What are the top performing Ultra Short Term funds?

Based on 1-year returns, the top performing Ultra Short Term funds are HDFC CRISIL-IBX Financial Services 3-6 Months Debt Index Fund Direct-Growth with 7.25% return, Tata Ultra Short Term Fund Direct-Growth with 7.11% return, and Nippon India Ultra Short Term Fund Direct-Growth with 7.10% return. The category average 1-year return is 6.75%.

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

Over a 3-year period, the best performing Ultra Short Term funds are HDFC CRISIL-IBX Financial Services 3-6 Months Debt Index Fund Direct-Growth with a 7.62% CAGR, Tata Ultra Short Term Fund Direct-Growth with 7.55% CAGR, and Nippon India Ultra Short Term Fund Direct-Growth with 7.53% CAGR. The category average 3-year return stands at 7.23% CAGR.

What are the largest Ultra Short Term mutual funds by assets?

The largest Ultra Short Term funds by Assets Under Management (AUM) are Aditya Birla Sun Life Ultra Short Term Direct-Growth with ₹ 18,819.30 crore, HDFC Ultra Short Term Fund Direct-Growth with ₹ 17,464.90 crore, and ICICI Prudential Ultra Short Term Fund Direct-Growth with ₹ 15,973.90 crore. Together, there are 35 Ultra Short Term funds available in India.

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

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

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

Which Ultra Short Term funds have the lowest expense ratio?

Among Ultra Short Term funds, HDFC CRISIL-IBX Financial Services 3-6 Months Debt Index Fund Direct-Growth has the lowest expense ratio at 0.09% (Direct Plan), followed by Bandhan CRISIL-IBX Financial Services 3-6 Months Debt Index Fund Direct-Growth at 0.10%. Lower expense ratios directly improve your net returns over the long term.

How many Ultra Short Term mutual funds are available in India?

There are currently 35 Ultra Short Term mutual funds available in India across different fund houses. You can compare all 35 funds on Sharpely based on returns, risk, AUM, and expense ratio to find the one that suits your investment goals.

mutual funds category

Ultra Short Term

Best Ultra Short Term Mutual Funds 2026

Total Schemes

No. of schemes

Total AUM

₹ 1.38Lakh Cr

As on latest

Category Return (5Y)

6.53 %

CAGR

Benchmark Data

This category currently has no benchmark assigned.

Category Returns (%)

Period	1M	6M	1Y	3Y CAGR	5Y CAGR	10Y CAGR	YTD
Ultra Short Term	0.65 %	3.71 %	6.75 %	7.23 %	6.53 %	6.47 %	4.72 %
Benchmark Not Available No benchmark assigned	-	-	-	-	-	-	-

Top Ultra Short Term Funds (by AUM)

Fund Name	AUM (₹ Cr)	1Y Return	3Y CAGR	5Y CAGR	Expense Ratio
Aditya Birla Sun Life Ultra Short Term Direct-GrowthNAV: ₹604.03	18,819.30 Cr	6.79%	7.53%	6.75%	0.32%
HDFC Ultra Short Term Fund Direct-GrowthNAV: ₹16.70	17,464.90 Cr	6.57%	7.27%	6.55%	0.39%
ICICI Prudential Ultra Short Term Fund Direct-GrowthNAV: ₹32.42	15,973.90 Cr	6.85%	7.46%	6.77%	0.40%
Kotak Ultra Short Term Fund Direct-GrowthNAV: ₹48.50	15,961.60 Cr	6.67%	7.26%	6.57%	0.36%
SBI Ultra Short Term Fund Direct-GrowthNAV: ₹6,559.65	11,880.30 Cr	6.59%	7.21%	6.46%	0.35%
Nippon India Ultra Short Term Fund Direct-GrowthNAV: ₹4,819.26	11,658.50 Cr	7.10%	7.62%	6.98%	0.34%
Tata Ultra Short Term Fund Direct-GrowthNAV: ₹16.16	6,494.54 Cr	7.11%	7.55%	6.77%	0.33%
Axis Ultra Short Term Fund Direct-GrowthNAV: ₹16.92	6,073.91 Cr	6.89%	7.48%	6.77%	0.36%
DSP Ultra Short Term Fund Direct Plan-GrowthNAV: ₹4,005.42	4,599.23 Cr	6.84%	7.46%	6.65%	0.30%
Bandhan Ultra Short Term Fund Direct-GrowthNAV: ₹16.63	4,204.82 Cr	6.62%	7.19%	6.44%	0.30%
HSBC Ultra Short Term Fund Direct-GrowthNAV: ₹1,482.40	3,628.23 Cr	6.68%	7.27%	6.53%	0.18%
UTI Ultra Short Term Fund Direct-GrowthNAV: ₹4,916.29	3,444.00 Cr	6.78%	7.36%	7.19%	0.38%
Sundaram Ultra Short Term Fund Direct-GrowthNAV: ₹3,163.65	2,416.24 Cr	6.67%	7.32%	6.61%	0.23%
HDFC CRISIL-IBX Financial Services 3-6 Months Debt Index Fund Direct-GrowthNAV: ₹10.98	2,264.18 Cr	7.25%	-	-	0.09%
Aditya Birla Sun Life CRISIL-IBX Financial Services 3 to 6 Months Debt Index Fund Direct-GrowthNAV: ₹11.30	2,164.46 Cr	7.06%	-	-	0.14%

