This Top-Rated Short Duration Fund With Rs 100 SIP Offered Good Returns, Check Returns

Short Duration debt funds invest mainly in bonds maturing in a period of one to three years. They are suitable for investment horizons of one to three years, or the fixed-income allocation in your longer-term portfolio. You can expect to earn higher returns than what a bank fixed deposit can fetch. In this article, we have given insights into one short-duration fund with above-average returns among its peer mutual fund.

Nippon India Short Tern fund-Direct- Growth

Nippon India Short Term Fund Direct-Growth is a short-term debt fund from the house of Nippon India Mutual Fund, and it was launched on January 2, 2013. As of 31 January 2022, the Direct-Growth Fund has Rs 9,329.85 crores in assets under administration. As of March 3, 2022, the most recent NAV declared is Rs 45.3406. It is a medium-sized open-ended fund in its category. The expenditure ratio of the Fund's Direct-Growth plan is the same as the 0.35 percent category average. Fund managers Vivek Sharma and Sushil Budhia are now in charge of the fund. It has given above-average performance among its peers' mutual funds. For investments, the fund has a low-risk rating. CRISIL has awarded this fund a four-star rating, whereas Value Research has given it a five-star rating. The fund's top holdings are in GOI, Axis Bank Ltd., Rural Electrification Corpn. Ltd., State Bank of India, India Infradebt Ltd.

Returns and Performance

Nippon India Short Term Fund - Direct-Growth has given promising returns over the year. Its returns outperformed the category average returns in 1, 2, 3, and 5 years. Since its launch, the fund under the direct-growth scheme has given 8.52% returns, which is better than its annual average return.

Annualized and Absolute Returns

Tenure	Absolute Returns	Annualised Returns	Category Avg
1 Year	6.20%	6.20%	5.71%
2 Year	14.89%	7.19%	6.28%
3 Year	27.43%	8.40%	6.50%
5 Year	44.43%	7.63%	6.62%
Since Inception	111.58%	8.52%	7.64%

SIP Returns

Tenure	Absolute Returns	Annualised Returns
1 Year	2.78%	5.21%
2 Year	6.40%	6.10%
3 Year	11.33%	7.10%
5 Year	21.24%	7.64%

Should You Invest?

Nippon India Short Term Fund Direct-Growth scheme's ability to deliver returns consistently is higher than most funds of its category. Its ability to control losses in a falling market is high. The fund's credit profile is high indicating it has lent to borrowers whose quality is great. Most funds in this category lend to better borrowers and hence the risk of default in this fund is higher than the category. These funds provide a minimal risk of loss, but they do not provide the same level of return or capital protection as a bank deposit. There have been cases where short-term funds have lost money. Investors who are seeking an alternative to bank deposits and wishing to invest for a period of one to three years can opt to invest in this fund.

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.