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Five Best Low Duration Debt Funds to Invest in

Highlights

  • Want to invest in debt securities with maturities of 6 months to a year?
  • Low duration funds are waiting for you! Find the top performers here

Low duration debt funds are a type of debt funds that invest in shorter duration debt securities. To know more about low duration funds, their benefits and should you invest in, you can read another post of ours-Low Duration Funds-Definition, Benefits and Should You Invest in. Let us now look at the five best performing low duration funds.

Top Mutual Funds to Invest in Now

Best Performing Low Duration Debt Funds

Axis Treasury Advantage Fund

This fund is offered by Axis Mutual Fund. These are the key points about this fund:

  • This fund was launched on 9th Oct 2009 and has delivered 8.15% annualized returns since launch.
  • The fund manages an AUM of INR 4,777 crores.
  • The benchmark is the Nifty Low Duration Debt Index.
  • It is rated five stars by Value Research.
  • The portfolio has 99 securities with an average maturity of 1.01 years and a yield to maturity of 5.10%
  • The credit quality of the portfolio is good with more than 95% in AAA and sovereign-rated papers.

DSP Low Duration Fund

This fund is offered by DSP Mutual Fund. These are the key points about this fund:

  • This fund was launched on 10Th March 2015 and has delivered 8.00% annualized returns since launch.
  • The fund manages an AUM of INR 2,512 crores.
  • The benchmark is the Nifty Low Duration Debt Index.
  • It is rated three stars by Value Research.
  • The portfolio has 63 securities with an average maturity of 0.96 years and a yield to maturity of 4.89%
  • The credit quality of the portfolio is good with more than 90% in AAA and sovereign-rated papers.
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ICICI Prudential Savings Fund

This fund is offered by ICICI Prudential Mutual Fund. These are the key points about this fund:

  • This fund was launched on 27th Sep 2002 and has delivered 8.10% annualized returns since launch.
  • The fund manages an AUM of INR 18,250 crores.
  • The benchmark is the Nifty Low Duration Debt Index.
  • It is rated four stars by Value Research.
  • The portfolio has 171 securities with an average maturity of 1.16 years and a yield to maturity of 6.06%
  • The credit quality of the portfolio is good with more than 90% in AAA and sovereign-rated papers.

Invesco India Treasury Advantage Fund

This fund is offered by Invesco Mutual Fund. These are the key points about this fund:

  • This fund was launched on 18th Jan 2007 and has delivered 8.15% annualized returns since launch.
  • The fund manages an AUM of INR 1,715 crores.
  • The benchmark is CRISIL Low Duration Debt Index.
  • It is rated five stars by Value Research.
  • The portfolio has 45 securities with an average maturity of 1.03 years and a yield to maturity of 5.05%
  • The credit quality of the portfolio is good with more than 90% in AAA and sovereign-rated papers.

Kotak Low Duration Fund

This fund is offered by Kotak Mutual Fund. These are the key points about this fund:

  • This fund was launched on 6th March 2008 and has delivered 7.84% annualized returns since launch.
  • The fund manages an AUM of INR 4,051 crores.
  • The benchmark is the Nifty Low Duration Debt Index.
  • It is rated four stars by Value Research.
  • The portfolio has 55 securities with an average maturity of 1.08 years and a yield to maturity of 7.92%
  • The credit quality of the portfolio is reasonable with more than 60% in AAA and sovereign-rated papers; the rest 40% is in AA+ rated papers
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Let us now look at the returns delivered by these funds.

Returns of Low Duration Funds

The table below shows the returns of these low duration funds in % terms for a regular plan.

Fund NameLast 3 MonthsLast 6 MonthsLast 1 Year
Axis Treasury2.844.468.98
DSP Low Duration2.694.169.76
ICICI Savings3.134.619.20
Invesco Treasury2.914.428.95
Kotak Low Duration2.964.669.42

These returns are dated 2nd July 2020

If you are looking for investment in debt funds with no risk, it is advisable to invest in overnight or liquid funds. To know the best overnight and liquid funds, you can read other posts of ours.

Best overnight funds- https://www.wishfin.com/mutual-fund/five-best-overnight-debt-funds-to-invest-in/

Best liquid funds- https://www.wishfin.com/mutual-fund/5-best-performing-liquid-funds-to-invest-in/

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