Best Low Duration Mutual Funds
Out of all the major Mutual Fund categories in the market, perhaps the one segment which has time and time again proven its worth is the Low Duration Mutual Funds. The best low duration funds have continued to grow at roughly 5.5% YoY. Also known as short duration Mutual Funds, such schemes have continued to attract rising investment levels from retail and institutional investors.
One of the primary ways in which these funds differ from other offerings is their duration as is obvious. All those MFs which expire in 1-3 years are categorised as Low Duration Mutual Funds. Since there is an extra taxation mechanism on those investors who exit before 1 year is complete, the defaulters list is not a long one in these schemes.
Compared to Large-Cap and Mid-Cap funds, these funds are meant for those who do not have too much time to spare to be deliberate about their investments. Most individuals who invest in these vehicles are those looking to recoup their investment and profits within a 3-year time span.
There are several reasons why low duration bond funds are so popular. They are remarkably resilient even in a bullish market, offer high returns without the accompanying factor of extra risk, and have maintained their own identity despite the rise of ultra-short-term Mutual Funds.
There are several advantages that these funds have over the others. For instance, these funds are often pooled under a comparatively lower Capital Gains taxation slab because they have a very short duration and the tax exemption threshold is rarely reached. Most fund managers in India recommend their clients to invest in short term plans and test their investment temper before trying and reaching out to longer plans.
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Top 10 Low Duration Mutual Funds
| Fund Name | Category | Risk | 1Y Returns | Rating | Fund Size(in Cr) | |
|---|---|---|---|---|---|---|
| Kotak Low Duration Fund | DEBT | Moderate | 7.5% | 5star | ₹12,542 | |
| Aditya Birla Sun Life Low Duration | DEBT | Low to Moderate | 7.1% | 5star | ₹16,378 | |
| JM Low Duration Fund | Debt | Low to Moderate | 25.7% | 5star | ₹128 | |
| HDFC Low Duration | DEBT | Moderate | 7.6% | 4star | ₹19,554 | |
| ICICI Prudential Savings Plan | DEBT | Low to Moderate | 7.3% | 4star | ₹23,971 | |
| Axis Treasury Advantage Fund | Debt | Low to Moderate | 6.5% | 4star | ₹8,537 | |
| Invesco India Treasury Advantage Fund | Debt | Low to Moderate | 6.4% | 4star | ₹3,236 | |
| SBI Magnum Low Duration Fund | Debt | Low to Moderate | 6.0% | 4star | ₹13,522 | |
| Mahindra ALP-Samay Bachat Yojana | Debt | Moderate | 5.9% | 4star | ₹495 | |
| Nippon India Low Duration Fund | Debt | Moderate | 7.0% | 4star | ₹7,031 | |
| BNP Paribas Low Duration Fund | Debt | Low to Moderate | 6.5% | 3star | ₹252 | |
| DSP Low Duration Fund | Debt | Low to Moderate | 5.9% | 3star | ₹4,132 | |
| IDFC Low Duration Fund | Debt | Low to Moderate | 5.8% | 3star | ₹6,881 | |
| Canara Robeco Savings Fund | Debt | Low to Moderate | 5.3% | 3star | ₹1,417 | |
| Mirae Asset Savings Fund | Debt | Low to Moderate | 6.2% | 3star | ₹1,058 | |
| View All Top 10 Low Duration Mutual Funds |
Features of Low Duration Mutual Fund
The funds act as investment vehicles in a volatile market as the economy slows at a steady but sure pace. Given how big India’s economy has grown since liberalisation happened in 1990, it was only a matter of time before a slump hit. However, the best low duration Funds of 2019 have managed to yield significant returns to investors.
The purposes of these plans are the following –
- Low duration funds act as excellent avenues to invest in the Indian economy and also offer the opportunity to exit a plan within 3 years if needed without the liability for any punitive action.
- It is the chosen way individuals can earn around 7%-9% on their investments according to the available and updated data. The best low duration funds of 2019 have grown at 9% in 2017 and 2018 and the trend is likely to continue.
- Helps fulfil the personal financial goals that many investors have. The time aspect is of advantage here and investors naturally expect sound returns on their money. Mostly, the plans are effective, although MFs are indeed subject to certain unforeseen market risks.
