Low risk short term debt fund categories that can help your emergency corpus to grow and generate return over and above the banks’ savings and fixed deposits
June 29, 2023 / 01:35 PM IST
Building an emergency corpus is an essential part of financial planning. It comes in handy when you have sudden and unexpected expenses in life. Experts suggest to keep aside at least six months of your monthly income. Aside from savings accounts and bank fixed deposits, debt funds are also a good parking vehicle for an emergency corpus. There are low risk short term debt fund categories that can help your corpus to grow and generate return over and above the banks’ savings and fixed deposits. These include liquid funds, ultra short term funds, low duration funds, money market funds and short duration funds.
You can easily liquidate the units of debt mutual funds and get the money in your account in one-day. Interestingly, two debt funds categories (liquid and overnight funds) provide instant redemption facility wherein you get the money in your accounts in minutes. Typically, you can redeem up to Rs 50,000 or 90% of your portfolio in liquid funds per day. Only few MFs offer this facility, though, currently. Here we compiled top performing schemes from the short term debt funds include liquid funds, ultra short term funds, low duration funds, money market funds and short duration funds. Schemes were shortlisted based on the rolling returns and Sortino ratio. Keep in mind that these debt schemes do not guarantee returns. Though, they are the least volatile of all MF schemes. Source: ACEMF.
Nippon India Liquid Fund Category: Liquid Fund Corpus: Rs 24,687 crore Fund managers: Anju Chhajer, Siddharth Deb and Kinjal Desai
DSP Liquidity Fund Category: Liquid Fund Corpus: Rs 12,654 crore Fund managers: Kedar Karnik and Karan Mundra
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Aditya Birla SL Savings Fund Category: Ultra Short Duration Fund Corpus: Rs 15,041 crore Fund managers: Kaustubh Gupta, Sunaina da Cunha and Monika Gandhi
SBI Magnum Ultra Short Duration Fund Category: Ultra Short Duration Fund Corpus: Rs 13,324 crore Fund managers: Ultra Short Duration and R. Arun
Also read: Six fixed income products for you in this high interest rate scenario
ICICI Pru Savings Fund Category: Low Duration Fund Corpus: Rs 17,851 crore Fund managers: Manish Banthia, Rohan Maru and Darshil Dedhia
Kotak Low Duration Fund Category: Low Duration Fund Corpus: Rs 8,811 crore Fund managers: Deepak Agrawal and Manu Sharma
Read here: SIPs work for debt funds, too. And, they beat bank FDs. Here’s the proof
Aditya Birla SL Money Manager Fund Category: Money Market Fund Corpus: Rs 14,496 crore Fund managers: Anuj Jain, Kaustubh Gupta and Mohit Sharma
UTI Money Market Fund Category: Money Market Fund Corpus: Rs 9,117 crore Fund managers: Amit Sharma and Anurag Mittal
HDFC Short Term Debt Fund Category: Money Market Fund Corpus: Rs 12,320 crore Fund manager: Anil Bamboli
Also read: HDFC Short Term Debt Fund: An all-weather debt fund has delivered across rate cycles
ICICI Pru Short Term Fund Category: Short Duration Fund Corpus: Rs 17,906 crore Fund managers: Manish Banthia and Nikhil Kabra
Axis Short Term Fund Category: Short Duration Fund Corpus: Rs 7,415 crore Fund manager: Devang Shah
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