Best Short Duration Mutual Funds 2026
Short Duration funds invest in bonds with 1-3 year maturity — low risk debt option for 1-3 year investment horizon. 186 funds available on TopFund.
7.7%
Avg 3Y CAGR
What are Short Duration Mutual Funds?
Short Duration mutual funds invest in bonds with 1-3 year maturity — low risk debt option for 1-3 year investment horizon. These funds are managed by professional fund managers who select stocks/bonds based on the fund's investment objective and mandate defined by SEBI.
Who should invest? Conservative investors or those with short-to-medium term goals. Short Duration funds offer relatively stable returns compared to equity funds.
Top Short Duration Funds by Star Rating
Axis Short Duration Fund - Regular Plan - Monthly IDCW
Axis Mutual Fund · Short Duration Fund
Axis Short Duration Fund - Direct Plan - Regular IDCW
Axis Mutual Fund · Short Duration Fund
Axis Short Duration Fund - Retail Plan - Weekly IDCW
Axis Mutual Fund · Short Duration Fund
Axis Short Duration Fund - Regular Plan - Regular IDCW
Axis Mutual Fund · Short Duration Fund
Axis Short Duration Fund - Direct Plan - Weekly IDCW
Axis Mutual Fund · Short Duration Fund
Axis Short Duration Fund - Retail Plan - Monthly IDCW
Axis Mutual Fund · Short Duration Fund
Axis Short Duration Fund - Regular Plan - Growth Option
Axis Mutual Fund · Short Duration Fund
Axis Short Duration Fund - Regular Plan - Weekly IDCW
Axis Mutual Fund · Short Duration Fund
ICICI Prudential Short Term Fund - Direct Plan - Growth Option
ICICI Prudential Mutual Fund · Short Duration Fund
Axis Short Duration Fund - Direct Plan - Monthly IDCW
Axis Mutual Fund · Short Duration Fund
Frequently Asked Questions
What are Short Duration mutual funds? expand_more
Short Duration mutual funds invest in bonds with 1-3 year maturity — low risk debt option for 1-3 year investment horizon.
What is the minimum investment in Short Duration funds? expand_more
Most Short Duration funds allow SIP starting from ₹500/month or ₹1,000 lumpsum. Some funds have lower minimums of ₹100 via SIP.
Are Short Duration mutual funds safe? expand_more
Debt funds carry lower risk than equity but are not entirely risk-free — they have credit risk and interest rate risk. They are suitable for short-to-medium term goals.
How are Short Duration fund returns taxed? expand_more
Debt fund gains are added to income and taxed per your income tax slab (post-2023 budget).