Taxability
All Mutual Funds are taxable provided the gains are over Rs. 1 Lakh. The tax is collected in the form of the LTCG tax. If the returns are lower than this threshold, there is no tax liability. This exemption limit is prevalent across the entire sector of Mutual Funds and is normal.
One great advantage that best low duration funds of 2019 have is that they cannot be reneged before 1 year. That prevents any extra taxation.
Besides, like other MFs, if the funds are non-indexed, the LTCG is taxable at 20%. For indexed funds, the standard rate of 10% is applicable.
Who Are These Funds Suited For?
While everyone can invest in the best short duration Mutual Funds of 2019, there are specific categories for which the plans are best suited. They are –
- Those who are looking for excellent financing options within 1-3 years and who are willing to bet on the prevailing market headwinds.
- Those individual and bulk investors who may not have too much idea of investing in the market economy and who wish to gain some insights on how the processes work in tandem.
- Those investors who wish to recoup as much as possible within a limited time.
Major Advantages
The following advantages have always carved out a niche for the best Low Duration Mutual Funds.
- The short duration of investment acts as a risk inhibitor for most investors.
- The excellent returns which such schemes promise.
- The evident rise in YoY returns which acts as a natural growth stimulator for such financial tools.
- Lastly, the chance to invest directly in the nation’s economy.
Each quarter, the list of Low Duration Mutual Funds change based on their performance. Given below is a handpicked list of these schemes currently available.
Let's have a closer look
Now let us jump and check about these top 10 mutual fund schemes.
Kotak Low Duration Fund Direct Growth
Fund Performance: This fund has given 8.18% annualized returns in the last three years. In the last year, its returns were 7.47%. It has continually hit its benchmark in the DEBT segment.
Why to invest: It is one of the most remarkable DEBT mutual funds in India. This fund has constantly outperformed other similar funds, providing 7.47% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹1,000.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹12,542Cr |
| 1Y Returns | 7.5% |
Aditya Birla Sun Life Low Duration Fund Direct Growth
Fund Performance: This fund has given 8.18% annualized returns in the last three years. In the last year, its returns were 7.14%. It has continually hit its benchmark in the DEBT segment.
Why to invest: It is one of the most remarkable DEBT mutual funds in India. This fund has constantly outperformed other similar funds, providing 7.14% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹100. Minimum SIP investment amount required for this scheme is ₹100.
| Min Investment Amt | ₹100 |
|---|---|
| AUM | ₹16,378Cr |
| 1Y Returns | 7.1% |
JM Low Duration Fund Direct Plan Growth
Fund Performance: This fund has given 5.77% annualized returns in the last three years. In the last year, its returns were 25.74%. It has continually hit its benchmark in the Debt segment.
Why to invest: It is one of the most remarkable Debt mutual funds in India. This fund has constantly outperformed other similar funds, providing 25.74% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹500.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹128Cr |
| 1Y Returns | 25.7% |
HDFC Low Duration Fund Direct Plan Growth
Fund Performance: This fund has given 7.85% annualized returns in the last three years. In the last year, its returns were 7.64%. It has continually hit its benchmark in the DEBT segment.
Why to invest: It is one of the most remarkable DEBT mutual funds in India. This fund has constantly outperformed other similar funds, providing 7.64% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹500.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹19,554Cr |
| 1Y Returns | 7.6% |
ICICI Prudential Savings Fund Direct Plan Growth
Fund Performance: This fund has given 7.78% annualized returns in the last three years. In the last year, its returns were 7.33%. It has continually hit its benchmark in the DEBT segment.
Why to invest: It is one of the most remarkable DEBT mutual funds in India. This fund has constantly outperformed other similar funds, providing 7.33% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹100. Minimum SIP investment amount required for this scheme is ₹100.
| Min Investment Amt | ₹100 |
|---|---|
| AUM | ₹23,971Cr |
| 1Y Returns | 7.3% |
Axis Treasury Advantage Direct Fund Growth
Fund Performance: This fund has given 7.78% annualized returns in the last three years. In the last year, its returns were 6.51%. It has continually hit its benchmark in the Debt segment.
Why to invest: It is one of the most remarkable Debt mutual funds in India. This fund has constantly outperformed other similar funds, providing 6.51% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹1,000.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹8,537Cr |
| 1Y Returns | 6.5% |
Invesco India Treasury Advantage Fund Direct Growth
Fund Performance: This fund has given 7.67% annualized returns in the last three years. In the last year, its returns were 6.4%. It has continually hit its benchmark in the Debt segment.
