Short-Term Debt Funds Struggle to Surpass BenchmarksFInancial NewsShort-Term Debt Funds Struggle to Surpass Benchmarks

Short-Term Debt Funds Struggle to Surpass Benchmarks

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.

Short-Term Debt Funds Struggle to Surpass Benchmarks

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 NameReturn 1 Year (%) RegularReturn 1 Year (%) BenchmarkAUM (Cr.)Alpha
Bank of India Overnight Fund6.156.1860.49-0.03
Axis Overnight Fund6.086.1710,952.75-0.09
Baroda BNP Paribas Overnight Fund6.056.18860.86-0.12
TRUSTMF Overnight Fund6.056.18187.56-0.13
Canara Robeco Overnight Fund6.056.18149.86-0.13
UTI Overnight Fund6.056.186,604.61-0.13
Mirae Asset Overnight Fund6.046.17522.88-0.13
DSP Overnight Fund6.046.183,234.07-0.14
Nippon India Overnight Fund6.046.188,558.53-0.14
Invesco India Overnight Fund6.026.17353.29-0.15
PGIM India Overnight Fund6.026.1797.18-0.15
Aditya Birla Sun Life Overnight Fund6.016.1811,140.80-0.17
Sundaram Overnight Fund6.006.17974.33-0.17
ICICI Prudential Overnight Fund6.016.1812,815.32-0.17
JM Overnight Fund6.016.18239.26-0.17
Mahindra Manulife Overnight Fund6.016.18104.96-0.17
Kotak Overnight Fund6.006.1711,007.92-0.17
Bandhan Overnight Fund6.006.171,220.28-0.17
HSBC Overnight Fund5.996.172,923.68-0.18
Edelweiss Overnight Fund5.996.17717.28-0.18
Union Overnight Fund6.006.18160.64-0.18
SBI Overnight Fund5.996.1819,499.62-0.18
LIC MF Overnight Fund5.986.17327.82-0.19
Franklin India Overnight Fund5.996.18164.39-0.19
Tata Overnight Fund5.986.182,599.07-0.20
HDFC Overnight Fund5.976.1816,855.90-0.21
ITI Overnight Fund5.826.1826.66-0.36
Groww Overnight Fund5.706.185.02-0.47

Liquid debt funds Performance

Scheme NameReturn 1 Year (%) RegularReturn 1 Year (%) Benchmark AUM (Cr.)Alpha
Canara Robeco Liquid Fund6.466.513,556.86-0.05
UTI Liquid Cash Fund6.436.5130,274.22-0.08
Bank of India Liquid Fund6.466.60816.98-0.14
Aditya Birla Sun Life Liquid Fund6.466.6042,576.40-0.15
Baroda BNP Paribas Liquid Fund6.456.608,447.13-0.15
Union Liquid Fund6.446.602,040.34-0.16
Mahindra Manulife Liquid Fund6.446.60454.57-0.16
Invesco India Liquid Fund6.386.546,841.84-0.16
TRUSTMF Liquid Fund6.346.51174.03-0.17
Bandhan Liquid Fund6.366.5411,516.83-0.18
Tata Liquid Fund6.326.5123,635.65-0.20
IDBI Liquid Fund6.406.60706.49-0.21
PGIM India Liquid Fund6.396.60673.11-0.21
Axis Liquid Fund6.466.6828,122.50-0.22
Franklin India Liquid Fund6.376.601,561.70-0.23
DSP Liquidity Fund6.376.6011,199.43-0.23
ICICI Prudential Liquid Fund6.366.6045,407.04-0.24
HDFC Liquid Fund6.356.6057,029.68-0.25
JM Liquid Fund6.356.601,659.47-0.25
HSBC Liquid Fund6.406.6813,041.21-0.27
LIC MF Liquid Fund6.326.606,169.21-0.28
Sundaram Liquid Fund6.406.684,029.72-0.28
Mirae Asset Cash Management Fund6.396.686,476.33-0.29
Navi Liquid Fund6.316.60105.03-0.29
360 ONE Liquid Fund6.316.60797.35-0.30
Nippon India Liquid Fund6.366.6824,609.58-0.32
SBI Liquid Fund6.366.6866,508.43-0.32
Kotak Liquid Fund6.326.6833,011.49-0.35
Quantum Liquid Fund6.136.51586.20-0.38
Edelweiss Liquid Fund6.296.681,538.35-0.39
WhiteOak Capital Liquid Fund6.186.60163.66-0.42
ITI Liquid Fund6.056.5148.55-0.46
Quant Liquid Fund6.096.601,717.35-0.51
Groww Liquid Fund6.086.60132.80-0.52
Parag Parikh Liquid Fund5.986.511,527.42-0.54
Motilal Oswal Liquid Fund5.886.51395.06-0.63

