Top 10 Low Duration Mutual Funds

Fund NameCategoryRisk1Y ReturnsRatingFund Size(in Cr)
Franklin India Low Duration FundDebtModerate9.3%5star6,296
Aditya Birla Sun Life Low DurationDebtModerately Low9.7%5star9,170
Kotak Low Duration FundDebtModerate9.3%5star4,758
SBI Magnum Low Duration FundDebtModerately Low9.1%4star7,534
IDFC Low Duration FundDebtModerately Low9.2%4star4,587
DHFL Pramerica Low Duration FundDebtLow7.5%3star669
BNP Paribas Low Duration FundDebtLow8.5%3star214
Mirae Asset Savings FundDebtModerately Low7.6%3star545
L&T Low Duration FundDebtModerate6.4%3star1,006
UTI Treasury Advantage FundDebtModerately Low-3.7%3star2,441
Reliance Low Duration FundDebtModerately Low7.6%3star3,752
Tata Treasury Advantage FundDebtModerately Low2.9%3star776
ICICI Prudential Savings PlanDebtModerately Low9.2%3star19,925
LIC MF Savings FundDebtModerately Low4.5%3star1,180
Invesco India Treasury Advantage FundDebtModerately Low9.7%3star1,088
View All Top 10 Low Duration Mutual Funds

Best Low Duration Debt Mutual Funds

Let us first understand Low Duration Debt Mutual Funds. Individuals and Institutions raise debt when they need money, and pay interest based on the interest rate and duration of the debt. The interest rates can fluctuate based on the economic scenario.

Two most important factors in this transaction are:

I. The credibility of individual or institution who has raised debt

II. The time and duration of the debt is raised

Examples of debt: Fixed deposits by Banks, Debt raised by government, Fixed deposits by companies

These funds invest in short term (one year) bonds. If you are saving for very short-term goals like a vacation or buying an automobile, then this category is ideal for gains within one year. It is also an excellent resort to park your money until you decide where to invest or spend next. Returns are taxed as per your income tax slab if sold before three years and have negligible tax post that period.

Purpose: Invest here for your short term goals like a vacation, buying a bike, jewelry or expensive gadget.

Let's have a closer look

Now let us jump and check about these top 10 mutual fund schemes.

Franklin India Low Duration Direct Plan Growth

Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 8.84% annualized returns in the last 3 years. In the last 1 year, it gave 9.27% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 9.27% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹10,000. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Debt mutual fund in India.

Launch Date31 Dec 2012
Min Investment Amt10,000
AUM6,296Cr
1Y Returns9.3%

Aditya Birla Sun Life Low Duration Fund Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 8.22% annualized returns in the last 3 years. In the last 1 year, it gave 9.71% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 9.71% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹100. Minimum SIP investment amount for this scheme is ₹100. This is one of the best Debt mutual fund in India.

Launch Date31 Dec 2012
Min Investment Amt100
AUM9,170Cr
1Y Returns9.7%

Kotak Low Duration Fund Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 8.46% annualized returns in the last 3 years. In the last 1 year, it gave 9.28% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 9.28% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹5,000. Minimum SIP investment amount for this scheme is ₹1,000. This is one of the best Debt mutual fund in India.

Launch Date31 Dec 2012
Min Investment Amt5,000
AUM4,758Cr
1Y Returns9.3%

SBI Magnum Low Duration Fund Direct Plan Growth

Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 7.7% annualized returns in the last 3 years. In the last 1 year, it gave 9.14% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 9.14% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹5,000. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Debt mutual fund in India.

Launch Date31 Dec 2012
Min Investment Amt5,000
AUM7,534Cr
1Y Returns9.1%

IDFC Low Duration Fund Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 7.82% annualized returns in the last 3 years. In the last 1 year, it gave 9.2% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 9.2% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹100. Minimum SIP investment amount for this scheme is ₹100. This is one of the best Debt mutual fund in India.

Launch Date31 Dec 2012
Min Investment Amt100
AUM4,587Cr
1Y Returns9.2%

DHFL Pramerica Low Duration Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided -100% annualized returns in the last 3 years. In the last 1 year, it gave 7.51% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.51% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹5,000. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Debt mutual fund in India.

Launch Date01 Jan 2013
Min Investment Amt5,000
AUM669Cr
1Y Returns7.5%

BNP Paribas Low Duration Fund Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 7.66% annualized returns in the last 3 years. In the last 1 year, it gave 8.46% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 8.46% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹5,000. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Debt mutual fund in India.

