Low Duration Mutual Funds
Portfolio duration of 6 to 12 months.
Where a savings account's job is done better, if the money can sit for a year. Small rate sensitivity, generally better returns than a bank deposit of the same tenure.
Who it suits. A one-year horizon. Hold for 6 to 12 months.
Direct plans in this category
- Aditya Birla Sun Life Low Duration FundAditya Birla Sun Life Mutual Fund · NAV ₹781.33 6.2% 7.4% 6.7%
- Tata Treasury Advantage FundTata Mutual Fund · NAV ₹4,347.40 6.3% 7.3% 6.5%
- Sundaram Low Duration Fund (Formerly Known as Principal Low Duration Fund)Sundaram Mutual Fund · NAV ₹3,980.18 6.0% 7.3% —
Point-to-point CAGR from AMFI NAV history, Direct plans only. Ordered by five-year return so the list has a shape, not because the order is a judgement. Past returns do not predict future ones — a fund near the top is usually there because its style suited the last five years, and styles take turns.
Other categories
Questions people ask
What is a Low Duration fund?
Portfolio duration of 6 to 12 months. Where a savings account's job is done better, if the money can sit for a year. Small rate sensitivity, generally better returns than a bank deposit of the same tenure.
Who should invest in Low Duration funds?
A one-year horizon. A sensible holding period is 6 to 12 months.
How is this list ordered?
By five-year CAGR computed from AMFI's published NAV history, within one plan type. It is a sort, not a verdict — a fund near the top is there because its style suited the last five years, which is not a promise about the next five.
Should I choose the Direct or Regular plan?
A Direct plan holds exactly the same portfolio without the distributor commission, so its expense ratio is lower — commonly 0.5% to 1.2% a year — and it compounds ahead of the Regular plan for ever. Choose Regular only if you want an intermediary's advice and are content to pay for it annually.