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Top 5 Best Performing Ultra Short Term Debt Funds for SIP Investment FY 25 - 26
Top 5 Debt - Ultrashort Bond Funds

5 Best Ultra Short Term Debt Funds for SIP 2025

Updated on March 20, 2025 , 2750 views

Ultra short term Debt fund are a type of Mutual Funds that are highly suitable for a short-term Investment plan. These funds invest in debt instruments that have an average maturity of more than 91 days. These funds provide better returns and have a higher maturity than liquid debt funds, but are more volatile than Liquid Funds. Investors with a low-risk appetite tend to invest in ultra short term funds, as they have higher yields than other Money market funds. Thus, investors who are looking to park their money for a year or less can ideally invest in this scheme. To earn better returns, one can choose funds for the below listed Best Ultra Short term SIP funds.

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Top 5 Best Performing Ultra Short Term Debt Funds for SIP Investment FY 25 - 26

Fund	NAV	Net Assets (Cr)	Min SIP Investment	3 MO (%)	6 MO (%)	1 YR (%)	3 YR (%)	2023 (%)	Debt Yield (YTM)	Mod. Duration	Eff. Maturity
Aditya Birla Sun Life Savings Fund Growth	₹535.334 ↑ 0.22	₹14,988	1,000	1.7	3.7	7.7	6.8	7.9	7.84%	5M 19D	7M 20D
ICICI Prudential Ultra Short Term Fund Growth	₹27.079 ↑ 0.01	₹13,017	1,000	1.7	3.5	7.3	6.5	7.5	7.74%	5M 1D	7M 6D
Invesco India Ultra Short Term Fund Growth	₹2,639.18 ↑ 0.79	₹1,337	1,000	1.8	3.5	7.1	6.3	7.5	7.5%	5M 13D	5M 29D
Nippon India Ultra Short Duration Fund Growth	₹3,942.93 ↑ 1.86	₹7,545	100	1.7	3.4	7.1	6.4	7.2	7.73%	5M 4D	7M 1D
Kotak Savings Fund Growth	₹41.9458 ↑ 0.03	₹12,726	1,000	1.7	3.4	7.1	6.4	7.2	7.63%	5M 23D	6M 7D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 21 Mar 25

*Above is list of best Ultra-Short funds are having AUM/Net Assets above 100 Crore. Sorted on Last 1 Year Return.

1. Aditya Birla Sun Life Savings Fund

The primary objective of the schemes is to generate regular income through investments in debt and money market instruments. Income maybe generated through the receipt of coupon payments or the purchase and sale of securities in the underlying portfolio. The schemes will under normal market conditions, invest its net assets in fixed income securities, money market instruments, cash and cash equivalents.

Aditya Birla Sun Life Savings Fund is a Debt - Ultrashort Bond fund was launched on 16 Apr 03. It is a fund with Moderately Low risk and has given a CAGR/Annualized return of 7.4% since its launch. Ranked 6 in Ultrashort Bond category. Return for 2024 was 7.9% , 2023 was 7.2% and 2022 was 4.8% .

Below is the key information for Aditya Birla Sun Life Savings Fund

Aditya Birla Sun Life Savings Fund Growth
Launch Date	16 Apr 03
NAV (21 Mar 25)	₹535.334 ↑ 0.22 (0.04 %)
Net Assets (Cr)	₹14,988 on 28 Feb 25
Category	Debt - Ultrashort Bond
AMC	Birla Sun Life Asset Management Co Ltd
Rating	☆☆☆☆☆
Risk	Moderately Low
Expense Ratio	0.54
Sharpe Ratio	3.52
Information Ratio	0
Alpha Ratio	0
Min Investment	1,000
Min SIP Investment	1,000
Exit Load	NIL
Yield to Maturity	7.84%
Effective Maturity	7 Months 20 Days
Modified Duration	5 Months 19 Days

Growth of 10,000 investment over the years.

Date	Value
29 Feb 20	₹10,000
28 Feb 21	₹10,626
28 Feb 22	₹11,076
28 Feb 23	₹11,643
29 Feb 24	₹12,502
28 Feb 25	₹13,466

Aditya Birla Sun Life Savings Fund SIP Returns

Total investment amount is ₹180,000
expected amount after 3 Years is ₹200,132.
Net Profit of ₹20,132 Invest Now

Returns for Aditya Birla Sun Life Savings Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 21 Mar 25

Duration	Returns
1 Month	0.5%
3 Month	1.7%
6 Month	3.7%
1 Year	7.7%
3 Year	6.8%
5 Year	6.4%
10 Year
15 Year
Since launch	7.4%

Historical performance (Yearly) on absolute basis

Year	Returns
2023	7.9%
2022	7.2%
2021	4.8%
2020	3.9%
2019	7%
2018	8.5%
2017	7.6%
2016	7.2%
2015	9.2%
2014	8.9%

Fund Manager information for Aditya Birla Sun Life Savings Fund

Name	Since	Tenure
Sunaina Cunha	20 Jun 14	10.7 Yr.
Kaustubh Gupta	15 Jul 11	13.64 Yr.
Monika Gandhi	22 Mar 21	3.95 Yr.

