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 ₹70.78 6.1% 7.7% 7.1%
- Aditya Birla Sun Life Short Term FundAditya Birla Sun Life Mutual Fund · NAV ₹55.26 5.7% 7.6% 6.8%
- DSP Short Term FundDSP Mutual Fund · NAV ₹54.00 5.2% 7.2% 6.2%
- Franklin India Short-Term Income Plan (no. of segregated portfolios- 3)Franklin Templeton Mutual Fund · NAV ₹0.00 — — —
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.