List Of Best Mutual Funds For Short Term For 1 Year

The table below shows based on the List Of Best Mutual Funds For the Short Term For 1 Year AUM, NAV, and minimum SIP.

Name	AUM (Cr)	NAV	Minimum SIP
ICICI Pru Short Term Fund	19,700.32	62.96	1,000
Kotak Bond Short Term Fund	16,790.00	55.1	100
HDFC Short Term Debt Fund	14,816.22	31.75	100
SBI Short Term Debt Fund	13,350.15	32.76	500
Bandhan Bond Fund – Short Term Plan	9,727.79	58.77	100
Axis Short Duration Fund	8,878.51	32.33	1,000
Aditya Birla SL Short Term Fund	8,598.66	49.44	1,000
Nippon India Short Term Fund	7,468.92	54.99	100
HSBC Short Duration Fund	3,689.27	26.92	500
DSP Short Term Fund	2,848.09	48.65	100

Short Term Mutual Funds Meaning

Short-term mutual funds are investment vehicles that typically invest in securities with a maturity period of one year or less. These funds aim to offer investors liquidity and lower risk compared to long-term investment options.

These funds predominantly invest in debt instruments like treasury bills, commercial papers, and certificates of deposit, which are considered safer and less volatile. Investors benefit from steady returns and quick access to their money, making these funds ideal for emergency funds or short-term financial goals.

The focus of short-term mutual funds on lower-risk securities means they are particularly suitable for conservative investors or those nearing a financial goal. They provide a balance between maintaining capital safety and earning moderate returns, making them an appealing choice for cautious investors.

Best Mutual Fund For Short Term For 1 Year In India

The table below shows based on Best Mutual Fund For Short Term For 1 Year In India the lowest to highest expense ratio.

Name	Expense Ratio	Minimum SIP
TRUSTMF Short Duration Fund	0.23	1,000
HSBC Short Duration Fund	0.27	500
Mirae Asset Short Duration Fund	0.27	99
Sundaram Short Duration Fund	0.31	250
Bandhan Bond Fund – Short Term Plan	0.33	100
DSP Short Term Fund	0.34	100
Axis Short Duration Fund	0.35	1,000
Invesco India Short Duration Fund	0.35	1,000
Tata ST Bond Fund	0.36	500
LIC MF Short Duration Fund	0.36	200

Mutual Fund For Short Term For 1 Year

The table below shows based on Mutual Fund For Short Term For 1 Year the Highest 3Y CAGR. 

Name	CAGR 3Y %	Minimum SIP
ICICI Pru Short Term Fund	7.56	1,000
Aditya Birla SL Short Term Fund	7.2	1,000
Axis Short Duration Fund	6.93	1,000
UTI Short Duration Fund	6.91	500
HDFC Short Term Debt Fund	6.89	100
Sundaram Short Duration Fund	6.84	250
Nippon India Short Term Fund	6.84	100
Mirae Asset Short Duration Fund	6.73	99
Kotak Bond Short Term Fund	6.73	100
Baroda BNP Paribas Short Duration Fund	6.73	500

Best Mutual Fund For Short Term For 1 Year

The table below shows based on Best Mutual Fund For Short Term For 1 Year exit load, i.e., the fee that the AMC charges investors when they exit or redeem their fund units.

Name	AMC	Exit Load
Aditya Birla SL Short Term Fund	Aditya Birla Sun Life AMC Limited	0
Axis Short Duration Fund	Axis Asset Management Company Ltd.	0
Bandhan Bond Fund – Short Term Plan	Bandhan AMC Limited	0
Baroda BNP Paribas Short Duration Fund	Baroda BNP Paribas Asset Management India Pvt. Ltd.	0
Canara Rob Short Duration Fund	Canara Robeco Asset Management Company Limited	0
DSP Short Term Fund	DSP Investment Managers Private Limited	0
HDFC Short Term Debt Fund	HDFC Asset Management Company Limited	0
HSBC Short Duration Fund	HSBC Global Asset Management (India) Private Limited	0
ICICI Pru Short Term Fund	ICICI Prudential Asset Management Company Limited	0
Invesco India Short Duration Fund	Invesco Asset Management Company Pvt Ltd.	0

Mutual Funds For Short Term For 1 Year

The table below shows based on Mutual Funds For Short Term For 1 Year Absolute 1 Year Return and AMC.

