Short-Term Debt Funds Struggle to Surpass Benchmarks
In a comprehensive review, it’s observed that categories such as overnight and liquid funds haven’t outperformed their benchmarks in a 1-year period.
A detailed analysis by Team Cafemutual on the 1-year performance of short-term debt funds, particularly those with maturities under a year, reveals a striking trend: most have not outpaced their respective benchmarks as of June 2023.
Notably, in Mutual fund categories like overnight, liquid, and ultra-short term funds, none have managed to exceed their benchmarks.
A few funds in other short-term categories like low duration, money market, and short duration funds have marginally surpassed their benchmarks, with one fund being a notable exception.
Here’s a snapshot of the performance in these categories:
- Overnight Funds: Despite no fund beating the benchmark, the underperformance was relatively narrow, less than 50 basis points. Bank of India Overnight Fund and Axis Overnight Fund performed slightly better within this category.
- Liquid Funds: The underperformance varied from -0.05% to -0.63%. Canara Robeco Liquid Fund and UTI Liquid Cash Fund showed the least underperformance.
- Ultra-Short Funds: This category saw a broad range of underperformance, between 0.28% and 2.01%. Baroda BNP Paribas Ultra Short Duration Fund and Bandhan Ultra Short-Term Fund fared relatively better, with underperformances of -0.28% and -0.37%, respectively.
- Low Duration Funds: Only 1 out of 21 funds in this category managed to outperform its benchmark, with ICICI Prudential Savings Fund leading by 0.54%. The maximum underperformance noted was -1.31%.
- Money Market Funds: Aditya Birla Sun Life Money Manager Fund and UTI Money Market Fund outperformed their benchmarks by 0.09% and 0.06%, respectively, while the remaining 20 funds in this category underperformed, ranging between -0.02% and -1.23%.
- Short Duration Funds: Out of 24 schemes, only 2 managed to surpass their benchmark. Bank of India Short Term Income Fund and ICICI Prudential Short-Term Fund achieved an alpha of 5.52% and 0.35%, respectively.
The complete list of debt funds and their 1-year performance is available, with outperformers highlighted in Italic.
Overnight debt funds Performance
| Scheme Name | Return 1 Year (%) Regular | Return 1 Year (%) Benchmark | AUM (Cr.) | Alpha |
| Bank of India Overnight Fund | 6.15 | 6.18 | 60.49 | -0.03 |
| Axis Overnight Fund | 6.08 | 6.17 | 10,952.75 | -0.09 |
| Baroda BNP Paribas Overnight Fund | 6.05 | 6.18 | 860.86 | -0.12 |
| TRUSTMF Overnight Fund | 6.05 | 6.18 | 187.56 | -0.13 |
