Ultra Short Duration Mutual Funds in India
Updated June 2026 · 58 active funds · data from AMFI NAVs
Ultra Short Duration funds, per SEBI's definition, maintain a portfolio Macaulay duration of 3 to 6 months. That places them just beyond Liquid funds on the risk-return ladder: they hold slightly longer money-market and short-term debt instruments, accepting a touch more interest-rate sensitivity in exchange for marginally higher yield potential. Credit risk depends on the manager's choices, since the category does not restrict credit quality. The typical role is for money you can leave invested for roughly three to twelve months - beyond the Liquid-fund horizon but short of where bigger rate swings matter. Investors use them as a step up from Liquid funds for slightly better carry, or as a low-volatility holding for near-term goals. Returns are modestly higher than Liquid funds on average but with somewhat more NAV movement. The default benchmark on FindMF is the NIFTY Ultra Short Duration Debt Index. We compute trailing returns and risk metrics for all 58 Ultra Short Duration funds from AMFI-published daily NAVs using a disclosed methodology, so you can weigh yield against stability across the category.
Who it suits: Investors with a three-to-twelve-month horizon wanting slightly more yield than a Liquid fund and willing to accept a little more NAV movement.
4% of the 26 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 | Nippon India Ultra Short Duration Fund Nippon India | +6.66% | +7.57% | +7.34% | 0.20 | -0.2% | 0.42% | ₹10.7K Cr |
| 2 | Aditya Birla Sun Life Savings Fund Aditya Birla Sun Life | +6.41% | +7.48% | +6.58% | - | -0.3% | 0.32% | ₹22.0K Cr |
| 3 | Tata Ultra Short Term Fund Tata | +6.61% | +7.45% | +6.56% | - | -0.2% | 0.34% | ₹4.5K Cr |
| 4 | Axis Ultra Short Duration Fund Axis | +6.44% | +7.41% | +6.57% | - | -0.2% | 0.39% | ₹5.7K Cr |
| 5 | ICICI Prudential Ultra Short Term Fund ICICI Prudential | +6.42% | +7.40% | +6.60% | - | -0.2% | 0.41% | ₹16.8K Cr |
| 6 | Mirae Asset Ultra Short Duration Fund Mirae Asset | +6.38% | +7.39% | +6.48% | - | -0.2% | 0.22% | ₹1.9K Cr |
| 7 | DSP Ultra Short Fund DSP | +6.33% | +7.39% | +6.45% | - | -0.2% | 0.29% | ₹3.7K Cr |
| 8 | Invesco India Ultra Short Duration Fund Invesco | +6.35% | +7.30% | +6.40% | - | -0.3% | 0.30% | ₹1.2K Cr |
| 9 | UTI Ultra Short Duration Fund UTI | +6.32% | +7.30% | +6.98% | -0.28 | -0.2% | 0.37% | ₹3.8K Cr |
| 10 | Mahindra Manulife Ultra Short Duration Fund Mahindra Manulife | +6.35% | +7.30% | +6.41% | - | -0.2% | 0.30% | ₹214 Cr |
| 11 | Sundaram Ultra Short Duration Fund (Formerly Known as Principal Ultra Short Term Fund) Sundaram | +6.18% | +7.24% | - | - | -0.2% | 0.26% | ₹1.9K Cr |
| 12 | Aditya Birla Sun Life Savings Fund - Retail Aditya Birla Sun Life | +6.14% | +7.24% | +6.37% | - | -0.3% | - | ₹13 Cr |
| 13 | Baroda BNP Paribas Ultra Short Duration Fund Baroda BNP Paribas | +6.22% | +7.23% | +6.44% | - | -0.3% | 0.28% | ₹723 Cr |
| 14 | Kotak Savings Fund Kotak Mahindra | +6.25% | +7.23% | +6.39% | - | -0.3% | 0.36% | ₹16.0K Cr |
| 15 | HDFC Ultra Short Term Fund HDFC | +6.11% | +7.22% | +6.36% | - | -0.2% | 0.39% | ₹17.4K Cr |
| 16 | HSBC Ultra Short Duration Fund HSBC | +6.18% | +7.21% | +6.36% | - | -0.2% | 0.18% | ₹3.0K Cr |
| 17 | SBI ULTRA SHORT DURATION FUND SBI | +6.12% | +7.15% | +6.26% | - | -0.3% | 0.35% | ₹13.7K Cr |
| 18 | BANDHAN ULTRA SHORT DURATION FUND Bandhan | +6.16% | +7.13% | +6.24% | - | -0.3% | 0.27% | ₹3.7K Cr |
| 19 | ITI Ultra Short Duration Fund ITI | +6.17% | +7.08% | +6.20% | - | -0.2% | 0.25% | ₹199 Cr |
| 20 | LIC MF Ultra Short Duration Fund LIC | +6.30% | +7.07% | +6.07% | - | -0.1% | 0.23% | ₹229 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 Ultra Short Duration funds taxed?
As debt funds: for units bought on or after 1 April 2023, the entire gain is taxed at your slab rate regardless of holding period - no indexation, no separate long-term rate. Confirm with a tax adviser.
How is this different from a Liquid fund?
Liquid funds cap residual maturity at 91 days; Ultra Short funds target a 3-6 month Macaulay duration, so they hold slightly longer paper. That means a bit more yield potential but also more sensitivity to rate moves and credit quality. Compare realised returns and volatility on FindMF.
What expense ratio is reasonable here, and how do I compare funds?
Direct-plan expense ratios are usually modest (commonly around 0.20-0.50%). Because returns are close across funds, cost and credit quality matter. Compare net trailing returns, expense ratio and volatility on FindMF, all computed from AMFI NAVs.
Can these funds fall in value?
Yes, mildly. A rise in short-term rates or a downgrade in a holding can pull the NAV down temporarily. FindMF shows each fund's drawdown and volatility from AMFI NAVs to make that risk visible.