Here is our unbiased review of Top 10 Short Duration Funds in India 2024. In this Article, We will discuss about Best Short Term Funds for Investment in India for 2024. We will also go through an in-depth analysis of these list of Short Term Funds.
What are Short Duration Funds?
Short Duration Funds are the type of mutual funds which select bonds and debt for investment such that the average maturity period for the given portfolio is based on Macaulay duration between one to three years.
These investments could be in the form of investments in commercial papers and certificates of deposits. They offer less interest rate funds due to shortening maturity period for the investors.
This type of investment is ideal for those investors who do not require high-risk tolerance for their capital and aims for tax-adjusted returns which are better than fixed deposits. So these funds are a good bet for those investors who prioritize capital preservation over high yield.
There are various strategies for investing in short duration funds and thus provides good investment opportunities for the investors:
- The Short Term Funds maximize their gains by switching between higher maturity debt in one time period to lower maturity debt in another time period
- They are known of taking some amount of credit risk as they have a considerable portion of assets in high-quality AAA-rated securities as well as in those companies with weaker credit scrips
- They help the investors in the creation of long-term wealth by avoiding taking an excess risk and thus brings stability in the portfolio
There are various advantages associated with this funds which are as follows:
- Lower risk in share market
- Less sensitive to inflation
- Good returns in the lower time period
- High Liquidity with easy conversion to cash
- Act as a source of emergency funds due to high liquidity
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Top 10 Short Duration Funds in India
Find the list of Best Short Duration Funds in India 2024:
| Rank | Name of the Fund | Return in 1 Year | Return in 3 Year |
| 1 | Franklin India ST Income Direct-G | 7.19% | 8.70% |
| 2 | Baroda Pioneer Short Term Bond Direct-G | 6.76% | 8.57% |
| 3 | Indiabulls Short Term Direct-G | 7.05% | 8.23% |
| 4 | DSP Short Term Direct Plan-Growth | 5.08% | 7.41% |
| 5 | Aditya Birla SL Short Term Opportunities Direct-G | 5.67% | 8.21% |
| 6 | ICICI Pru Short Term Direct-G | 5.44% | 8.18% |
| 7 | DHFL Pramerica Short Maturity Direct-G | 5.33% | 8.17% |
| 8 | BOI AXA Short Term Income Direct-G | 5.68% | 8.08% |
| 9 | Principal Short Term Debt Direct-G | 5.56% | 7.76% |
| 10 | Axis Short Term Direct-G | 5.75% | 7.75% |
Details of Top 10 Short Duration Funds
Franklin India ST Income Direct-G
The objective of this scheme is to provide a stable return by doing investment in fixed income securities with short maturity periods (less than three years).
The average maturity of the given scheme has been between four to twelve months. It is an open-ended growth investment plan which was launched on 1st January 2013 and has a Benchmark of CRISIL Short Term Bond Fund. It has a minimum investment of Rs.5000 and has an asset size of Rs.2286.03 crore.
The returns of this fund are:
| Period | Return (%) |
| 6 month | 5.9 |
| 1 year | 9.5 |
| 3 years | 9.3 |
Baroda Pioneer Short Term Bond Direct-G
This scheme helps in generation of income from a portfolio which constitutes of money market securities as well as short term debt.
It is growth related open-ended fund which was launched on 1st January 2013 and has Benchmark of CRISL Short Term Bond Fund. They require a minimum investment of Rs.5000 and have an asset size of Rs.65.52 crore.
The returns of this fund are:
| Period | Return (%) |
| 6 month | 4.4 |
| 1 year | 7.9 |
| 3 years | 8.8 |
Indiabulls Short Term Direct-G
This scheme helps the investors to provide a stable return over the short term by utilizing short risk strategy and also to maintain liquidity via a portfolio which consists of money market and debt instruments.
It is an open-ended growth investment plan which was launched on 8th February 2013 and has Benchmark of CRISIL Liquid Fund and asset size of Rs.152.86 crore and minimum requirement of investment of Rs.5000.
