What are the largest Short Term mutual funds by assets?

The largest Short Term funds by Assets Under Management (AUM) are ICICI Prudential Short Term Fund Direct Plan-Growth with ₹ 19,402.70 crore, HDFC Short Term Fund Direct Plan-Growth with ₹ 14,486.10 crore, and Kotak Short Term Fund Direct-Growth with ₹ 14,436.50 crore. Together, there are 30 Short Term funds available in India.

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

You can start investing in Short Term 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 Term fund returns taxed?

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

Which Short Term funds have the lowest expense ratio?

Among Short Term funds, Franklin India Short-Term Income Plan Retail Plan-Segregated Portfolio 3 Direct-Growth 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-Growth at 0.20%. Lower expense ratios directly improve your net returns over the long term.

How many Short Term mutual funds are available in India?

There are currently 30 Short Term mutual funds available in India across different fund houses. You can compare all 30 funds on Sharpely based on returns, risk, AUM, and expense ratio to find the one that suits your investment goals.

mutual funds category

Short Term

Best Short Term Mutual Funds 2026

Q: What are the top performing Short Term funds?

Based on 1-year returns, the top performing Short Term funds are Bandhan Short Term Fund Direct-Growth with 6.64% return, ICICI Prudential Short Term Fund Direct Plan-Growth with 6.56% return, and Axis Short Term Fund Direct-Growth with 6.26% return. The category average 1-year return is 5.75%.

Q: Which Short Term funds have given the best returns over 3 years?

Over a 3-year period, the best performing Short Term funds are Bandhan Short Term Fund Direct-Growth with a 7.91% CAGR, ICICI Prudential Short Term Fund Direct Plan-Growth with 7.84% CAGR, and Axis Short Term Fund Direct-Growth with 7.83% CAGR. The category average 3-year return stands at 7.40% CAGR.

Total Schemes

No. of schemes

Total AUM

₹ 1.06Lakh Cr

As on latest

Category Return (5Y)

6.73 %

CAGR

Benchmark Data

This category currently has no benchmark assigned.

Category Returns (%)

Period	1M	6M	1Y	3Y CAGR	5Y CAGR	10Y CAGR	YTD
Short Term	0.24 %	2.93 %	5.75 %	7.40 %	6.73 %	6.80 %	3.80 %
Benchmark Not Available No benchmark assigned	-	-	-	-	-	-	-

Top Short Term Funds (by AUM)

Fund Name	AUM (₹ Cr)	1Y Return	3Y CAGR	5Y CAGR	Expense Ratio
ICICI Prudential Short Term Fund Direct Plan-GrowthNAV: ₹70.88	19,402.70 Cr	6.56%	7.91%	7.20%	0.45%
HDFC Short Term Fund Direct Plan-GrowthNAV: ₹35.45	14,486.10 Cr	5.98%	7.58%	6.62%	0.40%
Kotak Short Term Fund Direct-GrowthNAV: ₹61.41	14,436.50 Cr	5.75%	7.51%	6.49%	0.39%
SBI Short Term Fund Direct-GrowthNAV: ₹36.51	13,434.80 Cr	5.63%	7.42%	6.43%	0.42%
Bandhan Short Term Fund Direct-GrowthNAV: ₹65.90	9,287.26 Cr	6.64%	7.80%	6.51%	0.36%
Axis Short Term Fund Direct-GrowthNAV: ₹36.33	7,501.02 Cr	6.26%	7.84%	6.82%	0.40%
Nippon India Short Term Fund Direct-GrowthNAV: ₹61.66	6,556.84 Cr	6.14%	7.77%	6.74%	0.39%
Aditya Birla Sun Life Short Term Direct Fund Direct-GrowthNAV: ₹55.35	5,782.05 Cr	6.19%	7.74%	6.89%	0.36%
HSBC Short Term Fund Direct-GrowthNAV: ₹30.01	3,869.86 Cr	5.69%	7.39%	6.17%	0.32%
DSP Short Term Fund Direct Plan-GrowthNAV: ₹54.09	3,235.41 Cr	5.65%	7.32%	6.27%	0.37%
Tata Short Term Fund Direct-GrowthNAV: ₹56.56	2,941.40 Cr	5.67%	7.30%	6.36%	0.37%
UTI Short Term Direct-GrowthNAV: ₹36.12	2,039.08 Cr	5.75%	7.46%	7.57%	0.41%
Invesco India Short Term Fund Direct-GrowthNAV: ₹4,205.63	575.31 Cr	5.53%	7.38%	6.21%	0.39%
Mirae Asset Short Term Fund Direct-GrowthNAV: ₹17.86	525.75 Cr	5.73%	7.49%	6.45%	0.28%
Baroda BNP Paribas Short Term Fund Direct-GrowthNAV: ₹33.99	430.51 Cr	5.78%	7.55%	6.55%	0.43%

