Ultra-short-duration mutual fund

Tue, 12 May 2026 00:00:00 +0000

An ultra-short-duration mutual fund in India is an open-ended debt scheme that must maintain a portfolio Macaulay duration of 3 to 6 months, under SEBI ’s October 2017 scheme categorisation circular. This duration band places ultra-short funds between the near-zero duration of liquid funds and overnight funds on one side, and the 6-12 month duration of low-duration funds on the other. Ultra-short funds are commonly used as a higher-return alternative to liquid funds for investors with slightly longer holding horizons (1 to 6 months) who can tolerate marginally more interest rate and credit risk.

Ultra-Short-Duration Fund on WebNotes

Ultra-short-duration mutual fund