Ultra Short Duration Funds
Ultra Short Duration Debt Mutual Funds are a type of mutual fund that primarily invests in fixed-income securities with short-term maturities, typically ranging from three months to one year. These funds aim to provide investors with relatively stable returns and capital preservation while offering higher yields than traditional savings accounts or money market funds. Ultra short duration funds invest in a diversified portfolio of money market instruments, short-term bonds, commercial paper, certificates of deposit (CDs), and other low-risk fixed-income securities.
Best Ultra Short Duration Mutual Funds
List of the top-performing ultra short duration mutual funds sorted by returns with their AUM and Expense Ratio.
AUM Growth of Ultra Short Mutual Funds - December 2025
In the past one month, the ICICI Prudential Ultra Short Term Fund Direct Plan Growth has emerged as the leader in net AUM growth, witnessing an impressive addition of ₹2.17K crore. This positions it as one of the top-performing Ultra Short mutual funds in terms of investor interest and fund growth.
Fund | 1M Net Flow | 1M Net Flow % | |
|---|---|---|---|
 ICICI Prudential Ultra Short Term Fund Current AUM: 16.95K Cr | +₹2.17K Cr | 12.79% | Invest |
 Nippon India Ultra Short Duration Fund Current AUM: 12.64K Cr | +₹2.08K Cr | 18.83% | Invest |
 Axis Ultra Short Duration Fund Current AUM: 6.39K Cr | +₹1.81K Cr | 27.34% | Invest |
 Tata Ultra Short Term Fund Current AUM: 5.49K Cr | +₹1.46K Cr | 27.81% | Invest |
 HSBC Ultra Short Duration Fund Current AUM: 3.95K Cr | +₹1.44K Cr | 49.22% | Invest |
Sector allocation of Ultra Short mutual funds - December 2025
Over the last 6 months, Ultra Short category has seen increased allocation towards Industrial, Energy, Basic Materials sectors and allocation in Securitize, Utilities, Health sectors has decreased
Sector | AUM |
|---|---|
 Financial Services Increased by 17.00%, in last 6M | 72.04K Cr |
 Energy Increased by 21.16%, in last 6M | 7.94K Cr |
 Industrial Increased by 72.61%, in last 6M | 7.92K Cr |
 Consumer Cyclical Increased by 4.16%, in last 6M | 3.58K Cr |
 Basic Materials Increased by 17.26%, in last 6M | 3.46K Cr |
 Health Decreased by 4.63%, in last 6M | 847.96 Cr |
 Utilities Decreased by 4.93%, in last 6M | 390.92 Cr |
 Securitize Decreased by 100.00%, in last 6M | 0 Cr |
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