Top 10 Ultra Short Mutual Funds

Fund NameCategoryRisk1Y ReturnsRatingFund Size(in Cr)
ICICI Prudential Ultra Short Term FundDebtModerate9.1%5star4,792
DHFL Pramerica Ultra Short Term FundDebtModerately Low10.9%5star50
Invesco India Ultra Short Term FundDebtModerate8.6%5star608
Indiabulls Ultra Short Term FundDebtModerately Low8.3%4star71
Kotak Savings FundDebtModerately Low8.6%4star12,809
BOI AXA Ultra Short Duration FundDebtModerately Low8.2%4star339
Axis Treasury Advantage FundDebtModerately Low9.1%4star1,317
Mahindra ALP-Samay Bachat YojanaDebtModerately Low8.8%4star299
Essel Ultra Short Term FundDebtModerately Low7.9%3star29
UTI Ultra Short Term FundDebtModerately Low4.0%3star3,330
IDBI Ultra Short Term FundDebtModerately Low3.2%3star286
DSP BlackRock Low Duration Fund DebtModerately Low7.8%3star2,554
Reliance Ultra Short Duration FundDebtModerately Low6.5%3star4,348
L&T Ultra Short Term FundDebtModerately Low8.4%3star2,673
Franklin India Ultra Short Bond FundDebtModerate9.8%3star19,569
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 8.69% annualized returns in the last 3 years. In the last 1 year, it gave 9.06% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 9.06% returns in the last 1 year. Groww rated this fund as 5 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Rajat Chandak, Manish Banthia, Ritesh Lunawat

Launch Date09 Jan 2013
Min Investment Amt5,000
Groww Rating5star
AUM4,792Cr
1Y Returns9.1%

DHFL Pramerica Ultra Short Term Direct-Growth

Fund Performance: This fund has consistently beaten its benchmark in Ultra Short Duration segment and provided 8.56% annualized returns in the last 3 years. In the last 1 year, it gave 10.87% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 10.87% returns in the last 1 year. Groww rated this fund as 5 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Kumaresh Ramakrishnan, Kunal Jain

Launch Date01 Jan 2013
Min Investment Amt5,000
Groww Rating5star
AUM50Cr
1Y Returns10.9%

Invesco India Ultra Short Term Fund Direct-Growth

Fund Performance: This fund has consistently beaten its benchmark in Ultra Short Duration segment and provided 8.09% annualized returns in the last 3 years. In the last 1 year, it gave 8.63% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 8.63% returns in the last 1 year. Groww rated this fund as 5 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Nitish Sikand

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating5star
AUM608Cr
1Y Returns8.6%

Indiabulls Ultra Short Term Direct Fund-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 8.32% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 8.32% returns in the last 1 year. Groww rated this fund as 4 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Malay Shah

Launch Date31 Dec 2012
Min Investment Amt500
Groww Rating4star
AUM71Cr
1Y Returns8.3%

Kotak Savings Fund Direct-Growth

Fund Performance: This fund has consistently beaten its benchmark in Ultra Short Duration segment and provided 7.82% annualized returns in the last 3 years. In the last 1 year, it gave 8.59% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 8.59% returns in the last 1 year. Groww rated this fund as 4 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Deepak Agrawal

Launch Date30 Dec 2012
Min Investment Amt5,000
Groww Rating4star
AUM12,809Cr
1Y Returns8.6%

BOI AXA Ultra Short Duration Fund Direct-Growth

Fund Performance: This fund has consistently beaten its benchmark in Ultra Short Duration segment and provided 8.21% annualized returns in the last 3 years. In the last 1 year, it gave 8.22% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 8.22% returns in the last 1 year. Groww rated this fund as 4 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Piyush Baranwal

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating4star
AUM339Cr
1Y Returns8.2%

Axis Treasury Advantage Direct Fund-Growth

Fund Performance: This fund has consistently beaten its benchmark in Ultra Short Duration segment and provided 8% annualized returns in the last 3 years. In the last 1 year, it gave 9.1% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 9.1% returns in the last 1 year. Groww rated this fund as 4 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Devang Shah, Aditya Pagaria

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating4star
AUM1,317Cr
1Y Returns9.1%

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 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. Groww rated this fund as 4 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Rahul Pal

Launch Date14 Feb 2017
Min Investment Amt1,000
Groww Rating4star
AUM299Cr
1Y Returns8.8%

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 7.4% annualized returns in the last 3 years. In the last 1 year, it gave 7.94% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.94% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Killol Pandya

Launch Date01 Jan 2013
Min Investment Amt1,000
Groww Rating3star
AUM29Cr
1Y Returns7.9%

UTI Ultra Short Term Fund Direct-Growth

Fund Performance: This fund has consistently beaten its benchmark in Ultra Short Duration segment and provided 6.46% annualized returns in the last 3 years. In the last 1 year, it gave 3.97% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 3.97% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Sudhir Agrawal, Ritesh Nambiar

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating3star
AUM3,330Cr
1Y Returns4.0%

IDBI Ultra Short Term Fund Direct-Growth

Fund Performance: This fund has consistently beaten its benchmark in Ultra Short Duration segment and provided 5.88% annualized returns in the last 3 years. In the last 1 year, it gave 3.18% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 3.18% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Bupesh Kalyani

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating3star
AUM286Cr
1Y Returns3.2%

DSP Low Duration Fund Direct-Growth

Fund Performance: This fund has consistently beaten its benchmark in Ultra Short Duration segment and provided 7.48% annualized returns in the last 3 years. In the last 1 year, it gave 7.85% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.85% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Kedar Karnik, Rahul Vekaria

Launch Date09 Mar 2015
Min Investment Amt500
Groww Rating3star
AUM2,554Cr
1Y Returns7.8%

Reliance Ultra Short Duration Fund Direct-Growth

Fund Performance: This fund has consistently beaten its benchmark in Ultra Short Duration segment and provided 6.88% annualized returns in the last 3 years. In the last 1 year, it gave 6.47% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 6.47% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Anju Chajjer, Vivek Sharma

Launch Date31 Dec 2012
Min Investment Amt100
Groww Rating3star
AUM4,348Cr
1Y Returns6.5%

L&T Ultra Short Term Fund Direct- Growth

Fund Performance: This fund has consistently beaten its benchmark in Ultra Short Duration segment and provided 7.78% annualized returns in the last 3 years. In the last 1 year, it gave 8.42% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 8.42% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Jalpan Shah, Vikas Garg

Launch Date31 Dec 2012
Min Investment Amt10,000
Groww Rating3star
AUM2,673Cr
1Y Returns8.4%

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 8.98% annualized returns in the last 3 years. In the last 1 year, it gave 9.84% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 9.84% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Sachin Padwal-Desai, Pallab Roy

Launch Date31 Dec 2012
Min Investment Amt10,000
Groww Rating3star
AUM19,569Cr
1Y Returns9.8%

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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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Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.
Past performance is not indicative of future returns. Please consider your specific investment requirements, risk tolerance, investment goal, time frame, risk and reward balance and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs.
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