Ultra short duration debt funds Performance

Scheme NameReturn 1 Year (%) RegularReturn 1 Year (%) Benchmark AUM (Cr.)Alpha
Baroda BNP Paribas Ultra Short Duration Fund6.887.16551.38-0.28
Bandhan Ultra Short Term Fund6.426.803,560.61-0.37
Aditya Birla Sun Life Savings Fund6.567.1014,497.17-0.54
Mirae Asset Ultra Short Duration Fund6.457.10368.65-0.65
HSBC Ultra Short Duration Fund6.437.102,254.53-0.67
ICICI Prudential Ultra Short Term Fund6.387.1612,657.42-0.78
SBI Magnum Ultra Short Duration Fund6.387.1614,258.81-0.78
HDFC Ultra Short Term Fund6.387.1613,709.10-0.78
Kotak Savings Fund6.277.1010,559.48-0.83
Mahindra Manulife Ultra Short Duration Fund6.317.16197.04-0.86
IDBI Ultra Short Term Fund6.267.16146.42-0.91
Nippon India Ultra Short Duration Fund6.197.105,335.54-0.91
UTI Ultra Short Term Fund6.127.162,215.97-1.04
Invesco India Ultra Short Term Fund5.997.10710.89-1.11
Axis Ultra Short Term Fund5.987.105,197.57-1.11
Bank of India Ultra Short Duration Fund6.027.16154.38-1.15
PGIM India Ultra Short Duration Fund5.997.16386.95-1.18
DSP Ultra Short Fund5.907.162,472.68-1.26
ITI Ultra Short Duration Fund5.616.88123.16-1.27
Tata Ultra Short Term Fund5.887.161,682.32-1.29
Canara Robeco Ultra Short Term Fund5.797.16623.56-1.37
WhiteOak Capital Ultra Short Term Fund5.747.16170.43-1.42
LIC MF Ultra Short Duration Fund5.687.1628.57-1.49
Sundaram Ultra Short Duration Fund5.527.101,475.00-1.58
Motilal Oswal Ultra Short Term Fund5.157.16111.15-2.01

Low duration funds Performance

Scheme NameReturn 1 Year (%) RegularReturn 1 Year (%) BenchmarkAUM (Cr.)Alpha
ICICI Prudential Savings Fund7.757.2118,077.160.54
Bandhan Low Duration Fund6.436.695,392.04-0.25
UTI Treasury Advantage Fund6.566.863,397.31-0.30
Invesco India Treasury Advantage Fund6.206.691,190.64-0.48
HDFC Low Duration Fund6.687.1914,539.08-0.51
Tata Treasury Advantage Fund6.296.862,883.77-0.57
Axis Treasury Advantage Fund6.597.195,740.41-0.60
Kotak Low Duration Fund6.477.199,351.18-0.72
DSP Low Duration Fund6.377.193,437.88-0.82
Aditya Birla Sun Life Low Duration Fund6.327.2111,279.47-0.89
Canara Robeco Savings Fund6.307.21884.68-0.92
HSBC Low Duration Fund6.237.19453.24-0.96
SBI Magnum Low Duration Fund6.257.2110,333.15-0.96
Nippon India Low Duration Fund6.247.217,092.84-0.98
Baroda BNP Paribas Low Duration Fund6.227.21148.41-0.99
Mirae Asset Savings Fund6.127.19577.34-1.07
Sundaram Low Duration Fund6.037.19403.45-1.16
Mahindra Manulife Low Duration Fund5.987.21394.95-1.23
LIC MF Low Duration Fund5.977.211,103.05-1.25
JM Low Duration Fund5.957.21175.43-1.27
PGIM India Low Duration Fund5.907.2191.78-1.31