| Canara Robeco Overnight Fund | 6.05 | 6.18 | 149.86 | -0.13 |
| UTI Overnight Fund | 6.05 | 6.18 | 6,604.61 | -0.13 |
| Mirae Asset Overnight Fund | 6.04 | 6.17 | 522.88 | -0.13 |
| DSP Overnight Fund | 6.04 | 6.18 | 3,234.07 | -0.14 |
| Nippon India Overnight Fund | 6.04 | 6.18 | 8,558.53 | -0.14 |
| Invesco India Overnight Fund | 6.02 | 6.17 | 353.29 | -0.15 |
| PGIM India Overnight Fund | 6.02 | 6.17 | 97.18 | -0.15 |
| Aditya Birla Sun Life Overnight Fund | 6.01 | 6.18 | 11,140.80 | -0.17 |
| Sundaram Overnight Fund | 6.00 | 6.17 | 974.33 | -0.17 |
| ICICI Prudential Overnight Fund | 6.01 | 6.18 | 12,815.32 | -0.17 |
| JM Overnight Fund | 6.01 | 6.18 | 239.26 | -0.17 |
| Mahindra Manulife Overnight Fund | 6.01 | 6.18 | 104.96 | -0.17 |
| Kotak Overnight Fund | 6.00 | 6.17 | 11,007.92 | -0.17 |
| Bandhan Overnight Fund | 6.00 | 6.17 | 1,220.28 | -0.17 |
| HSBC Overnight Fund | 5.99 | 6.17 | 2,923.68 | -0.18 |
| Edelweiss Overnight Fund | 5.99 | 6.17 | 717.28 | -0.18 |
| Union Overnight Fund | 6.00 | 6.18 | 160.64 | -0.18 |
| SBI Overnight Fund | 5.99 | 6.18 | 19,499.62 | -0.18 |
| LIC MF Overnight Fund | 5.98 | 6.17 | 327.82 | -0.19 |
| Franklin India Overnight Fund | 5.99 | 6.18 | 164.39 | -0.19 |
| Tata Overnight Fund | 5.98 | 6.18 | 2,599.07 | -0.20 |
| HDFC Overnight Fund | 5.97 | 6.18 | 16,855.90 | -0.21 |
| ITI Overnight Fund | 5.82 | 6.18 | 26.66 | -0.36 |
| Groww Overnight Fund | 5.70 | 6.18 | 5.02 | -0.47 |
Liquid debt funds Performance
| Scheme Name | Return 1 Year (%) Regular | Return 1 Year (%) Benchmark | AUM (Cr.) | Alpha |
| Canara Robeco Liquid Fund | 6.46 | 6.51 | 3,556.86 | -0.05 |
| UTI Liquid Cash Fund | 6.43 | 6.51 | 30,274.22 | -0.08 |
| Bank of India Liquid Fund | 6.46 | 6.60 | 816.98 | -0.14 |
| Aditya Birla Sun Life Liquid Fund | 6.46 | 6.60 | 42,576.40 | -0.15 |
| Baroda BNP Paribas Liquid Fund | 6.45 | 6.60 | 8,447.13 | -0.15 |
| Union Liquid Fund | 6.44 | 6.60 | 2,040.34 | -0.16 |
| Mahindra Manulife Liquid Fund | 6.44 | 6.60 | 454.57 | -0.16 |
| Invesco India Liquid Fund | 6.38 | 6.54 | 6,841.84 | -0.16 |
| TRUSTMF Liquid Fund | 6.34 | 6.51 | 174.03 | -0.17 |
| Bandhan Liquid Fund | 6.36 | 6.54 | 11,516.83 | -0.18 |
| Tata Liquid Fund | 6.32 | 6.51 | 23,635.65 | -0.20 |
| IDBI Liquid Fund | 6.40 | 6.60 | 706.49 | -0.21 |
| PGIM India Liquid Fund | 6.39 | 6.60 | 673.11 | -0.21 |
| Axis Liquid Fund | 6.46 | 6.68 | 28,122.50 | -0.22 |
| Franklin India Liquid Fund | 6.37 | 6.60 | 1,561.70 | -0.23 |
| DSP Liquidity Fund | 6.37 | 6.60 | 11,199.43 | -0.23 |
| ICICI Prudential Liquid Fund | 6.36 | 6.60 | 45,407.04 | -0.24 |
