Top Low Duration Mutual Funds (2026)
Ranked by 3 year return, Direct plans, as on the latest NAV · AUM as on 30-09-2026
There are 25 Low Duration mutual funds. Their average 3 year return is 7.2% a year, and +5.8% over the last year. The highest 3 year returns: HSBC Ultra Short to Short Term Fund 7.7%, Nippon India Ultra Short to Short Term Fund 7.3%, Kotak Ultra Short to Short Term Fund 7.3%.
- Total AUM
- ₹1,07,375 Cr
- As on 30-09-2026
- Funds
- 25
- From 25 fund houses
- Expense ratio
- 0.21% to 0.46%
- Direct plans, lowest to highest
- Average 3Y return
- 7.2%
- A year, Direct plans
All Low Duration Funds
Ranked by 3 year return, highest first
Ranked by 3 year return, highest first
| Exit load | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| HSBC Ultra Short to Short Term Fund | 1 | 847 | +5.86% | +7.71% | -- | -- | Low to Moderate | 0.40% | Varies | 0.88% |
| Nippon India Ultra Short to Short Term Fund | 2 | 7,096 | +5.95% | +7.34% | +6.74% | +6.92% | Low to Moderate | 0.39% | None | 0.50% |
| Kotak Ultra Short to Short Term Fund | 3 | 12,566 | +5.73% | +7.33% | +6.70% | +7.25% | Low to Moderate | 0.41% | None | 0.51% |
| Axis Ultra Short to Short Term Fund | 4 | 4,563 | +5.94% | +7.33% | +6.70% | +6.99% | Low to Moderate | 0.37% | None | 0.49% |
| Mirae Asset Ultra Short to Short Term Fund | 5 | 2,290 | +5.90% | +7.33% | +6.63% | +6.52% | -- | 0.21% | -- | 0.50% |
| Mahindra Manulife Ultra Short To Short Term Fund | 6 | 497 | +5.90% | +7.31% | +6.67% | -- | Moderate | 0.34% | None | 0.49% |
| ICICI Prudential Ultra Short to Short Term Fund | 7 | 18,781 | +5.87% | +7.30% | +6.65% | +7.05% | -- | 0.42% | -- | 0.50% |
| HDFC Ultra Short to Short Term Fund | 8 | 16,513 | +5.70% | +7.26% | +6.71% | +7.04% | Moderate | 0.46% | None | 0.52% |
| LIC MF Ultra Short to Short Term Fund | 9 | 1,900 | +6.06% | +7.26% | +6.55% | +6.43% | Low to Moderate | 0.24% | None | 0.46% |
| Baroda BNP Paribas Ultra Short to Short Term Fund | 10 | 330 | +6.00% | +7.24% | -- | -- | -- | 0.29% | -- | 0.47% |
| Aditya Birla Sun Life Ultra Short to Short Term Fund | 11 | 9,185 | +5.62% | +7.22% | +6.75% | +7.19% | Moderate | 0.42% | None | 0.53% |
| Tata Ultra Short to Short Term Fund | 12 | 2,727 | +5.95% | +7.18% | +6.52% | +6.18% | Low to Moderate | 0.27% | None | 0.47% |
| Sundaram Ultra Short to Short Term Fund | 13 | 381 | +5.67% | +7.17% | -- | -- | Low to Moderate | 0.40% | None | 0.49% |
| UTI Ultra Short to Short Term Fund | 14 | 2,604 | +5.74% | +7.13% | +6.51% | +5.98% | Low to Moderate | 0.37% | None | 0.48% |
| JM Ultra Short to Short Term Fund | 15 | 236 | +5.77% | +7.13% | +6.50% | -- | Low to Moderate | 0.41% | None | 0.47% |
| SBI Ultra Short to Short Term Fund | 16 | 10,942 | +5.62% | +7.11% | +6.53% | +6.74% | Low to Moderate | 0.44% | None | 0.48% |
| Canara Robeco Ultra Short to Short Term Fund | 17 | 1,113 | +5.83% | +7.10% | +6.45% | +6.53% | Low to Moderate | 0.21% | None | 0.49% |
| Bandhan Ultra Short to Short Term Fund | 18 | 6,342 | +5.73% | +7.03% | +6.39% | +6.66% | Low to Moderate | 0.38% | None | 0.49% |
| Invesco India Ultra Short to Short Term Fund | 19 | 1,714 | +5.60% | +7.01% | +6.40% | +6.73% | Low to Moderate | 0.34% | None | 0.48% |
| DSP Ultra Short to Short Term Fund | 20 | 4,455 | +5.47% | +6.98% | +6.42% | +6.70% | Low to Moderate | 0.31% | None | 0.50% |
| JioBlackRock Ultra Short to Short Term Fund | -- | 686 | -- | -- | -- | -- | Low to Moderate | 0.33% | None | -- |
| Bajaj Finserv Ultra Short to Short Term Fund | -- | 582 | -- | -- | -- | -- | Low to Moderate | 0.24% | None | -- |
| Edelweiss Ultra Short to Short term Fund | -- | 454 | +5.86% | -- | -- | -- | Low to Moderate | 0.25% | None | -- |
| Franklin India Ultra Short to Short Term Fund | -- | 338 | +6.07% | -- | -- | -- | -- | 0.27% | None | -- |
| Union Ultra Short to Short Term Fund | -- | 228 | +5.28% | -- | -- | -- | Low to Moderate | 0.26% | None | -- |
Returns of each fund's Direct plan (its only plan where it has one), as on the latest NAV. 3, 5 and 10 year figures are a rate a year. Std dev: how much the daily returns swung over 3 years, as a yearly figure; lower is steadier. Riskometer and exit load from the fund's scheme summary document; "Varies" means the load changes with how long you hold, and the fund page has the full wording. Expense ratio: Direct plan, from AMFI. AUM at the end of the fund's last reported month. A fund younger than 3 years has no rank and is listed after the ranked ones.