Short Term vs Other Categories

5Y CAGR Return Comparison

6.96%

6.81%

6.73%

6.68%

6.56%

Medium Term

Floating Interest Rate

Short Term

Ultra Short to Short Term

Money Market

Key Insights

Short Term delivered 6.73% CAGR over the last 5 years.

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

Above the category average return of 6.49%.

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

Top performer: Credit Risk (10.54%).

Lowest performer: Long Term (5.63%).

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-Growth

Fund Performance: ICICI Prudential Short Term Fund Direct Plan-Growth has given 7.91% annualized returns in the past three years and 7.20% in the last 5 years. The ICICI Prudential Short Term Fund Direct Plan-Growth 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-Growth via lump sum is ₹ 500.00 and via SIP is ₹ 500.00.

Min Investment Amt

₹ 500.00

AUM

₹ 19,402.70Cr

1Y Returns

6.56%

Expense Ratio

0.45%

HDFC Short Term Fund Direct Plan-Growth

Fund Performance: HDFC Short Term Fund Direct Plan-Growth has given 7.58% annualized returns in the past three years and 6.62% in the last 5 years. The HDFC Short Term Fund Direct Plan-Growth comes under the Debt category of HDFC Mutual Fund.

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

Min Investment Amt

₹ 100.00

AUM

₹ 14,486.10Cr

1Y Returns

5.98%

Expense Ratio

0.40%

Kotak Short Term Fund Direct-Growth

Fund Performance: Kotak Short Term Fund Direct-Growth has given 7.51% annualized returns in the past three years and 6.49% in the last 5 years. The Kotak Short Term Fund Direct-Growth comes under the Debt category of Kotak Mahindra Mutual Fund.

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

Min Investment Amt

₹ 100.00

AUM

₹ 14,436.50Cr

1Y Returns

5.75%

Expense Ratio

0.39%

SBI Short Term Fund Direct-Growth

Fund Performance: SBI Short Term Fund Direct-Growth has given 7.42% annualized returns in the past three years and 6.43% in the last 5 years. The SBI Short Term Fund Direct-Growth comes under the Debt category of SBI Mutual Fund.

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

Min Investment Amt

₹ 5,000.00

AUM

₹ 13,434.80Cr

1Y Returns

5.63%

Expense Ratio

0.42%

Bandhan Short Term Fund Direct-Growth

Fund Performance: Bandhan Short Term Fund Direct-Growth has given 7.80% annualized returns in the past three years and 6.51% in the last 5 years. The Bandhan Short Term Fund Direct-Growth comes under the Debt category of Bandhan Mutual Fund.

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

Min Investment Amt

₹ 1,000.00

AUM

₹ 9,287.26Cr

1Y Returns

6.64%

Expense Ratio

0.36%

Axis Short Term Fund Direct-Growth

Fund Performance: Axis Short Term Fund Direct-Growth has given 7.84% annualized returns in the past three years and 6.82% in the last 5 years. The Axis Short Term Fund Direct-Growth comes under the Debt category of Axis Mutual Fund.

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

Min Investment Amt

₹ 100.00

AUM

₹ 7,501.02Cr

1Y Returns

6.26%

Expense Ratio

0.40%

Nippon India Short Term Fund Direct-Growth

Fund Performance: Nippon India Short Term Fund Direct-Growth has given 7.77% annualized returns in the past three years and 6.74% in the last 5 years. The Nippon India Short Term Fund Direct-Growth comes under the Debt category of Nippon India Mutual Fund.

