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ULTRA SHORT FUNDS – In Detail

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best ultra short term funds

Ultra Short Term mutual funds invest in money market instruments and debt securities so that the Macaulay Duration of the fund’s portfolio is in-between 3-6 months. Thus, conservative investors with a horizon of 3-6 months will find these funds ideal. Also, these funds are suited for investors who are looking to fulfil their financial goals within 6 months. However, the average returns range between 7-9%.  

Ultra Short Term Funds – The Working 

The fund manager selects debt securities and money market instruments according to the investment objective, also, ensuring that the Macaulay duration of the fund is between 3-6 months.  

Investment in Best Ultra Short Funds – Yes OR No? 

Like said, the Macaulay duration of an ultra short term mutual fundsis between 3-6 months, it is suitable to the investor who is looking to invest with a horizon of within 6 months along with a low-risk preference. Furthermore, these funds offer better returns as compared to the savings account for a same tenure. Make sure, you decide upon these funds according to your investment objective and financial plan.  

Factors to Consider 

Here: 

  • Risks & ReturnsStudy your portfolio before investing in ultra short funds. Also, make sure you have knowledge about your risk-appetite and returns you are expecting. Keep yourself updated from the fund manager regarding the same.  
  • Investment PlanClearly define your risk tolerance, investment horizon, and the objective you are looking for. Ultra short funds are best designed for investors looking for an investment upto 6 months.  
  • Expense RatioLook for the schemes with a low expense ratio. 

Top 5 Ultra Short Mutual Funds as per Gulaq 

Here: 

  • PGIM India Ultra Short Term FundIt is a debt mutual fund scheme that was launched by DHFL Pramerica mutual fund. Later on, it was introduced on 2nd Jan 2013 to its investors. Currently, the fund is managed by Kunal Jain, and Kumaresh Ramakrishnan. Talking about AUM, it is of INR 127 Cr, and the latest NAV is INR 25.98 (dated as of 20th Feb 2020). The fund growth is rated as moderately low risk. Also, the minimum SIP investment is INR 500, and, lumpsum is INR 5000. 
  • ICICI Prudential Ultra Short Term FundIt is debt mutual fund scheme that was launched by ICICI Prudential mutual fund. Later on, it was introduced on 10th Jan 2013 to its investors. Currently, the fund is managed by Ritesh Lunawat, Rajat Chandak, and Manish BanthiaTalking about AUM, it is of INR 7866 Cr, and the latest NAV is of INR 21.35 (dated as of 20th Feb 2020). The fund growth is rated as moderate risk. Also, the minimum SIP investment is INR 1000, and lumpsum is INR 5000.  
  • Aditya Birla Sun Life Savings FundIt is a debt mutual fund scheme that was launched by Aditya Birla Sun Life mutual fund. Later on, it was introduced on 1st Jan 2013 to its investors. Currently, the fund is managed by Kaustubh Gupta, and Sunaina da Cunha. Talking about AUM, it is of INR 17,355 Cr, and the latest NAV is of INR 399.01 (dated as of 20th Feb 2020). The fund growth is rated as moderately low risk. Also, the minimum investment is INR 1000.  
  • Invesco India Ultra Short Term FundIt is a debt mutual fund scheme that was launched by Invesco mutual fund. Later on, it was introduced on 1st Jan 2013 to its investors. Currently, the fund is managed by Nitish Sikand. Taking about AUM, it is of INR 625 Cr, and the latest NAV is of INR 1496.21 (dated as of 20th Feb 2020). The fund growth is rated as moderate risk. Also, the minimum SIP investment is INR 1000.  
  • BOI AXA Ultra Short Duration FundIt is a debt mutual fund scheme that was launched by BOI AXA mutual fund. Later on, it was introduced on 1st Jan 2013 to its investors. Currently, the fund is managed by Piyush Baranwal. Talking about AUM it is of INR 301 Cr, and the latest NAV is of INR 2443.71 (dated as of 20th Feb 2020). The fund growth is rated moderately low risk. Also, the minimum SIP investment is INR 1000, and, lumpsum investment is INR 5000.  

 Looking to invest? Hop on to gulaq.com and start investing in direct mutual funds. Furthermore, you can also get in touch: [email protected]  or Whatsapp 91-9818894632

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*Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.   

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