line
Use App
Home
Mutual FundsDebt FundsBest Short Duration Funds

Short Duration Mutual Funds

Average 3-Year Return

0.00 %

No. of Funds

0

Short Duration Funds are a type of debt funds that invest in debt and money market securities with a maturity of 1 to 3 years. These Funds are suitable for investors who want to preserve their capital and earn regular income. While these are the best Short Duration Mutual Funds to invest in, you must know these 3 things before you start investing. Read More...

Best Short Duration Funds to Invest in 2024

Returns on Short Duration Funds

Total Investment

₹ 0

Gain

₹ 0

Current Value

₹ 0

You have invested

Check the Returns of Your Investment in

About Short Term Funds

Short Term Funds are a type of investment vehicle that predominantly focuses on debt securities with a short maturity period. These are suitable for you if you are looking for an investment option with a relatively low risk profile and a short investment horizon. Typically, these funds invest in instruments that mature within one to three years. Here's what you should consider:
  1. Lower Risk Profile: Due to their investment in short-term securities, these funds generally carry a lower risk compared to long-term debt funds.
  2. Income Generation: They aim to provide regular income through interest earnings from debt securities.
  3. Liquidity: Short Term Funds usually offer higher liquidity, making them a feasible option if you require access to your funds within a short period.
Short Term Funds can be a fitting investment choice if you are seeking a balance between earning moderate returns and maintaining liquidity with low risk. They are particularly suitable for meeting short-term financial goals or as a temporary place to park your funds. However, it's important to align such investments with your risk tolerance and financial objectives.
Investing in Short Term Funds offers several benefits, especially if you are looking for a safe and liquid investment option:
  1. Lower Interest Rate Risk: These funds typically have a lower sensitivity to interest rate changes, reducing the risk of loss due to rate fluctuations.
  2. Liquidity: They provide the flexibility of easy access to your funds, which is beneficial for short-term financial needs or emergencies.
  3. Steady Income: Short Term Funds can offer a regular income stream, though the yield might be lower than long-term debt funds.
  4. Better than Traditional Savings: They often offer better returns compared to traditional savings accounts or very short-term investment options.
  5. Diversification: Adding Short Term Funds to your portfolio can help in diversifying your investment risks.
Short Term Funds are advantageous if you are seeking an investment with lower risk, liquidity, and a steady income over a short duration. They can be a strategic choice for parking surplus funds or for short-term financial goals. As always, consider how these funds fit into your broader investment strategy and whether they meet your specific financial needs and risk profile.
Deciding whether investing in Short Term Funds is suitable for you hinges on your financial goals, risk tolerance, and the time frame of your investment. Short Term Funds typically invest in debt instruments with shorter maturities, such as treasury bills, commercial papers, and short-term corporate bonds. These funds are tailored for investors looking for a balance between reasonable returns and low risk over a short period. Here are some key considerations:
  1. Investment Horizon: If your investment horizon is short, typically ranging from a few months to a year, Short Term Funds can be a viable option.
  2. Risk Profile: They are suitable if you prefer a lower risk investment compared to equity or long-term debt funds.
  3. Liquidity Needs: If you require liquidity with the potential for higher returns than traditional savings accounts, these funds can meet your needs.
Short Term Funds can be a good investment if your goal aligns with their features - lower risk, short investment horizon, and liquidity. They offer an avenue for relatively safe and liquid investment, though the returns might not be as high as long-term investment options. It's crucial to align such investments with your financial objectives and understand the fund's specific investment strategy.
Short Term Funds are particularly suitable for certain types of investors:
  1. Risk-Averse Investors: If you are cautious about risk and prefer investments with lower volatility, Short Term Funds can be appropriate.
  2. Short-Term Financial Goals: Ideal for investors who have financial goals or requirements in the near future and wish to avoid equity market fluctuations.
  3. Emergency Fund Creation: These funds are suitable for creating or maintaining an emergency fund, as they typically offer higher liquidity.
  4. Corporate or Institutional Investors: Businesses or institutions looking to park surplus funds for short durations can benefit from these funds.
  5. First-Time Investors: If you are new to mutual funds and want to start with a less risky option, Short Term Funds can serve as an introduction.
Short Term Funds can be a strategic choice for you if your investment objectives include low risk, short-term financial commitments, or you are new to mutual funds and prefer a conservative start. They offer a balance between safety, liquidity, and returns, suitable for conservative investors or as part of a diversified investment portfolio. As with any investment decision, consider how these funds fit into your overall financial plan and match your investment criteria.
