Top 10 Ultra Short Mutual Funds

Fund NameCategoryRisk1Y ReturnsRatingFund Size(in Cr)
ICICI Prudential Ultra Short Term FundDebtModerate9.3%5star5,459
Franklin India Ultra Short Bond FundDebtModerate10.1%5star19,751
Invesco India Ultra Short Term FundDebtModerate8.8%5star605
Axis Treasury Advantage FundDebtModerately Low9.7%5star1,925
Mahindra ALP-Samay Bachat YojanaDebtModerately Low9.2%5star337
Indiabulls Ultra Short Term FundDebtModerately Low8.5%4star46
Kotak Savings FundDebtModerately Low8.9%4star13,961
BOI AXA Ultra Short Duration FundDebtModerately Low8.4%4star336
Aditya Birla Sun Life Savings FundDebtModerately Low9.3%4star15,421
Essel Ultra Short Term FundDebtModerately Low7.8%3star27
UTI Ultra Short Term FundDebtModerately Low3.8%3star2,962
Canara Robeco Ultra Short Term FundDebtLow7.5%3star178
DSP BlackRock Low Duration Fund DebtModerately Low9.7%3star2,260
Reliance Ultra Short Duration FundDebtModerately Low6.9%3star3,258
L&T Ultra Short Term FundDebtModerately Low8.7%3star2,626
View All Top 10 Ultra Short Mutual Funds

Best Ultra Short Duration Debt Mutual Funds

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.

ICICI Prudential Ultra Short Term Fund Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Ultra Short Duration segment and provided 8.47% 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 ₹5,000. Minimum SIP investment amount for this scheme is ₹1,000. This is one of the best Debt mutual fund in India.

Launch Date09 Jan 2013
Min Investment Amt5,000
AUM5,459Cr
1Y Returns9.3%

Franklin India Ultra Short Bond Fund Super Institutional Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Ultra Short Duration segment and provided 8.93% annualized returns in the last 3 years. In the last 1 year, it gave 10.11% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 10.11% 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
AUM19,751Cr
1Y Returns10.1%

Invesco India Ultra Short Term Fund Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Ultra Short Duration segment and provided 8.04% annualized returns in the last 3 years. In the last 1 year, it gave 8.85% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 8.85% 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
AUM605Cr
1Y Returns8.8%

Axis Treasury Advantage Direct Fund Growth

Fund Performance: This fund has consistently beaten its benchmark in Ultra Short Duration segment and provided 8.09% annualized returns in the last 3 years. In the last 1 year, it gave 9.69% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 9.69% 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
AUM1,925Cr
1Y Returns9.7%

Mahindra Low Duration Bachat Yojana Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Ultra Short Duration segment and provided -100% annualized returns in the last 3 years. In the last 1 year, it gave 9.24% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 9.24% 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 ₹500. This is one of the best Debt mutual fund in India.

Launch Date14 Feb 2017
Min Investment Amt1,000
AUM337Cr
1Y Returns9.2%

Indiabulls Ultra Short Term Direct Fund Growth

Fund Performance: This fund has consistently beaten its benchmark in Ultra Short Duration segment and provided 7.98% annualized returns in the last 3 years. In the last 1 year, it gave 8.5% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 8.5% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹500. 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 Amt500
AUM46Cr
1Y Returns8.5%

Kotak Savings Fund Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Ultra Short Duration segment and provided 7.8% annualized returns in the last 3 years. In the last 1 year, it gave 8.88% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 8.88% 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 Date30 Dec 2012
Min Investment Amt5,000
AUM13,961Cr
1Y Returns8.9%

BOI AXA Ultra Short Duration Fund Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Ultra Short Duration segment and provided 8.12% annualized returns in the last 3 years. In the last 1 year, it gave 8.44% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 8.44% 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
AUM336Cr
1Y Returns8.4%

Aditya Birla Sun Life Savings Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Ultra Short Duration segment and provided 8.01% 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 ₹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
AUM15,421Cr
1Y Returns9.3%

Essel Ultra Short Term Fund Super Institutional Plan Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Ultra Short Duration segment and provided 7.36% annualized returns in the last 3 years. In the last 1 year, it gave 7.84% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.84% 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 ₹500. This is one of the best Debt mutual fund in India.

Launch Date01 Jan 2013
Min Investment Amt1,000
AUM27Cr
1Y Returns7.8%

UTI Ultra Short Term Fund Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Ultra Short Duration segment and provided 6.24% annualized returns in the last 3 years. In the last 1 year, it gave 3.79% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 3.79% 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 ₹2,500. This is one of the best Debt mutual fund in India.

Launch Date31 Dec 2012
Min Investment Amt5,000
AUM2,962Cr
1Y Returns3.8%

Canara Robeco Ultra Short Term Fund Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Ultra Short Duration segment and provided 6.87% annualized returns in the last 3 years. In the last 1 year, it gave 7.46% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.46% 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
AUM178Cr
1Y Returns7.5%

DSP Low Duration Fund Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Ultra Short Duration segment and provided 7.96% annualized returns in the last 3 years. In the last 1 year, it gave 9.66% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 9.66% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹500. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Debt mutual fund in India.

Launch Date09 Mar 2015
Min Investment Amt500
AUM2,260Cr
1Y Returns9.7%

Reliance Ultra Short Duration Fund Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Ultra Short Duration segment and provided 7.06% annualized returns in the last 3 years. In the last 1 year, it gave 6.87% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 6.87% 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
AUM3,258Cr
1Y Returns6.9%

L&T Ultra Short Term Fund Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Ultra Short Duration segment and provided 7.76% annualized returns in the last 3 years. In the last 1 year, it gave 8.71% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 8.71% 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
AUM2,626Cr
1Y Returns8.7%

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Who issues Ultra Short Term 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 Ultra Short Term 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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