Best Low Duration Mutual Funds
Debt funds lend money to governments and companies and earn interest. They're generally steadier than equity funds; their risk comes from interest-rate moves and, for some, the creditworthiness of borrowers.
Top low duration mutual funds by 3Y returns
20Direct plan, Growth option — ranked by 3-year CAGR. Open a fund for NAV history, rolling returns, risk metrics and peer rank.
As of 20 Aug 2026, HSBC Low Duration Fund (Direct plan, Growth option) leads low duration mutual funds on 3-year CAGR at +7.91%, followed by Kotak Low Duration Fund at +7.56% and ICICI Prudential Savings Fund at +7.52%. Across 26 low duration mutual funds the category averaged +7.40% over three years, at an average expense ratio of 0.36%. All figures are computed from public AMFI NAV history and recomputed daily; past returns do not predict future ones.
| 1 | HSBC Low Duration Fund HSBC | ★★★★☆ | +6.4% | +7.9% | — | 0.40% | ₹1,023Cr |
| 2 | Kotak Low Duration Fund Kotak Mahindra | ★★★★☆ | +6.4% | +7.6% | +6.7% | 0.40% | ₹13,954Cr |
| 3 | ICICI Prudential Savings Fund ICICI Prudential | ★★★★★ | +6.5% | +7.5% | +6.7% | 1.03% | ₹29,481Cr |
| 4 | Mahindra Manulife Low Duration Fund Mahindra Manulife | ★★★☆☆ | +6.5% | +7.5% | +6.6% | 0.35% | ₹548.25Cr |
| 5 | Mirae Asset Low Duration Fund Mirae Asset | ★★★☆☆ | +6.4% | +7.5% | +6.6% | 0.22% | ₹2,233Cr |
| 6 | Nippon India Low Duration Fund Nippon India | ★★★★☆ | +6.4% | +7.5% | +6.7% | 0.39% | ₹9,186Cr |
| 7 | HDFC Low Duration Fund HDFC | ★★★☆☆ | +6.3% | +7.5% | +6.7% | 0.46% | ₹20,960Cr |
| 8 | Axis Treasury Advantage Fund Axis | ★★★★☆ | +6.4% | +7.5% | +6.6% | 0.37% | ₹5,738Cr |
| 9 | Aditya Birla Sun Life Low Duration Fund Aditya Birla Sun Life | ★★★☆☆ | +6.2% | +7.4% | +6.7% | 0.42% | ₹12,524Cr |
| 10 | Baroda BNP Paribas Low Duration Fund Baroda BNP Paribas | ★★★★★ | +6.4% | +7.4% | — | 0.29% | ₹285.13Cr |
| 11 | LIC MF Low Duration Fund LIC | ★★★★☆ | +6.4% | +7.4% | +6.5% | 0.24% | ₹1,651Cr |
| 12 | Tata Treasury Advantage Fund Tata | ★★★☆☆ | +6.4% | +7.3% | +6.5% | 0.27% | ₹2,599Cr |
| 13 | Sundaram Low Duration Fund Sundaram | ★★★☆☆ | +6.1% | +7.3% | — | 0.40% | ₹372.35Cr |
| 14 | JM Low Duration Fund JM Financial | ★★☆☆☆ | +6.2% | +7.3% | +6.4% | 0.40% | ₹225.38Cr |
| 15 | UTI Low Duration Fund UTI | ★★☆☆☆ | +6.2% | +7.3% | +7.5% | 0.33% | ₹2,900Cr |
| 16 | SBI Low Duration Fund SBI | ★★☆☆☆ | +6.0% | +7.3% | +6.5% | 0.44% | ₹13,348Cr |
| 17 | Canara Robeco Savings Fund Canara Robeco | ★★☆☆☆ | +6.3% | +7.3% | +6.4% | 0.21% | ₹1,129Cr |
| 18 | Invesco India Low Duration Fund Invesco | ★★★☆☆ | +6.1% | +7.2% | +6.4% | 0.35% | ₹1,734Cr |
| 19 | DSP Low Duration Fund DSP | ★☆☆☆☆ | +6.1% | +7.2% | +6.4% | 0.31% | ₹4,797Cr |
| 20 | Bandhan Low Duration Fund Bandhan | ★☆☆☆☆ | +6.2% | +7.2% | +6.3% | 0.37% | ₹5,919Cr |
NAV data as of 20 Aug 2026. Returns are CAGR for periods ≥1 year, computed from AMFI NAV history. Ratings are WealthTicker’s own, ranked within sub-category peers — not a SEBI or agency rating. See our methodology for every formula. This is data, not investment advice.
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Frequently asked questions
What are low duration mutual funds?
Debt funds lend money to governments and companies and earn interest. They're generally steadier than equity funds; their risk comes from interest-rate moves and, for some, the creditworthiness of borrowers.
Which is the best low duration fund right now?
HSBC Low Duration Fund by HSBC currently ranks first among low duration mutual funds by 3-year CAGR at +7.91%. Rankings move with NAVs — past returns don't guarantee future performance.
What returns have low duration mutual funds given?
The category has averaged +6.28% over 1 year, +7.40% annualized over 3 years, +6.59% annualized over 5 years — peer averages over the live funds in the category, computed from AMFI NAV history.
How are low duration mutual funds taxed?
Debt taxation: all gains are added to your income and taxed at your slab rate, regardless of holding period (for units bought on or after 1 April 2023).