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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 - February 2026
In the past one month, the Kotak Savings Fund Direct Growth has emerged as the leader in net AUM growth, witnessing an impressive addition of ₹1.85K 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 % | |
|---|---|---|---|
 Kotak Savings Fund Current AUM: 16.14K Cr | +₹1.85K Cr | 11.57% | Invest |
 HDFC Ultra S/T Fund Current AUM: 18.18K Cr | +₹908.71 Cr | 4.81% | Invest |
 Axis Ultra Short Duration Fund Current AUM: 5.89K Cr | +₹523.54 Cr | 7.56% | Invest |
 HSBC Ultra Short Duration Fund Current AUM: 3.42K Cr | +₹398.89 Cr | 9.83% | Invest |
 UTI Ultra Short Duration Fund Current AUM: 3.88K Cr | +₹213.26 Cr | 4.45% | Invest |
Sector allocation of Ultra Short mutual funds - February 2026
Over the last 6 months, Ultra Short category has seen increased allocation towards Securitize, Industrial, Energy sectors and allocation in Utilities, Health, Financial Services sectors has decreased
Sector | AUM |
|---|---|
 Financial Services Decreased by 0.31%, in last 6M | 65.87K Cr |
 Energy Increased by 5.02%, in last 6M | 7.17K Cr |
 Industrial Increased by 43.40%, in last 6M | 6.86K Cr |
 Consumer Cyclical Increased by 3.59%, in last 6M | 3.58K Cr |
 Basic Materials Increased by 2.41%, in last 6M | 3.12K Cr |
 Health Decreased by 13.07%, in last 6M | 761.6 Cr |
 Utilities Decreased by 13.29%, in last 6M | 351.07 Cr |
 Securitize Increased by 100.00%, in last 6M | 240.75 Cr |
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