Data below for Aditya Birla Sun Life Savings Fund as on 28 Feb 25

Asset Allocation

Asset Class	Value
Cash	49.07%
Debt	50.65%
Other	0.28%

Debt Sector Allocation

Sector	Value
Corporate	64.46%
Cash Equivalent	31.98%
Government	3.28%

Credit Quality

Rating	Value
AA	32.68%
AAA	67.32%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
National Housing Bank 7.83% Debentures \| -	5%	₹820 Cr	82,000
Shriram Finance Company Limited Debentures \| -	4%	₹603 Cr	60,000
Nirma Limited Debentures \| -	3%	₹486 Cr	48,500
364 DTB Sovereign Bonds \| -	3%	₹469 Cr	47,500,000
National Housing Bank Debentures \| -	3%	₹400 Cr	40,000
Mankind Pharma Ltd Debentures \| -	2%	₹305 Cr	30,500
Bajaj Housing Finance Ltd. 8% Debentures \| -	2%	₹301 Cr	30,000
Avanse Financial Services Ltd 9.40% Debentures \| -	2%	₹299 Cr	30,000
ICICI Home Finance Company Limited Debentures \| -	2%	₹270 Cr	27,000
Sk Finance Ltd Debentures \| -	2%	₹248 Cr	25,000

2. ICICI Prudential Ultra Short Term Fund

(Erstwhile ICICI Prudential Regular Income Fund)

The fund’s objective is to generate regular income through investments primarily in debt and money market instruments. As a secondary objective, the Scheme also seeks to generate long term capital appreciation from the portion of equity investments under the Scheme.

ICICI Prudential Ultra Short Term Fund is a Debt - Ultrashort Bond fund was launched on 3 May 11. It is a fund with Moderate risk and has given a CAGR/Annualized return of 7.4% since its launch. Ranked 27 in Ultrashort Bond category. Return for 2024 was 7.5% , 2023 was 6.9% and 2022 was 4.5% .

Below is the key information for ICICI Prudential Ultra Short Term Fund

ICICI Prudential Ultra Short Term Fund Growth
Launch Date	3 May 11
NAV (21 Mar 25)	₹27.079 ↑ 0.01 (0.05 %)
Net Assets (Cr)	₹13,017 on 15 Mar 25
Category	Debt - Ultrashort Bond
AMC	ICICI Prudential Asset Management Company Limited
Rating	☆☆☆
Risk	Moderate
Expense Ratio	0.86
Sharpe Ratio	1.8
Information Ratio	0
Alpha Ratio	0
Min Investment	5,000
Min SIP Investment	1,000
Exit Load	0-1 Months (0.5%),1 Months and above(NIL)
Yield to Maturity	7.74%
Effective Maturity	7 Months 6 Days
Modified Duration	5 Months 1 Day

Growth of 10,000 investment over the years.

Date	Value
29 Feb 20	₹10,000
28 Feb 21	₹10,583
28 Feb 22	₹11,012
28 Feb 23	₹11,555
29 Feb 24	₹12,385
28 Feb 25	₹13,292

ICICI Prudential Ultra Short Term Fund SIP Returns

Total investment amount is ₹180,000
expected amount after 3 Years is ₹200,132.
Net Profit of ₹20,132 Invest Now

Returns for ICICI Prudential Ultra Short Term Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 21 Mar 25

Duration	Returns
1 Month	0.5%
3 Month	1.7%
6 Month	3.5%
1 Year	7.3%
3 Year	6.5%
5 Year	6.1%
10 Year
15 Year
Since launch	7.4%

Historical performance (Yearly) on absolute basis

Year	Returns
2023	7.5%
2022	6.9%
2021	4.5%
2020	4%
2019	6.5%
2018	8.4%
2017	7.5%
2016	6.9%
2015	9.8%
2014	9.1%

Fund Manager information for ICICI Prudential Ultra Short Term Fund

Name	Since	Tenure
Manish Banthia	15 Nov 16	8.3 Yr.
Ritesh Lunawat	15 Jun 17	7.72 Yr.

