Top Short Duration Mutual Funds (2026)
Ranked by 3 year return, Direct plans, as on the latest NAV · AUM as on 30-09-2026
There are 26 Short Duration mutual funds. Their average 3 year return is 6.9% a year, and +4.1% over the last year. The highest 3 year returns: Bandhan Short Term Fund 7.6%, Axis Short Term Fund 7.6%, Mahindra Manulife Short Term Fund 7.5%.
- Total AUM
- ₹1,03,970 Cr
- As on 30-09-2026
- Funds
- 26
- From 25 fund houses
- Expense ratio
- 0.26% to 0.54%
- Direct plans, lowest to highest
- Average 3Y return
- 6.9%
- A year, Direct plans
All Short Duration Funds
Ranked by 3 year return, highest first
Ranked by 3 year return, highest first
| Exit load | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Bandhan Short Term Fund | 1 | 8,680 | +5.54% | +7.64% | +6.48% | +7.08% | Low to Moderate | 0.39% | None | 1.00% |
| Axis Short Term Fund | 2 | 7,425 | +4.82% | +7.58% | +6.72% | +7.38% | Moderate | 0.40% | None | 0.96% |
| Mahindra Manulife Short Term Fund | 3 | 79 | +4.78% | +7.49% | +6.52% | -- | Moderate | 0.33% | None | 0.93% |
| ICICI Prudential Short Term Fund | 4 | 18,890 | +4.92% | +7.48% | +6.99% | +7.63% | -- | 0.45% | -- | 0.93% |
| Bank of India Short Term Fund | 5 | 259 | +4.34% | +7.48% | +10.75% | +5.64% | Moderate | 0.54% | None | 1.44% |
| Nippon India Short Term Fund | 6 | 6,364 | +4.43% | +7.43% | +6.60% | +7.18% | Moderate | 0.40% | None | 0.98% |
| Aditya Birla Sun Life Short Term Fund | 7 | 5,966 | +4.57% | +7.42% | +6.76% | +7.38% | Moderate | 0.36% | None | 0.99% |
| Groww Short Term Fund | 8 | 93 | +4.92% | +7.40% | +6.18% | +6.50% | Low to Moderate | 0.32% | None | 0.92% |
| Baroda BNP Paribas Short Term Fund | 9 | 419 | +4.57% | +7.29% | +6.48% | +7.16% | -- | 0.44% | -- | 0.93% |
| LIC MF Short Term Fund | 10 | 122 | +4.52% | +7.29% | +6.23% | -- | Moderate | 0.36% | None | 1.01% |
| Sundaram Short Term Fund | 11 | 176 | +4.68% | +7.28% | -- | -- | Low to Moderate | 0.28% | None | 0.90% |
| Kotak Short Term Fund | 12 | 14,241 | +4.35% | +7.23% | +6.35% | +7.16% | Moderate | 0.38% | None | 0.95% |
| HDFC Short Term Fund | 13 | 14,219 | +4.26% | +7.22% | +6.46% | +7.24% | Moderate | 0.39% | None | 0.92% |
| UTI Short Term Fund | 14 | 1,770 | +4.24% | +7.09% | +6.43% | +6.26% | Moderate | 0.41% | None | 0.92% |
| Mirae Asset Short Term Fund | 15 | 512 | +3.82% | +7.08% | +6.30% | -- | -- | 0.26% | -- | 1.00% |
| SBI Short Term Fund | 16 | 13,243 | +4.06% | +7.06% | +6.30% | +6.93% | -- | 0.42% | -- | 0.96% |
| Invesco India Short Term Fund | 17 | 541 | +3.88% | +7.02% | +6.11% | +6.74% | Moderate | 0.39% | None | 1.00% |
| DSP Short Term Fund | 18 | 3,416 | +4.10% | +7.00% | +6.19% | +6.82% | Moderate | 0.37% | None | 1.00% |
| Tata Short Term Fund | 19 | 2,912 | +4.24% | +6.99% | +6.27% | +6.34% | Moderate | 0.37% | None | 0.96% |
| TRUSTMF Short Term Fund | 20 | 66 | +4.56% | +6.99% | +6.20% | -- | -- | 0.27% | -- | 0.91% |
| JM Short Term Fund | 21 | 79 | +4.34% | +6.96% | -- | -- | Low to Moderate | 0.39% | None | 0.91% |
| Canara Robeco Short Term Fund | 22 | 276 | +4.51% | +6.86% | +6.01% | +6.76% | Low to Moderate | 0.36% | None | 0.80% |
| HSBC Short Term Fund | 23 | 3,881 | −3.88% | −1.14% | -- | -- | Moderate | 0.32% | None | 7.74% |
| Franklin India Short Term Fund | -- | 231 | -- | -- | -- | -- | -- | 0.34% | -- | -- |
| JioBlackRock Short Term Fund | -- | 113 | -- | -- | -- | -- | Low to Moderate | 0.35% | None | -- |
| Franklin India Short-Term Income Plan | -- | 0 | -- | -- | -- | -- | -- | -- | -- | -- |
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 Short Duration Funds
The largest funds of the category, side by side
How Short 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 Short Duration Fund?
Debt and money market papers, with a Macaulay duration of 1 to 3 years. 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 · Low Duration · Money Market · Medium Duration · Medium to Long Duration · Long Duration · Dynamic Bond · Corporate Bond · Credit Risk · Banking & PSU · Gilt · Floater
Short Duration Funds: Frequently Asked Questions
Which are the top Short Duration mutual funds?
By 3 year return, the top Short Duration funds are 1. Bandhan Short Term Fund (7.6% a year), 2. Axis Short Term Fund (7.6% a year), 3. Mahindra Manulife Short Term Fund (7.5% a year), 4. ICICI Prudential Short Term Fund (7.5% a year), 5. Bank of India Short Term Fund (7.5% 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 Short Duration funds are there?
26 Short Duration funds are open for investment, from 25 fund houses.
What is a Short Duration fund?
Debt and money market papers, with a Macaulay duration of 1 to 3 years.
What is the average return of Short Duration funds?
1 year: 4.1%, 3 years: 6.9% a year, 5 years: 6.6% a year. The simple average of every Short Duration fund's Direct plan.
Which Short Duration fund has the lowest expense ratio?
Mirae Asset Short Term Fund, at 0.26% a year (Direct plan), as reported to AMFI.
Which is the largest Short Duration fund?
ICICI Prudential Short Term Fund, with ₹18,890 Cr of investors' money on 30-09-2026.
How are Short 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.