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This Short-Duration Fund, Ranked 1 By CRISIL, Has Offered Good Returns; See Details
For a long time, conservative investors have been advised to invest in short-term debt funds by mutual fund managers and advisors. Short-term funds, according to experts, are great for weathering interest rate rise uncertainty. Short-duration funds can invest in debt instruments with a term of one to three years, according to the SEBI mandate. That is to say, these plans are designed for one to three-year investments. Here, we have given details of a Short Duration Fund from the House of IDFC Mutual Fund, the fund is ranked 1 by rating agency CRISIL as on 31 December 2022.
IDFC Bond Fund - Short Term - Direct Plan-Growth
| NAV | Fund Size | Expense ratio |
|---|---|---|
| ₹48.47 | ₹ 13801.63 Cr | 0.30% |
NAV as on 04 February 2022
It is a short term MF from the IDFC Mutual Fund House. As of December 31, 2021, Fund's Direct Plan-Growth has an AUM of Rs 13,802 Cr, making it a medium-sized fund in its category. The fund's cost ratio is 0.3%, which is comparable to the expense ratios charged by most other Short Duration funds. The fund has returned 4.26% over the last year. It has returned an average of 8.24% every year since its inception. Every nine years, the fund has doubled the amount invested.
The fund's Direct Plan-Growth ability to provide consistent returns is comparable to that of other products in its category. It has an above-average capacity to control losses in a sinking market. The plan aims to invest in a diverse range of debt and money market assets with the goal of providing optimal short-term returns, with the portfolio's Macaulay duration ranging from one to three years.
Fund's Other Details
| Launch Date: | 01/01/13 |
| Benchmark: | NIFTY Short Duration Index |
| Riskometer: | Low to Moderate |
| Type: | Open-ended |
| Risk Grade: | Average |
| Return Grade: | Average |
| Lock-in Period | Not Applicable |
| Exit Load | 0 |
Portfolio
The fund has an 89.46% debt investment, with 48.84% in government securities and 40.62% in funds with extremely low risk securities. The fund's credit profile is high indicating it has lent to borrowers whose quality is great. Most funds in this category lend to similar borrowers and hence the risk of default in this fund is the same as the category.
The fund's top holdings are:
- Government of India
- National Bank For Agriculture & Rural Development
- Reliance Industries Ltd.
- Small Industries Devp. Bank of India Ltd.
- Housing Development Finance Corpn. Ltd.
Returns and Performance
On Investment of RS 10,000
| Period Invested for | Absolute Returns | Annualised Returns | Category Avg |
|---|---|---|---|
| 1 Year | 4.26% | 4.26% | 5.33% |
| 2 Year | 13.18% | 6.38% | 6.53% |
| 3 Year | 25.37% | 7.82% | 6.58% |
| 5 Year | 42.29% | 7.30% | 6.50% |
| Since Inception | 105.44% | 8.24% | 7.63% |
On SIP of Rs 1,000
| Period Invested for | Absolute Returns | Annualised Returns |
|---|---|---|
| 1 Year | 1.83% | 3.38% |
| 2 Year | 4.88% | 4.63% |
| 3 Year | 9.67% | 6.07% |
| 5 Year | 19.61% | 7.08% |
Disclaimer
Mutual fund investments are subject to market risk. Read all scheme-related documents, Terms and Conditions carefully before investing. The above-mentioned information is purely informational and carried forward from MoneyControl and CRISIL. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.
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