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Best Ultra Short Term Debt Funds to Invest in 2018

Investors looking to park their money for the short term i.e. less than a year can park their money in Ultra Short term funds instead of Fixed Deposits for better returns.

These funds carry very low risk and can provide higher returns than traditional investment options.

In this article, I am going to highlight some of the best Ultra Short Term debt funds available in the market right now which will help the investors in making an informed decision regarding their investments.

I have selected the below funds based on the following parameters –

  1. Consistent Performer in the long run
  2. Value Research rated funds
  3. High Credit Quality Papers
  4. Low Average Maturity & Modified Duration to keep the fund safe from interest rate fluctuations

Best Ultra Short Term Debt Funds:

  • Aditya Birla Sun Life Floating Rate Fund – Long Term Plan

This scheme is one of the best in this segment and has been since its inception.

The fund has beaten most of its peers and ranks 2nd with respect to the 5 and 7 year returns.

The fund has given returns of 8.99% in the last 5 years which is quite amazing and 9.18% in 7 years which shows the funds consistency in the long run.

The AUM for this fund has risen close to 8K cr which shows investors’ confidence in this fund.

The fund’s modified duration is 1.02 years and average maturity is 1.15 years which will keep the interest rate fluctuations and volatility in check as we want stability from these funds.

The Yield to Maturity for this fund is 6.99%.

The fund also invests in high quality papers mainly AAA rated which constitutes about 47% of the fund and AA and A1+ rated papers constitute about 44%.

This fund is highly regarded by investors and one can start investing in them.

Also Read: Important Tips before you start Investing in Debt Funds

  • Aditya Birla Sun Life Savings Fund

This scheme is one of the best in this segment and has been since its inception.

The fund has beaten most of its peers and ranks 1st with respect to 10 year returns.

The fund has given returns of 8.98% in the last 5 years which is quite amazing and 9.11% in 7 years and 8.47% in 10 years which shows the funds consistency in the long run.

The AUM for this fund has risen close to 23.5K cr which shows massive investors’ confidence in this fund.

The fund’s modified duration is 0.94 years and average maturity is 1.06 years which will keep the interest rate fluctuations and volatility in check as we want stability from these funds.

The Yield to Maturity for this fund is 7.09%.

The fund also invests in high quality papers mainly AAA rated which constitutes about 40% of the fund and AA and A1+ rated papers constitute about 48%.

This fund is highly regarded by investors as shown by the AUM numbers and one can start investing in them.

  • ICICI Prudential Flexible Income Plan

This scheme is also one of the better funds in this segment and has been since its inception.

The fund has beaten most of its peers and ranks 2nd with respect to 10 year returns.

The fund has given returns of 8.91% in the last 5 years which is quite amazing and 9.03% in 7 years and 8.43% in 10 years which shows the funds consistency in the long run.

The AUM for this fund has risen to 23K cr which shows massive investors’ confidence in this fund.

The fund’s modified duration is 0.87 years and average maturity is 0.98 years which will keep the interest rate fluctuations and volatility in check as we want stability from these funds.

The Yield to Maturity for this fund is 6.97%.

The fund also invests in high quality papers mainly AAA rated which constitutes about 31% of the fund and AA and A1+ rated papers constitute about 50%.

This fund is highly regarded by investors as shown by the AUM numbers and one can start investing in them.

So, these are some of the best funds to invest in right now. These funds may not be giving the best returns but they rank 2nd or 3rd in the returns category and has high quality papers in its portfolio which is more important as we want the money invested in these funds to remain safe and carry lowest risk possible.

Friends, what do you think about these funds…let us know!!!

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