| HDFC Liquid Fund | 6.35 | 6.60 | 57,029.68 | -0.25 |
| JM Liquid Fund | 6.35 | 6.60 | 1,659.47 | -0.25 |
| HSBC Liquid Fund | 6.40 | 6.68 | 13,041.21 | -0.27 |
| LIC MF Liquid Fund | 6.32 | 6.60 | 6,169.21 | -0.28 |
| Sundaram Liquid Fund | 6.40 | 6.68 | 4,029.72 | -0.28 |
| Mirae Asset Cash Management Fund | 6.39 | 6.68 | 6,476.33 | -0.29 |
| Navi Liquid Fund | 6.31 | 6.60 | 105.03 | -0.29 |
| 360 ONE Liquid Fund | 6.31 | 6.60 | 797.35 | -0.30 |
| Nippon India Liquid Fund | 6.36 | 6.68 | 24,609.58 | -0.32 |
| SBI Liquid Fund | 6.36 | 6.68 | 66,508.43 | -0.32 |
| Kotak Liquid Fund | 6.32 | 6.68 | 33,011.49 | -0.35 |
| Quantum Liquid Fund | 6.13 | 6.51 | 586.20 | -0.38 |
| Edelweiss Liquid Fund | 6.29 | 6.68 | 1,538.35 | -0.39 |
| WhiteOak Capital Liquid Fund | 6.18 | 6.60 | 163.66 | -0.42 |
| ITI Liquid Fund | 6.05 | 6.51 | 48.55 | -0.46 |
| Quant Liquid Fund | 6.09 | 6.60 | 1,717.35 | -0.51 |
| Groww Liquid Fund | 6.08 | 6.60 | 132.80 | -0.52 |
| Parag Parikh Liquid Fund | 5.98 | 6.51 | 1,527.42 | -0.54 |
| Motilal Oswal Liquid Fund | 5.88 | 6.51 | 395.06 | -0.63 |
Ultra short duration debt funds Performance
| Scheme Name | Return 1 Year (%) Regular | Return 1 Year (%) Benchmark | AUM (Cr.) | Alpha |
| Baroda BNP Paribas Ultra Short Duration Fund | 6.88 | 7.16 | 551.38 | -0.28 |
| Bandhan Ultra Short Term Fund | 6.42 | 6.80 | 3,560.61 | -0.37 |
| Aditya Birla Sun Life Savings Fund | 6.56 | 7.10 | 14,497.17 | -0.54 |
| Mirae Asset Ultra Short Duration Fund | 6.45 | 7.10 | 368.65 | -0.65 |
| HSBC Ultra Short Duration Fund | 6.43 | 7.10 | 2,254.53 | -0.67 |
| ICICI Prudential Ultra Short Term Fund | 6.38 | 7.16 | 12,657.42 | -0.78 |
| SBI Magnum Ultra Short Duration Fund | 6.38 | 7.16 | 14,258.81 | -0.78 |
| HDFC Ultra Short Term Fund | 6.38 | 7.16 | 13,709.10 | -0.78 |
| Kotak Savings Fund | 6.27 | 7.10 | 10,559.48 | -0.83 |
| Mahindra Manulife Ultra Short Duration Fund | 6.31 | 7.16 | 197.04 | -0.86 |
| IDBI Ultra Short Term Fund | 6.26 | 7.16 | 146.42 | -0.91 |
| Nippon India Ultra Short Duration Fund | 6.19 | 7.10 | 5,335.54 | -0.91 |
| UTI Ultra Short Term Fund | 6.12 | 7.16 | 2,215.97 | -1.04 |
| Invesco India Ultra Short Term Fund | 5.99 | 7.10 | 710.89 | -1.11 |
| Axis Ultra Short Term Fund | 5.98 | 7.10 | 5,197.57 | -1.11 |
| Bank of India Ultra Short Duration Fund | 6.02 | 7.16 | 154.38 | -1.15 |
| PGIM India Ultra Short Duration Fund | 5.99 | 7.16 | 386.95 | -1.18 |
| DSP Ultra Short Fund | 5.90 | 7.16 | 2,472.68 | -1.26 |
| ITI Ultra Short Duration Fund | 5.61 | 6.88 | 123.16 | -1.27 |