Name	AMC	Absolute Returns – 1Y %
Aditya Birla SL Short Term Fund	Aditya Birla Sun Life AMC Limited	8.66
Axis Short Duration Fund	Axis Asset Management Company Ltd.	8.63
Mirae Asset Short Duration Fund	Mirae Asset Investment Managers (India) Private Limited	8.62
Kotak Bond Short Term Fund	Kotak Mahindra Asset Management Company Limited	8.61
Nippon India Short Term Fund	Nippon Life India Asset Management Limited	8.61
Sundaram Short Duration Fund	Sundaram Asset Management Company Limited	8.58
HDFC Short Term Debt Fund	HDFC Asset Management Company Limited	8.55
LIC MF Short Duration Fund	LIC Mutual Fund Asset Management Limited	8.55
Baroda BNP Paribas Short Duration Fund	Baroda BNP Paribas Asset Management India Pvt. Ltd.	8.49
ICICI Pru Short Term Fund	ICICI Prudential Asset Management Company Limited	8.48

Who Should Invest In  Best Mutual Funds For 1 Year in the Short Term?

Individuals looking for a safe parking space for their funds with a horizon of one year should consider investing in the best short-term mutual funds. These are ideal for investors seeking better returns than traditional savings with manageable risk levels.

How To Invest in Mutual Funds For A Short Term For 1 Year?

To invest in mutual funds for a short term of one year, start by assessing your risk tolerance and financial goals. Choose a reputable broker or financial platform, select mutual funds that specialize in short-term investments, such as liquid or ultra-short-term debt funds, and allocate funds accordingly.

Performance Metrics Of Mutual Funds For Short Term For 1 Year

For a short-term period of one year, mutual funds primarily focus on safety and liquidity. Metrics such as yield to maturity (YTM) and average maturity are important for gauging potential returns and the risk level of debt-oriented funds.

Performance metrics for mutual funds over one year also include the Sharpe ratio and alpha, which indicate risk-adjusted returns and the fund manager’s ability to generate excess returns, respectively. These indicators help investors evaluate the effectiveness of the fund management team and the fund’s overall performance stability.

Benefits of Investing in Best Mutual Funds For Short Term For 1 Year

The main benefits of investing in the best mutual funds for a short term of one year include enhanced liquidity, lower risk, and potentially higher returns compared to traditional savings accounts.

• Enhanced Liquidity: Short-term mutual funds typically offer high liquidity, meaning you can easily withdraw your investment without significant penalties. This is particularly useful for investors who might need quick access to their funds due to unforeseen circumstances.
• Lower Risk: These funds generally invest in instruments with shorter maturities, which are less exposed to the volatility of the stock market. This makes them a safer option for conservative investors looking to preserve capital while earning returns.
• Flexible Investment Options: Investors have the flexibility to choose from a variety of funds based on their risk tolerance and financial goals. Whether it’s ultra-short-term debt funds or money market funds, there is a range of products suitable for short-term investment.
• Potential for Better Returns: Compared to traditional savings mechanisms like bank fixed deposits, short-term mutual funds often offer better potential returns. These returns are achieved through a diversified portfolio of high-quality debt instruments.
• Tax Efficiency: Certain short-term mutual funds, like debt funds, offer tax benefits over other investment options such as fixed deposits, especially when held for more than three years, due to indexation benefits. However, even for shorter durations, the tax treatment can be more favorable than interest income from a savings account.

Challenges Of Investing In Mutual Funds For Short Term For 1 Year

The main challenges of investing in mutual funds for a short term of one year include managing lower returns, facing exit loads, and dealing with market volatility.

• Lower Returns: Short-term mutual funds generally offer lower returns compared to long-term investments due to their conservative investing strategies and focus on lower-risk securities. This may not appeal to investors seeking high growth.
• Exit Loads: Some short-term mutual funds impose exit loads, which are fees charged for withdrawing funds before a certain period. This can eat into the profits, especially if the investment is withdrawn prematurely.
• Interest Rate Sensitivity: Funds invested in debt instruments are sensitive to changes in interest rates. A rise in interest rates can lead to a decrease in the value of existing bonds within the fund, affecting the overall return.
• Limited Growth Opportunities: By focusing on safety and liquidity, short-term funds often miss out on higher growth opportunities available in equity or longer-duration debt markets. This conservative approach limits the potential for significant capital appreciation.
• Market Volatility: Even short-term investments can be affected by economic and geopolitical events, leading to potential volatility. While generally less than long-term equity investments, short-term funds can still experience fluctuations that impact returns.

Introduction to List Of Best Mutual Funds For Short Term For 1 Year

List Of Best Mutual Funds For Short Term For 1 Year – AUM, NAV.

ICICI Pru Short Term Fund

ICICI Prudential Short Term Fund Direct Plan-Growth is a Short Duration mutual fund scheme from Icici Prudential Mutual Fund. This fund has been in existence for 12 years, having been launched on 01/01/2013.

The ICICI Pru Short Term Fund falls under the Short Duration Fund category, with an Assets Under Management (AUM) of Rs. 19,700.32 cr. It features a 5-year Compound Annual Growth Rate (CAGR) of 7.57%. The fund has no exit load and an expense ratio of 0.45. According to SEBI, it is classified in the Moderate-risk category.

The actual asset composition includes : No Equity, 98.16% Debt, 1.84% in Others.

Kotak Bond Short Term Fund

Kotak Bond Short Term Fund Direct-Growth is a Short Duration mutual fund scheme from Kotak Mahindra Mutual Fund. This fund has been in existence for 12 years, having been launched on 01/01/2013.

The Kotak Bond Short Term Fund falls under the Short Duration Fund category, with an Assets Under Management (AUM) of Rs. 16,790.00 cr. It features a 5-year Compound Annual Growth Rate (CAGR) of 6.89%. The fund has no exit load and an expense ratio of 0.38. According to SEBI, it is classified in the Moderate-risk category.

The actual asset composition includes : No Equity, 97.15% Debt, 2.85% in Others.

HDFC Short Term Debt Fund

HDFC Short Term Debt Fund Direct Plan-Growth is a Short Duration mutual fund scheme from Hdfc Mutual Fund. This fund has been in existence for 12 years, having been launched on 01/01/2013.

The HDFC Short Term Debt Fund falls under the Short Duration Fund category, with an Assets Under Management (AUM) of Rs. 14,816.22 cr. It features a 5-year Compound Annual Growth Rate (CAGR) of 7.11%. The fund has no exit load and an expense ratio of 0.40. According to SEBI, it is classified in the Moderate-risk category.

The actual asset composition includes : No Equity, 96.67% Debt, 3.33% in Others.

Best Mutual Fund For Short Term For 1 Year In India – Expense Ratio

TRUSTMF Short Duration Fund

TRUSTMF Short Duration Fund Direct – Growth is a Short Duration mutual fund scheme from Trust Mutual Fund. This fund has been in existence for 3 yrs 6 m, having been launched on 20/07/2021. 

TRUSTMF Short Duration Fund falls under the Short Duration Fund category with an AUM of ₹114.24 crores, an Absolute Returns – 1Y of 7.8%, an exit load of 0%, and an expense ratio of 0.23%. The SEBI risk category is Moderate.

The actual asset composition includes : No Equity, 90.73% Debt, 9.27% in Others.

HSBC Short Duration Fund

HSBC Short Duration Fund Direct-Growth is a Short Duration mutual fund scheme from HSBC Mutual Fund. This fund has been in existence for 12 years, having been launched on 01/01/2013. 

The HSBC Short Duration Fund falls under the Short Duration Fund category, with an Assets Under Management (AUM) of Rs. 3,689.27 cr. It features a 5-year Compound Annual Growth Rate (CAGR) of 6.37%. The fund has no exit load and an expense ratio of 0.27. According to SEBI, it is classified in the Moderate-risk category.

The actual asset composition includes : No Equity, 99.38% Debt, 0.61% in Others.

Mirae Asset Short Duration Fund

Mirae Asset Short Duration Fund Direct – Growth is a Short Duration mutual fund scheme from Mirae Asset Mutual Fund. This fund has been in existence for 6 yrs 11 m, having been launched on 23/02/2018. 

Mirae Asset Short Duration Fund falls under the Short Duration Fund category with an AUM of ₹346.22 crores, a 5-year CAGR of 6.58%, an exit load of 0%, and an expense ratio of 0.27%. The SEBI risk category is Moderate.

The actual asset composition includes : No Equity, 94.17% Debt, 5.83% in Others.

Mutual Fund For Short Term For 1 Year – Highest 3Y CAGR

JM Short Duration Fund

JM Short Duration Fund Direct – Growth is a Short Duration mutual fund scheme from Jm Financial Mutual Fund. This fund has been in existence for 2 yrs 5 m, having been launched on 10/08/2022. 

JM Short Duration Fund falls under the Short Duration Fund category with an AUM of ₹124.00 crores, an Absolute Returns – 1Y of 7.95%, an exit load of 0%, and an expense ratio of 0.37%. The SEBI risk category is Moderate.

The actual asset composition includes : No Equity, 94.5% Debt, 5.5% in Others.

Aditya Birla SL Short Term Fund

Aditya Birla Sun Life Short Term Direct Fund Direct-Growth is a Short Duration mutual fund scheme from Aditya Birla Sun Life Mutual Fund. This fund has been in existence for 12 years, having been launched on 01/01/2013.

The Aditya Birla SL Short Term Fund falls under the Short Duration Fund category, with an Assets Under Management (AUM) of Rs. 8,598.66 cr. It features a 5-year Compound Annual Growth Rate (CAGR) of 7.54%. The fund has no exit load and an expense ratio of 0.38. According to SEBI, it is classified in the Moderate-risk category.

The actual asset composition includes : No Equity, 100.12% Debt, -0.12% in Others.

Axis Short Duration Fund

Axis Short Duration Fund Direct Fund-Growth is a Short Duration mutual fund scheme from Axis Mutual Fund. This fund has been in existence for 12 years, having been launched on 01/01/2013.

The Axis Short Duration Fund falls under the Short Duration Fund category, with an Assets Under Management (AUM) of Rs. 8,878.51 cr. It features a 5-year Compound Annual Growth Rate (CAGR) of 7.05%. The fund has no exit load and an expense ratio of 0.35. According to SEBI, it is classified in the Moderate-risk category.

The actual asset composition includes : No Equity, 98.67% Debt, 1.33% in Others.

Best Mutual Fund For Short Term For 1 Year – Exit Load

Bandhan Bond Fund – Short Term Plan

Bandhan Bond Fund Short Term Plan Direct-Growth is a Short Duration mutual fund scheme from Bandhan Mutual Fund. This fund has been in existence for 12 years, having been launched on 01/01/2013. 

The Bandhan Bond Fund – Short Term Plan falls under the Short Duration Fund category, with an Assets Under Management (AUM) of Rs. 9,727.79 cr. It features a 5-year Compound Annual Growth Rate (CAGR) of 6.59%. The fund has no exit load and an expense ratio of 0.33. According to SEBI, it is classified in the Moderate-risk category.

The actual asset composition includes : No Equity, 97.72% Debt, 2.28% in Others.

Baroda BNP Paribas Short Duration Fund

Baroda BNP Paribas Short Duration Direct Fund-Growth is a Short Duration mutual fund scheme from Baroda Bnp Paribas Mutual Fund. This fund has been in existence for 12 yrs, having been launched on 01/01/2013.

Baroda BNP Paribas Short Duration Fund falls under the Short Duration Fund category with an AUM of ₹198.05 crores, a 5-year CAGR of 6.47%, an exit load of 0%, and an expense ratio of 0.38%. The SEBI risk category is Moderate.

The actual asset composition includes : No Equity, 97.83% Debt, 2.17% in Others.

Canara Rob Short Duration Fund

Canara Robeco Short Duration Fund Direct-Growth is a Short Duration mutual fund scheme from Canara Robeco Mutual Fund. This fund has been in existence for 12 yrs, having been launched on 01/01/2013. 

Canara Rob Short Duration Fund falls under the Short Duration Fund category with an AUM of ₹343.26 crores, a 5-year CAGR of 6.23%, an exit load of 0%, and an expense ratio of 0.43%. The SEBI risk category is Moderate.

The actual asset composition includes : No Equity, 95.04% Debt, 4.96% in Others.

Mutual Funds For Short Term For 1 Year – 1 Year Return

Nippon India Short Term Fund

Nippon India Short Term Fund Direct-Growth is a Short Duration mutual fund scheme from Nippon India Mutual Fund. This fund has been in existence for 12 years, having been launched on 01/01/2013. 

The Nippon India Short Term Fund falls under the Short Duration Fund category, with an Assets Under Management (AUM) of Rs. 7,468.92 cr. It features a 5-year Compound Annual Growth Rate (CAGR) of 7.10%. The fund has no exit load and an expense ratio of 0.37. According to SEBI, it is classified in the Moderate-risk category.

The actual asset composition includes : No Equity, 97.35% Debt, 2.65% in Others.

Sundaram Short Duration Fund

Sundaram Short Duration Fund Direct-Growth is a Short Duration mutual fund scheme from Sundaram Mutual Fund. This fund has been in existence for 12 yrs, having been launched on 01/01/2013.

Sundaram Short Duration Fund falls under the Short Duration Fund category with an AUM of ₹218.47 crores, a 5-year CAGR of 6.83%, an exit load of 0%, and an expense ratio of 0.31%. The SEBI risk category is Moderate.

The actual asset composition includes : No Equity, 91.63% Debt, 8.37% in Others.

LIC MF Short Duration Fund

LIC MF Short Duration Fund Direct – Growth is a Short Duration mutual fund scheme from Lic Mutual Fund. This fund has been in existence for 6 yrs, having been launched on 11/01/2019.

LIC MF Short Duration Fund falls under the Short Duration Fund category with an AUM of ₹113.13 crores, a 5-year CAGR of 6.27%, an exit load of 0%, and an expense ratio of 0.36%. The SEBI risk category is Moderate.

The actual asset composition includes : No Equity, 95.05% Debt, 4.95% in Others.

Best Mutual Funds For Short Term For 1 Year – FAQ

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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.