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Best Ultra Short Duration Debt Funds in 2025

What are Debt: Ultra Short Duration funds?


Funds Included All Fund Returns
(3Y annualised)
Top 5 fund Returns
(3Y annualised)
27 7.3% 7.71%

This fund category is an example of Debt Scheme funds.

Debt funds invest primarily in fixed-income securities such as government bonds, corporate bonds, debentures, treasury bills, and money market instruments. They aim to provide steady income and capital preservation with lower volatility compared to equity funds. Depending on portfolio maturity and credit quality, debt funds range from liquid and short-duration funds to gilt and dynamic bond funds. Suitable for investors with moderate to low risk appetite seeking regular income.

Trailing returns for Debt: Ultra Short Duration funds

These are average returns over the indicated period.

Monthly trailing returns:
Nov-2025Oct-2025Sep-2025Aug-2025Jul-2025Jun-2025
0.36%0.57%0.48%0.44%0.56%0.60%

Quarterly trailing returns:
2025Q42025Q32025Q22025Q12024Q42024Q3
0.92%1.49%2.00%1.91%1.80%1.86%

Yearly trailing returns:
202520242023202220212020
6.47%7.56%7.07%4.63%4.24%5.76%

Rolling returns for Debt: Ultra Short Duration funds

SIP
10% Step-up SIP
Lump sum
SWP
10% Step-up SWP
Metric Any 1Y SIPAny 2Y SIPAny 3Y SIPAny 5Y SIPAny 7Y SIPAny 10Y SIP
Minimum3.95%5.53%5.07%6.0%6.39%6.27%
Median6.8%6.6%6.71%6.64%6.46%6.28%
Maximum9.23%7.83%7.96%7.28%6.61%6.29%
Risk1.32%0.61%0.83%0.39%0.07%0.01%
Sharpe Ratio-15.39%-66.16%-35.45%-92.03%-772.8%-7160.0%
Data as of 14-Dec-2025
Metric Any 1Y SIPAny 2Y 目↑ SIPAny 3Y 目↑ SIPAny 5Y 目↑ SIPAny 7Y 目↑ SIPAny 10Y 目↑ SIP
Minimum3.95%7.27%7.3%6.93%6.67%6.42%
Median6.8%7.34%7.35%6.94%6.68%6.44%
Maximum9.23%7.39%7.38%6.95%6.69%6.45%
Risk1.32%0.04%0.03%0.01%0.01%0.01%
Sharpe Ratio-15.39%870.59%1383.33%0%0%0%
Data as of 14-Dec-2025
Metric Any 1YAny 2YAny 3YAny 5YAny 7YAny 10Y
Minimum4.15%5.84%5.37%6.0%6.42%6.65%
Median6.88%6.64%6.65%6.31%6.51%6.67%
Maximum9.09%7.69%7.86%7.01%6.67%6.68%
Risk1.26%0.54%0.76%0.31%0.08%0.01%
Sharpe Ratio-9.19%-65.63%-46.18%-224.16%-611.89%0%
Data as of 14-Dec-2025
Metric Any 1Y SWPAny 2Y SWPAny 3Y SWPAny 5Y SWPAny 7Y SWPAny 10Y SWP
Minimum3.99%5.68%4.76%5.49%6.34%7.11%
Median6.89%6.67%6.58%6.29%6.57%7.14%
Maximum9.31%7.88%8.2%7.22%6.79%7.17%
Risk1.3%0.61%1.0%0.51%0.13%0.02%
Sharpe Ratio-8.54%-53.13%-42.06%-139.54%-339.04%823.53%
Data as of 14-Dec-2025
Metric Any 1Y SWPAny 2Y 目↑ SWPAny 3Y 目↑ SWPAny 5Y 目↑ SWPAny 7Y 目↑ SWPAny 10Y 目↑ SWP
Minimum3.99%7.5%7.26%5.56%6.32%6.72%
Median6.89%7.54%7.28%5.59%6.35%6.72%
Maximum9.31%7.57%7.31%5.62%6.37%6.73%
Risk1.3%0.02%0.01%0.02%0.02%0.0%
Sharpe Ratio-8.54%2848.98%2062.86%-8035.71%-3566.67%0%
Data as of 14-Dec-2025