| Tata Ultra Short Term Fund | 5.88 | 7.16 | 1,682.32 | -1.29 |
| Canara Robeco Ultra Short Term Fund | 5.79 | 7.16 | 623.56 | -1.37 |
| WhiteOak Capital Ultra Short Term Fund | 5.74 | 7.16 | 170.43 | -1.42 |
| LIC MF Ultra Short Duration Fund | 5.68 | 7.16 | 28.57 | -1.49 |
| Sundaram Ultra Short Duration Fund | 5.52 | 7.10 | 1,475.00 | -1.58 |
| Motilal Oswal Ultra Short Term Fund | 5.15 | 7.16 | 111.15 | -2.01 |
Low duration funds Performance
| Scheme Name | Return 1 Year (%) Regular | Return 1 Year (%) Benchmark | AUM (Cr.) | Alpha |
| ICICI Prudential Savings Fund | 7.75 | 7.21 | 18,077.16 | 0.54 |
| Bandhan Low Duration Fund | 6.43 | 6.69 | 5,392.04 | -0.25 |
| UTI Treasury Advantage Fund | 6.56 | 6.86 | 3,397.31 | -0.30 |
| Invesco India Treasury Advantage Fund | 6.20 | 6.69 | 1,190.64 | -0.48 |
| HDFC Low Duration Fund | 6.68 | 7.19 | 14,539.08 | -0.51 |
| Tata Treasury Advantage Fund | 6.29 | 6.86 | 2,883.77 | -0.57 |
| Axis Treasury Advantage Fund | 6.59 | 7.19 | 5,740.41 | -0.60 |
| Kotak Low Duration Fund | 6.47 | 7.19 | 9,351.18 | -0.72 |
| DSP Low Duration Fund | 6.37 | 7.19 | 3,437.88 | -0.82 |
| Aditya Birla Sun Life Low Duration Fund | 6.32 | 7.21 | 11,279.47 | -0.89 |
| Canara Robeco Savings Fund | 6.30 | 7.21 | 884.68 | -0.92 |
| HSBC Low Duration Fund | 6.23 | 7.19 | 453.24 | -0.96 |
| SBI Magnum Low Duration Fund | 6.25 | 7.21 | 10,333.15 | -0.96 |
| Nippon India Low Duration Fund | 6.24 | 7.21 | 7,092.84 | -0.98 |
| Baroda BNP Paribas Low Duration Fund | 6.22 | 7.21 | 148.41 | -0.99 |
| Mirae Asset Savings Fund | 6.12 | 7.19 | 577.34 | -1.07 |
| Sundaram Low Duration Fund | 6.03 | 7.19 | 403.45 | -1.16 |
| Mahindra Manulife Low Duration Fund | 5.98 | 7.21 | 394.95 | -1.23 |
| LIC MF Low Duration Fund | 5.97 | 7.21 | 1,103.05 | -1.25 |
| JM Low Duration Fund | 5.95 | 7.21 | 175.43 | -1.27 |
| PGIM India Low Duration Fund | 5.90 | 7.21 | 91.78 | -1.31 |
Money market funds Performance
| Scheme Name | Return 1 Year (%) Regular | Return 1 Year (%) Benchmark | AUM (Cr.) | Alpha |
| Aditya Birla Sun Life Money Manager Fund | 6.88 | 6.79 | 15,205.68 | 0.09 |
| UTI Money Market Fund | 6.84 | 6.78 | 9,054.77 | 0.06 |
| Axis Money Market Fund | 6.77 | 6.79 | 6,989.28 | -0.02 |
| Nippon India Money Market Fund | 6.83 | 6.90 | 11,752.30 | -0.07 |
| HDFC Money Market Fund | 6.72 | 6.79 | 16,522.59 | -0.07 |
| Kotak Money Market Fund | 6.72 | 6.79 | 17,588.97 | -0.07 |
| ICICI Prudential Money Market Fund | 6.79 | 6.90 | 13,593.15 | -0.11 |
| Tata Money Market Fund | 6.79 | 6.90 | 12,126.25 | -0.11 |
| Invesco India Money Market Fund | 6.46 | 6.62 | 3,077.64 | -0.16 |