Ultra Short Term vs Other Categories

5Y CAGR Return Comparison

6.68%

6.56%

6.53%

6.27%

Ultra Short to Short Term

Money Market

Ultra Short Term

Liquid

Target Maturity

Key Insights

Ultra Short Term delivered 6.53% CAGR over the last 5 years.

It ranks #7 out of 18 categories based on 5Y performance.

Above the category average return of 6.49%.

6 categories outperform it, while 11 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.

Aditya Birla Sun Life Ultra Short Term Direct-Growth

Fund Performance: Aditya Birla Sun Life Ultra Short Term Direct-Growth has given 7.53% annualized returns in the past three years and 6.75% in the last 5 years. The Aditya Birla Sun Life Ultra Short Term 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 Ultra Short Term Direct-Growth via lump sum is ₹ 1,000.00 and via SIP is ₹ 1,000.00.

Min Investment Amt

₹ 1,000.00

AUM

₹ 18,819.30Cr

1Y Returns

6.79%

Expense Ratio

0.32%

HDFC Ultra Short Term Fund Direct-Growth

Fund Performance: HDFC Ultra Short Term Fund Direct-Growth has given 7.27% annualized returns in the past three years and 6.55% in the last 5 years. The HDFC Ultra Short Term Fund Direct-Growth comes under the Debt category of HDFC Mutual Fund.

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

Min Investment Amt

₹ 100.00

AUM

₹ 17,464.90Cr

1Y Returns

6.57%

Expense Ratio

0.39%

ICICI Prudential Ultra Short Term Fund Direct-Growth

Fund Performance: ICICI Prudential Ultra Short Term Fund Direct-Growth has given 7.46% annualized returns in the past three years and 6.77% in the last 5 years. The ICICI Prudential Ultra Short Term Fund Direct-Growth comes under the Debt category of ICICI Prudential Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in ICICI Prudential Ultra 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

₹ 15,973.90Cr

1Y Returns

6.85%

Expense Ratio

0.40%

Kotak Ultra Short Term Fund Direct-Growth

Fund Performance: Kotak Ultra Short Term Fund Direct-Growth has given 7.26% annualized returns in the past three years and 6.57% in the last 5 years. The Kotak Ultra 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 Ultra Short Term Fund Direct-Growth via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 100.00

AUM

₹ 15,961.60Cr

1Y Returns

6.67%

Expense Ratio

0.36%

SBI Ultra Short Term Fund Direct-Growth

Fund Performance: SBI Ultra Short Term Fund Direct-Growth has given 7.21% annualized returns in the past three years and 6.46% in the last 5 years. The SBI Ultra 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 Ultra 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

₹ 11,880.30Cr

1Y Returns

6.59%

Expense Ratio

0.35%

Nippon India Ultra Short Term Fund Direct-Growth

Fund Performance: Nippon India Ultra Short Term Fund Direct-Growth has given 7.62% annualized returns in the past three years and 6.98% in the last 5 years. The Nippon India Ultra 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 Ultra Short Term Fund Direct-Growth via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 100.00

