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Short Term Mutual Funds : Best Short Term Debt Funds for 2019-20

Short term mutual funds are also known as short duration funds and they invest in debt and money market instruments such that their Macaulay duration of the portfolio is between 1-3 years. Macaulay duration is the weighted average term to maturity of cash flows from a bond. Upwardly presents to you the best short term mutual funds for 2019-20.

Franklin India Short Term Income Plan – Retail Plan

The fund aims to provide stable returns by investing in fixed income instruments. Therefore, it invests primarily in short term corporate bonds with a focus on higher interest income. The fund has an average maturity of 2.53 years. Also, the fund has a YTM of 11.23% and Modified Duration of 1.92. The investment break-up is as follows: AA and below (47.25%), AA (43.94%), AA (5.23%), A1+ (1.11%), and cash (2.47%). The fund has outperformed its category over the years consistently. The fund gave 8.39% (annualized) return since its inception in 2002.

 

 

HDFC Short Term Debt Fund

The fund invests in instruments such that the Macaulay Duration of the portfolio is between 1 year and 3 years. It aims to generate regular income through investments in Debt and Money Market Instruments. The fund has an average maturity of 1.40 years. Also, the fund has a YTM of 9.05% and Modified Duration of 1.17. The investment break-up is as follows: AAA (85.89%), AA (5.93%), A+ (3.02%) and cash (3.88%). The fund gave 8.61% (annualized) return since its inception in 2010.

 

 

Kotak Bond Short Term Fund

This fund aims to provide reasonable returns and high level of liquidity by investing in debt and money market instruments of different maturities so as to spread the risk across different kind of issuers in the debt market. The fund has an average maturity of 2.44 years. Also, the fund has a YTM of 8.25% and Modified Duration of 1.98. The investment break-up is as follows: AAA (83.98%), government bonds (6.96%), A+ (4.75%), AA (1.04%) and cash (3.33%). The fund gave 7.65% (annualized) return since its inception in 2002.

 

 

L&T Short Term Bond Fund

The aims to generate returns with a moderate level of risk by investing primarily in Debt Securities and money market instruments. The fund has an average maturity of 1.91 years. Also, the fund has a YTM of 7.81% and Modified Duration of 1.63. The investment break-up is as follows: AAA (89.33%), A+ (8.85%), and cash (2.02%). The fund gave 8.28% (annualized) return since its inception in 2011.

 

 

Axis Short Term Fund

The fund aims to generate stable returns with a low-risk strategy while maintaining liquidity through a portfolio comprising of debt and money market instruments. The fund has an average maturity of 2 years. Also, the fund has a YTM of 8.44% and Modified Duration of 1.60. The investment break-up is as follows: AAA (66.8%), AA (13.37%), government bonds (8.29%), A+ (8.07%), unrated bonds (1.5%) and cash (1.98%). The fund gave 7.96% (annualized) return since its inception in 2010.

 

 

Invest in the best short term mutual funds with Upwardly. Happy Investing!

 

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