You can switch off notifications anytime using browser settings.Best short duration or short term mutual fund schemes to invest in 2019Stock Analysis, IPO, Mutual Funds, Bonds & MoreBest short duration or short term mutual fund schemes to invest in 2019Short duration schemes or erstwhile short term funds are open-ended short-term debt schemes that invest in instruments with macaulay duration between one and three years.Heres an update on our recommendedshort duration fundsorshort term mutual funds. There is no change in our list of recommended schemes this month. Mutual fund advisors have been recommending short duration mutual fund schemes to conservative investors looking to invest in debtmutual funds.

According to the new Sebi categorisation norms, short duration schemes or erstwhile short term funds are open-ended short-term debt schemes that invest in instruments with macaulay duration of between one and three years. This means investors can consider investing in these schemes with a horizon of a few years.

As said earlier, most mutual fund advisors have been asking investors to stick to short duration schemes for a while. Faced with many uncertainties in the money market and no clear direction on rate cuts by the Reserve Bank of India (RBI), most mutual fund advisors have been asking investors to avoid taking risk and park their money in short duration schemes.

If you are new to debt mutual fund schemes, here is why you should stick to short duration schemes at the current juncture. Debt mutual fund schemes, especially long-term debt schemes, are extremely sensitive to changes in the interest rate scenario.

This is because of the inverse relationship between rates (bond yields) and bond prices. When rates go up, the prices of bonds fall. When prices of bonds fall, it drags the net asset value or NAV of debt mutual fund down. Long-term bonds are extremely sensitive to interest rates changes. So, debt mutual funds that invest in long-term bonds suffer the most when the central bank pause or start hiking interest rates.

Therefore, most mutual fund advisors are recommending short duration debt mutual fund schemes to investors these days. They reason that even if the central bank goes slow on rate cuts, its impact would be less in short duration schemes.

So, if you are planning to invest for a few years, short duration schemes must be your choice. To make your selection process easier, has stitched together a list of short duration schemes. Here are our recommended short duration debt mutual funds:


1.Mean rolling returns: Rolled daily for the last three years.

2.Consistency in the last three years: Hurst Exponent, H is used for computing the consistency of a fund. The H exponent is a measure of randomness of NAV series of a fund. Funds with high H tend to exhibit low volatility compared to funds with low H.

i)When H = 0.5, the series of return is said to be a geometric Brownian time series. These type of time series is difficult to forecast.

ii)When H 0.5, the series is said to be mean reverting.

iii)When H0.5, the series is said to be persistent. The larger the value of H, the stronger is the trend of the series

3.Downside risk: We have considered only the negative returns given by the mutual fund scheme for this measure.

Z = Y/number of days taken for computing the ratio

4. Outperformance:Fund Return Benchmark return. Rolling returns rolled daily is used for computing the return of the fund and the benchmark and subsequently the Active return of the fund.

Asset size:For Debt funds, the threshold asset size is Rs 50 crore

(%)Mirae Asset Tax Saver Direct-G-0.097.818.9811.3222.21Invest NowMirae Asset Tax Saver Reg-G-0.257.318.019.7020.56Invest NowMotilal Oswal Long Term Equity Fund Direct-Growth

ELSS0.937.216.50-2.4817.35Invest NowFeatured

ELSS0.9210.0910.858.5816.22Start SIPMotilal Oswal Focused 25 Fund Direct-Growth

Large Cap0.768.748.133.8514.92Invest NowDHFL Pramerica Gilt Direct Plan – Growth

Gilt2.003.306.1810.067.70Invest NowDSP Midcap Direct Plan-Growth

Mid Cap-1.566.685.73-2.0114.37Start SIPDHFL Pramerica Hybrid Debt Fund Direct Plan-Growth

Conservative Hybrid0.763.706.039.749.47Invest NowDSP Focus Direct Plan-Growth

Multi Cap2.2210.8110.147.0712.61Start SIPMotilal Oswal Multicap 35 Fund Direct-Growth

Multi Cap1.587.417.650.3716.08Invest NowMotilal Oswal Midcap 30 Fund Direct-Growth

Mid Cap-0.758.747.360.179.12Invest NowDHFL Pramerica Large Cap Fund Direct Plan-Growth

Large Cap1.629.0211.6210.0213.86Invest NowDSP Small Cap Direct Plan-Growth

Small Cap-1.489.232.91-11.498.49Start SIPDSP Equity Opportunities Direct Plan-Growth

Large & MidCap-0.237.877.913.9515.73Start SIPDSP Credit Risk Direct Plan-Growth

Credit Risk0.151.75-0.43-0.564.96Start SIPMotilal Oswal Long Term Equity Fund Direct-Growth

ELSS0.937.216.50-2.4817.35Invest NowDSP Tax Saver Direct Plan-Growth

ELSS0.9210.0910.858.5816.22Start SIPDSP Liquidity Direct-Growth

Liquid0.581.803.697.627.20Start SIPICICI Prudential Savings Fund Direct Plan -Growth

Low Duration0.772.254.458.627.92Invest NowDSP Savings Direct Plan-Growth

Money Market0.762.184.248.597.00Start SIPDSP Strategic Bond Direct Plan-Growth

Dynamic Bond0.051.634.568.896.81Start SIPDSP 10Y G-Sec Fund Direct-Growth

Gilt with 10 year Constant Duration2.113.175.7110.707.42Start SIPDSP Bond Direct-Growth

Medium Duration0.912.593.806.357.53Start SIPDSP Short Term Direct Plan-Growth

Short Duration1.052.434.909.127.64Start SIPDSP Ultra Short Fund Direct Plan-Growth

Ultra Short Duration0.672.043.126.476.99Start SIPDSP Equity Savings Fund Direct-Growth

Equity Savings0.795.445.714.919.24Start SIPDSP Dynamic Asset Allocation Fund Direct-Growth

Dynamic Asset Allocation0.712.995.028.339.73Start SIPDSP Regular Savings Direct Plan-Growth

Conservative Hybrid0.834.563.220.837.12Start SIPDSP Equity & Bond Direct-Growth

Aggressive Hybrid0.818.289.156.3513.32Start SIP

– Returns less then 1 year are absolute and above 1 year are annualised.

– Returns of 1 year are absolute and above 1 year are annualised..

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