Best Short 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 short 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, ICICI Prudential Short Term Fund (Direct plan, Growth option) leads short duration mutual funds on 3-year CAGR at +7.98%, followed by Mahindra Manulife Short Duration Fund at +7.90% and Axis Short Duration Fund at +7.90%. Across 27 short duration mutual funds the category averaged +7.56% over three years, at an average expense ratio of 0.37%. All figures are computed from public AMFI NAV history and recomputed daily; past returns do not predict future ones.
| 1 | ICICI Prudential Short Term Fund ICICI Prudential | ★★★★★ | +6.6% | +8.0% | +7.2% | 0.45% | ₹20,833Cr |
| 2 | Mahindra Manulife Short Duration Fund Mahindra Manulife | ★★★★☆ | +6.3% | +7.9% | +6.7% | 0.33% | ₹84.21Cr |
| 3 | Axis Short Duration Fund Axis | ★★★★★ | +6.2% | +7.9% | +6.8% | 0.40% | ₹8,708Cr |
| 4 | Nippon India Short Duration Fund Nippon India | ★★★★☆ | +6.0% | +7.8% | +6.7% | 0.39% | ₹7,205Cr |
| 5 | Bandhan Short Duration Fund Bandhan | ★★★☆☆ | +6.4% | +7.8% | +6.5% | 0.36% | ₹8,580Cr |
| 6 | Aditya Birla Sun Life Short Term Fund Aditya Birla Sun Life | ★★★★★ | +6.1% | +7.8% | +6.9% | 0.36% | ₹6,784Cr |
| 7 | Bank of India Short Term Income Fund Bank of India | ★☆☆☆☆ | +5.7% | +7.8% | +10.8% | 0.54% | ₹269.67Cr |
| 8 | HDFC Short Term Debt Fund HDFC | ★★★★☆ | +5.9% | +7.6% | +6.7% | 0.40% | ₹15,156Cr |
| 9 | LIC MF Short Duration Fund LIC | ★☆☆☆☆ | +5.9% | +7.6% | +6.3% | 0.37% | ₹138.40Cr |
| 10 | Groww Short Term Fund Groww | ★★★☆☆ | +5.9% | +7.6% | +6.2% | 0.32% | ₹92.97Cr |
| 11 | Kotak Bond Short Term Fund - Direct Plan Kotak Mahindra | ★★★★☆ | +5.7% | +7.6% | +6.5% | 0.39% | ₹15,164Cr |
| 12 | Baroda BNP Paribas Short Duration Fund Baroda BNP Paribas | ★★★☆☆ | +5.6% | +7.6% | +6.5% | 0.43% | ₹262.02Cr |
| 13 | Sundaram Short Duration Fund Sundaram | ★★★★☆ | +5.9% | +7.6% | — | 0.28% | ₹180.68Cr |
| 14 | Mirae Asset Short Duration Fund Mirae Asset | ★★☆☆☆ | +5.6% | +7.5% | +6.5% | 0.28% | ₹562.42Cr |
| 15 | UTI Short Duration Fund UTI | ★★★☆☆ | +5.7% | +7.5% | +7.6% | 0.41% | ₹2,444Cr |
| 16 | Invesco India Short Duration Fund Invesco | ★★☆☆☆ | +5.5% | +7.5% | +6.2% | 0.40% | ₹789.18Cr |
| 17 | SBI Short Term Debt Fund SBI | ★★★☆☆ | +5.6% | +7.5% | +6.4% | 0.42% | ₹13,990Cr |
| 18 | HSBC Short Duration Fund HSBC | ★★★☆☆ | +5.6% | +7.5% | — | 0.32% | ₹3,951Cr |
| 19 | DSP Short Term Fund DSP | ★★☆☆☆ | +5.5% | +7.4% | +6.3% | 0.37% | ₹3,312Cr |
| 20 | Tata Short Term Bond Fund Tata | ★★☆☆☆ | +5.5% | +7.4% | +6.4% | 0.37% | ₹3,024Cr |
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 short 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 short duration fund right now?
ICICI Prudential Short Term Fund by ICICI Prudential currently ranks first among short duration mutual funds by 3-year CAGR at +7.98%. Rankings move with NAVs — past returns don't guarantee future performance.
What returns have short duration mutual funds given?
The category has averaged +5.76% over 1 year, +7.56% annualized over 3 years, +6.74% annualized over 5 years — peer averages over the live funds in the category, computed from AMFI NAV history.
How are short 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).