Fundwise SIP, Lumpsum and SWP returns


Rolling SIP returns (less than 1 year)
Fund Any 1M SIPAny 3M SIPAny 6M SIP
PGIM India Ultra Short Duration Fund6.12%6.09%6.11%
Mirae Asset Ultra Short Duration Fund6.7%6.63%6.56%
HSBC Ultra Short Duration Fund6.57%6.43%6.29%
Baroda BNP Paribas Ultra Short Duration Fund6.51%6.37%6.31%
DSP Ultra Short Fund6.73%6.64%6.48%
Kotak Savings Fund6.73%6.59%6.47%
Mahindra Manulife Ultra Short Duration Fund6.6%6.37%6.35%
Aditya Birla Sun Life Savings Fund7.17%7.0%6.86%
Sundaram Ultra Short Duration Fund6.46%6.37%6.31%
Bank India Ultra Short Duration Fund6.39%6.3%6.14%
Nippon India Ultra Short Duration Fund7.1%6.89%6.8%
Axis Ultra Short Duration Fund6.77%6.69%6.64%
Bandhan Ultra Short Duration Fund6.54%6.4%6.29%
SBI Magnum Ultra Short Duration Fund6.72%6.53%6.38%
Motilal Oswal Ultra Short Term Mofustf Fund6.05%5.87%6.03%
Tata Ultra Short Term Fund6.84%6.59%6.57%
Whiteoak Capital Ultra Short Duration Fund6.31%6.06%6.01%
LIC MF Ultra Short Duration Fund6.25%6.22%6.22%
Canara Robeco Ultra Short Term Fund6.36%6.21%6.16%
ITI Ultra Short Duration Fund6.28%6.24%6.18%
Franklin India Ultra Short Duration Fund7.5%7.32%8.04%
JM Ultra Short Duration Fund3.36%11.15%13.59%
HDFC Ultra Short Term Fund6.53%6.62%6.49%
UTI Ultra Short Duration Fund6.72%6.6%6.5%
ICICI Prudential Ultra Short Term Fund6.87%6.84%6.75%
Franklin India Ultra Short Bond Super Institutional Fund7.4%5.86%6.11%
Invesco India Ultra Short Duration Fund6.59%6.49%6.41%
Data as of 14-Dec-2025

Note: Returns for less than one year are annualised. However, given the nature of the calculation, XIRR for such periods are not meaningful.

Rolling SIP returns (1 year or more):

Fund Any 1Y SIPAny 3Y SIPAny 5Y SIP
PGIM India Ultra Short Duration Fund6.92%7.46%6.63%
Mirae Asset Ultra Short Duration Fund4.53%7.6%7.05%
HSBC Ultra Short Duration Fund3.94%5.32%6.89%
Baroda BNP Paribas Ultra Short Duration Fund5.52%4.81%5.6%
DSP Ultra Short Fund7.45%6.91%6.53%
Kotak Savings Fund7.09%7.45%6.93%
Mahindra Manulife Ultra Short Duration Fund7.17%7.41%6.93%
Aditya Birla Sun Life Savings Fund8.0%7.79%7.21%
Sundaram Ultra Short Duration Fund7.39%7.48%0%
Bank India Ultra Short Duration Fund7.24%7.04%6.4%
Nippon India Ultra Short Duration Fund7.46%7.74%7.5%
Axis Ultra Short Duration Fund5.82%5.07%5.91%
Bandhan Ultra Short Duration Fund5.39%4.57%5.44%
SBI Magnum Ultra Short Duration Fund7.57%7.31%6.68%
Motilal Oswal Ultra Short Term Mofustf Fund6.04%3.62%2.2%
Tata Ultra Short Term Fund5.11%4.71%7.07%
Whiteoak Capital Ultra Short Duration Fund6.75%7.13%6.69%
LIC MF Ultra Short Duration Fund6.29%7.01%6.6%
Canara Robeco Ultra Short Term Fund6.83%6.79%6.45%
ITI Ultra Short Duration Fund7.34%7.18%0%
Franklin India Ultra Short Duration Fund7.57%0%0%
JM Ultra Short Duration Fund8.93%7.34%7.87%
HDFC Ultra Short Term Fund5.75%4.93%6.96%
UTI Ultra Short Duration Fund7.17%7.49%7.17%
ICICI Prudential Ultra Short Term Fund7.43%7.65%7.14%
Franklin India Ultra Short Bond Super Institutional Fund9.7%9.07%8.54%
Invesco India Ultra Short Duration Fund7.1%7.48%6.95%
Data as of 14-Dec-2025
SIP Calculator


