Short Duration Mutual Funds
Portfolio duration of 1 to 3 years.
The middle of the debt range. A rate rise hurts for a while and is then earned back at the higher rate — which is why the holding period matters more here than the headline return.
Who it suits. Money with a two- to three-year horizon. Hold for 2 to 3 years.
Direct plans in this category
- ICICI Prudential Short Term FundICICI Prudential Mutual Fund · NAV ₹70.70 6.5% 8.0% 7.2%
- Aditya Birla Sun Life Short Term FundAditya Birla Sun Life Mutual Fund · NAV ₹55.18 6.0% 7.8% 6.9%
- Tata Short Term Bond FundTata Mutual Fund · NAV ₹56.41 5.5% 7.3% 6.3%
- DSP Short Term FundDSP Mutual Fund · NAV ₹53.94 5.4% 7.3% 6.3%
- TRUSTMF Short Duration FundTrust Mutual Fund · NAV ₹1,358.59 5.3% 7.2% 6.2%
- Aditya Birla Sun Life Floating Rate FundAditya Birla Sun Life Mutual Fund · NAV ₹384.06 — — —
- Franklin India Short-Term Income Plan (no. of segregated portfolios- 3)Franklin Templeton Mutual Fund · NAV ₹0.00 — — —
- Sundaram Short Duration Fund (Formerly Known as Principal Short Term Debt Fund)Sundaram Mutual Fund · NAV ₹51.21 5.8% 7.5% —
- Tata Floating Rate FundTata Mutual Fund · NAV ₹13.95 — — —
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 Short Duration fund?
Portfolio duration of 1 to 3 years. The middle of the debt range. A rate rise hurts for a while and is then earned back at the higher rate — which is why the holding period matters more here than the headline return.
Who should invest in Short Duration funds?
Money with a two- to three-year horizon. A sensible holding period is 2 to 3 years.
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.