Compare Low Duration Funds
The largest funds of the category, side by side
- ICICI Prudential Ultra Short to Short Term vs HDFC Ultra Short to Short Term
- ICICI Prudential Ultra Short to Short Term vs Kotak Ultra Short to Short Term
- ICICI Prudential Ultra Short to Short Term vs SBI Ultra Short to Short Term
- HDFC Ultra Short to Short Term vs Kotak Ultra Short to Short Term
- HDFC Ultra Short to Short Term vs SBI Ultra Short to Short Term
- Kotak Ultra Short to Short Term vs SBI Ultra Short to Short Term
How Low Duration Funds Are Taxed
As debt funds: 65% or more of each fund is in bonds and money market papers
| When you sell | Tax on the gain |
|---|---|
| Units bought on or after 01-04-2023 | Your slab rate, however long you hold them |
| Units bought before 01-04-2023, within 2 years | Your slab rate |
| Units bought before 01-04-2023, after 2 years | 12.5% of the gain |
- IDCW (dividend) payouts are added to your income and taxed at your slab rate.
- A stamp duty of 0.005% is deducted when you invest.
Rules in force from 23-07-2024 (Finance Act 2024). Tax depends on your own income; this is general information, not tax advice.
What Is a Low Duration Fund?
Debt and money market papers, with a Macaulay duration of 6 to 12 months. SEBI now calls this category Ultra Short to Short Term, and most of its funds carry that name. This is the rule SEBI sets for every fund in the category, so their portfolios can be compared.
Other debt categories: Overnight · Liquid · Ultra Short · Money Market · Short Duration · Medium Duration · Medium to Long Duration · Long Duration · Dynamic Bond · Corporate Bond · Credit Risk · Banking & PSU · Gilt · Floater
Low Duration Funds: Frequently Asked Questions
Which are the top Low Duration mutual funds?
By 3 year return, the top Low Duration funds are 1. HSBC Ultra Short to Short Term Fund (7.7% a year), 2. Nippon India Ultra Short to Short Term Fund (7.3% a year), 3. Kotak Ultra Short to Short Term Fund (7.3% a year), 4. Axis Ultra Short to Short Term Fund (7.3% a year), 5. Mirae Asset Ultra Short to Short Term Fund (7.3% a year). Past returns do not promise future returns, so also look at costs, risk and how long each fund has done well.
How many Low Duration funds are there?
25 Low Duration funds are open for investment, from 25 fund houses.
What is a Low Duration fund?
Debt and money market papers, with a Macaulay duration of 6 to 12 months. SEBI now calls this category Ultra Short to Short Term, and most of its funds carry that name.
What is the average return of Low Duration funds?
1 year: 5.8%, 3 years: 7.2% a year, 5 years: 6.6% a year. The simple average of every Low Duration fund's Direct plan.
Which Low Duration fund has the lowest expense ratio?
Mirae Asset Ultra Short to Short Term Fund, at 0.21% a year (Direct plan), as reported to AMFI.
Which is the largest Low Duration fund?
ICICI Prudential Ultra Short to Short Term Fund, with ₹18,781 Cr of investors' money on 30-09-2026.
How are Low Duration funds taxed?
As debt funds: for units bought on or after 01-04-2023, the gain is added to your income and taxed at your slab rate, however long you hold them.
This page is information, not investment advice. Mutual fund investments are subject to market risks; read all scheme related documents carefully. Past returns do not promise future returns. Figures come from AMFI, NSE, BSE and each fund house's own documents.