Ultra Short Term funds in India
52 plans (26 Regular, 26 Direct), rated on their track record against the median fund in their category and their peers. Data as of 8 Nov 2026.
For money needed in three to twelve months. A little more return than a liquid fund; a fund that reaches for yield with weaker bonds can stumble, which is what our credit check looks for. SEBI requires ultra short term funds to keep the portfolio's duration short, roughly three to six months.
The difference, on ₹10 lakh invested three years ago, between the strongest ultra short term fund (7.2% a year) and the weakest (5.6% a year). Same category, same SEBI rules, same market. 12 of 23 funds beat the median fund in their category over the same period.
Regular plans, to the latest NAV. Past returns, not a forecast.
Regular plans (26)
| Fund | Rating | 3Y return | 3Y vs index | Expense ratio | AUM |
|---|---|---|---|---|---|
| Bandhan Ultra Short Term FundBandhan Mutual Fund · 8.3 yrs | A+ | 6.9% | +0.3% | 0.48% | ₹4,360 cr |
| Aditya Birla Sun Life Ultra Short Term FundAditya Birla Sun Life Mutual Fund · 20.6 yrs | A+ | 7.2% | +0.6% | 0.58% | ₹15,040 cr |
| Baroda BNP Paribas Ultra Short Term FundBaroda BNP Paribas Mutual Fund · 8.4 yrs | A+ | 7.0% | +0.4% | 0.44% | ₹572 cr |
| SBI Ultra Short Term FundSBI Mutual Fund · 20.6 yrs | A | 6.9% | +0.3% | 0.59% | ₹11,231 cr |
| ICICI Prudential Ultra Short term FundICICI Prudential Mutual Fund · 15.5 yrs | A | 6.9% | +0.3% | 0.80% | ₹14,582 cr |
| Mirae Asset Ultra Short-Term FundMirae Asset Mutual Fund · 6.1 yrs | A | 7.1% | +0.5% | 0.68% | ₹1,881 cr |
| Mahindra Manulife Ultra Short Term FundMahindra Manulife Mutual Fund · 7.1 yrs | A | 6.8% | +0.2% | 0.73% | ₹233 cr |
| HDFC Ultra Short Term FundHDFC Mutual Fund · 8.1 yrs | B | 6.8% | +0.2% | 0.71% | ₹14,775 cr |
| Nippon India Ultra Short Term FundNippon India Mutual Fund · 8.5 yrs | B | 6.7% | +0.2% | 1.02% | ₹11,772 cr |
| Kotak Ultra Short Term FundKotak Mahindra Mutual Fund · 20.6 yrs | B | 6.7% | +0.1% | 0.82% | ₹15,125 cr |
| Invesco India Ultra Short Term FundInvesco Mutual Fund · 15.8 yrs | B | 6.8% | +0.2% | 0.79% | ₹1,651 cr |
| UTI Ultra Short Term FundUTI Mutual Fund · 20.6 yrs | B | 6.6% | +0.0% | 1.00% | ₹2,668 cr |
| Tata Ultra Short Term FundTata Mutual Fund · 7.8 yrs | B | 6.6% | -0.0% | 1.11% | ₹5,711 cr |
| DSP Ultra Short Term FundDSP Mutual Fund · 20.3 yrs | B | 6.5% | -0.1% | 1.01% | ₹3,738 cr |
| PGIM India Ultra Short Term FundPGIM India Mutual Fund · 10.7 yrs | B | 6.3% | -0.2% | 0.93% | ₹245 cr |
| Axis Ultra Short Term FundAxis Mutual Fund · 8.2 yrs | B | 6.5% | -0.1% | 1.24% | ₹4,988 cr |
| WhiteOak Capital Ultra Short Term FundWhiteOak Capital Mutual Fund · 7.4 yrs | B | 6.4% | -0.2% | 0.82% | ₹573 cr |
| ITI Ultra Short Term FundITI Mutual Fund · 5.5 yrs | C | 6.2% | -0.4% | 0.91% | ₹164 cr |
| Bank Of India Ultra Short Term FundBank of India Mutual Fund · 18.3 yrs | C | 6.3% | -0.3% | 1.01% | ₹222 cr |
| Canara Robeco Ultra Short Term FundCanara Robeco Mutual Fund · 18.3 yrs | C | 6.4% | -0.2% | 0.92% | ₹532 cr |
| LIC MF Ultra Short Term FundLIC Mutual Fund · 6.9 yrs | C | 6.3% | -0.2% | 1.38% | ₹1,276 cr |
| Sundaram Ultra Short Term Fund (Formerly Known as Sundaram Ultra Short Duration Fund)Sundaram Mutual Fund · 4.8 yrs | C | 5.9% | -0.7% | 1.45% | ₹2,040 cr |
| Motilal Oswal Ultra Short Term FundMotilal Oswal Mutual Fund · 13.2 yrs | C | 5.6% | -1.0% | 1.12% | ₹499 cr |
| Edelweiss Ultra Short Term FundEdelweiss Mutual Fund · 0.2 yrs | – | – | – | 0.66% | ₹1,112 cr |
| Franklin India Ultra Short Term FundFranklin Templeton Mutual Fund · 2.2 yrs | – | – | – | 0.72% | ₹299 cr |
| Union Short Term FundUnion Mutual Fund · 1.8 yrs | – | – | – | 0.80% | ₹104 cr |
