Best Ultra 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 ultra 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, Nippon India Ultra Short Duration Fund (Direct plan, Growth option) leads ultra short duration mutual funds on 3-year CAGR at +7.58%, followed by Tata Ultra Short Term Fund at +7.50% and Aditya Birla Sun Life Savings Fund at +7.50%. Across 25 ultra short duration mutual funds the category averaged +7.24% 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 | Nippon India Ultra Short Duration Fund Nippon India | ★★★★☆ | +6.9% | +7.6% | +6.9% | 0.34% | ₹10,923Cr |
| 2 | Tata Ultra Short Term Fund Tata | ★★★☆☆ | +6.9% | +7.5% | +6.7% | 0.33% | ₹5,343Cr |
| 3 | Aditya Birla Sun Life Savings Fund Aditya Birla Sun Life | ★★★★☆ | +6.6% | +7.5% | +6.7% | 0.95% | ₹19,721Cr |
| 4 | Axis Ultra Short Duration Fund Axis | ★★★☆☆ | +6.7% | +7.4% | +6.7% | 0.36% | ₹5,612Cr |
| 5 | DSP Ultra Short Fund DSP | ★★★☆☆ | +6.6% | +7.4% | +6.6% | 0.30% | ₹4,353Cr |
| 6 | Mirae Asset Ultra Short Duration Fund Mirae Asset | ★★★☆☆ | +6.6% | +7.4% | +6.6% | 0.23% | ₹1,666Cr |
| 7 | ICICI Prudential Ultra Short term Fund ICICI Prudential | ★★★★☆ | +6.6% | +7.4% | +6.7% | 0.41% | ₹15,512Cr |
| 8 | Invesco India Ultra Short Duration Fund Invesco | ★★★★★ | +6.7% | +7.3% | +6.6% | 0.27% | ₹1,160Cr |
| 9 | UTI Ultra Short Duration Fund UTI | ★★★★★ | +6.6% | +7.3% | +7.1% | 0.40% | ₹3,810Cr |
| 10 | Mahindra Manulife Ultra Short Duration Fund Mahindra Manulife | ★★★★☆ | +6.6% | +7.3% | +6.5% | 0.31% | ₹209.67Cr |
| 11 | Sundaram Ultra Short Duration Fund Sundaram | ★★★★★ | +6.5% | +7.3% | — | 0.23% | ₹2,249Cr |
| 12 | Baroda BNP Paribas Ultra Short Duration Fund Baroda BNP Paribas | ★★★☆☆ | +6.5% | +7.2% | +6.6% | 0.29% | ₹720.81Cr |
| 13 | HSBC Ultra Short Duration Fund HSBC | ★★★☆☆ | +6.5% | +7.2% | +6.5% | 0.18% | ₹3,302Cr |
| 14 | HDFC Ultra Short Term Fund HDFC | ★☆☆☆☆ | +6.3% | +7.2% | +6.5% | 0.39% | ₹16,766Cr |
| 15 | Kotak Savings Fund Kotak Mahindra | ★★☆☆☆ | +6.4% | +7.2% | +6.5% | 0.36% | ₹15,901Cr |
| 16 | LIC MF Ultra Short Duration Fund LIC | ★★★☆☆ | +6.6% | +7.2% | +6.2% | 0.25% | ₹369.28Cr |
| 17 | SBI Ultra Short Duration Fund SBI | ★★☆☆☆ | +6.4% | +7.2% | +6.4% | 0.35% | ₹12,074Cr |
| 18 | Bandhan Ultra Short Duration Fund Bandhan | ★★☆☆☆ | +6.4% | +7.2% | +6.4% | 0.30% | ₹4,511Cr |
| 19 | ITI Ultra Short Term Fund ITI | ★★★★☆ | +6.4% | +7.1% | +6.3% | 0.21% | ₹167.08Cr |
| 20 | PGIM India Ultra Short Duration Fund PGIM India | ★★★★☆ | +6.2% | +7.1% | +6.4% | 0.34% | ₹167.22Cr |
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 ultra 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 ultra short duration fund right now?
Nippon India Ultra Short Duration Fund by Nippon India currently ranks first among ultra short duration mutual funds by 3-year CAGR at +7.58%. Rankings move with NAVs — past returns don't guarantee future performance.
What returns have ultra short duration mutual funds given?
The category has averaged +6.51% over 1 year, +7.24% annualized over 3 years, +6.51% annualized over 5 years — peer averages over the live funds in the category, computed from AMFI NAV history.
How are ultra 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).