Best Short Duration Funds in India

28 short duration funds in India, of which 20 meet the eligibility criteria, ranked on Sharpe ratio. Income with less volatility than equity?

Ranked on risk-adjusted return, not raw return — the point of this group is smoother outcomes.

Short Duration Funds ranked by Sharpe ratio

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1	ICICI Prudential Short Term Fund - Direct Plan - Growth OptionGold	1.48	-3.4%	+8.44%	73%	+4.82%	₹18,890 Cr	0.45%
2	Axis Short Term Fund - Growth Option - Direct PlanPlatinum	1.39	-2.6%	+8.15%	70%	+4.78%	₹7,425 Cr	0.40%
3	Bandhan Short Term Fund - Growth - Direct PlanGold	1.29	-2.5%	+7.86%	60%	+5.43%	₹8,680 Cr	0.39%
4	Sundaram Short Term Fund (Formerly Known as Sundaram Short Duration Fund) - GROWTH - Direct PlanSilver	1.25	-0.7%	+7.62%	48%	+4.60%	₹176 Cr	0.28%
5	UTI Short Term Fund - Growth - Direct PlanGold	1.23	-13.2%	+7.69%	50%	+4.13%	₹2,039 Cr	0.41%
6	Nippon India Short Term Fund - Growth Option - Direct PlanPlatinum	1.18	-2.9%	+7.89%	59%	+4.36%	₹6,364 Cr	0.40%
7	Aditya Birla Sun Life Short Term Fund - Growth - Direct PlanGold	1.17	-2.8%	+8.24%	67%	+4.51%	₹5,966 Cr	0.36%
8	HDFC Short Term Fund - Growth Option - Direct PlanGold	1.14	-2.7%	+7.92%	65%	+4.23%	₹14,219 Cr	0.39%
9	Baroda BNP Paribas Short Term Fund (the scheme has 2 segregated portfolios) - Growth Option - Direct PlanGold	1.13	-2.1%	+8.25%	63%	+4.49%	₹419 Cr	0.44%
10	Kotak Short Term Fund - (Growth) - Direct PlanPlatinum	1.10	-3.0%	+8.10%	66%	+4.27%	₹14,241 Cr	0.38%
11	BANK OF INDIA SHORT TERM FUND - Growth - Direct PlanBronze	1.09	-19.8%	+8.73%	64%	+4.22%	₹259 Cr	0.54%
12	HSBC Short Term FundSilver	1.06	-0.6%	+7.44%	24%	+4.14%	₹4,185 Cr	0.32%
13	LIC MF Short Term Fund - Growth - Direct PlanPlatinum	1.06	-2.3%	+5.98%	20%	+4.50%	₹122 Cr	0.36%
14	Canara Robeco Short Term Fund - GROWTH OPTION - Direct PlanSilver	1.03	-2.1%	+7.66%	49%	+4.39%	₹276 Cr	0.36%
15	SBI SHORT TERM FUND - Growth - Direct PlanGold	1.03	-2.4%	+7.88%	59%	+4.00%	₹13,243 Cr	0.42%
16	Tata Short Term Fund - Growth Option - Direct PlanBronze	1.01	-5.1%	+6.84%	36%	+4.14%	₹2,912 Cr	0.37%
17	Invesco India Short Term Fund - Growth - Direct PlanBronze	0.97	-2.8%	+7.59%	45%	+3.85%	₹541 Cr	0.39%
18	Mirae Asset Short Term Fund - Growth - Direct PlanGold	0.97	-2.2%	+6.79%	31%	+3.71%	₹512 Cr	0.26%
19	DSP Short Term Fund - Direct Plan - GrowthSilver	0.90	-2.8%	+7.72%	52%	+3.99%	₹3,416 Cr	0.37%
20	Union Short Term Fund - Growth Option - Direct Plan	—	-0.5%	—	—	+3.80%	₹111 Cr	0.35%

Badges are our own quality tiers — Platinum (top 10%), Gold (25%), Silver (50%), Bronze (75%) — scored within each sub-category, so they compare a fund with its peers and not with funds of a different type. “3Y typical” is the median annualised return across every 3-year holding period the fund has lived through, not a single 3-year figure; “3Y loss odds” is the share of those periods that ended down. “Beat peers” is the share in which it beat its category's median, and “worst fall” is its deepest peak-to-trough drop. Open a fund for the full distribution. Click any column heading to re-sort — including the fund name, which groups a house’s funds together. Funds with no value for a column sort last. Returns over 1 year are annualised (CAGR). Past performance does not indicate future returns. Eligibility: Direct, Growth only, minimum AUM ₹100 Cr, at least 1 year(s) old. Past performance. Returns for 3y/5y are annualised (CAGR) and are withheld where the NAV series does not support the period.

Short Duration Funds — FAQs

Why rank these on risk-adjusted return?

The purpose of this group is a smoother path, not the highest possible number. A fund that earned slightly less with much less volatility is doing the job better, which is what a risk-adjusted measure captures and a raw return does not.

What risks do debt funds carry?

Two main ones. Interest-rate risk: when yields rise, existing bonds fall in value, and longer-duration funds move more. Credit risk: a borrower may be downgraded or default, which affects the NAV directly. Categories differ substantially in how much of each they take.