Short Term Funds are a type of investment vehicle that predominantly focuses on debt securities with a short maturity period. These are suitable for you if you are looking for an investment option with a relatively low risk profile and a short investment horizon. Typically, these funds invest in instruments that mature within one to three years. Here's what you should consider:
  1. Lower Risk Profile: Due to their investment in short-term securities, these funds generally carry a lower risk compared to long-term debt funds.
  2. Income Generation: They aim to provide regular income through interest earnings from debt securities.
  3. Liquidity: Short Term Funds usually offer higher liquidity, making them a feasible option if you require access to your funds within a short period.
Short Term Funds can be a fitting investment choice if you are seeking a balance between earning moderate returns and maintaining liquidity with low risk. They are particularly suitable for meeting short-term financial goals or as a temporary place to park your funds. However, it's important to align such investments with your risk tolerance and financial objectives.
Investing in Short Term Funds offers several benefits, especially if you are looking for a safe and liquid investment option:
  1. Lower Interest Rate Risk: These funds typically have a lower sensitivity to interest rate changes, reducing the risk of loss due to rate fluctuations.
  2. Liquidity: They provide the flexibility of easy access to your funds, which is beneficial for short-term financial needs or emergencies.
  3. Steady Income: Short Term Funds can offer a regular income stream, though the yield might be lower than long-term debt funds.
  4. Better than Traditional Savings: They often offer better returns compared to traditional savings accounts or very short-term investment options.
  5. Diversification: Adding Short Term Funds to your portfolio can help in diversifying your investment risks.
Short Term Funds are advantageous if you are seeking an investment with lower risk, liquidity, and a steady income over a short duration. They can be a strategic choice for parking surplus funds or for short-term financial goals. As always, consider how these funds fit into your broader investment strategy and whether they meet your specific financial needs and risk profile.
Deciding whether investing in Short Term Funds is suitable for you hinges on your financial goals, risk tolerance, and the time frame of your investment. Short Term Funds typically invest in debt instruments with shorter maturities, such as treasury bills, commercial papers, and short-term corporate bonds. These funds are tailored for investors looking for a balance between reasonable returns and low risk over a short period. Here are some key considerations:
  1. Investment Horizon: If your investment horizon is short, typically ranging from a few months to a year, Short Term Funds can be a viable option.
  2. Risk Profile: They are suitable if you prefer a lower risk investment compared to equity or long-term debt funds.
  3. Liquidity Needs: If you require liquidity with the potential for higher returns than traditional savings accounts, these funds can meet your needs.
Short Term Funds can be a good investment if your goal aligns with their features - lower risk, short investment horizon, and liquidity. They offer an avenue for relatively safe and liquid investment, though the returns might not be as high as long-term investment options. It's crucial to align such investments with your financial objectives and understand the fund's specific investment strategy.
Short Term Funds are particularly suitable for certain types of investors:
  1. Risk-Averse Investors: If you are cautious about risk and prefer investments with lower volatility, Short Term Funds can be appropriate.
  2. Short-Term Financial Goals: Ideal for investors who have financial goals or requirements in the near future and wish to avoid equity market fluctuations.
  3. Emergency Fund Creation: These funds are suitable for creating or maintaining an emergency fund, as they typically offer higher liquidity.
  4. Corporate or Institutional Investors: Businesses or institutions looking to park surplus funds for short durations can benefit from these funds.
  5. First-Time Investors: If you are new to mutual funds and want to start with a less risky option, Short Term Funds can serve as an introduction.
Short Term Funds can be a strategic choice for you if your investment objectives include low risk, short-term financial commitments, or you are new to mutual funds and prefer a conservative start. They offer a balance between safety, liquidity, and returns, suitable for conservative investors or as part of a diversified investment portfolio. As with any investment decision, consider how these funds fit into your overall financial plan and match your investment criteria.

Other Debt Funds

Liquid
Banking & PSU
Corporate Bond
Dynamic Bond
Overnight
Ultra Short Duration
Low Duration
Credit Risk
Gilt Funds
Gilt Funds 10 Year Constant Duration
Money Market
Floater
Medium Duration
Medium Long Duration
Long Duration

Explore Other Mutual Funds

Equity Fund

Equity Funds

High Risk, High Returns

hybrid Fund

Hybrid Funds

Some Equity, Some Debt

Elss Fund

ELSS Funds

Save Tax in Section 80C

Elss Fund

Index Funds

Buy an Entire Index!

