Best Short Duration Mutual Funds
Short duration funds run a Macaulay duration of 1 to 3 years. Long enough to earn more than a liquid or ultra short fund, short enough that a rate move does not swing the NAV the way it does in a long duration fund.
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 05 Oct 2026, Bandhan Short Term Fund (Direct plan, Growth option) leads short duration mutual funds on 3-year CAGR at +7.72%, followed by Axis Short Term Fund at +7.70% and ICICI Prudential Short Term Fund at +7.70%. Across 25 short duration mutual funds the category averaged +7.35% 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 | Bandhan Short Term Fund Bandhan | ★★★☆☆ | +5.9% | +7.7% | +6.5% | 0.39% | — |
| 2 | Axis Short Term Fund Axis | ★★★★★ | +5.5% | +7.7% | +6.8% | 0.40% | — |
| 3 | ICICI Prudential Short Term Fund ICICI Prudential | ★★★★★ | +5.8% | +7.7% | +7.1% | 0.45% | ₹20,833Cr |
| 4 | Mahindra Manulife Short Term Fund Mahindra Manulife | ★★★★☆ | +5.5% | +7.7% | +6.6% | 0.33% | — |
| 5 | Bank of India Short Term Fund Bank of India | ★★☆☆☆ | +5.0% | +7.6% | +10.8% | 0.54% | — |
| 6 | Nippon India Short Term Fund Nippon India | ★★★★☆ | +5.2% | +7.6% | +6.7% | 0.40% | — |
| 7 | Aditya Birla Sun Life Short Term Fund Aditya Birla Sun Life | ★★★★☆ | +5.4% | +7.6% | +6.8% | 0.36% | ₹6,784Cr |
| 8 | Groww Short Term FundSmall fund Groww | ★★★★☆ | +5.3% | +7.5% | +6.2% | 0.32% | ₹92.97Cr |
| 9 | LIC MF Short Term Fund LIC | ★☆☆☆☆ | +5.2% | +7.5% | +6.3% | 0.36% | — |
| 10 | Sundaram Short Term Fund Sundaram | ★★★★★ | +5.3% | +7.4% | — | 0.28% | — |
| 11 | HDFC Short Term Fund HDFC | ★★★☆☆ | +5.2% | +7.4% | +6.6% | 0.40% | — |
| 12 | Kotak Short Term Fund Kotak Mahindra | ★★★☆☆ | +5.1% | +7.4% | +6.4% | 0.38% | — |
| 13 | UTI Short Term Fund UTI | ★★★☆☆ | +5.0% | +7.3% | +6.6% | 0.41% | — |
| 14 | Mirae Asset Short Term Fund Mirae Asset | ★☆☆☆☆ | +4.7% | +7.3% | +6.4% | 0.26% | — |
| 15 | SBI Short Term Fund SBI | ★★★☆☆ | +4.9% | +7.2% | +6.4% | 0.42% | — |
| 16 | HSBC Short Duration Fund HSBC | ★★★☆☆ | +4.9% | +7.2% | — | 0.32% | ₹3,951Cr |
| 17 | Invesco India Short Term Fund Invesco | ★★☆☆☆ | +4.7% | +7.2% | +6.2% | 0.39% | — |
| 18 | Tata Short Term Fund Tata | ★★☆☆☆ | +4.9% | +7.1% | +6.3% | 0.37% | — |
| 19 | DSP Short Term Fund DSP | ★★☆☆☆ | +4.8% | +7.1% | +6.3% | 0.37% | ₹3,312Cr |
| 20 | JM Short Term Fund JM Financial | ★★★☆☆ | +4.9% | +7.1% | — | 0.39% | — |
NAV data as of 05 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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Frequently asked questions
What are short duration mutual funds?
Short duration funds run a Macaulay duration of 1 to 3 years. Long enough to earn more than a liquid or ultra short fund, short enough that a rate move does not swing the NAV the way it does in a long duration fund.
Which is the best short duration fund right now?
Bandhan Short Term Fund by Bandhan currently ranks first among short duration mutual funds by 3-year CAGR at +7.72%. Rankings move with NAVs — past returns don't guarantee future performance.
What returns have short duration mutual funds given?
The category has averaged +5.14% over 1 year, +7.35% annualized over 3 years, +6.70% 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).