What are the top performing Short Duration funds?

Based on 1-year returns, the top performing Short Duration funds are ICICI Prudential Short Term Fund - Direct Plan with 5.33% return, Axis Short Duration Fund - Direct Plan with 5.00% return, and Mahindra Manulife Short Duration Fund - Direct Plan with 4.95% return. The category average 1-year return is 4.35%.

Which Short Duration funds have given the best returns over 3 years?

Over a 3-year period, the best performing Short Duration funds are ICICI Prudential Short Term Fund - Direct Plan with a 7.66% CAGR, Axis Short Duration Fund - Direct Plan with 7.45% CAGR, and Mahindra Manulife Short Duration Fund - Direct Plan with 7.44% CAGR. The category average 3-year return stands at 7.10% CAGR.

What are the largest Short Duration mutual funds by assets?

The largest Short Duration funds by Assets Under Management (AUM) are ICICI Prudential Short Term Fund - Direct Plan with ₹ 21,449.60 crore, Kotak Bond Short Term Fund - Direct Plan with ₹ 16,486.90 crore, and HDFC Short Term Debt Fund - Direct Plan with ₹ 15,462.90 crore. Together, there are 29 Short Duration funds available in India.

What is the minimum amount to invest in Short Duration funds?

You can start investing in Short Duration funds with a minimum SIP of ₹99 per month or a minimum lumpsum of ₹100. The minimum investment varies across fund houses — some funds allow even lower entry points.

How are Short Duration fund returns taxed?

All gains from Short Duration funds — regardless of holding period — are added to your income and taxed at your applicable income tax slab rate.

Which Short Duration funds have the lowest expense ratio?

Among Short Duration funds, Franklin India Short-Term Income Plan Retail Plan-Segregated Portfolio 3 - Direct Plan has the lowest expense ratio at 0.18% (Direct Plan), followed by Edelweiss CRISIL IBX 50:50 Gilt Plus SDL Short Duration Index Fund - Direct Plan at 0.20%. Lower expense ratios directly improve your net returns over the long term.

How many Short Duration mutual funds are available in India?

There are currently 29 Short Duration mutual funds available in India across different fund houses. You can compare all 29 funds on Sharpely based on returns, risk, AUM, and expense ratio to find the one that suits your investment goals.

mutual funds category

Short Duration

Short Duration Funds

Short-duration debt funds invest in debt & money market instruments with a weighted average maturity (Macaulay duration) between 1 to 3 years.

Total Schemes

No. of schemes

Total AUM

₹ 1.15Lakh Cr

As on latest

Category Return (5Y)

6.56 %

CAGR

Benchmark Data

This category currently has no benchmark assigned.

Category Returns (%)

Period	1M	6M	1Y	3Y CAGR	5Y CAGR	10Y CAGR	YTD
Short Duration	0.23 %	1.57 %	4.35 %	7.10 %	6.56 %	7.11 %	1.34 %
Benchmark Not Available No benchmark assigned	-	-	-	-	-	-	-

Top Short Duration Funds (by AUM)

Fund Name	AUM (₹ Cr)	1Y Return	3Y CAGR	5Y CAGR	Expense Ratio
ICICI Prudential Short Term Fund - Direct PlanNAV: ₹69.06	21,449.60 Cr	5.33%	7.66%	7.00%	0.44%
Kotak Bond Short Term Fund - Direct PlanNAV: ₹59.90	16,486.90 Cr	4.16%	7.19%	6.36%	0.39%
HDFC Short Term Debt Fund - Direct PlanNAV: ₹34.59	15,462.90 Cr	4.56%	7.31%	6.46%	0.39%
SBI Short Term Debt Fund - Direct PlanNAV: ₹35.65	13,746.30 Cr	4.35%	7.10%	6.24%	0.41%
Axis Short Duration Fund - Direct PlanNAV: ₹35.43	8,955.23 Cr	5.00%	7.45%	6.62%	0.37%
Bandhan Short Duration Fund - Direct PlanNAV: ₹64.13	8,376.11 Cr	4.65%	7.27%	6.24%	0.34%
Nippon India Short Duration Fund - Direct PlanNAV: ₹60.07	7,295.13 Cr	4.52%	7.39%	6.57%	0.37%
Aditya Birla Sun Life Short Term Fund - Direct PlanNAV: ₹53.89	7,291.06 Cr	4.59%	7.35%	6.70%	0.35%
HSBC Short Duration Fund - Direct PlanNAV: ₹29.27	3,869.82 Cr	4.14%	6.98%	5.96%	0.32%
DSP Short Term Fund - Direct PlanNAV: ₹52.75	3,245.43 Cr	4.11%	6.98%	6.08%	0.37%
Tata Short Term Bond Fund - Direct PlanNAV: ₹55.24	3,141.85 Cr	4.11%	6.94%	6.17%	0.34%
UTI Short Duration Fund - Direct PlanNAV: ₹35.25	2,696.92 Cr	4.37%	7.16%	7.41%	0.40%
Invesco India Short Duration Fund - Direct PlanNAV: ₹4,109.91	883.32 Cr	4.26%	7.03%	6.04%	0.31%
Mirae Asset Short Duration Fund - Direct PlanNAV: ₹17.40	574.79 Cr	4.09%	7.10%	6.25%	0.21%
Canara Robeco Short Duration Fund - Direct PlanNAV: ₹28.95	298.24 Cr	4.41%	6.83%	5.86%	0.37%

About Short Duration Funds

What is it?

