The table below shows Top Performing Ultra Short Duration Funds in 1 Year based on AUM, NAV, and Minimum SIP.
| Name | AUM Cr | NAV | Minimum SIP Rs |
| Aditya Birla SL Savings Fund | 14,453.67 | 521.53 | 1,000.00 |
| Kotak Savings Fund | 14,378.73 | 42.12 | 100.00 |
| HDFC Ultra Short Term Fund | 13,445.29 | 14.51 | 5,000.00 |
| ICICI Pru Ultra Short Term Fund Fund | 12,285.99 | 28.05 | 500.00 |
| SBI Magnum Ultra Short Duration Fund | 11,568.49 | 5,706.35 | 1,500.00 |
| Nippon India Ultra Short Duration Fund | 7,291.01 | 4,156.40 | 1,500.00 |
| Axis Ultra Short Term Fund | 4,596.18 | 14.63 | 1,000.00 |
| Bandhan Ultra Short Term Fund | 3,935.92 | 14.46 | 100.00 |
| DSP Ultra Short Fund | 3,003.68 | 3,466.14 | 100.00 |
| Tata Ultra Short Term Fund | 2,531.09 | 13.94 | 150.00 |
Introduction to Top Performing Ultra Short Duration Funds in 1 Year
Aditya Birla SL Savings Fund
Aditya Birla SL Savings Fund is an Ultra Short Duration Fund with an AUM of ₹14,453.67 Crores, a 5-year CAGR of 6.26%, and an expense ratio of 0.34%, with no exit load.
Aditya Birla Sun Life Savings Direct Growth is a Debt Mutual Fund Scheme launched by Aditya Birla Sun Life Mutual Fund. This scheme was made available to investors on 23 Dec 1994. The fund’s asset allocation consists of 96.3% in debt instruments and 3.7% in cash, with no equity investments, focusing primarily on fixed-income assets for stable returns.
Kotak Savings Fund
Kotak Savings Fund is an Ultra Short Duration Fund with an AUM of ₹14,378.73 Crores, a 5-year CAGR of 5.94%, and an expense ratio of 0.36%, with no exit load.
Kotak Savings Fund Direct Growth is a Debt Mutual Fund Scheme launched by Kotak Mahindra Mutual Fund. This scheme was made available to investors on 05 Aug 1994. This fund allocates 100% of its assets to debt instruments, with no equity or cash holdings, emphasizing a conservative investment approach.
HDFC Ultra Short Term Fund
HDFC Ultra Short Term Fund is an Ultra Short Duration Fund with an AUM of ₹13,445.29 Crores, a 5-year CAGR of 6.03%, and an expense ratio of 0.37%, with no exit load.
HDFC Ultra Short Term Fund Direct Growth is a Debt Mutual Fund Scheme launched by HDFC Mutual Fund. This scheme was made available to investors on 10 Dec 1999. The asset allocation of this fund is 96% in debt instruments and 4% in cash, with no equity exposure, prioritizing fixed-income investments for steady performance.
ICICI Pru Ultra Short Term Fund Fund
ICICI Pru Ultra Short Term Fund is an Ultra Short Duration Fund with an AUM of ₹12,285.99 Crores, a 5-year CAGR of 6.48%, and an expense ratio of 0.39%, with no exit load.
ICICI Prudential Ultra Short Term Fund Direct Growth is a Debt Mutual Fund Scheme launched by ICICI Prudential Mutual Fund. This scheme was made available to investors on 12 Oct 1993. The fund allocates 95.4% of its assets to debt instruments and 4.6% to cash, with no equity investments, focusing on fixed income for consistent returns.
SBI Magnum Ultra Short Duration Fund
SBI Magnum Ultra Short Duration Fund is an Ultra Short Duration Fund with an AUM of ₹11,568.49 Crores, a 5-year CAGR of 5.80%, and an expense ratio of 0.31%, with no exit load.
SBI Magnum Ultra Short Duration Fund Direct-Growth is a Debt Mutual Fund Scheme launched by SBI Mutual Fund. This scheme was made available to investors on 29 Jun 1987. This fund’s asset allocation consists of 95.9% in debt instruments and 4.1% in cash, with no equity exposure, aiming for stable income generation.
Nippon India Ultra Short Duration Fund
Nippon India Ultra Short Duration Fund is an Ultra Short Duration Fund with an AUM of ₹7,291.01 Crores, a 5-year CAGR of 6.11%, and an expense ratio of 0.38%, with no exit load.
Nippon India Ultra Short Duration Fund Direct-Growth is a Debt Mutual Fund Scheme launched by Nippon India Mutual Fund. This scheme was made available to investors on 30 Jun 1995. The fund invests 97.5% in debt instruments and 2.5% in cash, with no equity holdings, emphasizing a strong fixed-income portfolio for steady returns.
Axis Ultra Short Term Fund
Axis Ultra Short Term Fund is an Ultra Short Duration Fund with an AUM of ₹4,596.18 Crores, a 5-year CAGR of 6.14%, and an expense ratio of 0.36%, with no exit load.
Axis Ultra Short Term Fund Direct-Growth is a Debt Mutual Fund Scheme launched by Axis Mutual Fund. This scheme was made available to investors on 04 Sep 2009. The fund’s asset allocation consists of 98.5% in debt instruments and 1.5% in cash, with no equity exposure, prioritizing debt investments for stable and secure returns.
Bandhan Ultra Short Term Fund
Bandhan Ultra Short Term Fund is an Ultra Short Duration Fund with an AUM of ₹3,935.92 Crores, a 5-year CAGR of 5.70%, and an expense ratio of 0.27%, with no exit load.
Bandhan Ultra Short Term Fund Direct-Growth is a Debt Mutual Fund Scheme launched by Bandhan Mutual Fund. This scheme was made available to investors on 20 Dec 1999. This fund allocates 85.5% to debt and 14.5% to cash, without equity, focusing on a balanced approach between fixed income and liquidity.
DSP Ultra Short Fund
DSP Ultra Short Fund is an Ultra Short Duration Fund with an AUM of ₹3,003.68 Crores, a 5-year CAGR of 5.76%, and an expense ratio of 0.30%, with no exit load.
DSP Ultra Short Fund Direct Plan-Growth is a Debt Mutual Fund Scheme launched by DSP Mutual Fund. This scheme was made available to investors on 16 Dec 1996. The asset allocation for this fund is 99% in debt instruments and 1% in cash, with no equity exposure, emphasizing a highly conservative investment strategy.
Tata Ultra Short Term Fund
Tata Ultra Short Term Fund is an Ultra Short Duration Fund with an AUM of ₹2,531.09 Crores, a 5-year CAGR of 5.88%, and an expense ratio of 0.37%, with no exit load.
Tata Ultra Short Term Fund Direct Growth is a Debt Mutual Fund Scheme launched by Tata Mutual Fund. This scheme was made available to investors on 30 Jun 1995. The fund invests 99.2% in debt instruments and 0.8% in cash, without any equity holdings, offering a highly conservative fixed-income approach.
What Are Ultra Short Duration Funds?
Ultra Short Duration Funds are debt mutual funds that invest in securities with a Macaulay duration between 3-6 months. They aim to provide better returns than liquid funds while maintaining lower interest rate risk and high liquidity.
Features Of Top Performing Ultra Short Duration Funds in 1 Year
The main features of top-performing Ultra Short Duration Funds include high liquidity, low-interest rate risk, stable returns, and short-term investment opportunities, making them ideal for conservative investors seeking better yields than savings accounts.
- High Liquidity:
Ultra Short Duration Funds offer high liquidity, allowing investors to redeem their investments quickly without incurring significant penalties, making them suitable for short-term financial needs or emergency funds.
- Low-Interest Rate Risk:
These funds primarily invest in short-term securities, reducing their sensitivity to interest rate fluctuations. This makes them less vulnerable to interest rate changes, providing relatively stable returns.
- Stable Returns:
Top-performing Ultra Short Duration Funds offer stable returns with relatively low volatility. They are ideal for conservative investors looking for consistent income without exposure to higher market risks.
- Short-Term Investment:
These funds are suitable for short-term goals, usually ranging from 3-12 months. Investors can use them to park excess funds and earn higher returns than traditional savings accounts or fixed deposits.
Best Performing Ultra Short Duration Funds in 1 Year
The table below shows Best Performing Ultra Short Duration Funds in 1 Year Based on Expense Ratio.
| Name | Expense Ratio | Minimum SIP Rs |
| ITI Ultra Short Duration Fund | 0.10 | 500.00 |
| HSBC Ultra Short Duration Fund | 0.21 | 1,500.00 |
| Mirae Asset Ultra Short Duration Fund | 0.21 | 100.00 |
| Sundaram Ultra Short Duration Fund | 0.24 | 100.00 |
| Invesco India Ultra Short Duration Fund | 0.24 | 1,000.00 |
| LIC MF Ultra Short Duration Fund | 0.25 | 3,000.00 |
| Bandhan Ultra Short Term Fund | 0.27 | 100.00 |
| PGIM India Ultra Short Duration Fund | 0.27 | 1,000.00 |
| Mahindra Manulife Ultra Short Duration Fund | 0.29 | 100.00 |
| DSP Ultra Short Fund | 0.30 | 100.00 |
Top Performing Ultra Short Duration Funds in 1 Year In India
The table below shows the Top Performing Ultra Short Duration Funds in 1 Year In India based on CAGR 3Y and Minimum SIP.
