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Ultra Short Term Funds
- Average Return 7.22%
- No. of Funds 24
What is Ultra Short Duration Mutual Fund
Ultra Short Duration Funds are debt funds that lend to companies for a period of 3 to 6 months. Although these are low-risk funds owing to their low lending duration, they are slightly above liquid funds in the risk spectrum but still one of the lowest risk categories of Schemes to invest in.
Advantages of Ultra Short Duration Funds
- Ideal for anyone looking to keep aside money for a couple of weeks to a few months
- Near zero risk of loss if someone invests for at least 3 months
- These Schemes tend to give similar or slightly higher returns than Bank Fixed Deposits of equal or comparable investment tenure
Top schemes of Ultra Short Duration Mutual Funds sorted by Returns
24 funds
ShowReturns for
via
#NA of NA
ETM Rank: Genius only 
Fund Size
₹7,695 Crs
Return (p.a)
+ 8.84%+ 0.7% + 9.15%+ 1.45% + 8.86%+ 2.48% + 8.45%+ 4.48% + 7.98%+ 12.8% + 7.61%+ 21.13%
ETM Rank
#NA of NA
Genius only
#NA of NA
ETM Rank: Genius only
Fund Size
₹4,131 Crs
Return (p.a)
+ 8.15%+ 0.65% + 8.66%+ 1.38% + 8.47%+ 2.37% + 8.16%+ 4.33% + 7.74%+ 12.39% + 7.17%+ 19.83%
ETM Rank
#NA of NA
Genius only
#NA of NA
ETM Rank: Genius only
Fund Size
₹13,294 Crs
Return (p.a)
+ 8.95%+ 0.71% + 9.58%+ 1.52% + 9.09%+ 2.54% + 8.63%+ 4.58% + 7.99%+ 12.8% + 7.07%+ 19.53%
ETM Rank
#NA of NA
Genius only
#NA of NA
ETM Rank: Genius only
Fund Size
₹15,092 Crs
Return (p.a)
+ 9.2%+ 0.73% + 9.37%+ 1.49% + 8.9%+ 2.49% + 8.37%+ 4.44% + 7.86%+ 12.59% + 7.06%+ 19.5%
ETM Rank
#NA of NA
Genius only
#NA of NA
ETM Rank: Genius only
Fund Size
₹6,122 Crs
Return (p.a)
+ 8.72%+ 0.69% + 9.08%+ 1.44% + 8.77%+ 2.45% + 8.34%+ 4.42% + 7.88%+ 12.62% + 7.02%+ 19.37%
ETM Rank
#NA of NA
Genius only
#NA of NA
ETM Rank: Genius only
Fund Size
₹4,817 Crs
Return (p.a)
+ 8.31%+ 0.66% + 8.8%+ 1.4% + 8.66%+ 2.42% + 8.32%+ 4.41% + 7.84%+ 12.55% + 6.94%+ 19.14%
ETM Rank
#NA of NA
Genius only
#NA of NA
ETM Rank: Genius only
Fund Size
₹2,961 Crs
Return (p.a)
+ 8.51%+ 0.67% + 9.1%+ 1.44% + 8.98%+ 2.51% + 8.46%+ 4.49% + 7.87%+ 12.61% + 6.91%+ 19.03%
ETM Rank
#NA of NA
Genius only
#NA of NA
ETM Rank: Genius only
Fund Size
₹1,073 Crs
Return (p.a)
+ 8.38%+ 0.66% + 8.69%+ 1.38% + 8.46%+ 2.37% + 8.09%+ 4.29% + 7.7%+ 12.32% + 6.86%+ 18.9%
ETM Rank
#NA of NA
Genius only
#NA of NA
ETM Rank: Genius only
Fund Size
₹2,091 Crs
Return (p.a)
+ 8.35%+ 0.66% + 8.82%+ 1.4% + 8.58%+ 2.4% + 8.19%+ 4.35% + 7.75%+ 12.41% + 6.86%+ 18.89%
ETM Rank
#NA of NA
Genius only
#NA of NA
ETM Rank: Genius only
Fund Size
₹13,225 Crs
Return (p.a)
+ 8.43%+ 0.67% + 8.9%+ 1.41% + 8.61%+ 2.41% + 8.19%+ 4.35% + 7.74%+ 12.38% + 6.85%+ 18.87%
ETM Rank
#NA of NA
Genius only
#NA of NA
ETM Rank: Genius only
Fund Size
₹260 Crs
Return (p.a)
+ 8.3%+ 0.66% + 8.64%+ 1.37% + 8.46%+ 2.37% + 8.13%+ 4.32% + 7.73%+ 12.37% + 6.83%+ 18.81%
ETM Rank
#NA of NA
Genius only
#NA of NA
ETM Rank: Genius only
Fund Size
₹1,227 Crs
Return (p.a)