Short-duration debt funds invest in debt & money market instruments with a weighted average maturity (Macaulay duration) between 1 to 3 years.

Objective

The objective of these funds is to provide better risk-adjusted returns compared to risk-free options in a similar duration of 1 to 3 years. These funds will provide better returns than FDs while taking lower risks compared to equity markets.

Suitability and opinion

These funds are suitable for individuals with a low risk tolerance and a short-term horizon of 1 to 3 years. We believe that these funds have a far lower risk compared to equity funds but their prices can fluctuate if the interest rates change. We feel that this category is the most suitable option for investors if they want some debt exposure in their portfolios. These funds will generate better returns compared to bank FDs but they also carry higher risk compared to bank FDs. The government's decision to remove indexation benefits has adversely affected this category.

Short Duration vs Other Categories

5Y CAGR Return Comparison

7.23%

6.62%

6.56%

6.51%

6.36%

Medium Duration

Floater

Short Duration

Low Duration

Money Market

Key Insights

Short Duration delivered 6.56% CAGR over the last 5 years.

It ranks #4 out of 18 categories based on 5Y performance.

Above the category average return of 6.35%.

3 categories outperform it, while 14 categories have lower returns.

Top performer: Credit Risk (9.97%).

Lowest performer: Long Duration (5.32%).

Let's have a closer look

Now let us jump and check about these top 15 mutual fund schemes.

ICICI Prudential Short Term Fund - Direct Plan

Fund Performance: ICICI Prudential Short Term Fund - Direct Plan has given 7.66% annualized returns in the past three years and 7.00% in the last 5 years. The ICICI Prudential Short Term Fund - Direct Plan comes under the Debt category of ICICI Prudential Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in ICICI Prudential Short Term Fund - Direct Plan via lump sum is ₹ 5,000.00 and via SIP is ₹ 1,000.00.

Min Investment Amt

₹ 5,000.00

AUM

₹ 21,449.60Cr

1Y Returns

5.33%

Expense Ratio

0.44%

Kotak Bond Short Term Fund - Direct Plan

Fund Performance: Kotak Bond Short Term Fund - Direct Plan has given 7.19% annualized returns in the past three years and 6.36% in the last 5 years. The Kotak Bond Short Term Fund - Direct Plan comes under the Debt category of Kotak Mahindra Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Kotak Bond Short Term Fund - Direct Plan via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 100.00

AUM

₹ 16,486.90Cr

1Y Returns

4.16%

Expense Ratio

0.39%

HDFC Short Term Debt Fund - Direct Plan

Fund Performance: HDFC Short Term Debt Fund - Direct Plan has given 7.31% annualized returns in the past three years and 6.46% in the last 5 years. The HDFC Short Term Debt Fund - Direct Plan comes under the Debt category of HDFC Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in HDFC Short Term Debt Fund - Direct Plan via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 100.00

AUM

₹ 15,462.90Cr

1Y Returns

4.56%

Expense Ratio

0.39%

SBI Short Term Debt Fund - Direct Plan

Fund Performance: SBI Short Term Debt Fund - Direct Plan has given 7.10% annualized returns in the past three years and 6.24% in the last 5 years. The SBI Short Term Debt Fund - Direct Plan comes under the Debt category of SBI Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in SBI Short Term Debt Fund - Direct Plan via lump sum is ₹ 5,000.00 and via SIP is ₹ 500.00.

Min Investment Amt

₹ 5,000.00

AUM

₹ 13,746.30Cr

1Y Returns

4.35%

Expense Ratio

0.41%

Axis Short Duration Fund - Direct Plan

Fund Performance: Axis Short Duration Fund - Direct Plan has given 7.45% annualized returns in the past three years and 6.62% in the last 5 years. The Axis Short Duration Fund - Direct Plan comes under the Debt category of Axis Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Axis Short Duration Fund - Direct Plan via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 100.00

AUM

₹ 8,955.23Cr

1Y Returns

5.00%

Expense Ratio

0.37%

Bandhan Short Duration Fund - Direct Plan

Fund Performance: Bandhan Short Duration Fund - Direct Plan has given 7.27% annualized returns in the past three years and 6.24% in the last 5 years. The Bandhan Short Duration Fund - Direct Plan comes under the Debt category of Bandhan Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Bandhan Short Duration Fund - Direct Plan via lump sum is ₹ 1,000.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 1,000.00