Data below for ICICI Prudential Ultra Short Term Fund as on 15 Mar 25

Asset Allocation

Asset Class	Value
Cash	57.2%
Debt	42.52%
Other	0.28%

Debt Sector Allocation

Sector	Value
Corporate	54.47%
Cash Equivalent	34.55%
Government	10.71%

Credit Quality

Rating	Value
AA	19.83%
AAA	80.17%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
LIC Housing Finance Limited Debentures \| -	3%	₹435 Cr	4,350
364 DTB 13032025 Sovereign Bonds \| -	3%	₹398 Cr	40,000,000
Bharti Telecom Limited Debentures \| -	2%	₹326 Cr	32,500
National Bank For Agriculture And Rural Development Debentures \| -	2%	₹304 Cr	30,500
L&T Metro Rail (Hyderabad) Limited Debentures \| -	2%	₹299 Cr	3,000
Small Industries Development Bank Of India Debentures \| -	2%	₹299 Cr	3,000
LIC Housing Finance Limited Debentures \| -	2%	₹275 Cr	2,750 ↑ 500
Power Finance Corporation Limited Debentures \| -	2%	₹225 Cr	2,250
Small Industries Development Bank Of India Debentures \| -	2%	₹220 Cr	2,200 ↓ -1,550
Oberoi Realty Ltd. Debentures \| -	1%	₹200 Cr	20,000

3. Invesco India Ultra Short Term Fund

(Erstwhile Invesco India Medium Term Bond Fund)

The objective is to generate regular income and capital appreciation by investing in a portfolio of medium term debt and money market instruments.

Invesco India Ultra Short Term Fund is a Debt - Ultrashort Bond fund was launched on 30 Dec 10. It is a fund with Moderate risk and has given a CAGR/Annualized return of 7.1% since its launch. Ranked 40 in Ultrashort Bond category. Return for 2024 was 7.5% , 2023 was 6.6% and 2022 was 4.1% .

Below is the key information for Invesco India Ultra Short Term Fund

Invesco India Ultra Short Term Fund Growth
Launch Date	30 Dec 10
NAV (21 Mar 25)	₹2,639.18 ↑ 0.79 (0.03 %)
Net Assets (Cr)	₹1,337 on 28 Feb 25
Category	Debt - Ultrashort Bond
AMC	Invesco Asset Management (India) Private Ltd
Rating	☆☆☆
Risk	Moderate
Expense Ratio	0.74
Sharpe Ratio	1.38
Information Ratio	0
Alpha Ratio	0
Min Investment	5,000
Min SIP Investment	1,000
Exit Load	NIL
Yield to Maturity	7.5%
Effective Maturity	5 Months 29 Days
Modified Duration	5 Months 13 Days

Growth of 10,000 investment over the years.

Date	Value
29 Feb 20	₹10,000
28 Feb 21	₹10,461
28 Feb 22	₹10,795
28 Feb 23	₹11,280
29 Feb 24	₹12,087
28 Feb 25	₹12,953

Invesco India Ultra Short Term Fund SIP Returns

Total investment amount is ₹180,000
expected amount after 3 Years is ₹197,169.
Net Profit of ₹17,169 Invest Now

Returns for Invesco India Ultra Short Term Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 21 Mar 25

Duration	Returns
1 Month	0.5%
3 Month	1.8%
6 Month	3.5%
1 Year	7.1%
3 Year	6.3%
5 Year	5.5%
10 Year
15 Year
Since launch	7.1%

Historical performance (Yearly) on absolute basis

Year	Returns
2023	7.5%
2022	6.6%
2021	4.1%
2020	3%
2019	5.1%
2018	7.6%
2017	7.3%
2016	7.1%
2015	9.1%
2014	8.3%

Fund Manager information for Invesco India Ultra Short Term Fund

Name	Since	Tenure
Krishna Cheemalapati	4 Jan 20	5.16 Yr.
Vikas Garg	27 Jul 21	3.6 Yr.