Launch Date01 Jan 2013
Min Investment Amt5,000
AUM214Cr
1Y Returns8.5%

Mirae Asset Savings Fund Direct Plan Growth

Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 7.09% annualized returns in the last 3 years. In the last 1 year, it gave 7.64% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.64% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹5,000. Minimum SIP investment amount for this scheme is ₹1,000. This is one of the best Debt mutual fund in India.

Launch Date31 Dec 2012
Min Investment Amt5,000
AUM545Cr
1Y Returns7.6%

L&T Low Duration Fund Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 7.44% annualized returns in the last 3 years. In the last 1 year, it gave 6.4% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 6.4% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹10,000. Minimum SIP investment amount for this scheme is ₹1,000. This is one of the best Debt mutual fund in India.

Launch Date31 Dec 2012
Min Investment Amt10,000
AUM1,006Cr
1Y Returns6.4%

UTI Treasury Advantage Fund Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 3.5% annualized returns in the last 3 years. In the last 1 year, it gave -3.73% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -3.73% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹10,000. Minimum SIP investment amount for this scheme is ₹2,500. This is one of the best Debt mutual fund in India.

Launch Date31 Dec 2012
Min Investment Amt10,000
AUM2,441Cr
1Y Returns-3.7%

Reliance Low Duration Fund Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 7.32% annualized returns in the last 3 years. In the last 1 year, it gave 7.63% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.63% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹500. Minimum SIP investment amount for this scheme is ₹100. This is one of the best Debt mutual fund in India.

Launch Date31 Dec 2012
Min Investment Amt500
AUM3,752Cr
1Y Returns7.6%

Tata Treasury Advantage Direct Plan Growth

Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 5.78% annualized returns in the last 3 years. In the last 1 year, it gave 2.9% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 2.9% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹5,000. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Debt mutual fund in India.

Launch Date31 Dec 2012
Min Investment Amt5,000
AUM776Cr
1Y Returns2.9%

ICICI Prudential Savings Fund Direct Plan Growth

Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 7.93% annualized returns in the last 3 years. In the last 1 year, it gave 9.19% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 9.19% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹100. Minimum SIP investment amount for this scheme is ₹100. This is one of the best Debt mutual fund in India.

Launch Date31 Dec 2012
Min Investment Amt100
AUM19,925Cr
1Y Returns9.2%

LIC MF Savings Fund Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 6.45% annualized returns in the last 3 years. In the last 1 year, it gave 4.46% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 4.46% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹5,000. Minimum SIP investment amount for this scheme is ₹1,000. This is one of the best Debt mutual fund in India.

Launch Date01 Jan 2013
Min Investment Amt5,000
AUM1,180Cr
1Y Returns4.5%

Invesco India Treasury Advantage Fund Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 7.88% annualized returns in the last 3 years. In the last 1 year, it gave 9.7% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 9.7% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹1,000. Minimum SIP investment amount for this scheme is ₹1,000. This is one of the best Debt mutual fund in India.

Launch Date31 Dec 2012
Min Investment Amt1,000
AUM1,088Cr
1Y Returns9.7%

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What are Low Duration Debt Mutual Funds?

Debt funds are mutual funds investing in such debt instruments. They are of different kinds depending on the kind of debt instruments they invest in. Higher the credit rating of the debtor, lesser the chance of default and hence lesser the risk is – however, returns for such instruments can be lower. Lower the duration of the debt, lesser the probability of interest rate fluctuation and hence lesser the uncertainty of returns.

Who issues Low Duration Debt mutual funds?

Asset management companies (or AMCs or fund houses) create mutual funds. All AMCs will have to be approved by the government body, Securities and Exchange Board of India (SEBI). All mutual funds have to be whetted by SEBI before it is open for the public to invest.

How to invest in low duration debt mutual funds on Groww?

One of the best ways to hedge against the small-cap volatility is to adopt a phased approach, also known as Systematic Investment Plan (SIP) approach. We are sure that you must be aware of SIP and its benefits. Buying in small quantity but buying regularly provides you with faster growth. On Groww.in, all transactions to and from AMC is done via BSE. When you decide to invest in a large cap mutual fund of your choice, you choose that mutual fund on the website and click ‘invest’. Following that, you are redirected to the BSE page where you make the payment. BSE then directs your money to the AMC managing your mutual fund. To be assured at your end, you can visit the individual AMC website after the payment. You would be able to see all your purchased units against your folio number.

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