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Short Duration

About

A Short Duration Debt Mutual Fund is a category of debt fund that invests in debt and money market instruments such that the Macaulay duration of the portfolio is between 1 to 3 years. As per classification by the Securities and Exchange Board of India (SEBI), these funds are suitable for investors with a 1–3 year investment horizon and moderate risk appetite within debt allocation.

Fund Type

Key Features

Short Duration Fund
Suitable for 1–3 Year Horizon
inflation
Moderate Interest Rate Sensitivity
Balance
More Stable than Long-Term Bond Funds

Taxation

STCG

Holding Period ≤ 36 months, As per Income Tax slap

LTCG

Holding Period > 36 months, As per Income Tax slap

Dividends Tax

Dividends are added to your income, Taxed as per your slab rate. TDS applicable as per rules

Exemption Limit

Basic exemption limit adjustment allowed if total income is below threshold

Indexation

No Indexation

Allocation

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Debt & Money Market Instruments
100%

Locked in Period

Nill

Exit Load

Holding Period ≤ 30 days to 3 months, then Nill. (Exact structure depends on AMC)

Risk Associated

Riskometer Moderate

Find the funds

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully before investing. Past performance is not indicative of future performance.