| Name | CAGR 3Y % | Minimum SIP Rs |
| UTI Ultra Short Duration Fund | 7.11 | 500.00 |
| Nippon India Ultra Short Duration Fund | 6.60 | 1,500.00 |
| ICICI Pru Ultra Short Term Fund Fund | 6.36 | 500.00 |
| Axis Ultra Short Term Fund | 6.33 | 1,000.00 |
| Baroda BNP Paribas Ultra Short Duration Fund | 6.26 | 100.00 |
| Aditya Birla SL Savings Fund | 6.25 | 1,000.00 |
| Tata Ultra Short Term Fund | 6.25 | 150.00 |
| Mirae Asset Ultra Short Duration Fund | 6.22 | 100.00 |
| Sundaram Ultra Short Duration Fund | 6.18 | 100.00 |
| DSP Ultra Short Fund | 6.16 | 100.00 |
Top Performing Ultra Short Duration Funds in 1 Year List
The table below shows the Top Performing Ultra Short Duration Funds in 1 Year based on Exit Load and AMC.
| Name | AMC | Exit Load % |
| Aditya Birla SL Savings Fund | Aditya Birla Sun Life AMC Limited | 0.00 |
| Kotak Savings Fund | Kotak Mahindra Asset Management Company Limited | 0.00 |
| HDFC Ultra Short Term Fund | HDFC Asset Management Company Limited | 0.00 |
| ICICI Pru Ultra Short Term Fund Fund | ICICI Prudential Asset Management Company Limited | 0.00 |
| SBI Magnum Ultra Short Duration Fund | SBI Funds Management Limited | 0.00 |
| Nippon India Ultra Short Duration Fund | Nippon Life India Asset Management Limited | 0.00 |
| Axis Ultra Short Term Fund | Axis Asset Management Company Ltd. | 0.00 |
| Bandhan Ultra Short Term Fund | Bandhan AMC Limited | 0.00 |
| DSP Ultra Short Fund | DSP Investment Managers Private Limited | 0.00 |
| Tata Ultra Short Term Fund | Tata Asset Management Private Limited | 0.00 |
Factors To Consider When Investing In Top Performing Ultra Short Duration Funds in 1 Year
The main factors to consider when investing in Ultra Short Duration Funds include the fund’s credit quality, interest rate environment, expense ratio, and liquidity. These factors affect the stability and returns of the fund.
- Credit Quality:
Check the credit quality of the securities the fund invests in. Funds with higher-rated securities offer more stability and lower risk of default, ensuring safer returns for conservative investors.
- Interest Rate Environment:
Monitor the current interest rate environment. Ultra Short Duration Funds are sensitive to interest rate fluctuations, so understanding rate trends helps investors assess potential risks and returns.
- Expense Ratio:
Evaluate the expense ratio, as high costs can reduce your overall returns. Opt for funds with lower expense ratios to maximize earnings, especially if your investment horizon is short.
- Liquidity:
Consider the fund’s liquidity, especially if you may need quick access to your money. Ultra Short Duration Funds generally offer high liquidity, making them suitable for parking excess cash for short periods.
How To Invest In Top Performing Ultra Short Duration Funds in 1 Year?
To invest in top-performing Ultra Short Duration Funds, open a mutual fund account with a brokerage or financial institution. Research and compare the fund’s historical returns, expense ratio, and portfolio composition to choose the best option.
Once you’ve selected the fund, place your investment through the platform, either as a lump sum or a systematic investment plan (SIP). Monitor the performance regularly to ensure it aligns with your short-term financial goals.
Advantages Of Investing In Top Performing Ultra Short Duration Funds in 1 Year
The main advantages of investing in top-performing Ultra Short Duration Funds include liquidity, low volatility, stable returns, and protection from interest rate risks, making them ideal for short-term investments.
- Liquidity:
Ultra Short Duration Funds offer high liquidity, allowing you to easily withdraw your investment without major penalties. This makes them ideal for short-term goals or emergency cash needs.
- Low Volatility:
These funds invest in short-term debt instruments, reducing exposure to market volatility. This stability is attractive for conservative investors who want to avoid the risks associated with longer-term securities.
- Stable Returns:
Top-performing funds provide steady and reliable returns, often higher than savings accounts or fixed deposits. This makes them a good option for parking idle cash while earning better interest rates.
- Interest Rate Protection:
Due to their short duration, these funds are less sensitive to interest rate changes, offering better protection from rate hikes, and making them suitable for investors who want to avoid interest rate risk.
Risks Of Investing In Top Performing Ultra Short Duration Funds in 1 Year
The main risks of investing in Ultra Short Duration Funds include credit risk, interest rate risk, inflation risk, and reinvestment risk, which may impact fund performance and returns.
