Top 10 Low Duration Mutual Funds

Fund NameCategoryRisk1Y ReturnsRatingFund Size(in Cr)
Edelweiss Low Duration FundDebtModerately Low-4.5%5star209
Franklin India Low Duration FundDebtModerate9.2%5star6,920
Kotak Low Duration FundDebtModerate8.6%5star5,146
Sundaram Low Duration FundDebtModerately Low2.4%4star1,164
Aditya Birla Sun Life Low DurationDebtModerately Low9.1%4star8,640
DHFL Pramerica Low Duration FundDebtLow7.5%3star669
HSBC Low Duration Fund DebtModerately Low-1.8%3star285
BNP Paribas Low Duration FundDebtLow7.3%3star304
SBI Magnum Low Duration FundDebtModerately Low8.5%3star7,566
UTI Treasury Advantage FundDebtModerately Low-4.0%3star3,048
IDFC Low Duration FundDebtModerately Low8.6%3star3,571
Reliance Low Duration FundDebtModerately Low6.8%3star4,643
Tata Treasury Advantage FundDebtModerately Low4.2%3star1,193
Mirae Asset Savings FundDebtModerately Low7.0%2star565
L&T Low Duration FundDebtModerate6.0%2star1,109
View All Top 10 Low Duration Mutual Funds

Best Low Duration Debt Mutual Funds

Let us first understand Low Duration Debt Mutual Funds. Individuals and Institutions raise debt when they need money, and pay interest based on the interest rate and duration of the debt. The interest rates can fluctuate based on the economic scenario.

Two most important factors in this transaction are:

I. The credibility of individual or institution who has raised debt

II. The time and duration of the debt is raised

Examples of debt: Fixed deposits by Banks, Debt raised by government, Fixed deposits by companies

These funds invest in short term (one year) bonds. If you are saving for very short-term goals like a vacation or buying an automobile, then this category is ideal for gains within one year. It is also an excellent resort to park your money until you decide where to invest or spend next. Returns are taxed as per your income tax slab if sold before three years and have negligible tax post that period.

Purpose: Invest here for your short term goals like a vacation, buying a bike, jewelry or expensive gadget.

Let's have a closer look

Now let us jump and check about these top 10 mutual fund schemes.

Edelweiss Low Duration Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 3.3% annualized returns in the last 3 years. In the last 1 year, it gave -4.55% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -4.55% returns in the last 1 year. Groww rated this fund as 5 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Gautam Kaul, Rahul Dedhia

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating5star
AUM209Cr
1Y Returns-4.5%

Franklin India Low Duration Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 9.07% annualized returns in the last 3 years. In the last 1 year, it gave 9.2% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 9.2% returns in the last 1 year. Groww rated this fund as 5 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Santosh Kamath, Kunal Agrawal

Launch Date31 Dec 2012
Min Investment Amt10,000
Groww Rating5star
AUM6,920Cr
1Y Returns9.2%

Kotak Low Duration Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 8.44% annualized returns in the last 3 years. In the last 1 year, it gave 8.61% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 8.61% returns in the last 1 year. Groww rated this fund as 5 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Deepak Agrawal

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating5star
AUM5,146Cr
1Y Returns8.6%

Sundaram Low Duration Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 5.77% annualized returns in the last 3 years. In the last 1 year, it gave 2.42% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 2.42% returns in the last 1 year. Groww rated this fund as 4 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Dwijendra Srivastava, Siddharth Chaudhary

Launch Date01 Jan 2013
Min Investment Amt1,000
Groww Rating4star
AUM1,164Cr
1Y Returns2.4%

Aditya Birla Sun Life Low Duration - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 8.21% annualized returns in the last 3 years. In the last 1 year, it gave 9.09% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 9.09% returns in the last 1 year. Groww rated this fund as 4 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Kaustubh Gupta, Mohit Sharma

Launch Date31 Dec 2012
Min Investment Amt100
Groww Rating4star
AUM8,640Cr
1Y Returns9.1%

DHFL Pramerica Low Duration Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided -100% annualized returns in the last 3 years. In the last 1 year, it gave 7.51% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.51% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Kumaresh Ramakrishnan

