Top Ultra Short Mutual Funds (2026)
Ranked by 3 year return, Direct plans, as on the latest NAV · AUM as on 30-09-2026
There are 27 Ultra Short mutual funds. Their average 3 year return is 6.8% a year, and +6.0% over the last year. The highest 3 year returns: Tata Ultra Short Term Fund 7.4%, Aditya Birla Sun Life Ultra Short Term Fund 7.4%, Axis Ultra Short Term fund 7.4%.
- Total AUM
- ₹1,20,957 Cr
- As on 30-09-2026
- Funds
- 27
- From 27 fund houses
- Expense ratio
- 0.13% to 0.42%
- Direct plans, lowest to highest
- Average 3Y return
- 6.8%
- A year, Direct plans
All Ultra Short Funds
Ranked by 3 year return, highest first
Ranked by 3 year return, highest first
| Exit load | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Tata Ultra Short Term Fund | 1 | 5,404 | +6.84% | +7.44% | +6.82% | -- | Moderate | 0.33% | None | 0.37% |
| Aditya Birla Sun Life Ultra Short Term Fund | 2 | 16,279 | +6.36% | +7.41% | +6.80% | +6.95% | Moderate | 0.32% | None | 0.42% |
| Axis Ultra Short Term fund | 3 | 4,996 | +6.56% | +7.37% | +6.82% | -- | Moderate | 0.36% | None | 0.38% |
| Mirae Asset Ultra Short-Term Fund | 4 | 1,808 | +6.48% | +7.34% | +6.73% | -- | -- | 0.22% | -- | 0.40% |
| ICICI Prudential Ultra Short Term Fund | 5 | 15,236 | +6.37% | +7.31% | +6.78% | +7.15% | -- | 0.40% | None | 0.39% |
| DSP Ultra Short Term Fund | 6 | 4,425 | +6.43% | +7.26% | +6.70% | +6.39% | Low to Moderate | 0.30% | None | 0.39% |
| Invesco India Ultra Short Term Fund | 7 | 1,394 | +6.55% | +7.26% | +6.67% | +6.71% | Low to Moderate | 0.27% | None | 0.37% |
| UTI Ultra Short Term Fund | 8 | 3,017 | +6.45% | +7.25% | +6.65% | +6.53% | Moderate | 0.37% | None | 0.36% |
| Sundaram Ultra Short Term Fund | 9 | 2,108 | +6.39% | +7.20% | -- | -- | Low to Moderate | 0.22% | None | 0.36% |
| Mahindra Manulife Ultra Short Term Fund | 10 | 205 | +6.41% | +7.20% | +6.63% | -- | Low to Moderate | 0.31% | None | 0.36% |
| LIC MF Ultra Short Term Fund | 11 | 1,420 | +6.58% | +7.18% | +6.36% | -- | Low to Moderate | 0.25% | None | 0.36% |
| Baroda BNP Paribas Ultra Short Term Fund | 12 | 596 | +6.38% | +7.14% | +6.68% | -- | -- | 0.29% | -- | 0.37% |
| HDFC Ultra Short Term Fund | 13 | 15,675 | +6.14% | +7.13% | +6.59% | -- | Moderate | 0.39% | None | 0.39% |
| Kotak Ultra Short Term Fund | 14 | 15,261 | +6.25% | +7.13% | +6.61% | +6.67% | Moderate | 0.36% | None | 0.40% |
| SBI Ultra Short Term Fund | 15 | 11,237 | +6.28% | +7.10% | +6.51% | +6.55% | -- | 0.35% | -- | 0.37% |
| Bandhan Ultra Short Term Fund | 16 | 4,098 | +6.31% | +7.08% | +6.50% | -- | Low to Moderate | 0.30% | None | 0.37% |
| PGIM India Ultra Short Term Fund | 17 | 232 | +6.13% | +7.00% | +6.51% | +7.19% | Low to Moderate | 0.33% | None | 0.36% |
| ITI Ultra Short Term Fund | 18 | 167 | +6.26% | +6.99% | +6.43% | -- | Low to Moderate | 0.21% | None | 0.35% |
| Canara Robeco Ultra Short Term Fund | 19 | 529 | +6.30% | +6.97% | +6.35% | +6.10% | Low to Moderate | 0.31% | None | 0.37% |
