debt Fund

Low Duration Funds

For 6–12 month goals with stable returns and controlled risk.

Avg. Return (5Y)

7.45%

No. of Funds

Risk Level

Low to Moderate

Ideal Horizon

6 – 12 months

Top Low Duration Funds Sorted by Returns

Scheme

HDFC Low Duration Fund

HDFC MF

Expense: 0.30%

1Y: 7.6%

3Y: 6.8%

5Y: 6.4%

Axis Treasury Advantage Fund

Axis MF

Expense: 0.35%

1Y: 7.5%

3Y: 6.7%

5Y: 6.3%

* Returns are annualized and based on historical data. Past performance does not guarantee future results. Min. SIP: ₹500.

What is a Low Duration Fund?

Low Duration funds invest in debt instruments with a Macaulay duration of 6–12 months, striking a balance between safety and returns for short-to-medium term goals.

Key Advantages

Suitable for goals 6-12 months away
Better returns than ultra short funds
Moderate interest rate risk

How It Works

The portfolio includes corporate bonds, CPs, CDs, and government securities with 6-12 month effective maturity. Duration management is key to controlling interest rate sensitivity.