AUM

₹ 8,376.11Cr

1Y Returns

4.65%

Expense Ratio

0.34%

Nippon India Short Duration Fund - Direct Plan

Fund Performance: Nippon India Short Duration Fund - Direct Plan has given 7.39% annualized returns in the past three years and 6.57% in the last 5 years. The Nippon India Short Duration Fund - Direct Plan comes under the Debt category of Nippon India Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Nippon India Short Duration Fund - Direct Plan via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 100.00

AUM

₹ 7,295.13Cr

1Y Returns

4.52%

Expense Ratio

0.37%

Aditya Birla Sun Life Short Term Fund - Direct Plan

Fund Performance: Aditya Birla Sun Life Short Term Fund - Direct Plan has given 7.35% annualized returns in the past three years and 6.70% in the last 5 years. The Aditya Birla Sun Life Short Term Fund - Direct Plan comes under the Debt category of Aditya Birla Sun Life Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Aditya Birla Sun Life Short Term Fund - Direct Plan via lump sum is ₹ 1,000.00 and via SIP is ₹ 1,000.00.

Min Investment Amt

₹ 1,000.00

AUM

₹ 7,291.06Cr

1Y Returns

4.59%

Expense Ratio

0.35%

HSBC Short Duration Fund - Direct Plan

Fund Performance: HSBC Short Duration Fund - Direct Plan has given 6.98% annualized returns in the past three years and 5.96% in the last 5 years. The HSBC Short Duration Fund - Direct Plan comes under the Debt category of HSBC Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in HSBC Short Duration Fund - Direct Plan via lump sum is ₹ 5,000.00 and via SIP is ₹ 1,000.00.

Min Investment Amt

₹ 5,000.00

AUM

₹ 3,869.82Cr

1Y Returns

4.14%

Expense Ratio

0.32%

DSP Short Term Fund - Direct Plan

Fund Performance: DSP Short Term Fund - Direct Plan has given 6.98% annualized returns in the past three years and 6.08% in the last 5 years. The DSP Short Term Fund - Direct Plan comes under the Debt category of DSP Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in DSP Short Term Fund - Direct Plan via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 100.00

AUM

₹ 3,245.43Cr

1Y Returns

4.11%

Expense Ratio

0.37%

Tata Short Term Bond Fund - Direct Plan

Fund Performance: Tata Short Term Bond Fund - Direct Plan has given 6.94% annualized returns in the past three years and 6.17% in the last 5 years. The Tata Short Term Bond Fund - Direct Plan comes under the Debt category of Tata Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Tata Short Term Bond Fund - Direct Plan via lump sum is ₹ 5,000.00 and via SIP is ₹ 500.00.

Min Investment Amt

₹ 5,000.00

AUM

₹ 3,141.85Cr

1Y Returns

4.11%

Expense Ratio

0.34%

UTI Short Duration Fund - Direct Plan

Fund Performance: UTI Short Duration Fund - Direct Plan has given 7.16% annualized returns in the past three years and 7.41% in the last 5 years. The UTI Short Duration Fund - Direct Plan comes under the Debt category of UTI Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in UTI Short Duration Fund - Direct Plan via lump sum is ₹ 500.00 and via SIP is ₹ 500.00.

Min Investment Amt

₹ 500.00

AUM

₹ 2,696.92Cr

1Y Returns

4.37%

Expense Ratio

0.40%

Invesco India Short Duration Fund - Direct Plan

Fund Performance: Invesco India Short Duration Fund - Direct Plan has given 7.03% annualized returns in the past three years and 6.04% in the last 5 years. The Invesco India Short Duration Fund - Direct Plan comes under the Debt category of Invesco Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Invesco India Short Duration Fund - Direct Plan via lump sum is ₹ 1,000.00 and via SIP is ₹ 1,000.00.

Min Investment Amt

₹ 1,000.00

AUM

₹ 883.32Cr

1Y Returns

4.26%

Expense Ratio

0.31%

Mirae Asset Short Duration Fund - Direct Plan

Fund Performance: Mirae Asset Short Duration Fund - Direct Plan has given 7.10% annualized returns in the past three years and 6.25% in the last 5 years. The Mirae Asset Short Duration Fund - Direct Plan comes under the Debt category of Mirae Asset Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Mirae Asset Short Duration Fund - Direct Plan via lump sum is ₹ 5,000.00 and via SIP is ₹ 99.00.

Min Investment Amt

₹ 5,000.00

AUM

₹ 574.79Cr

1Y Returns

4.09%

Expense Ratio

0.21%

Canara Robeco Short Duration Fund - Direct Plan

Fund Performance: Canara Robeco Short Duration Fund - Direct Plan has given 6.83% annualized returns in the past three years and 5.86% in the last 5 years. The Canara Robeco Short Duration Fund - Direct Plan comes under the Debt category of Canara Robeco Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Canara Robeco Short Duration Fund - Direct Plan via lump sum is ₹ 5,000.00 and via SIP is ₹ 1,000.00.

Min Investment Amt

₹ 5,000.00

AUM

₹ 298.24Cr

1Y Returns

4.41%

Expense Ratio

0.37%