Why to invest: It is one of the most remarkable Debt mutual funds in India. This fund has constantly outperformed other similar funds, providing 6.4% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹1,000. Minimum SIP investment amount required for this scheme is ₹100.
| Min Investment Amt | ₹1,000 |
|---|---|
| AUM | ₹3,236Cr |
| 1Y Returns | 6.4% |
SBI Magnum Low Duration Fund Direct Plan Growth
Fund Performance: This fund has given 7.45% annualized returns in the last three years. In the last year, its returns were 5.97%. It has continually hit its benchmark in the Debt segment.
Why to invest: It is one of the most remarkable Debt mutual funds in India. This fund has constantly outperformed other similar funds, providing 5.97% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹500.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹13,522Cr |
| 1Y Returns | 6.0% |
Mahindra Manulife Low Duration Fund Direct Growth
Fund Performance: This fund has given 7.45% annualized returns in the last three years. In the last year, its returns were 5.94%. It has continually hit its benchmark in the Debt segment.
Why to invest: It is one of the most remarkable Debt mutual funds in India. This fund has constantly outperformed other similar funds, providing 5.94% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹1,000. Minimum SIP investment amount required for this scheme is ₹500.
| Min Investment Amt | ₹1,000 |
|---|---|
| AUM | ₹495Cr |
| 1Y Returns | 5.9% |
Nippon India Low Duration Fund Direct Growth
Fund Performance: This fund has given 7.41% annualized returns in the last three years. In the last year, its returns were 6.99%. It has continually hit its benchmark in the Debt segment.
Why to invest: It is one of the most remarkable Debt mutual funds in India. This fund has constantly outperformed other similar funds, providing 6.99% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹500. Minimum SIP investment amount required for this scheme is ₹100.
| Min Investment Amt | ₹500 |
|---|---|
| AUM | ₹7,031Cr |
| 1Y Returns | 7.0% |
BNP Paribas Low Duration Fund Direct Growth
Fund Performance: This fund has given 7.63% annualized returns in the last three years. In the last year, its returns were 6.48%. It has continually hit its benchmark in the Debt segment.
Why to invest: It is one of the most remarkable Debt mutual funds in India. This fund has constantly outperformed other similar funds, providing 6.48% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹300.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹252Cr |
| 1Y Returns | 6.5% |
DSP Low Duration Fund Direct Growth
Fund Performance: This fund has given 7.47% annualized returns in the last three years. In the last year, its returns were 5.89%. It has continually hit its benchmark in the Debt segment.
Why to invest: It is one of the most remarkable Debt mutual funds in India. This fund has constantly outperformed other similar funds, providing 5.89% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹500. Minimum SIP investment amount required for this scheme is ₹500.
| Min Investment Amt | ₹500 |
|---|---|
| AUM | ₹4,132Cr |
| 1Y Returns | 5.9% |
IDFC Low Duration Fund Direct Growth
Fund Performance: This fund has given 7.32% annualized returns in the last three years. In the last year, its returns were 5.79%. It has continually hit its benchmark in the Debt segment.
Why to invest: It is one of the most remarkable Debt mutual funds in India. This fund has constantly outperformed other similar funds, providing 5.79% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹100. Minimum SIP investment amount required for this scheme is ₹100.
| Min Investment Amt | ₹100 |
|---|---|
| AUM | ₹6,881Cr |
| 1Y Returns | 5.8% |
Canara Robeco Savings Fund Direct Growth
Fund Performance: This fund has given 6.97% annualized returns in the last three years. In the last year, its returns were 5.35%. It has continually hit its benchmark in the Debt segment.
Why to invest: It is one of the most remarkable Debt mutual funds in India. This fund has constantly outperformed other similar funds, providing 5.35% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹1,000.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹1,417Cr |
| 1Y Returns | 5.3% |
Mirae Asset Savings Fund Direct Plan Growth
Fund Performance: This fund has given 6.64% annualized returns in the last three years. In the last year, its returns were 6.2%. It has continually hit its benchmark in the Debt segment.
Why to invest: It is one of the most remarkable Debt mutual funds in India. This fund has constantly outperformed other similar funds, providing 6.2% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹1,000.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹1,058Cr |
| 1Y Returns | 6.2% |
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