This blog covers the best ultra short duration mutual funds in detail. Find out how ultra short duration funds are different from liquid funds. Remember: You can use the Cube Wealth App to invest in the best ultra short duration mutual funds.
February 12, 2021
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Everything’s quick and full throttle in 2020 right from e-commerce to food delivery. You can expect Amazon orders to be delivered within 24 hours and food within 30 minutes. But where does an ultra short term fund fit in all of this?
Well, wealth creation remains a marathon and not a sprint for every investor. There are no shortcuts to getting rich. But there are mutual funds like ultra short term funds and liquid funds that can generate better returns than bank savings accounts in the short term.
This blog will tell you more about ultra short duration funds. We will also give you a snippet of the best ultra short term funds currently being recommended by our wealth advisor, Wealth First.
Note: Facts & figures are as of 17-12-2020. While we update our blogs regularly, download the Cube Wealth app for the latest information on ultra short duration mutual funds.
What are Ultra Short Duration Funds?
An ultra short duration fund is a type of debt fund that has a Macaulay duration of 3-6 months. This basically means that the portfolio of an ultra short term fund matures in 3-6 months. Just like most debt funds, ultra short term funds invest in debt and money market securities like corporate bonds, treasury bills, commercial paper, etc.
Ultra Short Duration Funds Vs Liquid Funds
It’s understandable to be confused about whether or not liquid funds and ultra short term funds are the same. But they are, as millennials say, ‘same same but different’.
Here’s a table that shows the difference between an ultra short term fund and a liquid fund.
How Can You Invest In The Best Ultra Short Duration Funds?
The Cube Wealth app is the most convenient way to invest in ultra short term funds. Cube works with trusted and proven wealth advisors like Wealth First to give you the best ultra short term fund recommendations.
Wealth First curates a list of the best mutual funds for Cube users every month. Cube also makes it easier for busy professionals to invest in the best ultra short term funds with options like:
on stock picking, poring over excel sheets, financial news, analyzing market trends, tracking the Sensex, researching company fundamentals, comparing mutual funds, reading financial reports, trying to predict the future & losing your sanity!