debt Fund

Short Duration Funds

For 1–3 year goals balancing yield with controlled duration risk.

Avg. Return (5Y)

7.68%

No. of Funds

Risk Level

Moderate

Ideal Horizon

1 – 3 years

Top Short Duration Funds Sorted by Returns

Scheme

HDFC Short Term Debt Fund

HDFC MF

Expense: 0.38%

1Y: 7.9%

3Y: 7.1%

5Y: 6.8%

ICICI Prudential Short Term Fund

ICICI Prudential MF

Expense: 0.42%

1Y: 7.8%

3Y: 7.0%

5Y: 6.7%

Axis Short Term Fund

Axis MF

Expense: 0.35%

1Y: 7.7%

3Y: 6.9%

5Y: 6.6%

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

What is a Short Duration Fund?

Short Duration funds invest in bonds with Macaulay duration of 1–3 years. They aim to deliver higher returns than liquid/ultra short funds by taking on moderate duration and credit exposure.

Key Advantages

Better yields for 1-3 year money
Moderate interest rate sensitivity
Diversified across government and corporate bonds

How It Works

The portfolio includes AAA-rated corporate bonds, government securities, and SDLs with 1-3 year duration. Fund managers actively manage duration based on interest rate expectations.