Data below for Invesco India Ultra Short Term Fund as on 28 Feb 25

Asset Allocation

Asset Class	Value
Cash	57.23%
Debt	42.51%
Other	0.26%

Debt Sector Allocation

Sector	Value
Corporate	43.63%
Cash Equivalent	43.11%
Government	13.01%

Credit Quality

Rating	Value
AA	17.05%
AAA	82.95%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
182 DTB 18102024 Sovereign Bonds \| -	6%	₹85 Cr	8,500,000
Small Industries Development Bank Of India Debentures \| -	3%	₹50 Cr	5,000,000 ↑ 5,000,000
182 DTB 31072025 Sovereign Bonds \| -	3%	₹49 Cr	5,000,000
Cholamandalam Investment And Finance Company Limited Debentures \| -	3%	₹40 Cr	4,000,000
Export Import Bank Of India Debentures \| -	3%	₹40 Cr	4,000,000
Small Industries Development Bank Of India Debentures \| -	2%	₹35 Cr	3,500,000 ↑ 3,500,000
Ongc Petro Additions Limited Debentures \| -	2%	₹30 Cr	3,000,000
364 DTB Sovereign Bonds \| -	2%	₹30 Cr	3,000,000
Export Import Bank Of India Debentures \| -	2%	₹30 Cr	3,000,000
Bharti Telecom Limited Debentures \| -	2%	₹25 Cr	2,500,000

4. Nippon India Ultra Short Duration Fund

(Erstwhile Reliance Liquid Fund - Cash Plan)

The investment objective of the Scheme is to generate optimal returns consistent with moderate levels of risk and high liquidity. Accordingly, investments shall predominantly be made in Debt and Money Market Instruments.

Nippon India Ultra Short Duration Fund is a Debt - Ultrashort Bond fund was launched on 7 Dec 01. It is a fund with Low risk and has given a CAGR/Annualized return of 6.1% since its launch. Ranked 62 in Ultrashort Bond category. Return for 2024 was 7.2% , 2023 was 6.7% and 2022 was 4.6% .

Below is the key information for Nippon India Ultra Short Duration Fund

Nippon India Ultra Short Duration Fund Growth
Launch Date	7 Dec 01
NAV (21 Mar 25)	₹3,942.93 ↑ 1.86 (0.05 %)
Net Assets (Cr)	₹7,545 on 28 Feb 25
Category	Debt - Ultrashort Bond
AMC	Nippon Life Asset Management Ltd.
Rating	☆☆
Risk	Low
Expense Ratio	1.14
Sharpe Ratio	0.98
Information Ratio	0
Alpha Ratio	0
Min Investment	100
Min SIP Investment	100
Exit Load	NIL
Yield to Maturity	7.73%
Effective Maturity	7 Months 1 Day
Modified Duration	5 Months 4 Days

Growth of 10,000 investment over the years.

Date	Value
29 Feb 20	₹10,000
28 Feb 21	₹10,405
28 Feb 22	₹11,229
28 Feb 23	₹11,779
29 Feb 24	₹12,593
28 Feb 25	₹13,493

Nippon India Ultra Short Duration Fund SIP Returns

Total investment amount is ₹180,000
expected amount after 3 Years is ₹200,132.
Net Profit of ₹20,132 Invest Now

Returns for Nippon India Ultra Short Duration Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 21 Mar 25

Duration	Returns
1 Month	0.5%
3 Month	1.7%
6 Month	3.4%
1 Year	7.1%
3 Year	6.4%
5 Year	6.5%
10 Year
15 Year
Since launch	6.1%

Historical performance (Yearly) on absolute basis

Year	Returns
2023	7.2%
2022	6.7%
2021	4.6%
2020	7.8%
2019	4.9%
2018	0.9%
2017	7.3%
2016	5.8%
2015	6.8%
2014	7.6%

Fund Manager information for Nippon India Ultra Short Duration Fund

Name	Since	Tenure
Vivek Sharma	1 Oct 13	11.42 Yr.
Kinjal Desai	25 May 18	6.77 Yr.
Akshay Sharma	1 Dec 22	2.25 Yr.

Data below for Nippon India Ultra Short Duration Fund as on 28 Feb 25

Asset Allocation

Asset Class	Value
Cash	61.67%
Debt	38.06%
Other	0.26%

Debt Sector Allocation

Sector	Value
Corporate	45.76%
Cash Equivalent	43.86%
Government	10.11%

Credit Quality

Rating	Value
AA	17.06%
AAA	82.94%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
National Bank For Agriculture And Rural Development Debentures \| -	4%	₹309 Cr	3,100
182 DTB 12062025 Sovereign Bonds \| -	3%	₹240 Cr	24,500,000
PNb Housing Finance Limited Debentures \| -	3%	₹225 Cr	22,500
Small Industries Development Bank Of India Debentures \| -	3%	₹199 Cr	2,000
Indinfravit Trust Debentures \| -	2%	₹187 Cr	19,500
Rec Limited Debentures \| -	2%	₹182 Cr	1,850
HDFC Credila Financial Services Ltd Debentures \| -	2%	₹166 Cr	16,500 ↓ -1,500
National Bank For Agriculture And Rural Development Debentures \| -	2%	₹125 Cr	12,500 ↑ 5,000
Rural Electrification Corporation Limited Debentures \| -	2%	₹125 Cr	12,500 ↑ 12,500
Small Industries Development Bank Of India Debentures \| -	2%	₹124 Cr	12,500

