IDBI Short Term Bond Fund, Rated 5 Star By Value Research, Good To Start SIP

One of the first lessons taught to new investors is that mutual funds, and to a lesser extent bond mutual funds, should be seen as long-term investments. This means that money that you will require in three to five years should not be put in stock mutual funds or long-term bond funds. Here, we have covered a short-term bond fund from the house of IDBI Mutual Fund, the much has been given 5-star by Value Research.

IDBI Short Term Bond Fund Direct-Growth

NAV	Fund Size	Expense Ratio
₹23.97	₹ 30.15 Cr	0.28%

NAV as on 09 February 2022

It is a Short Duration mutual fund scheme from IDBI Mutual Fund, Launched on 1 January 2013. IDBI Short Term Bond Fund Direct-Growth has ₹30 Crores worth of AUM as of 31 December 2021 and is a small fund of its category. The fund has an expense ratio of 0.28%, whereas its category average expense ratio is 0.34%. Its expense ratio is close to what most other Short Duration funds charge.

IDBI Short Term Bond Fund Direct-Growth returns of the last 1-year are 13.19%. Since its inception, it has delivered 8.14% average annual returns. Every nine years, the fund has quadrupled the money invested in it. Fund's ability to deliver returns consistently is in-line with most funds of its category. In a falling market, it has a lower-than-average capacity to reduce losses. It is best suited for investors who want to invest for 1-3 years and are looking for an alternative to bank deposits. On the risk meter, it is low to moderate for investment.

Returns and Performance

Lump Sum Returns 

On Investment of Rs 10,000

1-Year	3-Year	5-Year	Since Inception
13.14%	7.49%	7.44%	8.13%

SIP Returns

On Investment of Rs 1,000

Period Invested for	Absolute Returns	Annualised Returns
1 Year	7.64%	14.33%
2 Year	12.58%	11.79%
3 Year	16.44%	10.10%
5 Year	23.61%	8.39%

Portfolio

The fund has 77.61% investment in Debt of which 37.72% in Government securities, 39.89% in funds invested in very low-risk securities. The fund's credit profile is moderate, indicating that it has loaned to borrowers of high quality. In this category, Most funds lend to better borrowers and hence the risk of default in this fund is higher than the category. The fund's top holdings are in Government of India, Power Finance Corp. Ltd., Rural Electrification Corp. Ltd., Godrej Industries Ltd., Chennai Petroleum Corp. Ltd.

Disclaimer

Mutual fund investments are subject to market risk. Read all scheme-related documents, Terms and Conditions carefully before investing. The above-mentioned information is purely informational and carried forward from Value Research and MoneyControl. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.