A Short Duration Fund is a debt mutual fund designed for investors who want steady returns with controlled risk over a 1–3 year investment horizon. These funds primarily invest in high-quality short-term bonds and money market instruments, making them a reliable option for conservative and moderate investors.

Short Duration Funds focus on balancing return potential and safety. Since the portfolio duration is kept relatively short, these funds are less sensitive to interest rate fluctuations compared to long-term debt funds. This makes them suitable for investors seeking stability without locking their money for long periods.

• Aim to deliver better returns than savings accounts and fixed deposits
• Carry moderate risk with lower volatility
• Offer good liquidity and flexibility
• Managed by experienced fund managers
• Suitable for short-term financial goals

1. Stable and predictable returns
2. Moderate capital preservation with low volatility
3. Better yield than savings accounts or ultra-short funds
4. Professional management reduces risk exposure
5. Suitable for conservative to moderate investors

1. Returns not guaranteed and linked to market conditions
2. Limited upside compared to equity or long-duration debt funds
3. Some credit and interest rate risks remain

Short-Term Capital Gains (STCG):Taxed at your income tax slab if redeemed within 3 years

Long-Term Capital Gains (LTCG):Gains from holdings over 3 years are taxed at 20% with indexation

Dividends:Taxed according to your income slab