This Short Term Fund Has Given Good Returns Over The Year, Rated 5 Star By Value Research

Short-term debt funds mostly invest in bonds with a one- to three-year maturity duration. They're appropriate for one- to three-year investment horizons, as well as the fixed-income component of a longer-term portfolio. You can anticipate making more money than if you put your money in a bank fixed deposit. Your investing horizon is critical since it will influence your investment selection. Here, we have highlighted a short-term fund from Aditya Birla Sun Life, the fund is rated 5 stars by Value Research in the short category for wealth generation.

Aditya Birla Sun Life Short Term Fund - Direct Plan

NAV	Fund Size	Expense Ratio
₹40.23	₹ 9319.7 Cr	0.42%

NAV as on 10 February 2022

The fund was launched on January 1, 2013. As of December 31, 2021, Aditya Birla Sun Life Short Term Direct Plan-Growth has an AUM of Rs 9,320 Cr, making it a medium-sized fund in its category. The fund's expense ratio is 0.42%, which is greater than the expense ratios charged by most other Short Duration funds. Aditya Birla Sun Life Short Term Direct Fund has a one-year growth rate of 5.53%. It has returned an average of 9.09% every year since its inception.

Every nine years, the fund has doubled the money invested in it. Its ability to provide consistent returns is comparable to that of other funds in its category. Furthermore, it has an above-average capacity to manage losses in a declining market. The fund's credit profile is strongly suggesting it has lent to debtors whose quality is exceptional. Because most funds in this category lend to stronger borrowers, the risk of default is higher in this fund than in others in the category. This means the fund hasn't delivered spectacular returns and even those that have been variable. The fund's performance is average among its peer. On the risk level, it is a moderate risk fund. Investors seeking an alternative to bank deposits and wishing to invest for a period of one to three years can look f for this fund for investment. 

Returns

Lump Sum Returns

On Investment of Rs 10,000

1-Year	3-Year	5-Year	Since Inception
5.47%	8.43%	7.91%	9.09%

SIP Returns

On Investment of Rs 1,000

Period Invested	Absolute Returns	Annualised Returns
1 Year	2.61%	4.84%
2 Year	6.67%	6.32%
3 Year	11.73%	7.31%
5 Year	21.91%	7.84%

 

Portfolio

The fund has a debt investment of 94.81%, with 24.68% in government securities and 69.83% in low-risk assets.

The following are Aditya Birla Sun Life Short Term Fund's top three debt holdings:

Holding Name	Percentage of Portfolio
State Bank of India	4.72%
Others	3.53%
Bihar State	3.40%

 

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 Value Research and MoneyControl. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.