5. Kotak Savings Fund

(Erstwhile Kotak Treasury Advantage Fund)

The investment objective of the Scheme is to generate returns through investments in debt and money market instruments with a view to reduce the interest rate risk. However, there is no assurance or guarantee that the investment objective of the scheme will be achieved.

Kotak Savings Fund is a Debt - Ultrashort Bond fund was launched on 13 Aug 04. It is a fund with Moderately Low risk and has given a CAGR/Annualized return of 7.2% since its launch. Ranked 44 in Ultrashort Bond category. Return for 2024 was 7.2% , 2023 was 6.8% and 2022 was 4.5% .

Below is the key information for Kotak Savings Fund

Kotak Savings Fund Growth
Launch Date	13 Aug 04
NAV (21 Mar 25)	₹41.9458 ↑ 0.03 (0.06 %)
Net Assets (Cr)	₹12,726 on 28 Feb 25
Category	Debt - Ultrashort Bond
AMC	Kotak Mahindra Asset Management Co Ltd
Rating	☆☆☆
Risk	Moderately Low
Expense Ratio	0.8
Sharpe Ratio	0.73
Information Ratio	0
Alpha Ratio	0
Min Investment	5,000
Min SIP Investment	1,000
Exit Load	NIL
Yield to Maturity	7.63%
Effective Maturity	6 Months 7 Days
Modified Duration	5 Months 23 Days

Growth of 10,000 investment over the years.

Date	Value
29 Feb 20	₹10,000
28 Feb 21	₹10,523
28 Feb 22	₹10,883
28 Feb 23	₹11,411
29 Feb 24	₹12,212
28 Feb 25	₹13,079

Kotak Savings Fund SIP Returns

Total investment amount is ₹180,000
expected amount after 3 Years is ₹197,169.
Net Profit of ₹17,169 Invest Now

Returns for Kotak Savings Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 21 Mar 25

Duration	Returns
1 Month	0.5%
3 Month	1.7%
6 Month	3.4%
1 Year	7.1%
3 Year	6.4%
5 Year	5.7%
10 Year
15 Year
Since launch	7.2%

Historical performance (Yearly) on absolute basis

Year	Returns
2023	7.2%
2022	6.8%
2021	4.5%
2020	3.2%
2019	5.8%
2018	7.8%
2017	7.4%
2016	6.7%
2015	8.2%
2014	8.6%

Fund Manager information for Kotak Savings Fund

Name	Since	Tenure
Deepak Agrawal	15 Apr 08	16.89 Yr.
Manu Sharma	1 Nov 22	2.33 Yr.

Data below for Kotak Savings Fund as on 28 Feb 25

Asset Allocation

Asset Class	Value
Cash	66.43%
Debt	33.27%
Other	0.3%

Debt Sector Allocation

Sector	Value
Corporate	51.29%
Cash Equivalent	35.3%
Government	13.11%

Credit Quality

Rating	Value
AA	10.39%
AAA	89.61%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
182 DTB 15052025 Sovereign Bonds \| -	4%	₹492 Cr	50,000,000
Rural Electrification Corporation Limited Debentures \| -	4%	₹475 Cr	47,500 ↑ 10,000
Mankind Pharma Ltd Debentures \| -	2%	₹300 Cr	30,000
National Bank For Agriculture And Rural Development Debentures \| -	2%	₹299 Cr	30,000 ↑ 5,000
Nirma Limited 0.083% Debentures \| -	2%	₹250 Cr	25,000
National Bank For Agriculture And Rural Development Debentures \| -	2%	₹229 Cr	2,300
Bharti Telecom Limited Debentures \| -	2%	₹226 Cr	2,250
08.49 Tn SDL 2026 Sovereign Bonds \| -	2%	₹204 Cr	20,080,000 ↑ 20,080,000
182 DTB 08052025 Sovereign Bonds \| -	1%	₹182 Cr	18,500,000
INDIA UNIVERSAL TRUST AL1 Unlisted bonds \| -	1%	₹177 Cr	220

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.