Frequently Asked Questions

Short Duration Funds are debt funds that invest in securities with the fund's portfolio duration ranging between 1 to 3 years. These funds aim to offer a blend of moderate risk and potential for higher returns compared to ultra-short duration funds or Liquid funds, making them suitable for investors with a short-term investment horizon

These funds invest in a mix of debt and money market instruments. The portfolio may include government securities, corporate bonds, treasury bills, and other short-term securities. The aim is to maintain liquidity while seeking higher returns than traditional savings methods

Short Duration Funds have the potential to offer better returns than bank fixed deposits, although the returns are not guaranteed. These funds invest in diversified portfolios and can earn through both interest and capital gains, aiming for stable returns with moderate risk

No, the returns from Short Duration Funds are not tax-free. They are subject to taxation, similar to other debt mutual fund investments, but they can be more tax-efficient compared to traditional savings options like fixed deposits

If held for more than 3 years, gains are taxed at 20% with indexation benefit. For investments redeemed within 3 years, the gains are added to your income and taxed according to your income tax slab.
When selecting a Short Duration Fund, consider the fund's return performance over 1, 2, and 3 years, its risk profile, and the expense ratio. Look for funds with a consistent track record of performance and those that match your risk tolerance. Also, assess the fund manager's expertise and the investment strategy of the fund house towards risk management.
No, a demat account isn't required for investing in Short Duration Funds. You can directly invest through mutual fund platforms or the asset management company’s website, making the process easy and straightforward
The choice between lump sum and SIP (Systematic Investment Plan) depends on your financial situation and goals. SIPs offer a disciplined way to invest over time, potentially smoothing out market volatility. Lump Sum investments might be suitable if you have a large sum available and are looking for a short-term place to park it.
To start an Short Duration Fund SIP online, follow these 4 steps:
  1. Open Demat Account
  2. Choose the Short Duration Fund you wish to invest in.
  3. Choose the SIP option, specifying the amount and SIP date
  4. Set up an auto-pay via bank account to automate the SIP payments
Yes, Short Duration Funds can be redeemed or sold at any time, offering liquidity. However, be mindful of any exit load that might apply for early withdrawals, as this can vary between funds​
Generally, Short Duration Funds do not have a lock-in period, allowing the flexibility to access your funds when needed. This makes them an attractive option for short-term investment goals
While Short Duration Funds are considered to have lower risk due to their short-term nature, they are still subject to interest rate risk and credit risk. These risks can impact the fund's returns, especially if there are sudden interest rate movements or if any of the securities in the portfolio default

All investments, especially short-term funds, have some level of risk. They have a lower risk profile than equity or debt funds with longer durations, but they are still subject to market risk and could see returns that fluctuate. It’s essential to align these investments with your risk tolerance and financial objectives





Invest in Direct Mutual Funds at

0% Commission!

Start with SIP or Lumpsum. Choose from 1000+ direct mutual funds.


border
logo

Join us on

community logo

Follow us on

twitter
telegram
Linkedin
youtube
instagram
facebook

built with love
for Indians who love to invest & trade

raise

We are part of Raise Financial Services

raise
raise

Explore  |  Sitemap


*All securities mentioned on this website are exemplary and not recommendatory.

We are bullish on India, we are bullish on India's prospects to be one of the largest economies in the world. We believe that the stock market provides a unique opportunity for all of India's traders and investors to participate in the growth story of the country.

Yet, most investing & trading platforms in India have remained more or less the same over the past decade. Times have changed and retail traders and investors have become smarter about managing their trades and money. Modern traders & investors require an online trading platform that helps them keep up with the technological advancements of our time.

That's why we're building Dhan - to help you trade, to help you invest, and to help you participate in India's growth stock via the stock market with awesome features and an incredible experience.

We are doing so by giving you access to not just one but 6 products within the Dhan ecosystem:


This means that with Dhan, you'll be able to start:


Lakhs of users already trust Dhan for their online stock trading and investing needs. Dhan is growing rapidly because of the love we receive from SuperTraders and Long-Term Investors who acknowledge that the platform is innovating for them, building super useful features that help them do everything from investing in stock market to trading F&O like a pro on the Tradingview charts and much more.

While we are growing, we will always remember why we started building in the first place - you. Our user-first approach will always be at the heart of our philosophy. Come join us on this incredible journey!

Try it out, you can close your account at anytime using this link.

©2021-2024 Moneylicious Securities Private Limited. All rights reserved. CIN: U74999MH2012PTC433549 Moneylicious Securities is part of Raise Financial Services.

