HomeMutual FundsMF To InvestGood Returns Debt Funds for Short Term

Good Returns Debt Funds for Short Term

Here you access a selection of debt mutual funds that have delivered returns of at least 9% in the past year. These funds are tailored for investors seeking short-term investment options within the debt category, offering high returns over a brief period, ideal for shorter financial goals or tactical asset allocation.

List of Best Debt Funds for Short Term

Name
NAV
AUM (in Cr.)
1M Returns
3M Returns
1 Yr Returns sort_arrow
3 Yr Returns
5 Yr Returns
Rating
Exp Ratio
Risk
Min Monthly SIP
Min Lumpsum
Category
Sub Category
DSP Credit Risk Fund Direct - Growth

DSP Credit Risk Fund Direct - Growth

55.01

207.91 0.63% 1.24% 22.86%15.78%12.03%

5

star
0.40%Moderately High100100DebtCredit Risk Fund
HSBC Credit Risk Fund Direct - Growth

HSBC Credit Risk Fund Direct - Growth

35.63

562.38 0.65% 1.42% 21.63%12.12%9.42%

5

star
0.96%Moderately High1,0005,000DebtCredit Risk Fund
Aditya Birla Sun Life Credit Risk Fund Direct - Growth

Aditya Birla Sun Life Credit Risk Fund Direct - Growth

25.20

1,052.93 1.21% 2.50% 17.42%11.71%10.32%

5

star
0.67%Moderately High100100DebtCredit Risk Fund
Aditya Birla Sun Life Medium Term Plan Fund Direct - Growth

Aditya Birla Sun Life Medium Term Plan Fund Direct - Growth

44.36

2,734.09 1.02% 1.85% 13.94%10.38%12.75%

5

star
0.82%Moderately High1,0001,000DebtMedium Duration Fund
Invesco India Credit Risk Fund Direct - Growth

Invesco India Credit Risk Fund Direct - Growth

2,188.62

153.06 0.67% 1.43% 10.84%10.72%7.86%

3

star
0.28%Moderately Low1,0001,000DebtCredit Risk Fund
Nippon India Medium Duration Fund Direct - Growth

Nippon India Medium Duration Fund Direct - Growth

17.39

119.89 0.74% 3.60% 10.82%9.01%9.72%

3

star
0.52%Very High1005,000DebtMedium Duration Fund
Nippon India Medium Duration Fund- Direct Bonus Plan

Nippon India Medium Duration Fund- Direct Bonus Plan

17.40

119.89 0.74% 3.60% 10.81%9.01%9.72%

3

star
0.52%Very High05,000DebtMedium Duration Fund
Nippon India Credit Risk Fund Direct - Growth

Nippon India Credit Risk Fund Direct - Growth

39.48

983.29 0.86% 2.14% 10.17%9.22%9.50%

4

star
0.69%High100500DebtCredit Risk Fund
Franklin India Corporate Debt Fund Direct - Growth

Franklin India Corporate Debt Fund Direct - Growth

110.09

1,203.57 0.77% 1.52% 10.10%8.38%6.85%

5

star
0.25%Moderately Low50010,000DebtCorporate Bond Fund
Kotak Credit Risk Fund Direct - Growth

Kotak Credit Risk Fund Direct - Growth

34.11

682.54 1.37% 2.45% 10.08%8.60%6.92%

3

star
0.81%High100100DebtCredit Risk Fund
Bank of India Short Term Income Fund Direct - Growth

Bank of India Short Term Income Fund Direct - Growth

29.63

241.11 0.65% 1.43% 9.98%10.55%10.69%

4

star
0.45%Moderately Low1,0005,000DebtShort Duration Fund
ICICI Prudential Credit Risk Fund Direct - Growth

ICICI Prudential Credit Risk Fund Direct - Growth

36.02

5,993.67 1.21% 2.38% 9.88%9.09%8.17%

4

star
0.76%Moderately High100100DebtCredit Risk Fund
ICICI Prudential Medium Term Bond Fund Direct - Growth

ICICI Prudential Medium Term Bond Fund Direct - Growth

50.45

5,734.08 1.20% 2.03% 9.86%8.72%7.65%

5

star
0.74%Moderately High1,0005,000DebtMedium Duration Fund
Kotak Medium Term Fund Direct - Growth

Kotak Medium Term Fund Direct - Growth

25.96

1,836.60 1.36% 2.23% 9.81%9.09%7.81%

5

star
0.67%Moderate100100DebtMedium Duration Fund
Axis Credit Risk Fund Direct - Growth