Money market funds Performance

Scheme NameReturn 1 Year (%) RegularReturn 1 Year (%) Benchmark AUM (Cr.)Alpha
Aditya Birla Sun Life Money Manager Fund6.886.7915,205.680.09
UTI Money Market Fund6.846.789,054.770.06
Axis Money Market Fund6.776.796,989.28-0.02
Nippon India Money Market Fund6.836.9011,752.30-0.07
HDFC Money Market Fund6.726.7916,522.59-0.07
Kotak Money Market Fund6.726.7917,588.97-0.07
ICICI Prudential Money Market Fund6.796.9013,593.15-0.11
Tata Money Market Fund6.796.9012,126.25-0.11
Invesco India Money Market Fund6.466.623,077.64-0.16
Franklin India Money Market Fund6.576.791,291.52-0.22
DSP Savings Fund6.616.904,982.39-0.29
Sundaram Money Market Fund6.446.7994.82-0.35
PGIM India Money Market Fund6.456.90268.41-0.45
HSBC Money Market Fund6.246.79965.71-0.55
SBI Savings Fund6.326.9019,339.68-0.58
Bandhan Money Manager Fund6.046.623,150.83-0.59
Baroda BNP Paribas Money Market Fund6.176.9089.98-0.73
Mirae Asset Money Market Fund5.976.7990.03-0.82
Union Money Market Fund5.736.90169.02-1.16
Edelweiss Money Market Fund5.566.79363.61-1.23
LIC MF Money Market Fund

TRUSTMF Money Market Fund


Short duration funds Performance

Scheme NameReturn 1 Year (%) RegularReturn 1 Year (%) BenchmarkAUM (Cr.)Alpha
Bank of India Short Term Income Fund13.167.6476.055.52
ICICI Prudential Short Term Fund7.817.4617,968.360.35
UTI Short-term Income Fund6.796.972,374.57-0.18
Bandhan Bond Fund Short Term Plan6.566.779,027.27-0.21
Aditya Birla Sun Life Short Term Fund7.007.466,048.92-0.46
IDBI Short Term Bond Fund6.456.9725.60-0.51
SBI Short Term Debt Fund6.406.9713,264.69-0.57
TRUSTMF Short Term Fund6.306.97136.07-0.67
Tata Short-term Bond Fund6.276.972,290.92-0.70
HDFC Short Term Debt Fund6.937.6412,320.45-0.71
DSP Short-term Fund6.226.973,057.96-0.75
Baroda BNP Paribas Short Duration Fund6.877.64228.67-0.77
Axis Short Term Fund6.687.467,511.92-0.78
Sundaram Short Duration Fund6.647.46194.10-0.82
Nippon India Short-term Fund6.577.646,113.97-1.07
Kotak Bond Short-term Fund6.397.4613,212.45-1.07
Invesco India Short Term Fund5.696.77324.07-1.09
HSBC Short Duration Fund6.107.463,517.39-1.36
Mirae Asset Short Term Fund6.157.64383.83-1.49
Mahindra Manulife Short Duration Fund6.077.6445.84-1.57
PGIM India Short Duration Fund6.077.6428.06-1.57
Canara Robeco Short Duration Fund5.867.64514.41-1.78
LIC MF Short Duration Fund5.537.64107.49-2.11
Groww Short Duration Fund5.267.6440.61-2.38

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