+ 8.35%+ 0.66% + 8.8%+ 1.4% + 8.59%+ 2.41% + 8.22%+ 4.36% + 7.74%+ 12.39% + 6.83%+ 18.79%
ETM Rank
#NA of NA
Genius only
#NA of NA
ETM Rank: Genius only
Fund Size
₹11,873 Crs
Return (p.a)
+ 8.64%+ 0.68% + 9.13%+ 1.45% + 8.7%+ 2.44% + 8.2%+ 4.35% + 7.71%+ 12.33% + 6.82%+ 18.79%
ETM Rank
#NA of NA
Genius only
#NA of NA
ETM Rank: Genius only
Fund Size
₹2,665 Crs
Return (p.a)
+ 8.5%+ 0.67% + 8.91%+ 1.41% + 8.61%+ 2.41% + 8.17%+ 4.33% + 7.7%+ 12.32% + 6.8%+ 18.71%
ETM Rank
#NA of NA
Genius only
#NA of NA
ETM Rank: Genius only
Fund Size
₹231 Crs
Return (p.a)
+ 7.77%+ 0.62% + 8.41%+ 1.34% + 8.26%+ 2.32% + 7.94%+ 4.22% + 7.55%+ 12.08% + 6.72%+ 18.49%
ETM Rank
#NA of NA
Genius only
Show all funds
Returns Calculator
See what your investment would have yielded in
Invested ₹ 6 Lakh
Profit ₹ 3.33 Lakh
₹ 9.33 Lakh
This fund has generated an XIRR of 7.61% over the past 5 Years
SIP Calculator
Mutual Fund Calculator
Lumpsum CalculatorHow to invest in Ultra Short Duration Funds?
Investing in Ultra Short Duration mutual funds on the ET Money app is simple. Follow these steps:
For Desktop Users:
- Click on the "Invest" button next to the scheme in the Ultra Short Duration fund list shown above.
- Scan the QR code to download the app.
For Mobile Users:
- Tap on the "Invest" button in the Ultra Short Duration fund list to download the app.
- Open the app, sign up, and complete your one-time KYC process, or log in if you're already registered.
- Search for the mutual fund you want to invest in and choose your investment mode (Lump sum investment or SIP).
- Enter your investment amount.
- Fill in the required details, including your bank account for payment, and confirm.
All set! Your investment is complete.
Frequently Asked Questions
Which are the best Ultra Short Duration Mutual Funds to invest in 2025?
These are top 5 Ultra Short Duration funds you can invest in 2025
| Fund Name | Fund Category | Consistency | 5.0 Year Return (Annualized) |
|---|---|---|---|
| Sundaram Ultra Short Duration Fund | Debt | 5.99 % p.a. | |
| LIC MF Ultra Short Duration Fund | Debt | 5.55 % p.a. | |
| Kotak Savings Fund | Debt | 6.04 % p.a. | |
| Motilal Oswal Ultra Short Term Fund | Debt | 5.03 % p.a. | |
| HDFC Ultra Short Term Fund | Debt | 6.13 % p.a. |
How long should I stay invested in Ultra Short Duration Mutual Funds?
Ultra Short Duration Debt Mutual Funds are ideal for an investment horizon of 6 months to 1 year.
Where do Ultra Short Duration Mutual Funds invest?
Ultra Short Duration Funds lend for 3 to 6 months. They mostly lend to borrowers who are financially strong and also to the government.
Are Ultra Short Duration Mutual Funds high risk?
Ultra Short Duration Funds are low-risk funds owing to their low lending duration. Although the risk is slightly higher than liquid funds.
What kind of returns can I earn from Ultra Short Duration ?
Ultra Short Duration Funds have on an average delivered 7.82% p.a. returns in the last 1 year. Their 3 and 5 year annualized returns are 7.22% and 5.97%. p.a.