Direct plans (26)
| Fund | Rating | 3Y return | 3Y vs index | Expense ratio | AUM |
|---|---|---|---|---|---|
| Nippon India Ultra Short Term FundNippon India Mutual Fund · 8.5 yrs | A+ | 7.5% | +0.4% | 0.33% | ₹11,772 cr |
| Tata Ultra Short Term FundTata Mutual Fund · 7.8 yrs | A+ | 7.4% | +0.3% | 0.33% | ₹5,711 cr |
| Sundaram Ultra Short Term Fund (Formerly Known as Sundaram Ultra Short Duration Fund)Sundaram Mutual Fund · 4.8 yrs | A | 7.2% | +0.1% | 0.22% | ₹2,040 cr |
| Mirae Asset Ultra Short-Term FundMirae Asset Mutual Fund · 6.1 yrs | A | 7.4% | +0.2% | 0.22% | ₹1,881 cr |
| Axis Ultra Short Term FundAxis Mutual Fund · 8.2 yrs | A | 7.4% | +0.2% | 0.36% | ₹4,988 cr |
| DSP Ultra Short Term FundDSP Mutual Fund · 13.8 yrs | A | 7.3% | +0.1% | 0.30% | ₹3,738 cr |
| Invesco India Ultra Short Term FundInvesco Mutual Fund · 13.8 yrs | A | 7.3% | +0.1% | 0.27% | ₹1,651 cr |
| Aditya Birla Sun Life Ultra Short Term FundAditya Birla Sun Life Mutual Fund · 13.8 yrs | B | 7.4% | +0.2% | 0.32% | ₹15,040 cr |
| Mahindra Manulife Ultra Short Term FundMahindra Manulife Mutual Fund · 7.1 yrs | B | 7.2% | +0.1% | 0.31% | ₹233 cr |
| UTI Ultra Short Term FundUTI Mutual Fund · 13.8 yrs | B | 7.2% | +0.1% | 0.39% | ₹2,668 cr |
| LIC MF Ultra Short Term FundLIC Mutual Fund · 6.9 yrs | B | 7.2% | +0.0% | 0.25% | ₹1,276 cr |
| ICICI Prudential Ultra Short term FundICICI Prudential Mutual Fund · 13.8 yrs | B | 7.3% | +0.2% | 0.40% | ₹14,582 cr |
| Bandhan Ultra Short Term FundBandhan Mutual Fund · 8.3 yrs | B | 7.1% | -0.1% | 0.29% | ₹4,360 cr |
| ITI Ultra Short Term FundITI Mutual Fund · 5.5 yrs | B | 7.0% | -0.2% | 0.21% | ₹164 cr |
| Baroda BNP Paribas Ultra Short Term FundBaroda BNP Paribas Mutual Fund · 8.4 yrs | B | 7.1% | -0.0% | 0.29% | ₹572 cr |
| Kotak Ultra Short Term FundKotak Mahindra Mutual Fund · 13.8 yrs | B | 7.1% | -0.0% | 0.36% | ₹15,125 cr |
| SBI Ultra Short Term FundSBI Mutual Fund · 13.8 yrs | B | 7.1% | -0.1% | 0.35% | ₹11,231 cr |
| HDFC Ultra Short Term FundHDFC Mutual Fund · 8.1 yrs | C | 7.1% | -0.0% | 0.39% | ₹14,775 cr |
| WhiteOak Capital Ultra Short Term FundWhiteOak Capital Mutual Fund · 7.4 yrs | C | 6.9% | -0.2% | 0.28% | ₹573 cr |
| PGIM India Ultra Short Term FundPGIM India Mutual Fund · 10.7 yrs | C | 7.0% | -0.2% | 0.33% | ₹245 cr |
| Motilal Oswal Ultra Short Term FundMotilal Oswal Mutual Fund · 13.2 yrs | C | 6.4% | -0.8% | 0.37% | ₹499 cr |
| Canara Robeco Ultra Short Term FundCanara Robeco Mutual Fund · 13.8 yrs | C | 7.0% | -0.2% | 0.31% | ₹532 cr |
| Bank Of India Ultra Short Term FundBank of India Mutual Fund · 13.8 yrs | C | 6.8% | -0.3% | 0.41% | ₹222 cr |
| Edelweiss Ultra Short Term FundEdelweiss Mutual Fund · 0.2 yrs | – | – | – | 0.17% | ₹1,112 cr |
| Franklin India Ultra Short Term FundFranklin Templeton Mutual Fund · 2.2 yrs | – | – | – | 0.29% | ₹299 cr |
| Union Short Term FundUnion Mutual Fund · 1.8 yrs | – | – | – | 0.41% | ₹104 cr |
Common questions
What does a ultra short term fund invest in?
SEBI requires ultra short term funds to keep the portfolio's duration short, roughly three to six months.
How many ultra short term funds beat their index over 3 years?
12 of 23 ultra short term funds (Regular plans with 3 years of history) beat the median fund in their category over the 3 years to 8 Nov 2026.
How are these funds rated?
Each fund is compared only with funds in its category and plan type, on its long-run return over the index, risk-adjusted return, consistency, cost and portfolio. The ratings describe the track record so far; our own backtest found they do not predict future returns.
Ratings describe past track records and are not a recommendation to buy or sell. Read the scheme documents before investing.