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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| Fund Name | Category | Risk | 1Y Returns | Rating | Fund Size(in Cr) | |
|---|---|---|---|---|---|---|
| Kotak Low Duration Fund | Debt | Moderate | 9.0% | 5star | ₹5,963 | |
| Aditya Birla Sun Life Low Duration | Debt | Moderately Low | 9.0% | 5star | ₹10,337 | |
| IDFC Low Duration Fund | Debt | Moderately Low | 8.5% | 4star | ₹5,323 | |
| Franklin India Low Duration Fund | Debt | Moderate | -1.6% | 4star | ₹4,627 | |
| Invesco India Treasury Advantage Fund | Debt | Moderately Low | 9.1% | 4star | ₹1,567 | |
| SBI Magnum Low Duration Fund | Debt | Moderately Low | 8.6% | 4star | ₹8,442 | |
| Sundaram Low Duration Fund | Debt | Moderately Low | -2.1% | 3star | ₹468 | |
| Tata Treasury Advantage Fund | Debt | Moderately Low | 2.2% | 3star | ₹678 | |
| LIC MF Savings Fund | Debt | Moderately Low | 3.9% | 3star | ₹915 | |
| BNP Paribas Low Duration Fund | Debt | Low | 7.7% | 3star | ₹329 | |
| Mirae Asset Savings Fund | Debt | Moderately Low | 6.3% | 3star | ₹609 | |
| ICICI Prudential Savings Plan | Debt | Moderately Low | 8.8% | 3star | ₹21,308 | |
| L&T Low Duration Fund | Debt | Moderate | 5.6% | 3star | ₹913 | |
| Nippon India Low Duration Fund | Debt | Moderately Low | 7.3% | 3star | ₹3,411 | |
| HDFC Low Duration | Debt | Moderately Low | 8.5% | 3star | ₹15,055 | |
| 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 –
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 –
Major Advantages
The following advantages have always carved out a niche for the best Low Duration Mutual Funds.
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.
Now let us jump and check about these top 10 mutual fund schemes.
Fund Performance: This fund has given 8.33% annualized returns in the last three years. In the last year, its returns were 9.02%. 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 9.02% 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 | ₹5,963Cr |
| 1Y Returns | 9.0% |
Fund Performance: This fund has given 8.17% annualized returns in the last three years. In the last year, its returns were 8.97%. 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 8.97% 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 | ₹10,337Cr |
| 1Y Returns | 9.0% |
Fund Performance: This fund has given 7.66% annualized returns in the last three years. In the last year, its returns were 8.47%. 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 8.47% 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 | ₹5,323Cr |
| 1Y Returns | 8.5% |
Fund Performance: This fund has given 5.15% annualized returns in the last three years. In the last year, its returns were -1.62%. 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 -1.62% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹10,000. Minimum SIP investment amount required for this scheme is ₹500.
| Min Investment Amt | ₹10,000 |
|---|---|
| AUM | ₹4,627Cr |
| 1Y Returns | -1.6% |
Fund Performance: This fund has given 7.79% annualized returns in the last three years. In the last year, its returns were 9.05%. 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 9.05% 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 ₹1,000.
| Min Investment Amt | ₹1,000 |
|---|---|
| AUM | ₹1,567Cr |
| 1Y Returns | 9.1% |
Fund Performance: This fund has given 7.67% annualized returns in the last three years. In the last year, its returns were 8.58%. 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 8.58% 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 | ₹8,442Cr |
| 1Y Returns | 8.6% |
Fund Performance: This fund has given 4.2% annualized returns in the last three years. In the last year, its returns were -2.07%. 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 -2.07% 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 ₹1,000.
| Min Investment Amt | ₹1,000 |
|---|---|
| AUM | ₹468Cr |
| 1Y Returns | -2.1% |
Fund Performance: This fund has given 5.67% annualized returns in the last three years. In the last year, its returns were 2.19%. 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 2.19% 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 | ₹678Cr |
| 1Y Returns | 2.2% |
Fund Performance: This fund has given 6.27% annualized returns in the last three years. In the last year, its returns were 3.85%. 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 3.85% 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 | ₹915Cr |
| 1Y Returns | 3.9% |
Fund Performance: This fund has given 7.54% annualized returns in the last three years. In the last year, its returns were 7.72%. 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 7.72% 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 | ₹329Cr |
| 1Y Returns | 7.7% |
Fund Performance: This fund has given 6.75% annualized returns in the last three years. In the last year, its returns were 6.31%. 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 6.31% 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 | ₹609Cr |
| 1Y Returns | 6.3% |
Fund Performance: This fund has given 7.85% annualized returns in the last three years. In the last year, its returns were 8.82%. 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 8.82% 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 | ₹21,308Cr |
| 1Y Returns | 8.8% |
Fund Performance: This fund has given 6.95% annualized returns in the last three years. In the last year, its returns were 5.62%. 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 5.62% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹10,000. Minimum SIP investment amount required for this scheme is ₹1,000.
| Min Investment Amt | ₹10,000 |
|---|---|
| AUM | ₹913Cr |
| 1Y Returns | 5.6% |
Fund Performance: This fund has given 7.32% annualized returns in the last three years. In the last year, its returns were 7.26%. 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 7.26% 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 | ₹3,411Cr |
| 1Y Returns | 7.3% |
Fund Performance: This fund has given 7.53% annualized returns in the last three years. In the last year, its returns were 8.48%. 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 8.48% 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 ₹500.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹15,055Cr |
| 1Y Returns | 8.5% |
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