AUM

₹ 11,658.50Cr

1Y Returns

7.10%

Expense Ratio

0.34%

Tata Ultra Short Term Fund Direct-Growth

Fund Performance: Tata Ultra Short Term Fund Direct-Growth has given 7.55% annualized returns in the past three years and 6.77% in the last 5 years. The Tata Ultra 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 Ultra 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

₹ 6,494.54Cr

1Y Returns

7.11%

Expense Ratio

0.33%

Axis Ultra Short Term Fund Direct-Growth

Fund Performance: Axis Ultra Short Term Fund Direct-Growth has given 7.48% annualized returns in the past three years and 6.77% in the last 5 years. The Axis Ultra 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 Ultra Short Term Fund Direct-Growth via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 100.00

AUM

₹ 6,073.91Cr

1Y Returns

6.89%

Expense Ratio

0.36%

DSP Ultra Short Term Fund Direct Plan-Growth

Fund Performance: DSP Ultra Short Term Fund Direct Plan-Growth has given 7.46% annualized returns in the past three years and 6.65% in the last 5 years. The DSP Ultra 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 Ultra Short Term Fund Direct Plan-Growth via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 100.00

AUM

₹ 4,599.23Cr

1Y Returns

6.84%

Expense Ratio

0.30%

Bandhan Ultra Short Term Fund Direct-Growth

Fund Performance: Bandhan Ultra Short Term Fund Direct-Growth has given 7.19% annualized returns in the past three years and 6.44% in the last 5 years. The Bandhan Ultra 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 Ultra Short Term Fund Direct-Growth via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 100.00

AUM

₹ 4,204.82Cr

1Y Returns

6.62%

Expense Ratio

0.30%

HSBC Ultra Short Term Fund Direct-Growth

Fund Performance: HSBC Ultra Short Term Fund Direct-Growth has given 7.27% annualized returns in the past three years and 6.53% in the last 5 years. The HSBC Ultra 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 Ultra 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

₹ 3,628.23Cr

1Y Returns

6.68%

Expense Ratio

0.18%

UTI Ultra Short Term Fund Direct-Growth

Fund Performance: UTI Ultra Short Term Fund Direct-Growth has given 7.36% annualized returns in the past three years and 7.19% in the last 5 years. The UTI Ultra Short Term Fund Direct-Growth comes under the Debt category of UTI Mutual Fund.

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

Min Investment Amt

₹ 500.00

AUM

₹ 3,444.00Cr

1Y Returns

6.78%

Expense Ratio

0.38%

Sundaram Ultra Short Term Fund Direct-Growth

Fund Performance: Sundaram Ultra Short Term Fund Direct-Growth has given 7.32% annualized returns in the past three years and 6.61% in the last 5 years. The Sundaram Ultra Short Term Fund Direct-Growth comes under the Debt category of Sundaram Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Sundaram Ultra 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

₹ 2,416.24Cr

1Y Returns

6.67%

Expense Ratio

0.23%

HDFC CRISIL-IBX Financial Services 3-6 Months Debt Index Fund Direct-Growth

Fund Performance: The HDFC CRISIL-IBX Financial Services 3-6 Months Debt Index Fund Direct-Growth comes under the Debt category of HDFC Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in HDFC CRISIL-IBX Financial Services 3-6 Months Debt Index Fund Direct-Growth via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 100.00

AUM

₹ 2,264.18Cr

1Y Returns

7.25%

Expense Ratio

0.09%

Aditya Birla Sun Life CRISIL-IBX Financial Services 3 to 6 Months Debt Index Fund Direct-Growth

Fund Performance: The Aditya Birla Sun Life CRISIL-IBX Financial Services 3 to 6 Months Debt Index 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 CRISIL-IBX Financial Services 3 to 6 Months Debt Index Fund Direct-Growth via lump sum is ₹ 1,000.00 and via SIP is ₹ 1,000.00.

Min Investment Amt

₹ 1,000.00

AUM

₹ 2,164.46Cr

1Y Returns

7.06%

Expense Ratio

0.14%