Low Duration Mutual Funds in India
Updated June 2026 · 58 active funds · data from AMFI NAVs
Low Duration funds carry a portfolio Macaulay duration of 6 to 12 months under SEBI's rules - one rung up from Ultra Short Duration. They hold a mix of money-market instruments and short-term bonds, accepting a bit more interest-rate sensitivity for somewhat higher yield potential. Credit quality is at the manager's discretion, so two Low Duration funds can differ meaningfully in the risk they take. The natural role is for money with roughly a one-to-two-year horizon: short-term goals, conservative allocations, or a parking spot offering more carry than Liquid or Ultra Short funds while keeping volatility contained. Returns tend to be modestly higher than Ultra Short funds but with larger NAV swings when rates move. Note the category is defined by duration, not credit - it is not inherently safer than its name suggests, so checking portfolio credit quality matters. The default benchmark on FindMF is the NIFTY Low Duration Debt Index. We compute trailing returns and risk metrics for all 58 Low Duration funds from AMFI-published daily NAVs using a disclosed methodology, so comparisons rest on data rather than labels.
Who it suits: Investors with a one-to-two-year horizon seeking a little more yield than ultra-short options while keeping volatility low.
48% of the 25 funds here with a computed alpha beat their benchmark over the measured window (positive alpha). Past performance is not indicative; this is analysis, not advice.
| # | Scheme | 1Y | 3Y | 5Y | Sharpe | Max DD | TER | AUM |
|---|---|---|---|---|---|---|---|---|
| 1 | HSBC Low Duration Fund HSBC | +6.14% | +7.95% | - | - | -0.2% | 0.40% | ₹1.0K Cr |
| 2 | ICICI Prudential Savings Fund ICICI Prudential | +6.17% | +7.58% | +6.61% | - | -0.6% | 0.42% | ₹30.1K Cr |
| 3 | HDFC Low Duration Fund HDFC | +6.15% | +7.55% | +6.65% | - | -0.4% | 0.46% | ₹24.3K Cr |
| 4 | Kotak Low Duration Fund Kotak Mahindra | +6.14% | +7.55% | +6.63% | - | -0.6% | 0.42% | ₹15.0K Cr |
| 5 | Mahindra Manulife Low Duration Fund Mahindra Manulife | +6.32% | +7.53% | +6.52% | - | -0.4% | 0.34% | ₹574 Cr |
| 6 | Nippon India Low Duration Fund Nippon India | +6.21% | +7.46% | +6.61% | - | -0.4% | 0.40% | ₹10.3K Cr |
| 7 | Aditya Birla Sun Life Low duration Fund Aditya Birla Sun Life | +6.11% | +7.45% | +6.65% | - | -0.4% | 0.42% | ₹14.1K Cr |
| 8 | Axis Treasury Advantage Fund Axis | +6.14% | +7.44% | +6.52% | - | -0.4% | 0.49% | ₹6.9K Cr |
| 9 | Mirae Asset Low Duration Fund Mirae Asset | +6.11% | +7.44% | +6.43% | - | -0.3% | 0.28% | ₹2.6K Cr |
| 10 | BARODA BNP PARIBAS LOW DURATION Fund Baroda BNP Paribas | +6.13% | +7.40% | - | - | -0.6% | 0.28% | ₹303 Cr |
| 11 | LIC MF Low Duration Fund LIC | +6.13% | +7.32% | +6.34% | - | -0.3% | 0.26% | ₹1.9K Cr |
| 12 | Sundaram Low Duration Fund (Formerly Known as Principal Low Duration Fund) Sundaram | +5.83% | +7.31% | - | - | -0.2% | 0.40% | ₹463 Cr |
| 13 | Tata Treasury Advantage Fund Tata | +6.00% | +7.27% | +6.33% | - | -0.5% | 0.38% | ₹3.3K Cr |
| 14 | JM Low Duration Fund (Direct) JM Financial | +6.00% | +7.27% | +6.30% | - | -0.4% | 0.40% | ₹110 Cr |
| 15 | UTI Low Duration Fund UTI | +5.94% | +7.25% | +7.40% | 0.03 | -0.4% | 0.33% | ₹2.7K Cr |
| 16 | SBI LOW DURATION FUND SBI | +5.73% | +7.25% | +6.36% | - | -0.4% | 0.44% | ₹15.6K Cr |
| 17 | CANARA ROBECO SAVINGS FUND Canara Robeco | +5.90% | +7.21% | +6.23% | - | -0.4% | 0.21% | ₹1.4K Cr |
| 18 | Invesco India Low Duration Fund Invesco | +5.86% | +7.18% | +6.23% | - | -0.4% | 0.40% | ₹1.9K Cr |
| 19 | DSP Low Duration Fund DSP | +5.76% | +7.16% | +6.27% | - | -0.4% | 0.30% | ₹5.5K Cr |
| 20 | BANDHAN Low Duration Fund Bandhan | +5.87% | +7.13% | +6.20% | - | -0.5% | 0.33% | ₹6.0K Cr |
Ranked by trailing return (3Y where available, else 1Y) on funds with at least one year of history. Returns, Sharpe, drawdown and TER are computed independently from AMFI NAVs - see methodology. No paid placement.
Frequently asked questions
How are Low Duration funds taxed?
As debt funds. For units purchased on or after 1 April 2023, the full capital gain is taxed at your slab rate regardless of holding period, with no indexation benefit. Check current rules with a tax professional.
Is a Low Duration fund automatically low-risk?
It is low on interest-rate risk by design (6-12 month duration), but the category does not restrict credit quality - some funds hold lower-rated paper for extra yield. Always review portfolio credit quality. FindMF shows realised volatility and drawdown from AMFI NAVs.
What expense ratio is reasonable, and how should I compare these funds?
Direct-plan ratios are typically modest (often around 0.30-0.60%). Since funds hold similar duration bands, cost and credit choices drive net returns. Compare expense ratio, net trailing returns and volatility side by side on FindMF.
How does this differ from Short Duration funds?
Low Duration targets 6-12 months of duration; Short Duration targets 1-3 years, so Short Duration funds carry more interest-rate risk and potentially higher return. FindMF lets you compare both categories on the same metrics from AMFI NAVs.