Fund Overview & Strategy
- Fund Type: Open-ended short-duration debt mutual fund that invests in debt and money market instruments, targeting a Macaulay Duration of 1 to 3 years.
- Objective: Generate regular income along with potential capital appreciation over a short to medium horizon (>12 months).
- Risk Profile: Classified as Moderate risk, with relatively high interest rate risk and moderate credit risk
Regular Plan – Growth Option
- Returns:
- 1 Year: 8.48%–8.57%
- 3 Years: ~7.66%–7.69%
- 5 Years: ~6.28%–6.29%
- Since launch (June 2010): ~8.05%
Direct Plan – Growth Option
- 1 Year Return: ~8.8%–8.84%
- 3 Year: ~8.02%
- 5 Year: ~6.77%
- Since Inception (Jan 2013): ~8.12%
Benchmark Comparison
- Regular Plan (Growth) outperforms category averages:
- 1 Year: 8.48% vs category ~8.08%
- 3 Year: 7.66% vs category ~7.19%
- 5 Year: 6.29% vs category ~5.97%
Risk-Adjusted Metrics
- Sharpe Ratio: Better than category average—indicative of superior risk-adjusted returns
- Beta: Very low or negligible, suggesting the fund is relatively insulated from equity market swings
Portfolio Composition & Credit Quality
- Holdings: A mix of high-quality investments including:
- Government securities (GOI)
- AAA-rated NCDs from entities like REC Ltd., SIDBI, Power Finance, etc.
- Credit Quality (Direct Plan details):
- AAA: ~63.6%
- Sovereign (SOV): ~15.2%
- A1+: ~6.2%
- Top Sector Allocations:
- Corporate Debt dominates (~72.2%), followed by G-Secs (~15.2%), CDs (~5.6%), and others
Pros & Considerations
Highlights
- Strong, consistent returns that marginally outperform peers
- Low expense ratio in the Direct Plan (~0.4%)
- Strong credit quality and diversified portfolio
- Low beta, favorable for conservative investors
- No exit load or lock-in period
Points to Watch
- Moderate exposure to interest rate risk (common with short-duration debt funds)
- Short-duration funds may occasionally suffer losses if interest rates rise unexpectedly
- Returns may not always beat inflation, especially during high-rate scenarios
