NIPPON INDIA ULTRA SHORT DURATION FUND - MONTHLY IDCW Option

NIPPON INDIA ULTRA SHORT DURATION FUND - MONTHLY IDCW Option lags behind most of its peers in the Ultra Short Duration Fund category, currently carrying a 2-star rating. Returns have been soft relative to what the category has offered — worth checking if this is a temporary phase or a longer pattern. TopFund's composite Health Score, which weighs rating, 3-year CAGR, expense ratio and fund size, puts it at 48/100.

Cost: At 0.43%, the expense ratio runs 13% above the Ultra Short Duration Fund category average of 0.38%. That gap is worth weighing against the fund's actual performance versus cheaper peers before committing to a long SIP.

Risk-adjusted performance: Over the trailing 1-year period, the fund shows a negative Sharpe ratio of -3.58 — over the past year, returns haven't kept pace with the volatility involved, even before accounting for the risk-free rate. Separately, annualised volatility of 1.81% is on the lower side, suggesting a comparatively smoother ride.

Who should invest: This fund is best suited to investors whose goals and risk appetite align with a Debt fund.