This Ultra-Short-Duration Fund, Ranked 1 By CRISIL, Has Generated Strong Returns

Investments are ideal for good returns. Investors who don't want to invest the capital for a long or even short look for ultra-short duration funds. These funds such as Liquid and Ultra Short Term Funds are ideal for investors who want to save money aside for a few weeks to a few months. If someone invests for at least three months, there is almost little possibility of losing money. These Schemes often offer similar or slightly greater yields than Bank Fixed Deposits with the same or similar investment term. Here, we have analyzed the L&T Ultra Short term Fund, ranked 1 by CRISIL as of 31 December 2021.

L&T Ultra Short term Fund-Growth

NAV	Fund Size	Expense Ratio
₹36.13	₹ 1892.35 Cr	0.23%

As of 03 February 2022, the L&T Ultra Short Term Fund's current net asset value under the Growth option of its Direct plan is Rs 36.1277. As of December 31, 2021, the Fund has Rs 1892 crore in assets under management (AUM). The fund's expense ratio is 0.23%, which is comparable to the expense ratios charged by most other Ultra Short Duration funds. It is an open-ended fund. On risk meter scale, it is rated low to moderate risk fund for the investments. 

Exit Load is not attracted to the offered fund. The minimum investment is Rs 10,000, with an additional investment of Rs 1000. A Rs 1000 minimum SIP investment is required for the fund. 

The fund will not invest in stocks or securities that are connected to stocks. It will invest primarily in a well-diversified and highly liquid portfolio of money market instruments, government securities, and corporate debt to achieve this goal. It aims to provide the investor with an acceptable and predictable income stream as well as liquidity. 

This fund is designed to yield somewhat higher returns than a bank account or a short-term fixed deposit. The fund's credit record is outstanding, suggesting that it has been loaned to borrowers of high quality. Because most funds in this category lend to comparable borrowers, the risk of default is similar across the board. 

GOI, HDFC Bank Ltd., Reserve Bank of India, Axis Bank Ltd., and Small Industries Development Bank of India Ltd. are among the fund's top holdings.

Absolute and Annualized Returns

On Investment of Rs 10,000

Period Invested for	Absolute Returns	Annualised Returns	Category Avg
1 Year	3.59%	3.59%	4.42%
2 Year	9.25%	4.52%	4.91%
3 Year	17.68%	5.56%	5.79%
5 Year	35.78%	6.30%	6.17%
Since Inception	94.47%	7.59%	6.51%

SIP Returns

Returns on Rs 1,000 SIP 

Period Invested for	Absolute Returns	Annualised Returns
1 Year	1.88%	3.47%
2 Year	3.97%	3.78%
3 Year	7.13%	4.51%
5 Year	15.15%	5.57%

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 CRISIL 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.