This Short Term Fund Has Outperformed Category Average, Rated 5-Star By Value Research

Short-term investments are defined as short-term investments or marketable securities that may be turned into cash quickly, usually within five years. Short-term investments are highly liquid assets that are meant to serve as a secure and temporary home for surplus cash. Here, we have highlighted a short term fund from Nippon India, rated 5-stars by the Value Research in 1 year investment horizon.

Nippon India Short Term Fund - Direct Plan

NAV	Fund Size	Expense Ratio
₹45.07	₹ 9692.4 Cr	0.35%

NAV as on 08 February 2022

It is a Short Duration mutual fund scheme from Nippon India Mutual Fund. It is an open-ended short-term debt scheme that invests in securities with a Macaulay period of one to three years. Nippon India Short Term Fund Direct-Growth has Rs 9,330 Crores worth of AUM as of 31 December 2021. The fund has an expense ratio of 0.35%, which is close to what most other Short Duration funds charge. The 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 one-year returns of the fund are 5.89%, which is higher than its category average returns of 5.47%. Since its inception, it has generated an average yearly return of 8.51%. 

The Scheme's principal goal is to provide predictable returns for clients with a short-term investment period by investing in fixed income securities with a short maturity. Investors seeking an alternative to bank deposits who wish to invest for 1-3 years can opt for the investment in the fund. In the past, the fund has not only provided respectable returns, but it has also done so with outstanding regularity. All of this suggests that the Nippon India Short-term Fund might be a suitable addition to your portfolio.

Returns Over The Years

Lump Sum Investment Returns

On Investment of Rs 10,000

Period Invested	Absolute Returns	Annualised Returns	Category Avg
1 Year	5.89%	5.89%	5.47%
2 Year	14.63%	7.05%	6.30%
3 Year	26.99%	8.28%	6.50%
5 Year	43.94%	7.55%	6.61%
Since Inception	110.34%	8.51%	7.64%

Returns SIP

On Investment of Rs 1,000

Period Invested	Absolute Returns	Annualised Returns
1 Year	2.56%	4.74%
2 Year	6.27%	5.94%
3 Year	11.29%	7.05%
5 Year	21.11%	7.58%

Portfolio

The fund has a debt investment of 93.86%, with 13.04% in government securities and 80.82% in funds investing in extremely low-risk securities.  Fund's interest rate risk is high, while credit risk is mild. 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 top holdings are in Government of India, Axis Bank Ltd., Rural Electrification Corpn. Ltd., State Bank of India, India Infradebt Ltd.

Holding Name	Percentage of Portfolio
Government of India	6.25%
Axis Bank Ltd.	4.81%
Rural Electrification Corpn. Ltd.	4.76%

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.