| Franklin India Money Market Fund | 6.57 | 6.79 | 1,291.52 | -0.22 |
| DSP Savings Fund | 6.61 | 6.90 | 4,982.39 | -0.29 |
| Sundaram Money Market Fund | 6.44 | 6.79 | 94.82 | -0.35 |
| PGIM India Money Market Fund | 6.45 | 6.90 | 268.41 | -0.45 |
| HSBC Money Market Fund | 6.24 | 6.79 | 965.71 | -0.55 |
| SBI Savings Fund | 6.32 | 6.90 | 19,339.68 | -0.58 |
| Bandhan Money Manager Fund | 6.04 | 6.62 | 3,150.83 | -0.59 |
| Baroda BNP Paribas Money Market Fund | 6.17 | 6.90 | 89.98 | -0.73 |
| Mirae Asset Money Market Fund | 5.97 | 6.79 | 90.03 | -0.82 |
| Union Money Market Fund | 5.73 | 6.90 | 169.02 | -1.16 |
| Edelweiss Money Market Fund | 5.56 | 6.79 | 363.61 | -1.23 |
| LIC MF Money Market Fund | 40.26 | 0.00 | ||
| TRUSTMF Money Market Fund | 107.51 | 0.00 |
Short duration funds Performance
| Scheme Name | Return 1 Year (%) Regular | Return 1 Year (%) Benchmark | AUM (Cr.) | Alpha |
| Bank of India Short Term Income Fund | 13.16 | 7.64 | 76.05 | 5.52 |
| ICICI Prudential Short Term Fund | 7.81 | 7.46 | 17,968.36 | 0.35 |
| UTI Short-term Income Fund | 6.79 | 6.97 | 2,374.57 | -0.18 |
| Bandhan Bond Fund Short Term Plan | 6.56 | 6.77 | 9,027.27 | -0.21 |
| Aditya Birla Sun Life Short Term Fund | 7.00 | 7.46 | 6,048.92 | -0.46 |
| IDBI Short Term Bond Fund | 6.45 | 6.97 | 25.60 | -0.51 |
| SBI Short Term Debt Fund | 6.40 | 6.97 | 13,264.69 | -0.57 |
| TRUSTMF Short Term Fund | 6.30 | 6.97 | 136.07 | -0.67 |
| Tata Short-term Bond Fund | 6.27 | 6.97 | 2,290.92 | -0.70 |
| HDFC Short Term Debt Fund | 6.93 | 7.64 | 12,320.45 | -0.71 |
| DSP Short-term Fund | 6.22 | 6.97 | 3,057.96 | -0.75 |
| Baroda BNP Paribas Short Duration Fund | 6.87 | 7.64 | 228.67 | -0.77 |
| Axis Short Term Fund | 6.68 | 7.46 | 7,511.92 | -0.78 |
| Sundaram Short Duration Fund | 6.64 | 7.46 | 194.10 | -0.82 |
| Nippon India Short-term Fund | 6.57 | 7.64 | 6,113.97 | -1.07 |
| Kotak Bond Short-term Fund | 6.39 | 7.46 | 13,212.45 | -1.07 |
| Invesco India Short Term Fund | 5.69 | 6.77 | 324.07 | -1.09 |
| HSBC Short Duration Fund | 6.10 | 7.46 | 3,517.39 | -1.36 |
| Mirae Asset Short Term Fund | 6.15 | 7.64 | 383.83 | -1.49 |
| Mahindra Manulife Short Duration Fund | 6.07 | 7.64 | 45.84 | -1.57 |
| PGIM India Short Duration Fund | 6.07 | 7.64 | 28.06 | -1.57 |
| Canara Robeco Short Duration Fund | 5.86 | 7.64 | 514.41 | -1.78 |
| LIC MF Short Duration Fund | 5.53 | 7.64 | 107.49 | -2.11 |
| Groww Short Duration Fund | 5.26 | 7.64 | 40.61 | -2.38 |
Ganesh Kumar
https://finplay.in/Mutual Fund Expert and Stock Market Enthusiast. Indian Stock Markets to the Moon 🚀