Axis Credit Risk Fund Direct - Growth

24.55

367.27 0.97% 2.11% 9.69%8.75%7.78%

4

star
0.80%Moderately High1,0005,000DebtCredit Risk Fund
HSBC Low Duration Fund Direct - Growth

HSBC Low Duration Fund Direct - Growth

30.86

1,016.82 0.63% 1.57% 9.51%8.26%6.65%

5

star
0.39%Moderately Low1,0005,000DebtLow Duration Fund
Axis Strategic Bond Fund Direct - Growth

Axis Strategic Bond Fund Direct - Growth

31.43

1,907.76 0.86% 1.59% 9.43%8.89%7.66%

5

star
0.72%Moderately High100100DebtMedium Duration Fund
Baroda BNP Paribas Credit Risk Fund Direct - Growth

Baroda BNP Paribas Credit Risk Fund Direct - Growth

25.00

196.49 0.94% 1.92% 9.37%8.80%10.51%

5

star
0.85%Moderately High5005,000DebtCredit Risk Fund
SBI Credit Risk Fund Direct - Growth

SBI Credit Risk Fund Direct - Growth

50.33

2,210.07 0.85% 1.77% 9.27%8.88%7.68%

4

star
0.89%Moderately High5005,000DebtCredit Risk Fund
Axis Short Duration Fund Direct - Growth

Axis Short Duration Fund Direct - Growth

34.44

12,200.80 0.77% 1.49% 9.23%8.33%6.81%

5

star
0.38%Moderate1,0005,000DebtShort Duration Fund
Axis Corporate Bond Fund Direct - Growth

Axis Corporate Bond Fund Direct - Growth

18.45

9,184.28 0.79% 1.37% 9.18%8.42%6.96%

5

star
0.36%Moderate100100DebtCorporate Bond Fund
JM Dynamic Bond Fund Direct Plan Half Yearly Bonus Option Principal Units

JM Dynamic Bond Fund Direct Plan Half Yearly Bonus Option Principal Units

42.79

44.33 1.28% 2.26% 9.12%6.77%6.39%

4

star
0.48%Moderate01,000DebtDynamic Bond
HSBC Medium Duration Fund Direct - Growth

HSBC Medium Duration Fund Direct - Growth

22.73

757.98 0.77% 1.32% 9.11%8.66%7.38%

4

star
0.40%Moderate1,0005,000DebtMedium Duration Fund
Nippon India Short Duration Fund Direct - Growth

Nippon India Short Duration Fund Direct - Growth

58.57

8,816.28 0.85% 1.47% 9.10%8.38%7.00%

5

star
0.38%Moderate100100DebtShort Duration Fund
Kotak Floating Rate Fund Direct - Growth

Kotak Floating Rate Fund Direct - Growth

1,581.56

2,988.76 0.77% 1.70% 9.10%8.33%7.02%

5

star
0.25%Moderate100100DebtFloater Fund
Baroda BNP Paribas Corporate Bond Fund Direct - Growth

Baroda BNP Paribas Corporate Bond Fund Direct - Growth

29.81

434.27 0.93% 1.45% 9.04%8.32%6.11%

3

star
0.20%Moderately Low5005,000DebtCorporate Bond Fund

Showing 26 of 26 results

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Please Note:

  • 1M, 3M and 1 Yr returns are Absolute. 3 Yr and 5 Yr returns are Annualized.
  • Fund Rating is sourced from Morningstar.
  • "Exp Ratio" is a short-form used for "Expense Ratio" - In simple terms it is a fee charged by the AMC for managing your money.

*The schemes mentioned above are just for research purpose and not recommendations. Please do your own due diligence before investing.

Frequently Asked Questions

Focus on the liquidity of the fund, the credit quality of the instruments it holds, and its average maturity period. Also, evaluate the historical performance and the fund manager's strategy for managing short-term volatility.
Short-term debt funds can be a good option for investors looking to park their funds for a brief period while earning better returns than traditional savings, with relatively low risk and easy liquidity.
These funds offer quick access to your money, lower interest rate risk, and generally more stable returns compared to longer-duration funds. They are ideal for achieving short-term financial goals without significant risk.
While typically safer, short-term debt funds can still face market risks, including changes in interest rates and credit risks associated with the issuers of the bonds they hold.
Best short term debt funds are suitable for investors who might need access to their funds in the near future. These funds are ideal for those seeking low-risk investments and aiming to meet short-term financial obligations or goals.
On Dhan, research and select short-term debt funds that fit your investment timeframe and risk profile. Complete the necessary account setup and KYC, then choose to invest either through a lump sum or a SIP. Regularly assess your fund's performance on Dhan to make sure it meets your short-term financial goals.

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