500
- AUM (Cr.)
- ₹536
- 3Y Return
- 6.9%
UTI-Ultra Short Duration Fund – Direct Growth is an Ultra Short Duration scheme that was launched on 01-01-13 and is currently under the management of our experienced fund manager Ritesh Nambiar. With an impressive AUM of ₹2,226 Crores, this scheme's latest NAV is ₹4040.1917 as of 08-12-23.
UTI-Ultra Short Duration Fund – Direct Growth scheme has delivered a return performance of 7.3% in the last 1 year, 6.1% in the last 3 years, and an 7.4% since its launch. With a minimum SIP investment of just ₹500, this scheme offers a great investment opportunity for those looking to invest in Ultra Short Duration funds.
- Min SIP Investment Amt
- ₹500
- AUM (Cr.)
- ₹2,226
- 3Y Return
- 7.3%
PGIM India Ultra Short Duration Fund-Dir Growth is an Ultra Short Duration scheme that was launched on 02-01-13 and is currently under the management of our experienced fund manager Puneet Pal. With an impressive AUM of ₹325 Crores, this scheme's latest NAV is ₹31.7498 as of 08-12-23.
PGIM India Ultra Short Duration Fund-Dir Growth scheme has delivered a return performance of 7.1% in the last 1 year, 5.2% in the last 3 years, and an 8% since its launch. With a minimum SIP investment of just ₹5,000, this scheme offers a great investment opportunity for those looking to invest in Ultra Short Duration funds.
- Min SIP Investment Amt
- ₹5,000
- AUM (Cr.)
- ₹325
- 3Y Return
- 7.1%
SBI Magnum Ultra Short Duration Fund-Dir Growth is an Ultra Short Duration scheme that was launched on 01-01-13 and is currently under the management of our experienced fund manager R Arun. With an impressive AUM of ₹13,269 Crores, this scheme's latest NAV is ₹5412.9896 as of 08-12-23.
SBI Magnum Ultra Short Duration Fund-Dir Growth scheme has delivered a return performance of 7.2% in the last 1 year, 5% in the last 3 years, and an 7.2% since its launch. With a minimum SIP investment of just ₹5,000, this scheme offers a great investment opportunity for those looking to invest in Ultra Short Duration funds.
- Min SIP Investment Amt
- ₹5,000
- AUM (Cr.)
- ₹13,269
- 3Y Return
- 7.2%
Invesco India Ultra Short Term Fund-Dir Growth is an Ultra Short Duration scheme that was launched on 02-01-13 and is currently under the management of our experienced fund manager Krishna Cheemalapati. With an impressive AUM of ₹715 Crores, this scheme's latest NAV is ₹2557.8922 as of 08-12-23.
Invesco India Ultra Short Term Fund-Dir Growth scheme has delivered a return performance of 7.3% in the last 1 year, 5.1% in the last 3 years, and an 7.3% since its launch. With a minimum SIP investment of just ₹1,000, this scheme offers a great investment opportunity for those looking to invest in Ultra Short Duration funds.
- Min SIP Investment Amt
- ₹1,000
- AUM (Cr.)
- ₹715
- 3Y Return
- 7.3%
Tata Ultra Short Term Fund – Direct Growth is an Ultra Short Duration scheme that was launched on 22-01-19 and is currently under the management of our experienced fund manager Akhil Mittal. With an impressive AUM of ₹2,110 Crores, this scheme's latest NAV is ₹13.2169 as of 08-12-23.
Tata Ultra Short Term Fund – Direct Growth scheme has delivered a return performance of 7.4% in the last 1 year, 5.3% in the last 3 years, and an 5.9% since its launch. With a minimum SIP investment of just ₹5,000, this scheme offers a great investment opportunity for those looking to invest in Ultra Short Duration funds.
- Min SIP Investment Amt
- ₹5,000
- AUM (Cr.)
- ₹2,110
- 3Y Return
- 7.4%
AXIS Ultra Short Term Fund – Direct Growth is an Ultra Short Duration scheme that was launched on 10-09-18 and is currently under the management of our experienced fund manager Aditya Pagaria. With an impressive AUM of ₹4,801 Crores, this scheme's latest NAV is ₹13.8609 as of 08-12-23.
AXIS Ultra Short Term Fund – Direct Growth scheme has delivered a return performance of 7.4% in the last 1 year, 5.4% in the last 3 years, and an 6.4% since its launch. With a minimum SIP investment of just ₹5,000, this scheme offers a great investment opportunity for those looking to invest in Ultra Short Duration funds.
- Min SIP Investment Amt
- ₹5,000
- AUM (Cr.)
- ₹4,801
- 3Y Return
- 7.4%
Frequently Asked Questions
What are ultra-short duration funds, and who are they suited for?
Open-ended debt mutual funds, known as ultra short-term funds, invest in securities with maturities between three and six months. Conservative investors who value dependable returns should choose these ETFs.
What is the tax on ultra short-duration funds?
Capital gains from investing in ultra short-duration funds could be taxed. The holding period, the time you remain invested in this fund, determines the tax rate.
The STCG increases the investor’s income from these funds, and his income bracket determines his tax rate. Taxes on long-term capital gains (LTCG) from these funds are 20% after indexation and 10% without it.
Which are some of the top ultra-short-term duration funds?
Some of the top ultra short-term duration funds are ICICI Prudential Ultra Short-term fund growth, Aditya Birla Sun Life Savings- Growth, L&T Ultra Short Term Fund-Growth, Canara Robeco Ultra Short-term fund stable growth, UTI Ultra Short-term fund stable growth, PGIM India Ultra Short Duration Direct-growth, SBI Magnum Ultra Short Duration Fund Direct-growth, Invesco India Ultra Short-term fund direct-growth, Tata Ultra Short-term fund direct-growth, and Axis Ultra Short-term fund Direct-growth.
What are some of the factors that need to be considered before investing in ultra-short duration funds?
Some factors that need to be considered before investing in ultra-short duration funds are risk, return, cost, tax on gains, financial horizon, and financial targets.
What is the risk associated with the Ultra Short Duration Funds?
Due to the short maturity of their underlying assets, ultra short-term debt funds, unlike other debt funds, are partially immune to interest rate threats. These funds are somewhat riskier than liquid funds, nevertheless.
When the fund manager includes low-credit rating securities in his investing strategy with the hope of future improvement, he may add credit risk. Additionally, the addition of government securities may cause the fund’s volatility to rise above expectations.