Launch Date01 Jan 2013
Min Investment Amt5,000
Groww Rating3star
AUM669Cr
1Y Returns7.5%

HSBC Low Duration Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 4.23% annualized returns in the last 3 years. In the last 1 year, it gave -1.76% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -1.76% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Kapil Punjabi

Launch Date18 Mar 2013
Min Investment Amt10,000
Groww Rating3star
AUM285Cr
1Y Returns-1.8%

BNP Paribas Low Duration Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 7.42% annualized returns in the last 3 years. In the last 1 year, it gave 7.34% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.34% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Mayank Prakash, Vikram Pamnani

Launch Date01 Jan 2013
Min Investment Amt5,000
Groww Rating3star
AUM304Cr
1Y Returns7.3%

SBI Magnum Low Duration Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 7.58% annualized returns in the last 3 years. In the last 1 year, it gave 8.46% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 8.46% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Rajiv Radhakrishnan

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating3star
AUM7,566Cr
1Y Returns8.5%

UTI Treasury Advantage Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 3.53% annualized returns in the last 3 years. In the last 1 year, it gave -4.03% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -4.03% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Sudhir Agrawal

Launch Date31 Dec 2012
Min Investment Amt10,000
Groww Rating3star
AUM3,048Cr
1Y Returns-4.0%

IDFC Low Duration Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 7.83% annualized returns in the last 3 years. In the last 1 year, it gave 8.62% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 8.62% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Anurag Mittal

Launch Date31 Dec 2012
Min Investment Amt100
Groww Rating3star
AUM3,571Cr
1Y Returns8.6%

Reliance Low Duration Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 7.19% annualized returns in the last 3 years. In the last 1 year, it gave 6.77% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 6.77% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Amit Tripathi, Anju Chajjer

Launch Date31 Dec 2012
Min Investment Amt500
Groww Rating3star
AUM4,643Cr
1Y Returns6.8%

Tata Treasury Advantage Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 6.37% annualized returns in the last 3 years. In the last 1 year, it gave 4.19% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 4.19% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Dheeraj Singh

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating3star
AUM1,193Cr
1Y Returns4.2%

Mirae Asset Savings Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 6.96% annualized returns in the last 3 years. In the last 1 year, it gave 7.04% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.04% returns in the last 1 year. Groww rated this fund as 2 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Mahendra Jajoo

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating2star
AUM565Cr
1Y Returns7.0%

L&T Low Duration Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 7.7% annualized returns in the last 3 years. In the last 1 year, it gave 6.01% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 6.01% returns in the last 1 year. Groww rated this fund as 2 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Shriram Ramanathan, Vikas Garg

Launch Date31 Dec 2012
Min Investment Amt10,000
Groww Rating2star
AUM1,109Cr
1Y Returns6.0%

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What are Low Duration Debt Mutual Funds?

Debt funds are mutual funds investing in such debt instruments. They are of different kinds depending on the kind of debt instruments they invest in. Higher the credit rating of the debtor, lesser the chance of default and hence lesser the risk is – however, returns for such instruments can be lower. Lower the duration of the debt, lesser the probability of interest rate fluctuation and hence lesser the uncertainty of returns.

Who issues Low Duration Debt mutual funds?

Asset management companies (or AMCs or fund houses) create mutual funds. All AMCs will have to be approved by the government body, Securities and Exchange Board of India (SEBI). All mutual funds have to be whetted by SEBI before it is open for the public to invest.

How to invest in low duration debt mutual funds on Groww?

One of the best ways to hedge against the small-cap volatility is to adopt a phased approach, also known as Systematic Investment Plan (SIP) approach. We are sure that you must be aware of SIP and its benefits. Buying in small quantity but buying regularly provides you with faster growth. On Groww.in, all transactions to and from AMC is done via BSE. When you decide to invest in a large cap mutual fund of your choice, you choose that mutual fund on the website and click ‘invest’. Following that, you are redirected to the BSE page where you make the payment. BSE then directs your money to the AMC managing your mutual fund. To be assured at your end, you can visit the individual AMC website after the payment. You would be able to see all your purchased units against your folio number.

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Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.
Past performance is not indicative of future returns. Please consider your specific investment requirements, risk tolerance, investment goal, time frame, risk and reward balance and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs.
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