FUND
NAV
Press Enter or Space to open search suggestions
Press Enter or Space to open search suggestions
Trusted by 2M+ Users
Squeeze the most out of your trades with Lemonn - your right investment partner.
FUND
NAV
Squeeze the most out of your trades with Lemonn - your right investment partner.
Filters
NAV RANGE
FUND
NAV
Overview
Ultra Short Duration Funds are debt mutual funds designed to maintain relatively short portfolio duration.
They sit beyond Overnight and Liquid Funds on the debt-duration spectrum while remaining focused on shorter-term debt and money-market instruments.
Their additional duration can create opportunities for higher accrual or market-linked returns, but it also introduces more interest-rate sensitivity than extremely short-maturity portfolios.
Explained
An Ultra Short Duration Fund is an open-ended debt scheme that invests in debt and money-market instruments while maintaining its portfolio Macaulay duration within the applicable category range.
The category is defined by the duration of the overall portfolio rather than requiring every individual security to mature within the same short period.
Possible investments can include:
Explained
The fund manager constructs a portfolio of debt and money-market securities while keeping its overall duration within the category's required range.
Returns can come from:
Their NAV can therefore fluctuate even when the underlying securities have relatively short maturities.
Suitability
Ultra Short Duration Funds may suit investors who:
They should not be selected solely because the words ultra short sound equivalent to risk-free cash.
Advantages
The category maintains relatively limited interest-rate exposure compared with longer-duration debt funds.
These funds generally have lower duration sensitivity than Short, Medium, or Long Duration Funds.
The manager can select among different issuers and securities while maintaining the required duration profile.
As open-ended debt schemes, investors can generally redeem units on business days, subject to scheme rules.
An Ultra Short Duration Fund can hold several debt and money-market instruments instead of relying on a single issuer.
Before you invest
Short duration is not the same as zero duration. Changes in short-term yields can affect portfolio values.
A short-maturity lower-rated bond can still face credit problems. Do not evaluate the fund only through Macaulay duration.
If one fund has a substantially higher portfolio yield than its peers, examine why. Portfolio YTM is a useful analytical measure, not a promise.
The difference may reflect:
Compare costs carefully because expenses directly reduce the return received by investors.
Avoid stretching a short-term goal into a higher-risk strategy purely in search of additional yield.
Taxation
Ultra Short Duration Funds predominantly invest in debt and money-market instruments and can fall within the current Section 50AA definition of a Specified Mutual Fund where the relevant conditions are met.
For applicable units acquired on or after April 1, 2023, gains on redemption can be deemed short-term capital gains irrespective of holding period.
Such gains are generally taxed at the investor's applicable tax rate under prevailing provisions.
Tax rules can change, so investors should verify the rules applicable when they redeem.
Step by step
Good to know
It is an open-ended debt scheme that maintains a relatively short portfolio duration according to the applicable category framework.
No. Liquid Funds follow a short residual-maturity limit for eligible securities, while Ultra Short Duration Funds are defined using portfolio duration.
No. They carry interest-rate, credit, liquidity, and market risks.
It broadly reflects the weighted average timing of a bond portfolio's cash flows and is used to help understand portfolio duration.
Yes. Their NAV can fall because of interest-rate changes, credit events, or market conditions.
No. A higher portfolio yield can sometimes accompany higher credit, liquidity, or duration risk.
Where the scheme qualifies under Section 50AA, relevant units acquired on or after April 1, 2023 can receive deemed short-term capital-gains treatment irrespective of holding period.
Recap
Loved by 2M+ users with a 4.3+ ⭐ app rating. Join now!
Squeeze the most out of your trades with Lemonn - your right investment partner.
FUND
Nippon India Ultra Short Term Fund Direct Weekly Reinvestment Inc Dist cum Cap WdrlDebt Ultra Short Duration₹1091.86
0.02%
7.02%
7.58%
6.98%
Invesco India Ultra Short Term Fund Direct Plan Monthly Reinvestment Inc Dist cum Cap WdrlDebt Ultra Short Duration₹1355.51
0.02%7.37%
7.54%
6.95%
T
Tata Ultra Short Term Fund Direct GrowthDebt Ultra Short Duration₹16.17
0.01%7.03%
7.52%
6.77%
Axis Ultra Short Term Fund Direct Monthly Reinvst of Inc Dis cum Cap WdrlDebt Ultra Short Duration₹10.06
0.02%7.03%
7.51%
6.8%
Aditya Birla Sun Life Ultra Short Term Fund Direct Plan GrowthDebt Ultra Short Duration₹604.08
0%6.68%
7.49%
6.75%
DSP Ultra Short Term Fund Direct Plan GrowthDebt Ultra Short Duration₹4006.24
0.01%6.8%
7.45%
6.66%
Mirae Asset Ultra Short Duration Fund Direct GrowthDebt Ultra Short Duration₹1430.59
0%6.71%
7.42%
6.67%
I
ICICI Prudential Ultra Short Term Direct Weekly Reinvestment of Inc Dist cum Cap WdrlDebt Ultra Short Duration₹10.08
0%6.78%
7.38%
6.68%
UTI Ultra Short Term Fund Direct Plan Half Yearly Income Dist cum Cap WdrlDebt Ultra Short Duration₹1559.36
0.02%6.74%
7.35%
7.17%
Mahindra Manulife Ultra Short Duration Fund Direct GrowthDebt Ultra Short Duration₹1523.71
0.01%6.69%
7.3%
6.59%
Nippon India Ultra Short Term Fund Direct Growth OptionDebt Ultra Short Duration₹4821.11
0.02%7.02%
7.58%
6.98%
Invesco India Ultra Short Term Fund Direct Plan Monthly Payout Inc Dist cum Cap WdrlDebt Ultra Short Duration₹1355.51
0.02%7.37%
7.54%
6.95%
T
Tata Ultra Short Term Fund Direct Weekly Rnvstmnt of Inc Dist cum Cap WdrlDebt Ultra Short Duration₹10.4
0.01%7.02%
7.46%
6.68%
Axis Ultra Short Term Fund Direct Monthly Pyt of Inc Dis cum Cap WdrlDebt Ultra Short Duration₹10.06
0.02%7.03%
7.51%
6.8%
Aditya Birla Sun Life Ultra Short Term Fund Direct Plan Daily Reinvst of Inc Dis cum Cap WdrlDebt Ultra Short Duration₹100.08
0%6.42%
7.31%
6.49%
Sundaram Ultra Short Term Fund- Direct Plan - Growth OptionDebt Ultra Short Duration₹3164.86
0.02%6.6%
7.29%
6.6%
Mirae Asset Ultra Short Duration Fund Direct Payout of Income Distribution cum capital wdrlDebt Ultra Short Duration₹1430.13
0%6.7%
7.4%
6.66%
Bandhan Ultra Short Term Fund Direct Periodic Payout of Income Distribution cum cptl Wdrl optDebt Ultra Short Duration₹14.14
0.03%6.66%
7.27%
6.54%
UTI Ultra Short Term Fund Direct Plan Half Yearly Reinvestment Inc Dist cum Cap WdrlDebt Ultra Short Duration₹1559.36
0.02%6.74%
7.35%
7.17%
Baroda BNP Paribas Ultra Short Term Fund Direct GrowthDebt Ultra Short Duration₹1688.76
0.03%6.67%
7.26%
6.65%
Showing 1–20 of 145
