In the era of second wave of corona virus, the trend of mutual fund investors has changed somewhat. Looking at the recent trend, investors have increased their focus on short duration funds.
Mutual Funds: In the era of second wave of corona virus, the trend of mutual fund investors has changed somewhat. Looking at the recent trend, investors have increased their focus on short duration funds. If we look at the data of AMFI i.e. Association of Mutual Funds in India, then in April, maximum investment has come in short term maturing schemes. These include overnight funds, ultra short duration funds, liquid funds and short duration funds. Experts also believe that investors do not want to implicate money in one place for the long term in case of uncertainty. This uncertain situation will continue for a few more days. In such a situation, many investors will look for short term options.
Talking about the month of April, the net inflow of Rs 41,507 crore in Liquid Fund, Rs 20,287 crore and 18,492 crore in Money Market Fund and Overnight Fund, 9,322 crore in Low Duration Fund, 1,246.52 crore in Short Duration Fund and Ultra Short Duration Fund Net inflow of 8919 crores has come.
Why are you looking for short term options?
AK Nigam, director, BPN Fincap, says that investing in short-term schemes means that investors are waiting for the market situation to stabilize. Till then, they are looking for such investment avenues, where their money matures in less time and can also get better returns than keeping it in savings account. At the same time, when the market is stable, they can withdraw money from here and shift it back to equity. In such times, ultra short term funds, low duration and short duration funds are better for them. Money market and liquid funds are also options where money can be invested for 3 months.
This can be the best scheme
Short Duration Fund:
If we look at the average return of short duration funds in the last 1 year, it has been around 7 percent. At the same time, in different schemes, returns have been given in double digits.
HSBC Short Duration Fund: 15%
Principal Short Term Debt Fund: 13%
ABSL Short Term Fund: 10%
Nippon India Short Term Fund: 8%
Low Duration Fund:
If we look at the average return in this category in the last 1 year, it has been around 8 percent. At the same time, 10 to 35 percent returns have been given in different schemes.
Baroda Treasury Advantage Fund: 37%
JM Low Duration Fund: 25%
HSBC Low Duration Fund: 13%
L&T Low Duration Fund: 8%
Ultra Short Duration Fund:
If we look at the average return in this category in the last 1 year, it has been around 4 percent. At the same time, 5 to 8 percent returns have been given in different schemes.
Franklin Ultra Short Term Bond : 8%
ICICI Pru Ultra Short Term Fund : 6%
ABSL Savings : 5.6%
Nippon India Ultra Short Term Fund : 5.5%
