Top 10 Ultra Short Mutual Funds

Fund NameCategoryRisk1Y ReturnsRatingFund Size(in Cr)
DHFL Pramerica Ultra Short Term FundDebtModerately Low12.2%5star51
DHFL Pramerica Ultra Short Term FundDebtModerately Low12.2%5star51
DHFL Pramerica Ultra Short Term FundDebtModerately Low12.2%5star51
DHFL Pramerica Ultra Short Term FundDebtModerately Low12.2%5star51
DHFL Pramerica Ultra Short Term FundDebtModerately Low12.2%5star51
DHFL Pramerica Ultra Short Term FundDebtModerately Low12.2%5star51
DHFL Pramerica Ultra Short Term FundDebtModerately Low12.2%5star51
DHFL Pramerica Ultra Short Term FundDebtVery Low12.2%5star51
DHFL Pramerica Ultra Short Term FundDebtModerately Low12.2%5star51
Franklin India Ultra Short Bond FundDebtVery Low9.9%5star19,954
Franklin India Ultra Short Bond FundDebtModerate9.9%5star19,954
Franklin India Ultra Short Bond FundDebtModerate9.9%5star19,954
Franklin India Ultra Short Bond FundDebtModerate9.9%5star19,954
Franklin India Ultra Short Bond FundDebtModerate9.9%5star19,954
Franklin India Ultra Short Bond FundDebtVery Low9.9%5star19,954
View All Top 10 Ultra Short Mutual Funds

Best Ultra Short Term Mutual Funds

Ultra short-term mutual fund schemes are debt schemes which invest in fixed income generating instruments up to maturities of six months.

As per SEBI, an ultra short-term fund is open-ended debt scheme with Macaulay duration of about three to six months. While being closely similar to liquid funds, the best ultra short-term funds can provide higher returns with comparable liquidity.

These funds serve as an investment instrument of choice for anyone look to park their money for shorter durations and earn reasonable dividends from it.

Let's have a closer look

Now let us jump and check about these top 10 mutual fund schemes.

PGIM India Ultra Short Term Direct Dividend Monthly

Fund Performance: This fund has consistently beaten its benchmark in Ultra Short Duration segment and provided 8.96% annualized returns in the last 3 years. In the last 1 year, it gave 12.17% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 12.17% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Debt mutual fund in India.

Launch Date
Min Investment AmtNaN
AUM51Cr
1Y Returns12.2%

PGIM India Ultra Short Term Direct Annual Bonus

Fund Performance: This fund has consistently beaten its benchmark in Ultra Short Duration segment and provided 8.96% annualized returns in the last 3 years. In the last 1 year, it gave 12.17% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 12.17% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Debt mutual fund in India.

Launch Date
Min Investment AmtNaN
AUM51Cr
1Y Returns12.2%

PGIM India Ultra Short Term Direct Dividend weekly

Fund Performance: This fund has consistently beaten its benchmark in Ultra Short Duration segment and provided 8.96% annualized returns in the last 3 years. In the last 1 year, it gave 12.17% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 12.17% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Debt mutual fund in India.

Launch Date
Min Investment AmtNaN
AUM51Cr
1Y Returns12.2%

DHFL Pramerica Ultra Short Term Direct Dividend

Fund Performance: This fund has consistently beaten its benchmark in Ultra Short Duration segment and provided 8.96% annualized returns in the last 3 years. In the last 1 year, it gave 12.17% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 12.17% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Debt mutual fund in India.

Launch Date
Min Investment AmtNaN
AUM51Cr
1Y Returns12.2%

DHFL Pramerica Ultra Short Term Direct Bonus

Fund Performance: This fund has consistently beaten its benchmark in Ultra Short Duration segment and provided 8.96% annualized returns in the last 3 years. In the last 1 year, it gave 12.17% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 12.17% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Debt mutual fund in India.

Launch Date
Min Investment AmtNaN
AUM51Cr
1Y Returns12.2%

DHFL Pramerica Ultra Short Term Direct Dividend Quarterly

Fund Performance: This fund has consistently beaten its benchmark in Ultra Short Duration segment and provided 8.96% annualized returns in the last 3 years. In the last 1 year, it gave 12.17% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 12.17% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Debt mutual fund in India.

Launch Date
Min Investment AmtNaN
AUM51Cr
1Y Returns12.2%

PGIM India Ultra Short Term Direct Dividend daily

Fund Performance: This fund has consistently beaten its benchmark in Ultra Short Duration segment and provided 8.96% annualized returns in the last 3 years. In the last 1 year, it gave 12.17% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 12.17% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Debt mutual fund in India.

Launch Date
Min Investment AmtNaN
AUM51Cr
1Y Returns12.2%

PGIM India Ultra Short Term Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Ultra Short Duration segment and provided 8.96% annualized returns in the last 3 years. In the last 1 year, it gave 12.17% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 12.17% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Debt mutual fund in India.