Rolling Lumpsum returns
Fund Any 1YAny 3YAny 5Y
PGIM India Ultra Short Duration Fund7.04%8.28%7.31%
Mirae Asset Ultra Short Duration Fund4.21%7.59%6.2%
HSBC Ultra Short Duration Fund3.98%4.84%6.1%
Baroda BNP Paribas Ultra Short Duration Fund5.44%5.0%5.98%
DSP Ultra Short Fund7.46%6.94%6.12%
Kotak Savings Fund7.42%7.47%6.13%
Mahindra Manulife Ultra Short Duration Fund7.37%5.85%6.07%
Aditya Birla Sun Life Savings Fund7.88%7.74%6.38%
Sundaram Ultra Short Duration Fund7.61%7.5%0%
Bank India Ultra Short Duration Fund7.36%7.0%6.45%
Nippon India Ultra Short Duration Fund7.71%7.75%7.43%
Axis Ultra Short Duration Fund5.71%5.29%6.37%
Bandhan Ultra Short Duration Fund5.45%4.74%5.96%
SBI Magnum Ultra Short Duration Fund7.52%7.41%6.56%
Motilal Oswal Ultra Short Term Mofustf Fund6.02%3.89%2.88%
Tata Ultra Short Term Fund5.19%4.94%6.27%
Whiteoak Capital Ultra Short Duration Fund7.07%7.19%6.06%
LIC MF Ultra Short Duration Fund6.24%5.75%5.62%
Canara Robeco Ultra Short Term Fund6.83%6.8%6.76%
ITI Ultra Short Duration Fund7.37%6.57%0%
Franklin India Ultra Short Duration Fund7.69%0%0%
JM Ultra Short Duration Fund8.99%8.65%6.98%
HDFC Ultra Short Term Fund6.06%5.15%6.18%
UTI Ultra Short Duration Fund7.44%7.5%6.75%
ICICI Prudential Ultra Short Term Fund7.67%7.64%6.46%
Franklin India Ultra Short Bond Super Institutional Fund9.71%7.89%8.24%
Invesco India Ultra Short Duration Fund7.43%7.5%6.13%
Data as of 14-Dec-2025

Rolling SWP returns
Fund Any 1Y SWPAny 3Y SWPAny 5Y SWP
PGIM India Ultra Short Duration Fund6.83%8.01%8.36%
Mirae Asset Ultra Short Duration Fund3.86%7.57%5.25%
HSBC Ultra Short Duration Fund3.93%4.28%5.22%
Baroda BNP Paribas Ultra Short Duration Fund5.67%5.42%6.38%
DSP Ultra Short Fund7.63%6.81%6.49%
Kotak Savings Fund7.71%7.49%5.23%
Mahindra Manulife Ultra Short Duration Fund7.63%5.5%5.21%
Aditya Birla Sun Life Savings Fund7.89%7.66%7.33%
Sundaram Ultra Short Duration Fund7.72%7.23%0%
Bank India Ultra Short Duration Fund7.42%7.08%6.7%
Nippon India Ultra Short Duration Fund7.99%7.75%7.34%
Axis Ultra Short Duration Fund6.11%5.84%6.9%
Bandhan Ultra Short Duration Fund5.9%5.48%6.54%
SBI Magnum Ultra Short Duration Fund7.64%7.41%7.2%
Motilal Oswal Ultra Short Term Mofustf Fund6.06%4.23%3.58%
Tata Ultra Short Term Fund4.84%5.04%5.38%
Whiteoak Capital Ultra Short Duration Fund7.43%7.17%5.36%
LIC MF Ultra Short Duration Fund5.75%4.62%4.67%
Canara Robeco Ultra Short Term Fund6.83%6.74%7.19%
ITI Ultra Short Duration Fund7.39%5.94%0%
Franklin India Ultra Short Duration Fund7.88%0%0%
JM Ultra Short Duration Fund6.83%8.62%8.41%
HDFC Ultra Short Term Fund6.07%5.83%5.3%
UTI Ultra Short Duration Fund7.7%7.52%6.28%
ICICI Prudential Ultra Short Term Fund7.9%7.64%7.47%
Franklin India Ultra Short Bond Super Institutional Fund9.63%6.61%7.9%
Invesco India Ultra Short Duration Fund7.77%7.52%5.23%
Data as of 14-Dec-2025

