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These 2 Ultra Short Duration Funds Are Good For SIP, Rated 5 Star By Value Research
Unlike long-term debt funds, ultra-short-term and low-duration debt funds are less likely to be affected by rising interest rates. These ultra-short duration funds are the best alternative to saving or parking the surplus amount for a short period. The two funds we have highlighted here are rated by value research and also by CRISIL. These two funds have given good returns over the year to their investors.
Axis Ultra Short Term Fund - Direct Plan-Growth
This ultra-short duration fund was launched on 10 September 2018 by the Axis Mutual Funds. This is an open-ended medium-sized fund of its category. This is a moderate risk fund.
The fund has an asset under management worth Rs 5085.16 Crore. The recent declared NAV of this fund declared on 11th April 2022 is Rs 12.4767. The expense ratio of this fund is 0.3%, which is equal to its category average.
Sip in this fund starts at Rs 1,000. For lump-sum payment or investment in this fund, the minimum amount required is Rs 5,000. As the fund is an ultra-short duration fund, a 3 to 6-month investment period is best for this fund.
Portfolio
The fund's debt investment is 92.13 per cent, with 15.44 per cent in government securities and 76.69 per cent in funds investing in extremely low-risk securities.
The fund's credit record is excellent, suggesting that it has lent to high-quality customers. Because the majority of funds in this category lend to stronger borrowers, the risk of default in this fund is higher than in the category.
The fund's biggest holdings are Reliance Retail Ventures Ltd., HDFC Bank Ltd., the Reserve Bank of India, Canara Bank, and the Government of India.
ICICI Prudential Ultra Short Term Fund - Direct Plan-Growth
Launched on May 03, 2011, by the ICICI Prudential Mutual Funds. This ultra-short duration fund is an open-ended medium-sized fund of its category.
This fund has worth Rs 12298.87 Crore asset under management. Whereas, the recent NAV is Rs 23.9321 declared on 11th April 2022. The expense ratio of this fund is 0.39%, which is close to its category average.
This is a moderate risky fund. The minimum investment amount required for this fund is Rs 5000, and for SIP, it is Rs 1000. Investors can utilise this fund for parking their surplus amount for a short period around 3 to 6 months.
Portfolio
The fund's debt investment is 86.92 per cent, with 0.2 per cent in government securities and 85.75 per cent in funds investing in very low-risk assets.
The fund's credit profile is moderate, indicating that it has loaned to borrowers of high quality. Because the majority of funds in this category lend to stronger borrowers, the risk of default in this fund is higher than in the category.
Bharti Airtel Ltd., Export-Import Bank Of India, Axis Bank Ltd., Nabha Power Ltd., and Indian Oil Corp. Ltd. are the fund's top holdings.
Absolute & Annualised Returns
Axis Ultra Short Term Fund - Direct Plan-Growth
| Investment Period | Absolute Returns | Annualised Returns |
|---|---|---|
| 1 Year | 4.16% | 4.14% |
| 2 Year | 9.96% | 4.85% |
| 3 Year | 18.50% | 5.82% |
| Since Inception | 24.77% | 6.36% |
ICICI Prudential Ultra Short Term Fund - Direct Plan-Growth
| SIP Period | Absolute Returns | Annualised Returns |
|---|---|---|
| 1 Year | 4.48% | 4.45% |
| 2 Year | 11.43% | 5.55% |
| 3 Year | 20.59% | 6.43% |
| 5 Year | 40.67% | 7.06% |
| Since Inception | 109.84% | 8.33% |
Disclaimer
Mutual fund investments are subject to market risk. Read all scheme-related documents, and Terms and Conditions carefully before investing. The above-mentioned information is purely informational and doesn't guarantee any return. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.
