Best Low Duration Mutual Funds
Low duration funds run a Macaulay duration of 6 to 12 months. They sit between ultra short and short duration funds, aimed at money with a horizon of about a year.
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 06 Oct 2026, HSBC Ultra Short to Short Term Fund (Direct plan, Growth option) leads low duration mutual funds on 3-year CAGR at +7.82%, followed by Kotak Ultra Short to Short Term Fund at +7.44% and Nippon India Ultra Short to Short Term Fund at +7.44%. Across 26 low duration mutual funds the category averaged +7.32% over three years, at an average expense ratio of 0.34%. All figures are computed from public AMFI NAV history and recomputed daily; past returns do not predict future ones.
| 1 | HSBC Ultra Short to Short Term Fund HSBC | ★★★★★ | +6.2% | +7.8% | — | 0.40% | ₹936.99Cr |
| 2 | Kotak Ultra Short to Short Term Fund Kotak Mahindra | ★★★★☆ | +6.2% | +7.4% | +6.7% | 0.41% | ₹12,021Cr |
| 3 | Nippon India Ultra Short to Short Term Fund Nippon India | ★★★★☆ | +6.3% | +7.4% | +6.8% | 0.39% | ₹7,766Cr |
| 4 | Mirae Asset Ultra Short to Short Term Fund Mirae Asset | ★★★☆☆ | +6.3% | +7.4% | +6.7% | 0.21% | ₹2,198Cr |
| 5 | Mahindra Manulife Ultra Short to Short Term Fund Mahindra Manulife | ★★☆☆☆ | +6.3% | +7.4% | +6.7% | 0.34% | — |
| 6 | Axis Ultra Short to Short Term Fund Axis | ★★★★☆ | +6.3% | +7.4% | +6.7% | 0.37% | — |
| 7 | ICICI Prudential Ultra Short to Short Term Fund ICICI Prudential | ★★★★☆ | +6.3% | +7.4% | +6.7% | 0.42% | ₹21,019Cr |
| 8 | HDFC Ultra Short to Short Term Fund HDFC | ★★★☆☆ | +6.2% | +7.4% | +6.8% | 0.46% | ₹17,860Cr |
| 9 | LIC MF Ultra Short to Short Term fund LIC | ★★★★☆ | +6.4% | +7.3% | +6.6% | 0.24% | ₹1,801Cr |
| 10 | Baroda BNP Paribas Ultra Short to Short Term Fund Baroda BNP Paribas | ★★★★★ | +6.3% | +7.3% | — | 0.29% | ₹357.61Cr |
| 11 | Aditya Birla Sun Life Ultra short to short term Fund Aditya Birla Sun Life | ★★★☆☆ | +6.1% | +7.3% | +6.8% | 0.42% | ₹9,853Cr |
| 12 | Tata Ultra Short to Short Term Fund Tata | ★★★☆☆ | +6.3% | +7.3% | +6.5% | 0.27% | — |
| 13 | Sundaram Ultra Short to Short Term Fund Sundaram | ★★★☆☆ | +6.0% | +7.3% | — | 0.40% | ₹417.75Cr |
| 14 | JM Ultra Short to Short Term Fund JM Financial | ★★☆☆☆ | +6.1% | +7.2% | +6.5% | 0.40% | ₹222.69Cr |
| 15 | UTI Ultra Short to Short Term Fund UTI | ★★☆☆☆ | +6.1% | +7.2% | +6.6% | 0.37% | ₹2,474Cr |
| 16 | SBI Ultra Short to Short Term Fund SBI | ★★☆☆☆ | +5.9% | +7.2% | +6.5% | 0.44% | ₹12,358Cr |
| 17 | Canara Robeco Ultra Short to Short Term Fund Canara Robeco | ★★☆☆☆ | +6.2% | +7.2% | +6.5% | 0.21% | ₹1,121Cr |
| 18 | Invesco India Ultra Short to Short Term Fund Invesco | ★★★☆☆ | +6.0% | +7.1% | +6.4% | 0.34% | ₹1,706Cr |
| 19 | Bandhan Ultra Short to Short Term Fund Bandhan | ★☆☆☆☆ | +6.0% | +7.1% | +6.4% | 0.38% | ₹6,460Cr |
| 20 | DSP Ultra Short to Short Term Fund DSP | ★☆☆☆☆ | +5.9% | +7.1% | +6.5% | 0.31% | ₹4,560Cr |
NAV data as of 06 Oct 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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Understand low duration mutual funds
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Frequently asked questions
What are low duration mutual funds?
Low duration funds run a Macaulay duration of 6 to 12 months. They sit between ultra short and short duration funds, aimed at money with a horizon of about a year.
Which is the best low duration fund right now?
HSBC Ultra Short to Short Term Fund by HSBC currently ranks first among low duration mutual funds by 3-year CAGR at +7.82%. Rankings move with NAVs — past returns don't guarantee future performance.
What returns have low duration mutual funds given?
The category has averaged +6.16% over 1 year, +7.32% annualized over 3 years, +6.60% 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).