| WhiteOak Capital Ultra Short Term Fund | 20 | 549 | +6.20% | +6.92% | +6.36% | -- | Low to Moderate | 0.27% | None | 0.36% |
| Bank of India Ultra Short Term Fund | 21 | 196 | +6.24% | +6.83% | +6.26% | +6.43% | Low to Moderate | 0.42% | None | 0.38% |
| Motilal Oswal Ultra Short Term Fund | 22 | 534 | +6.02% | +6.36% | +5.82% | +4.08% | Low | 0.25% | None | 0.31% |
| HSBC Ultra Short Term Fund | 23 | 2,733 | 0.00% | 0.00% | +0.41% | -- | Low to Moderate | 0.18% | None | 0.15% |
| Nippon India Ultra Short Term Fund | -- | 11,551 | -- | -- | -- | -- | Moderately High | 0.33% | Varies | -- |
| Edelweiss Ultra Short Term Fund | -- | 896 | -- | -- | -- | -- | Low to Moderate | 0.13% | None | -- |
| Franklin India Ultra Short Term Fund | -- | 300 | +6.29% | -- | -- | -- | -- | 0.29% | -- | -- |
| Union Short Term Fund | -- | 111 | +3.89% | -- | -- | -- | Moderate | 0.35% | 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 Ultra Short Funds
The largest funds of the category, side by side
- Aditya Birla Sun Life Ultra Short Term vs HDFC Ultra Short Term
- Aditya Birla Sun Life Ultra Short Term vs Kotak Ultra Short Term
- Aditya Birla Sun Life Ultra Short Term vs ICICI Prudential Ultra Short Term
- HDFC Ultra Short Term vs Kotak Ultra Short Term
- HDFC Ultra Short Term vs ICICI Prudential Ultra Short Term
- Kotak Ultra Short Term vs ICICI Prudential Ultra Short Term
How Ultra Short 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 Ultra Short Fund?
Debt and money market papers, with a Macaulay duration of 3 to 6 months. This is the rule SEBI sets for every fund in the category, so their portfolios can be compared.
Other debt categories: Overnight · Liquid · Low Duration · Money Market · Short Duration · Medium Duration · Medium to Long Duration · Long Duration · Dynamic Bond · Corporate Bond · Credit Risk · Banking & PSU · Gilt · Floater
Ultra Short Funds: Frequently Asked Questions
Which are the top Ultra Short mutual funds?
By 3 year return, the top Ultra Short funds are 1. Tata Ultra Short Term Fund (7.4% a year), 2. Aditya Birla Sun Life Ultra Short Term Fund (7.4% a year), 3. Axis Ultra Short Term fund (7.4% a year), 4. Mirae Asset Ultra Short-Term Fund (7.3% a year), 5. ICICI Prudential Ultra 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 Ultra Short funds are there?
27 Ultra Short funds are open for investment, from 27 fund houses.
What is a Ultra Short fund?
Debt and money market papers, with a Macaulay duration of 3 to 6 months.
What is the average return of Ultra Short funds?
1 year: 6.0%, 3 years: 6.8% a year, 5 years: 6.3% a year. The simple average of every Ultra Short fund's Direct plan.
Which Ultra Short fund has the lowest expense ratio?
Edelweiss Ultra Short Term Fund, at 0.13% a year (Direct plan), as reported to AMFI.
Which is the largest Ultra Short fund?
Aditya Birla Sun Life Ultra Short Term Fund, with ₹16,279 Cr of investors' money on 30-09-2026.
How are Ultra Short 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.