Top Debt Funds

Best Ultra Short Term Mutual Funds

These funds lend to companies for a period of upto 6 months. Slightly riskier than liquid funds but offer better return.
Investment Horizon: 3-6 MonthsStable Returns With Negligible Risk: 6% - 7%
Know more about  Ultra Short Term Mutual Funds
1Y return
UTI - Ultra Short Term Fund - Direct Plan - Growth Option
UTI - Ultra Short Term Fund - Direct Plan - Growth Option
6.75%
AUM ₹2515 Cr Expense 0.36%
Indiabulls Ultra Short Term Fund Direct Growth Option
Indiabulls Ultra Short Term Fund Direct Growth Option
4.74%
AUM ₹18 Cr Expense 0.22%
ICICI Prudential Ultra Short Term Fund Direct Plan Growth
ICICI Prudential Ultra Short Term Fund Direct Plan Growth
4.58%
AUM ₹11492 Cr Expense 0.39%
IDBI Ultra Short Term Fund Direct Growth
IDBI Ultra Short Term Fund Direct Growth
4.36%
AUM ₹345 Cr Expense 0.27%
HDFC Ultra S/T Fund Direct Growth
HDFC Ultra S/T Fund Direct Growth
3.9%
AUM ₹15476 Cr Expense 0.34%
Tata Ultra Short Term Fund Direct Growth
Tata Ultra Short Term Fund Direct Growth
3.88%
AUM ₹1051 Cr Expense 0.29%
Baroda Ultra Short Duration Fund Direct Growth
Baroda Ultra Short Duration Fund Direct Growth
3.83%
AUM ₹146 Cr Expense 0.18%
PGIM India Ultra Short Term Fund Direct Plan Growth
PGIM India Ultra Short Term Fund Direct Plan Growth
3.75%
AUM ₹709 Cr Expense 0.34%
Sundaram Ultra Short Term Fund Direct Growth
Sundaram Ultra Short Term Fund Direct Growth
3.69%
AUM ₹1001 Cr Expense 0.18%
Invesco India Ultra Short Term Fund Direct Plan Growth
Invesco India Ultra Short Term Fund Direct Plan Growth
3.69%
AUM ₹1033 Cr Expense 0.24%
Kotak Savings Fund Direct Growth
Kotak Savings Fund Direct Growth
3.64%
AUM ₹13500 Cr Expense 0.33%
DSP Ultra Short Fund Direct Plan Growth
DSP Ultra Short Fund Direct Plan Growth
3.6%
AUM ₹3550 Cr Expense 0.3%
SBI Magnum Ultra Short Duration Fund Direct Plan Growth
SBI Magnum Ultra Short Duration Fund Direct Plan Growth
3.56%
AUM ₹11691 Cr Expense 0.31%
Principal Ultra Short Term Fund- Direct Plan - Growth Option
Principal Ultra Short Term Fund- Direct Plan - Growth Option
3.5%
AUM ₹107 Cr Expense 0.27%
L&T Ultra Short Term Fund Direct Plan Growth
L&T Ultra Short Term Fund Direct Plan Growth
3.49%
AUM ₹2414 Cr Expense 0.23%
IDFC Ultra Short Term Fund Direct Growth
IDFC Ultra Short Term Fund Direct Growth
3.45%
AUM ₹4875 Cr Expense 0.24%
LIC MF Ultra Short Term Fund Direct Growth
LIC MF Ultra Short Term Fund Direct Growth
3.39%
AUM ₹74 Cr Expense 0.2%
BOI AXA Ultra Short Duration Fund Direct Plan Growth
BOI AXA Ultra Short Duration Fund Direct Plan Growth
3.33%
AUM ₹209 Cr Expense 0.44%
Canara Robeco Ultra Short Term Fund Direct Plan Growth option
Canara Robeco Ultra Short Term Fund Direct Plan Growth option
3.18%
AUM ₹645 Cr Expense 0.39%
Navi Ultra Short Term Fund Direct Plan Growth Option
Navi Ultra Short Term Fund Direct Plan Growth Option
2.83%
AUM ₹20 Cr Expense 0.69%
 

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

STEP 1
Download the INDmoney App
STEP 2
Create your profile
STEP 3
Select any best ultra-short fund from our catalogue
STEP 4
Choose between Starting a SIP or One time lumpsum
STEP 5
Complete the payment process

Outlook

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

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

Can ultra short term mutual funds pay dividends?

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Will ultra short term funds be helpful in beating inflation?

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