The returns of this fund are:
| Period | Return (%) |
| 6 month | 4.9 |
| 1 year | 8.6 |
| 3 years | 8.4 |
DSP Short Term Direct Plan-Growth
It is an open-ended scheme which seeks to generate income albeit with prudent risk from the portfolio which constitutes of money market securities and debt securities.
It has a Benchmark of CRISIL Liquid Fund with the requirement of a minimum investment of Rs.500 and requires asset size of Rs.2395.77 crore and was launched on 1st February 2013.
The returns of this fund are:
| Period | Return (%) |
| 6 month | 4.4 |
| 1 year | 6.5 |
| 3 years | 7.6 |
Aditya Birla SL Short Term Opportunities Direct-G
The main objective of this scheme is the generation of income and capital appreciation by doing 100% investment in a diverse portfolio of money market and debt securities.
It is an open-ended growth-related investment plan which was launched on 1st February 2013 and has a Benchmark of CRISIL Short Term Bond Fund. It has an asset size of Rs.712.48 crore and requires a minimum investment of Rs.5000.
The returns of this fund are:
| Period | Return (%) |
| 6 month | 4.9 |
| 1 year | 7.2 |
| 3 years | 8.4 |
ICICI Pru Short Term Direct-G
The objective of such scheme is to conduct investment in a range of money market and debt instruments without compromising with safety, yield, and liquidity so as to maintain optimum balance.
Nevertheless, it does not provide any assurance to the investors to get good returns. It is an open-ended growth investment plan with the launched date of 1st February 2013. They have a Benchmark of CRISIL Short Term Bond Fund which would require a minimum investment of Rs.5000 and have an asset size of Rs.4434.97 crore.
The returns of this fund are:
| Period | Return (%) |
| 6 month | 4.2 |
| 1 year | 6.7 |
| 3 years | 8.4 |
DHFL Pramerica Short Maturity Direct-G
The objective of this open-ended growth scheme is to get a return for investors with low to medium market risk by investing in a portfolio of money market and debt-related securities.
However, there is no guarantee for the investors to get a good return from this scheme. It was launched on 1st January 2013 with a Benchmark of CRISIL Short Term Bond Fund with a minimum investment of Rs.5000 and asset size of Rs.815.29 crore.
The returns of this fund are:
| Period | Return (%) |
| 6 month | 3.9 |
| 1 year | 6.4 |
| 3 years | 8.3 |
BOI AXA Short Term Income Direct-G
This scheme provides capital appreciation and income by doing significant investment in money market and debt-related securities.
It was launched on 1st January 2013 with a Benchmark of CRISIL Short Term Bond Fund with a minimum investment of Rs.5000 and asset size of Rs.69.39 crore.
The returns of this fund are:
| Period | Return (%) |
| 6 month | 3.7 |
| 1 year | 6.4 |
| 3 years | 8.2 |
Principal Short Term Debt Direct-G
It helps in the generation of regular income by doing investment in debt instruments besides preserving the capital. Besides, it was designed to achieve a stable return over investment for a shorter duration.
It is open-ended growth investment plan and has a launch date of 1st February 2013 and has Benchmark of CRISIL Short Term Bond Fund and also asset size of Rs.115.26 crore.
The returns of this fund are:
| Period | Return (%) |
| 6 month | 4.2 |
| 1 year | 6.9 |
| 3 years | 7.9 |
Axis Short Term Direct-G
This scheme follows the low-risk strategy and provide stable return and also maintain liquidity through a portfolio which also compromises of money market and debt related instruments.
It is open-ended growth fund which was launched on 20th January 2010 and gas Benchmark of CRISIL Short Term Bond Fund. It requires a minimum investment of Rs.5000 and has an asset size of Rs.757.46 crore.
The returns of this fund are:
| Period | Return (%) |
| 6 month | 4.0 |
| 1 year | 6.3 |
| 3 years | 7.3 |
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