- Credit Risk:
If the fund invests in lower-rated securities, there’s a risk of default, which can impact returns. Even top-performing funds may hold some credit risk depending on the underlying assets.
- Interest Rate Risk:
While these funds are less sensitive to interest rates than long-term bonds, a sudden rate hike can still affect their returns. Investors should be mindful of the rate environment when investing.
- Inflation Risk:
Ultra Short Duration Funds may not always keep pace with inflation, especially during periods of rising prices. The returns might not provide real growth in purchasing power after adjusting for inflation.
- Reinvestment Risk:
If interest rates drop, the returns on these funds could decrease over time as the proceeds from maturing securities are reinvested at lower rates, potentially reducing overall returns.
Importance of Ultra Short Duration Funds
The main importance of Ultra Short Duration Funds lies in their liquidity, capital preservation, short-term investment potential, and low-interest rate sensitivity, making them a vital part of a balanced investment strategy.
- Liquidity:
These funds offer quick and easy access to your money, making them suitable for short-term financial needs or as an emergency fund option without sacrificing much in terms of returns.
- Capital Preservation:
Ultra Short Duration Funds focus on capital preservation, ensuring that the principal is protected while generating better returns than traditional savings accounts, especially for short-term investors.
- Short-Term Investment:
They are ideal for investors looking to park money for a short period, providing higher yields than liquid funds while maintaining similar risk profiles, making them attractive for short-term goals.
- Low Interest Rate Sensitivity:
With shorter maturities, these funds are less impacted by interest rate fluctuations, providing relatively stable returns even in volatile interest rate environments, and making them a safe short-term investment option.
How Long to Stay Invested in Ultra Short Term Mutual Fund?
Ultra Short Duration Funds are designed for short-term investments, typically between 3 to 12 months. This makes them suitable for parking funds during periods of uncertainty or for meeting upcoming financial obligations.
Staying invested for 3-6 months can offer optimal returns while maintaining liquidity. Extending the duration may expose investors to reinvestment risks or lower returns, depending on interest rate movements.
Tax Implications of Investing in Ultra Short Term Mutual Fund
Ultra Short Duration Funds held for less than 3 years are subject to short-term capital gains (STCG) tax, which is taxed according to your income tax slab, making them less tax-efficient for short holding periods.
For investments held beyond 3 years, long-term capital gains (LTCG) tax applies at 20% with indexation benefits, making them more tax-efficient for those with a longer investment horizon.
Future of Ultra Short Duration Funds
The future of Ultra Short Duration Funds looks promising, especially as they cater to investors seeking stability, liquidity, and higher returns than traditional savings accounts. As interest rates fluctuate, these funds remain an attractive short-term investment option.
With increasing demand for safer investment products in uncertain market conditions, Ultra Short Duration Funds will likely continue to grow in popularity, offering a low-risk, short-term alternative for conservative investors.
Top Performing Ultra Short Duration Funds in 1 Year FAQs
An Ultra Short Duration Fund is a debt mutual fund that invests in securities with a Macaulay duration of 3-6 months, offering better returns than liquid funds with low-interest rate risk.
Top Performing Ultra Short Duration Funds in 1 Year #1: Aditya Birla SL Savings Fund
Top Performing Ultra Short Duration Funds in 1 Year #2: Kotak Savings Fund
Top Performing Ultra Short Duration Funds in 1 Year #3: HDFC Ultra Short Term Fund
Top Performing Ultra Short Duration Funds in 1 Year #4: ICICI Pru Ultra Short Term Fund Fund
Top Performing Ultra Short Duration Funds in 1 Year #5: SBI Magnum Ultra Short Duration Fund
Top Performing Ultra Short Duration Funds in 1 Year based on AUM.
The best performing Ultra Short Duration Funds in 1 year, based on their 3-year CAGR, include UTI Ultra Short Duration Fund, Nippon India Ultra Short Duration Fund, ICICI Pru Ultra Short Term Fund, Axis Ultra Short Term Fund, and Baroda BNP Paribas Ultra Short Duration Fund.
Yes, Ultra Short Duration Funds are good for short-term investments, providing stability, better returns than liquid funds, and liquidity, making them suitable for conservative investors seeking lower risk.
The difference between Liquid Funds and Ultra Short Duration Funds lies in their investment durations. Liquid funds invest in securities with maturities of up to 91 days, while Ultra Short Duration Funds focus on securities with a duration of 3-6 months, offering slightly higher returns with moderate risk.
To invest, open a mutual fund account, compare fund performance, expense ratios, and risk profiles, and invest through a broker or platform, either via lump sum or SIP, based on your goals.
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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.
