Mutual Funds

Best Ultra Short Term Mutual Funds

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Introduction to Ultra Short Term Funds

As per SEBI guidelines Ultra short term mutual funds are debt funds that primarily invest in liquid fixed income generating instruments for periods up to a maximum of 6 months. These funds invest in instruments such as treasury bills, corporate bonds, government bonds, etc., offering better returns than a regular savings bank account and a high degree of liquidity. The risks are often mitigated primarily due to the shorter time period of the funds, thereby keeping risk to a minimum compared to liquid funds.

Advantages of investing in the best ultra short term mutual funds

Things to consider before investing in the best ultra short term funds

How to Start Investing Online in the Best ultra short term Funds

Download the INDmoney App
Create your profile
Select any best ultra-short fund from our catalogue
Choose between Starting a SIP or One time lumpsum
Complete the payment process


To conclude, Ultra short term funds provide reasonable returns with sufficient liquidity. The low maturities make the fund less sensitive to interest rate movements in the market. The fund has the potential to offer higher growth than other long maturity debt funds during a rising interest rate regime.

Frequently Asked Questions

What are ultra short term mutual funds?

How to invest in ultra short term mutual funds online?

How are ultra short term debt mutual funds taxed in India?

Can ultra short term mutual funds pay dividends?

How to choose the correct ultra short term mutual funds to invest?

How long should I remain invested in ultra short term funds?

Where do ultra short term funds invest?

How much money should I invest in ultra short term funds?

What are the expected returns of ultra short term mutual funds in India?

Will ultra short term funds be helpful in beating inflation?

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