Launch Date
Min Investment AmtNaN
AUM51Cr
1Y Returns12.2%

PGIM India Ultra Short Term Direct Monthly Bonus

Fund Performance: This fund has consistently beaten its benchmark in Ultra Short Duration segment and provided 8.96% annualized returns in the last 3 years. In the last 1 year, it gave 12.17% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 12.17% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Debt mutual fund in India.

Launch Date
Min Investment AmtNaN
AUM51Cr
1Y Returns12.2%

Franklin India Ultra Short Bond Fund Super Institutional Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Ultra Short Duration segment and provided 8.95% annualized returns in the last 3 years. In the last 1 year, it gave 9.95% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 9.95% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Debt mutual fund in India.

Launch Date
Min Investment AmtNaN
AUM19,954Cr
1Y Returns9.9%

Franklin India Ultra Short Bond Fund Super Institutional Direct Dividend Daily

Fund Performance: This fund has consistently beaten its benchmark in Ultra Short Duration segment and provided 8.95% annualized returns in the last 3 years. In the last 1 year, it gave 9.95% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 9.95% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹1,000. This is one of the best Debt mutual fund in India.

Launch Date
Min Investment AmtNaN
AUM19,954Cr
1Y Returns9.9%

Franklin India Ultra Short Bond Fund Super Institutional Direct Dividend Weekly

Fund Performance: This fund has consistently beaten its benchmark in Ultra Short Duration segment and provided 8.95% annualized returns in the last 3 years. In the last 1 year, it gave 9.95% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 9.95% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹1,000. This is one of the best Debt mutual fund in India.

Launch Date
Min Investment AmtNaN
AUM19,954Cr
1Y Returns9.9%

Franklin India Ultra Short Bond Fund Super Institutional Dividend Weekly

Fund Performance: This fund has consistently beaten its benchmark in Ultra Short Duration segment and provided 8.87% annualized returns in the last 3 years. In the last 1 year, it gave 9.86% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 9.86% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹1,000. This is one of the best Debt mutual fund in India.

Launch Date
Min Investment AmtNaN
AUM19,954Cr
1Y Returns9.9%

Franklin India Ultra Short Bond Fund Super Institutional Dividend Daily

Fund Performance: This fund has consistently beaten its benchmark in Ultra Short Duration segment and provided 8.87% annualized returns in the last 3 years. In the last 1 year, it gave 9.86% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 9.86% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Debt mutual fund in India.

Launch Date
Min Investment AmtNaN
AUM19,954Cr
1Y Returns9.9%

Franklin India Ultra Short Bond Fund Super Institutional Growth

Fund Performance: This fund has consistently beaten its benchmark in Ultra Short Duration segment and provided 8.87% annualized returns in the last 3 years. In the last 1 year, it gave 9.86% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 9.86% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹1,000. This is one of the best Debt mutual fund in India.

Launch Date
Min Investment AmtNaN
AUM19,954Cr
1Y Returns9.9%

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Features of Ultra Short Term Mutual Fund

<p>Ultra short-term funds are ideal for investors looking to park their money for a shorter duration. The <strong>best ultra short-term funds in India</strong> are comparatively immune to interest rate risks due to shorter maturity of the underlying assets when compared with the other debts funds. On the contrary, these are riskier than liquid funds which come with even lower risks.</p> <p>Many investors use liquid funds to alter their investments through Systematic Transfer Plans (STP), but UST funds can serve as a better option to start an STP. These funds are tailor-made for conservative investors.</p>

Taxability

<p>By investing in mutual fund schemes, you earn capital gains which can via a short term or a long-term investment. The rate of taxation depends on the time of your investment called the holding period.</p> <p>These schemes held for more than 3 years are charged a long-term capital gain tax of 20% with indexation benefits. However, if the funds are sold before 36 months from the date of purchase, a short-term capital gain tax as per the income tax slab will be applicable. A dividend distribution tax will also be charged on the distribution of dividends for investors who opt for the same.</p>

Who Are These Funds Suited For?

<p>Investors seeking investment opportunities for a period of six to twelve months should consider investing in these funds. However, even the best ultra short-term funds can be exposed to credit risk, so investors ready to accept such volatility should only consider these funds. Ultra short-term funds can also be used for systematic transfer plans to invest in other funds and avoid making a single lump-sum investment. These funds are ideal for investors who wish to take advantage of interest rate changes and low yields. However, investors seeking guaranteed returns should opt for other safer options.</p>

Major Advantages

<p>These funds serve as a perfect tool for short-term parking of money. Investors planning to invest for a period up to a year can opt for some of the <strong>best ultra short-term mutual funds in India</strong> which generate higher returns compared to the liquid funds. These mutual funds provide even higher returns during a falling interest rate market scenario. It is worth noting that UST funds can turn out to be risky if the fund house has made investments in low rated instruments.</p> <p>As stated earlier you can consider these funds as ideal instruments to park money for short term, like money for school fees, insurance premiums etc.</p> <p>These funds can also be used to park a portion of the retirement corpus to generate regular income via a systematic withdrawal plan. The <strong>best ultra short-term funds in India</strong> serve as a substitute for short-term bank deposits and can generate higher returns. These funds can also be used in combination with liquid funds to build an emergency fund.</p>

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