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

Min Investment Amt

₹ 100.00

AUM

₹ 6,556.84Cr

1Y Returns

6.14%

Expense Ratio

0.39%

Aditya Birla Sun Life Short Term Direct Fund Direct-Growth

Fund Performance: Aditya Birla Sun Life Short Term Direct Fund Direct-Growth has given 7.74% annualized returns in the past three years and 6.89% in the last 5 years. The Aditya Birla Sun Life Short Term Direct Fund Direct-Growth 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 Direct Fund Direct-Growth via lump sum is ₹ 1,000.00 and via SIP is ₹ 1,000.00.

Min Investment Amt

₹ 1,000.00

AUM

₹ 5,782.05Cr

1Y Returns

6.19%

Expense Ratio

0.36%

HSBC Short Term Fund Direct-Growth

Fund Performance: HSBC Short Term Fund Direct-Growth has given 7.39% annualized returns in the past three years and 6.17% in the last 5 years. The HSBC Short Term Fund Direct-Growth comes under the Debt category of HSBC Mutual Fund.

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

Min Investment Amt

₹ 5,000.00

AUM

₹ 3,869.86Cr

1Y Returns

5.69%

Expense Ratio

0.32%

DSP Short Term Fund Direct Plan-Growth

Fund Performance: DSP Short Term Fund Direct Plan-Growth has given 7.32% annualized returns in the past three years and 6.27% in the last 5 years. The DSP Short Term Fund Direct Plan-Growth 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-Growth via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 100.00

AUM

₹ 3,235.41Cr

1Y Returns

5.65%

Expense Ratio

0.37%

Tata Short Term Fund Direct-Growth

Fund Performance: Tata Short Term Fund Direct-Growth has given 7.30% annualized returns in the past three years and 6.36% in the last 5 years. The Tata Short Term Fund Direct-Growth comes under the Debt category of Tata Mutual Fund.

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

Min Investment Amt

₹ 5,000.00

AUM

₹ 2,941.40Cr

1Y Returns

5.67%

Expense Ratio

0.37%

UTI Short Term Direct-Growth

Fund Performance: UTI Short Term Direct-Growth has given 7.46% annualized returns in the past three years and 7.57% in the last 5 years. The UTI Short Term Direct-Growth comes under the Debt category of UTI Mutual Fund.

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

Min Investment Amt

₹ 500.00

AUM

₹ 2,039.08Cr

1Y Returns

5.75%

Expense Ratio

0.41%

Invesco India Short Term Fund Direct-Growth

Fund Performance: Invesco India Short Term Fund Direct-Growth has given 7.38% annualized returns in the past three years and 6.21% in the last 5 years. The Invesco India Short Term Fund Direct-Growth comes under the Debt category of Invesco Mutual Fund.

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

Min Investment Amt

₹ 1,000.00

AUM

₹ 575.31Cr

1Y Returns

5.53%

Expense Ratio

0.39%

Mirae Asset Short Term Fund Direct-Growth

Fund Performance: Mirae Asset Short Term Fund Direct-Growth has given 7.49% annualized returns in the past three years and 6.45% in the last 5 years. The Mirae Asset Short Term Fund Direct-Growth comes under the Debt category of Mirae Asset Mutual Fund.

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

Min Investment Amt

₹ 5,000.00

AUM

₹ 525.75Cr

1Y Returns

5.73%

Expense Ratio

0.28%

Baroda BNP Paribas Short Term Fund Direct-Growth

Fund Performance: Baroda BNP Paribas Short Term Fund Direct-Growth has given 7.55% annualized returns in the past three years and 6.55% in the last 5 years. The Baroda BNP Paribas Short Term Fund Direct-Growth comes under the Debt category of Baroda BNP Paribas Mutual Fund.

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

Min Investment Amt

₹ 5,000.00

AUM

₹ 430.51Cr

1Y Returns

5.78%

Expense Ratio

0.43%