HDFC Short Term Debt Fund

HDFC Short Term Debt Fund is a short duration debt mutual fund that is an open-ended scheme. It invests mainly in debt securities that have a maturity period of 1-3 years. One may expect higher returns than bank fixed deposits, as the risk of losing capital in these funds is low.

Read more
Best Investment Plans
  • Guaranteed Tax Savings

    Under sec 80C & 10(10D)
  • ₹1 Crore

    Invest ₹10k per month*
  • Zero LTCG Tax

    Unlike 10% in Mutual Funds

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

Top performing plans with High Returns*

Invest ₹10K/month & Get ₹1 Crore returns*

+91
View Plans
Please wait. We Are Processing..
Plans available only for people of Indian origin By clicking on "View Plans" you agree to our Privacy Policy and Terms of use #For a 55 year on investment of 20Lacs #Discount offered by insurance company Tax benefit is subject to changes in tax laws
Get Updates on WhatsApp

The Fund portfolio includes 16.67% investment in Government of India sovereign bonds, 46.55% in AAA-rated debt securities, and 19.22% in cash and cash equivalents.

HDFC Short Term Debt Fund offers the following four plan types:

  • Growth - Direct
  • IDCW as and when - Direct
  • Growth - Regular
  • IDCW as and when - Regular

Investment Facts

Parameter

Details

Fund Name 

HDFC Short Term Debt Fund

Fund House

HDFC Mutual Fund

Launch Date 

25-Jun-2010

Benchmark

CRISIL Short-Term Bond TRI

Type

Open-Ended

Minimum Investment 

Rs. 5,000/-

Minimum SIP Investment: Rs.500/- 

Minimum Additional Investment: Rs.1,000/-

Lock-in Period

NA

Entry Load

Nil

Exit Load

Nil

Return Performance

High

Fund Consistency

Moderate

Risk Level

Below Average

Investment Objective

HDFC Short Term Debt Fund intends to generate regular income from debt securities comprising money market instruments, corporate bonds, treasury bills, government securities, etc., for durations between 1 year and 3 years. 

Fund Summary

  1. HDFC Short Term Debt Fund Direct Plan-Growth

    • Risk level-Moderate
    • NAV-Rs. 25.3536 as of 06.07.2021
    • Expense Ratio-0.24% (as on 31.05.2021)
    • Fund Started-01.01.2013
  2. HDFC Short Term Debt Fund Direct Plan IDCW 

    • Risk level-Moderate
    • NAV-Rs. 10.2987 as of 06.07.2021 (Fortnightly)
    • NAV-Rs. 16.9485 as of 06.07.2021 (As and When)
    • Expense Ratio-0.24% (as on 31.05.2021)
    • Fund Started-01.01.2013
  3. HDFC Short Term Debt Fund Regular Plan-Growth

    • Risk level-Moderate
    • NAV-Rs. 24.9344 (as of 06.07.2021)
    • Expense Ratio-0.75% (as on 31.05.2021)
    • Fund Started-25.10.2010
  4. HDFC Short Term Debt Fund Regular Plan IDCW

    • Risk level-Moderate
    • NAV-Rs. 10.1888 as of 06.07.2021 (Fortnightly)
    • NAV-Rs. 16.7649 as of 06.07.2021 (As and When)
    • Expense Ratio-0.75% (as on 31.05.2021)
    • Fund Started-25.10.2010

Fund Manager

  • Mr Anil Bamboli (since January 2013)

Fund Returns Summary

  1. HDFC Short Term Fund Direct Plan Growth-Returns Summary

    Period

    Returns Per Year (Annualized)

    6 Months

    1.64%

    1 year

    6.23%

    2 years

    9.01%

    3 years

    9.05%

    5 years

    8.31%

    Since Inception

    8.71%

  2. HDFC Short Term Fund Direct Plan IDCW - Returns Summary (Annualized)

    Period

    Fortnightly

    As and When

    6 Month

    1.63%

    1.64%

    1 Year

    6.22%

    6.23%

    2 Year

    8.04%

    9.01%

    3 Year

    7.54%

    9.04%

    5 Year

    6.65%

    8.31%

    Since Inception

    6.39%

    8.38%

    *All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

  3. HDFC Short Term Fund Regular Plan Growth-Returns Summary

    Period

    Returns Per Year (Annualized)

    6 Months

    1.38%

    1 year

    5.69%

    2 years

    8.63%

    3 years

    8.74%

    5 years

    8.06%

    10 years

    8.69%

    Since Inception

    8.63%

  4. HDFC Short Term Fund Regular Plan IDCW - Returns Summary (Annualized)

    Period

    Fortnightly

    As and When

    6 Month

    1.38%

    1.38%

    1 Year

    4.40%

    5.68%

    2 Year

    7.01%

    8.63%

    3 Year

    6.82%

    8.74%

    5 Year

    6.17%

    8.06%

    10 Year

    6.42%

    -

    Since Inception

    6.48%

    8.20%

Summative Pros and Cons

Pros

Cons

The fund is a suitable short-term investment for 1-3 years. 

There is no contracted interest or principal repayment like a fixed deposit

The fund has outperformed its CRISIL Short-Term Bond TRI benchmark over the 6 month-2 year period.

The fund has marginally underperformed its Benchmark: CRISIL Short-Term Bond TRI in the 3 years.

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

Benefits of HDFC Short Term Debt Fund

HDFC Short Term Debt Fund investment benefits are as follows:

  • Stable Returns: The fund portfolio consists of debt securities that provide a contracted rate of return along with a scheduled maturity date. These long-only held securities do not get negatively impacted by fluctuations in interest rates if held till maturity.
  • Meeting Short-Term Goals: A short-term debt fund is a valuable tool in investing to achieve short-term goals. These funds are immune from interest rate movements to a significant extent. This is because of their low average maturity period,

Fund House Details

HDFC Short Term Debt Fund is housed under a Trust, HDFC Mutual Fund. Its AMC is HDFC Asset Management Company Limited registered with SEBI. Mr Prashant Jain, the Chief Investment Officer of the Fund, oversees the functioning of the fund managers of the Fund House. 

The promoter shareholders of the Fund House are:

  • HDFC Ltd: 52.7% holdings
  • Standard Life Investments Limited: 21.2% holdings

Who Should Invest in HDFC Short Term Debt Fund?

HDFC Short Term Debt Fund is apt for investors looking for short-term duration investment of one to three years. This bond provides better returns than a bank fixed deposit. However, its returns may temporarily get impacted by a minor change in interest rates over the short term.

In Conclusion

Considering the benefits of stable returns and shorter duration of the portfolio, HDFC Short Term Debt Fund is a reasonable investment alternative for investors searching for stable returns over a one to three-year period. It also provides indexation benefits for taxation over the long term.

FAQ's

top
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL