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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 NameCategoryRisk1Y ReturnsRatingFund Size(in Cr)
Aditya Birla Sun Life Low DurationDebtLow to Moderate5.5%5star19,096
Kotak Low Duration FundDebtLow to Moderate5.4%5star13,850
JM Low Duration FundDebtLow to Moderate3.8%5star130
HDFC Low DurationDebtModerate5.8%4star26,073
ICICI Prudential Savings PlanDebtLow to Moderate5.4%4star32,102
Axis Treasury Advantage FundDebtLow to Moderate4.8%4star10,389
Nippon India Low Duration FundDebtModerate5.9%4star9,368
Mahindra ALP-Samay Bachat YojanaDebtModerate4.7%4star701
Invesco India Treasury Advantage FundDebtLow to Moderate4.5%3star3,483
BNP Paribas Low Duration FundDebtLow to Moderate5.1%3star300
DSP Low Duration FundDebtLow to Moderate4.4%3star4,018
SBI Magnum Low Duration FundDebtModerate4.4%3star13,167
IDFC Low Duration FundDebtLow to Moderate4.3%3star9,169
Canara Robeco Savings FundDebtLow to Moderate3.9%3star1,459
Mirae Asset Savings FundDebtLow to Moderate4.5%3star1,113
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.

Aditya Birla Sun Life Low Duration Fund Direct Growth

Fund Performance: This fund has given 8.01% annualized returns in the last three years. In the last year, its returns were 5.52%. 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 5.52% 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
AUM19,096Cr
1Y Returns5.5%

Kotak Low Duration Fund Direct Growth

Fund Performance: This fund has given 7.98% annualized returns in the last three years. In the last year, its returns were 5.4%. 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 5.4% 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
AUM13,850Cr
1Y Returns5.4%

JM Low Duration Fund Direct Plan Growth

Fund Performance: This fund has given 5.56% annualized returns in the last three years. In the last year, its returns were 3.82%. 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 3.82% 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
AUM130Cr
1Y Returns3.8%

HDFC Low Duration Fund Direct Plan Growth

Fund Performance: This fund has given 7.76% annualized returns in the last three years. In the last year, its returns were 5.84%. 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 5.84% 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
AUM26,073Cr
1Y Returns5.8%

ICICI Prudential Savings Fund Direct Plan Growth

Fund Performance: This fund has given 7.75% annualized returns in the last three years. In the last year, its returns were 5.42%. 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 5.42% 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
AUM32,102Cr
1Y Returns5.4%

Axis Treasury Advantage Direct Fund Growth

Fund Performance: This fund has given 7.58% annualized returns in the last three years. In the last year, its returns were 4.79%. 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 4.79% 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
AUM10,389Cr
1Y Returns4.8%

Nippon India Low Duration Fund Direct Growth

Fund Performance: This fund has given 7.31% annualized returns in the last three years. In the last year, its returns were 5.91%. 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 5.91% 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
AUM9,368Cr
1Y Returns5.9%

Mahindra Manulife Low Duration Fund Direct Growth

Fund Performance: This fund has given 7.26% annualized returns in the last three years. In the last year, its returns were 4.69%. 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 4.69% 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
AUM701Cr
1Y Returns4.7%

Invesco India Treasury Advantage Fund Direct Growth

Fund Performance: This fund has given 7.49% annualized returns in the last three years. In the last year, its returns were 4.52%. 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 4.52% 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
AUM3,483Cr
1Y Returns4.5%

BNP Paribas 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 5.13%. 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 5.13% 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
AUM300Cr
1Y Returns5.1%

DSP Low Duration Fund Direct Growth

Fund Performance: This fund has given 7.26% annualized returns in the last three years. In the last year, its returns were 4.37%. 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 4.37% 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
AUM4,018Cr
1Y Returns4.4%

SBI Magnum Low Duration Fund Direct Plan Growth

Fund Performance: This fund has given 7.22% annualized returns in the last three years. In the last year, its returns were 4.38%. 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 4.38% 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
AUM13,167Cr
1Y Returns4.4%

IDFC Low Duration Fund Direct Growth

Fund Performance: This fund has given 7.14% annualized returns in the last three years. In the last year, its returns were 4.25%. 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 4.25% 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
AUM9,169Cr
1Y Returns4.3%

Canara Robeco Savings Fund Direct Growth

Fund Performance: This fund has given 6.71% annualized returns in the last three years. In the last year, its returns were 3.9%. 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 3.9% 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
AUM1,459Cr
1Y Returns3.9%

Mirae Asset Savings Fund Direct Plan Growth

Fund Performance: This fund has given 6.44% annualized returns in the last three years. In the last year, its returns were 4.55%. 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 4.55% 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
AUM1,113Cr
1Y Returns4.5%

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