SIP and SWP returns with step-up


Rolling SIP returns with 10% step-up
Fund Any 1Y SIPAny 3Y 目↑ SIPAny 5Y 目↑ SIP
PGIM India Ultra Short Duration Fund6.92%7.25%6.84%
Mirae Asset Ultra Short Duration Fund4.53%7.59%7.09%
HSBC Ultra Short Duration Fund3.94%7.38%6.93%
Baroda BNP Paribas Ultra Short Duration Fund5.52%7.39%6.99%
DSP Ultra Short Fund7.45%7.57%7.07%
Kotak Savings Fund7.09%7.44%6.98%
Mahindra Manulife Ultra Short Duration Fund7.17%7.44%6.98%
Aditya Birla Sun Life Savings Fund8.0%7.79%7.26%
Sundaram Ultra Short Duration Fund7.39%7.44%0%
Bank India Ultra Short Duration Fund7.24%7.02%6.55%
Nippon India Ultra Short Duration Fund7.46%7.73%7.51%
Axis Ultra Short Duration Fund5.82%7.62%7.17%
Bandhan Ultra Short Duration Fund5.39%7.32%6.84%
SBI Magnum Ultra Short Duration Fund7.57%7.36%6.88%
Motilal Oswal Ultra Short Term Mofustf Fund6.04%6.48%6.06%
Tata Ultra Short Term Fund5.11%7.59%7.12%
Whiteoak Capital Ultra Short Duration Fund6.75%7.13%6.73%
LIC MF Ultra Short Duration Fund6.29%7.23%6.66%
Canara Robeco Ultra Short Term Fund6.83%7.17%6.67%
ITI Ultra Short Duration Fund7.34%7.18%0%
Franklin India Ultra Short Duration Fund7.57%0%0%
JM Ultra Short Duration Fund8.93%4.85%5.31%
HDFC Ultra Short Term Fund5.75%7.47%7.01%
UTI Ultra Short Duration Fund7.17%7.49%7.19%
ICICI Prudential Ultra Short Term Fund7.43%7.64%7.19%
Franklin India Ultra Short Bond Super Institutional Fund9.7%9.09%8.58%
Invesco India Ultra Short Duration Fund7.1%7.47%6.99%
Data as of 14-Dec-2025

Rolling SWP returns with 10% step-up
Fund Any 1Y SWPAny 3Y 目↑ SWPAny 5Y 目↑ SWP
PGIM India Ultra Short Duration Fund6.83%7.37%5.32%
Mirae Asset Ultra Short Duration Fund3.86%7.58%5.35%
HSBC Ultra Short Duration Fund3.93%7.46%5.31%
Baroda BNP Paribas Ultra Short Duration Fund5.67%7.54%5.44%
DSP Ultra Short Fund7.63%7.61%5.32%
Kotak Savings Fund7.71%7.49%5.32%
Mahindra Manulife Ultra Short Duration Fund7.63%7.51%5.32%
Aditya Birla Sun Life Savings Fund7.89%7.67%5.55%
Sundaram Ultra Short Duration Fund7.72%7.54%0%
Bank India Ultra Short Duration Fund7.42%6.97%4.92%
Nippon India Ultra Short Duration Fund7.99%7.75%7.34%
Axis Ultra Short Duration Fund6.11%7.67%5.59%
Bandhan Ultra Short Duration Fund5.9%7.41%5.12%
SBI Magnum Ultra Short Duration Fund7.64%7.41%5.18%
Motilal Oswal Ultra Short Term Mofustf Fund6.06%6.49%4.58%
Tata Ultra Short Term Fund4.84%7.61%5.47%
Whiteoak Capital Ultra Short Duration Fund7.43%7.24%5.43%
LIC MF Ultra Short Duration Fund5.75%6.91%4.89%
Canara Robeco Ultra Short Term Fund6.83%7.15%4.91%
ITI Ultra Short Duration Fund7.39%7.29%0%
Franklin India Ultra Short Duration Fund7.88%0%0%
JM Ultra Short Duration Fund6.83%4.66%7.19%
HDFC Ultra Short Term Fund6.07%7.51%5.39%
UTI Ultra Short Duration Fund7.7%7.53%6.33%
ICICI Prudential Ultra Short Term Fund7.9%7.63%5.76%
Franklin India Ultra Short Bond Super Institutional Fund9.63%6.7%7.91%
Invesco India Ultra Short Duration Fund7.77%7.52%5.31%
Data as of 14-Dec-2025

Note:N.A. in returns indicate that the fund does not have sufficient history.

Tables have been updated on 14-Dec-2025

How are Debt: Ultra Short Duration funds taxed on selling?

Debt Funds
Tax for FY2025-26
STCG Rate LTCG Eligibility LTCG Rate
Bought Before
1 Apr 2023
Slab After 2Y 12.5%
Bought After
31 Mar 2023
Slab Always STCG Slab

Note:

  • Dividends from mutual funds (called IDCW or Income Distribution cum Capital Withdrawal funds), are added to the income of the investor and taxed at their highest applicable (slab) rate.
  • Cess and surcharge (if applicable) is to be applied to taxes from mutual funds from selling and dividends.
  • Switches, SWP and selling any lump sum amount are taxable as per the table above.

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Disclaimer: Mutual fund investments are subject to market risks, read all scheme related documents carefully. The NAVs of the schemes may go up or down depending upon the factors and forces affecting the securities market including the fluctuations in the interest rates. The past performance of the mutual funds is not necessarily indicative of future performance of the schemes. The Mutual Fund is not guaranteeing or assuring any dividend under any of the schemes and the same is subject to the availability and adequacy of distributable surplus. Investors are requested to review the prospectus carefully and obtain expert professional advice with regard to specific legal, tax and financial implications of the investment/participation in the scheme.

Note: NAVs and returns updated on 14-Dec-2025.