Ultra Short Duration Funds

Ultra Short Duration Funds, as the name suggests, invest in fixed-income instruments which have short-term maturities. They can invest in securities with residual maturity period of less than 3-months to 1-year, although average maturity of the instruments should not be greater than 91 days. Ultra Short-term Funds help in avoiding interest rate risks and produce better yield than money market instruments. The income earned from this fund is the interest of underlying instruments.

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  • Snapshot
  • Information
  • Performance
  • Tenure
  • 1Y
  • 3Y
  • 5Y
Fund Name Latest NAV (₹) Rating Return (%) Double Money In 1 Lac Grew To (₹)  
390.09
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7.61 8Y 9M 1.25 L Invest
PGIM India Ultra Short Term Fund - Growth
Average risk | Ultra Short Term Debt
25.32
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9.48 7Y 8M 1.31 L Invest
AXIS ULTRA SHORT TERM FUND - REGULAR PLAN (G)
Average risk | Ultra Short Term Debt
10.99
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-- - -- Invest
Canara Robeco Ultra Short Term Fund (G)
Moderate risk | Ultra Short Term Debt
2887.13
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6.11 10Y 6M 1.19 L Invest
DSP Ultra Short Fund - Regular Plan (G)
Moderate risk | Ultra Short Term Debt
2557.72
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6.09 10Y 7M 1.19 L Invest
ICICI Prudential Ultra Short Term Fund (G)
Low risk | Ultra Short Term Debt
19.95
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7.46 8Y 8M 1.24 L Invest
ICICI Prudential Ultra Short Term Fund (MD)
Low risk | Ultra Short Term Debt
10.71
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7.46 8Y 8M -- Invest
HDFC Ultra Short Term Fund - Regular (G)
Average risk | Ultra Short Term Debt
11
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-- - -- Invest
BARODA PIONEER ULTRA SHORT DURATION FUND - REGULAR PLAN GROWTH
Average risk | Ultra Short Term Debt
1123.43
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-- - -- Invest
SUNDARAM ULTRA SHORT TERM FUND REGULAR (G)
Moderately High risk | Ultra Short Term Debt
10.3
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-- - -- Invest

Ultra-Short Term Debt Funds are the Perfect Answer to Volatile Market

Are you having surplus money and want to gain maximum profit out of it? Are you worried about the market volatility? Put all your tensions aside. Now, you have the perfect solution to all your questions. Ultra-Short Term Debt Funds provide the benefit of investing in the fixed-income instruments and for a short-period. There is no lock-in period which makes it more popular among the short-term investors. The Ultra-Short Term Debt Fund invests in bonds and securities of corporate as well as government organizations. The maturity period of Ultra-Short Term Debt Fund is above 91 days.

The interest rate and the bond prices are inversely proportionate to each other. As the rate of interest rises the bond value falls and vise-versa. Thus, the best time to invest in Ultra-Short Term Debt Fund is when the interest rates are low. 

Benefits of investing in Ultra Short Term Debt Fund

There are following benefits of investing in the Ultra-Short Term Debt Funds:

  • Increased returns: When you invest in Ultra-Short Term Debt Fund you get much increased returns as compared to any other bank deposit schemes. Where the interest on savings bank account is 3-4%, the return on Ultra-Short Term Debt Fund amounts to 8-10% approximately. So, within the tenure of a little more than 91 days you are getting a fairly good rate of return than any other short-term scheme.
  • Reduced time-period: In Ultra-Short Term Debt Fund the time period of investment is within one year. So, the investors who want to invest for a relatively shorter period can make a good return on their investments. For example, Mohan has got a surplus of Rs. 50,000 due to the maturity of a fixed deposit. Now, he wants that money to be invested in a scheme for a period less than one year. He knows equity is not an appropriate option for him because equity-oriented schemes give returns over a long period of time. He also doesn’t want to keep his money in the bank account. Here, Ultra-Short Term Debt Fund is a good option for Mohan as the period of investment is short and the returns are phenomenal. So, Ultra-Short Term Debt Fund caters to both the needs of Mohan at the same time.

Thus, Ultra-Short Term Debt Fund can prove to be a better option for short-term investors. Our experts recommend Ultra-Short Term Debt Fund for those who want secured investment for a short period of time. There is advantage of choosing various mutual fund schemes and also calculate your returns with the help of sip calculator.

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