Low Duration Mutual Funds are one of the Debt funds. These Funds are mutual funds that invest primarily in short-term debt securities with relatively short maturities, typically up to 1 year. They aim to minimize interest rate risk and offer more stable returns compared to funds with longer durations. These funds are ideal for investors seeking short-term investments with lower volatility and moderate income, often used for managing liquidity or preserving capital in a low-interest-rate environment.
Here, we will explore Low Duration Funds and discuss various factors that you need to consider before investing in them.
The main characteristics of these low-duration funds are as follows:
It is possible for the fund to be open-ended or closed-ended. Investors can enter and exit open-ended funds anytime until the fund matures.
These funds are ideal for investors seeking a steady income, shorter investment horizons, and lower risk profiles.
Shorter-term funds will be more liquid than longer-duration funds.
These funds typically charge reduced management fees.
Low-duration mutual funds do not require continuing management. Investors who choose products based on value, income flows, and credit quality need less active management.
Lets have a closer look.
Now let us jump and check about these top 15 mutual fund schemes.
ICICI Prudential Savings Fund
Fund Performance: The ICICI Prudential Savings Fund Fund has given 6.12% annualized returns in the past three years and 6.52% in the last 5 years and 7.40% in the last 10 years. The ICICI Prudential Savings Fund Fund comes under the Equity category of ICICI Prudential Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in ICICI Prudential Savings Fund via lump sum is ₹ 100 and via SIP is ₹ 500.
Scheme Objective: The scheme seeks to generate income through investments in a range of debt and money market instruments of various maturities with a view to maximising income while maintaining the optimum balance of yield, safety and liquidity.
Scheme Manager: Rohan Maru, Darshil Dedhia.
Min Amt SIP
: ₹ 500
AUM in ( Cr.)
: ₹ 20071.24
1 Y Return (%)
: 7.71
Risko-Meter : Low to Moderate
Axis Treasury Advantage Fund
Fund Performance: The Axis Treasury Advantage Fund Fund has given 5.83% annualized returns in the past three years and 6.02% in the last 5 years and 6.98% in the last 10 years. The Axis Treasury Advantage Fund Fund comes under the Equity category of Axis Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in Axis Treasury Advantage Fund via lump sum is ₹ 5000 and via SIP is ₹ 1000.
Scheme Objective: The fund seeks to generate reasonable return commensurate with low risk and high degree of liquidity from a portfolio of money market and short term debt securities.
Scheme Manager: Devang Shah, Aditya Pagaria.
Min Amt SIP
: ₹ 1000
AUM in ( Cr.)
: ₹ 5173.76
1 Y Return (%)
: 7.36
Risko-Meter : Low to Moderate
Axis Treasury Advantage Fund
Fund Performance: The Axis Treasury Advantage Fund Fund has given 5.83% annualized returns in the past three years and 6.06% in the last 5 years and 6.77% in the last 10 years. The Axis Treasury Advantage Fund Fund comes under the Equity category of Axis Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in Axis Treasury Advantage Fund via lump sum is ₹ 5000 and via SIP is ₹ 1000.
Scheme Objective: The fund seeks to generate reasonable return commensurate with low risk and high degree of liquidity from a portfolio of money market and short term debt securities.
Scheme Manager: Devang Shah, Aditya Pagaria.
Min Amt SIP
: ₹ 1000
AUM in ( Cr.)
: ₹ 5173.76
1 Y Return (%)
: 7.36
Risko-Meter : Low to Moderate
UTI Low Duration Fund
Fund Performance: The UTI Low Duration Fund Fund has given 7.57% annualized returns in the past three years and 7.07% in the last 5 years and 6.33% in the last 10 years. The UTI Low Duration Fund Fund comes under the Equity category of UTI Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in UTI Low Duration Fund via lump sum is ₹ 500 and via SIP is ₹ 500.
Scheme Objective: It aims to generate attractive returns consistent with capital preservation and liquidity.
Scheme Manager: Anurag Mittal.
Min Amt SIP
: ₹ 500
AUM in ( Cr.)
: ₹ 2427.75
1 Y Return (%)
: 7.35
Risko-Meter : Low to Moderate
HSBC Low Duration Fund
Fund Performance: The HSBC Low Duration Fund Fund has given 5.63% annualized returns in the past three years and 5.67% in the last 5 years and 6.86% in the last 10 years. The HSBC Low Duration Fund Fund comes under the Equity category of HSBC Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in HSBC Low Duration Fund via lump sum is ₹ 5000 and via SIP is ₹ 1000.
Scheme Objective: The scheme seeks provide liquidity and reasonable returns by investing primarily in a mix of short term debt and money market instruments such that the Macaulay duration of the portfolio is between 6 months to 12 months.