SEBI Stock Broker Registration No: INZ000006031 | Depository Participant (CDSL) ID: IN-DP-289-2016
Exchange Membership No. : NSE: 90133 | BSE: 6593 | MCX: 56320
Registered Office: 302, The Western Edge I, Off Western Express Highway, Borivali East, Mumbai - 400066, Maharashtra, India.
Corporate Office: 302, The Western Edge I, Off Western Express Highway, Borivali East, Mumbai - 400066, Maharashtra, India. Customer Care: 9987761000.

Details of client bank account

For any query / feedback / clarifications, email at help@dhan.co.

In case of grievances for any of the services rendered by Moneylicious Securities Private Limited, please write to grievance@dhan.co (for NSE, BSE and MCX) or grievancedp@dhan.co (for Depository Participant). Please ensure that you carefully read the Risk Disclosure Document as prescribed by SEBI, our Terms of Use and Privacy Policy. Compliance Officer: Mr. Manish Garg and Mobile: 8655740961 Email: complianceofficer@dhan.co To lodge your complaints using SEBI SCORES, click here.


DHAN is a brand owned by Moneylicious Securities Private Limited. All DHAN clients are registered under Moneylicious Securities Private Limited. Clients are advised to refer to our company as Moneylicious Securities Private Limited when communicating with regulatory authorities.


Procedure to file a complaint on SEBI SCORES: Register on SCORES portal. Mandatory details for filing complaints on SCORES: Name, PAN, Address, Mobile Number, E-mail ID. Benefits: Effective Communication, Speedy redressal of the grievances


Disclaimer: Investment in the securities market are subject to market risks, read all the related documents carefully before investing. Brokerage will not exceed the SEBI prescribed limit


Attention investors:

  1. Stock brokers can accept securities as margins from clients only by way of pledge in the depository system w.e.f September 01, 2020.
  2. Update your e-mail and phone number with your stock broker / depository participant and receive OTP directly from depository on your e-mail and/or mobile number to create pledge.
  3. Check your securities / MF / bonds in the consolidated account statement issued by NSDL/CDSL every month.

Note: As a policy we do not give stock tips or recommendations and have not authorized anyone to give this on behalf of us. If you know anyone claiming to be a part of Dhan / Moneylicious / Raise or our associate companies or partners and offering such services, please report us on help@dhan.co. Important Information for Investors: To prevent unauthorized transactions in your trading / demat account, do not share your account details, credentials or any personal details with anyone. Keep your mobile number updated with your Stock Broker, Depository Participant and ensure that the same is registered with Stock Exchanges, Depository and KRAs. You will receive alerts and information on your registered mobile number / email for debit and other important transactions in your demat account directly from CDSL / Exchange on the same day. KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (Stock Broker, DP, Mutual Fund, etc.), you need not undergo the same process again when you approach another intermediary. No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account. This is issued in the interest of investors.


Moneylicious Securities Private Limited also known as Dhan is only an order collection platform that collects orders on behalf of clients and places them on BSE StarMF for execution. Client expressly agrees that Dhan is not liable or responsible and does not represent or warrant any damages regarding non- execution of orders or any incorrect execution of orders with regard to the funds chosen by the client or due to, but not being limited to, any link/system failure, delay in transfer of the funds on account of any unforeseen circumstances/issues in the banking system/payment aggregators or any other problems that may result in a delay in crediting the funds into the BSE Star MF's bank account.


Mutual fund investments are subject to market risks, read all scheme related documents carefully before investing. Dhan is not a distributor or agent of any mutual fund. Mutual Funds are not exchange-traded products. Any related disputes will not have access to the Exchange-investor redressal forum or arbitration mechanism. For other disclaimers please refer https://dhan.co/advertisement-disclaimer/


Download client registration documents (Rights & Obligations, Risk Disclosure Document, Do's & Don'ts) in vernacular language: BSE | NSE | MCX


Kindly, read the Advisory Guidelines of BSE | NSE | MCX for investors as prescribed by the exchange with reference to their circular dated 27th August, 2021 regarding investor awareness and safeguarding client's assets


Important Links: SEBI | BSE | NSE | MCX | CDSL | SCORES | ODR Portal | Investor Charter for Stock Brokers | Investor Charter for DP | UCC Advisory | e-Voting for Shareholders | NCL Client Collateral details |
MCXCCL Client Collateral details

Important Information: Terms of Usage | Disclaimers | Privacy Policy | Grievances | Risk Management Policy | Risk Disclosure | Advertisement Disclaimer | Saarthi 2.0 Mobile App for Investors