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Nippon India Ultra Short Duration Fund Direct-Growth Nippon India Ultra Short Duration Fund Direct-Growth Nippon India Ultra Short Duration Fund Direct-Growth Nippon India Ultra Short Duration Fund Direct-Growth - Get latest updates on NAV, Dividends, Returns, Performance, Risks & Portfolio. Invest now! Paisabazaar INR 1000 1 rating rating rating rating rating Nippon India Ultra Short Duration Fund Direct-Growth 2 5

Debt Ultra Short Duration

PLAN: GROWTH TYPE : OPEN-ENDED OPTION: Growth

1 Yr return

1.41%

3 Yrs CAGR returns

5.34%

5 Yrs CAGR returns

6.3%

NAV as on 22 May

₹ 3097.21 by 3.97 ( 0.13%)

Expense ratio

0.34

Fund Size (Cr)

₹ 4519.54


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Performance Graph*
Returns Calculator
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If ₹1000 invested for 1

Estimated returns*

₹ 0

with % annual returns

Direct Funds
Estimated amount
₹ 10,27,000
Regular Funds
Estimated amount
₹ 9,91,000

* The calculator, based on assumed rate of returns, is meant for illustration purposes only.More

The calculations are not based on any judgments of the future return and should not be construed as promise on minimum returns. Information gathered and material used in this calculator is believed to be from reliable sources. Paisabazaar however does not warrant the accuracy, reasonableness and/or completeness of any such information. While utmost care has been exercised while preparing the calculator, Paisabazaar does not warrant the completeness or guarantee that the achieved computations are flawless and/or accurate and disclaims all liabilities, losses and damages arising out of the use or in respect of anything done in reliance of the calculator.

investment objective

The Scheme seeks to generate optimal returns consistent with moderate levels of risk and liquidity by investing in debt and money market instruments.

Tax Implications

Returns are taxed at Marginal rate of taxation, if you redeem before 36 months. Gains on debt mutual funds held for 36 months or more are treated as long-term capital gains and taxed at the rate of 20% after indexation benefits. Indexation is a technique to adjust tax payments by employing a price index which adjusts for inflation.

riskometer
Top Holdings
Top 10 Sectors %
Financial 31.87
Engineering 18.11
Health Care 14.29
Technology 12.69
Metals 8.07
Others 6.69
Services 4.76
Construction 2.72
Energy 0.42
Communication 0.21
Top 10 Sectors %
Drugs & Pharma 14.29
Computer Hardware 12.69
Power Projects 8.81
Minerals 8.07
Misc. Fin.services 7.31
Power Projects 6.11
Misc. Fin.services 6.05
Misc. Fin.services 6.04
Others 5.99
Road Transport 4.76
Fund house details
Fund House Reliance Mutual Fund
Fund Manager Vivek Sharma
Fund Setup Date 01 Jan 2013
Address Reliance Centre, 7th Floor, South Wing Off Western Express Highway Santacruz (East)
Contact (022) 33031000 / 1800 300 11111
Email ID customer_care@reliancemutual.com
More About This Fund

About Nippon India Ultra Short Duration Fund

Nippon India Ultra Short Duration Fund, earlier known as Reliance Ultra Short Duration Fund is an open ended Ultra Short Term Fund(USDF) that invests in bonds, debt securities and money market instruments that have Macaulay Duration of 3-6 months. It is a Debt Fund with low risks, high liquidity and a good alternative to Bank Fixed Deposits.

The investment objective of this scheme is to generate optimal returns (consistent with moderate levels of risk and liquidity) by investing in fixed income securities.

Who should Invest?

  • Conservative investors wanting fixed returns and a secure portfolio for their money
  • Investors seeking highly liquid fund to invest for a short time can invest in this USDF
  • Investors who are looking for better options to bank deposits
  • Investors wanting a stable source of regular income

Risks

Nippon India USDF is low on market risks. Because of its low duration, risk of changes in rates of interest is almost negligible. However, no fund guarantees capital gains. There is a possibility of credit risk which in rare cases may happen.

Will You Pay Tax?

Nippon India USD Fund is taxed as per the norms of Debt Funds. If an investor has made a capital gain of ₹50,000 on investment in a debt mutual fund and withdraws the amount before 3 years of investment, Short Term Capital Gains Tax would be levied, as per the income tax slab of the investor. ₹50,000 would be added to the taxable income of the investor and taxed accordingly.

If an investor withdraws the investment including capital gains post 3 years of investment, Long Term Capital Gains Tax of 20% is levied, with the benefit of indexation.

Indexation reduces the value of overall Long Term Capital gains to reflect the effect of inflation on your investment.

To calculate the final value of capital gains post indexation, we use the government’s Cost Inflation Index (CII) in the following formula:

Indexed cost of Acquisition = Investment Amount * (CII of the year of withdrawal/ CII of the year of investment)

Suppose the investment amount is ₹70,000 in the year 2016 and the withdrawal amount is ₹1 Lakh. The value of capital gains is ₹30,000 before indexation

Indexed Cost of Acquisition= 70000* (280/254) = 77165.35

Note: CII in the year 2015 = 254

CII in the year 2018 = 280

Final Value of Capital Gains= 100000- 77165.35 = 22834.65

Tax Payable = 20% of 22834.65 = 4566.93

No Tax is charged as long as you hold the units.

How to invest in Nippon India Ultra Short Duration Fund?

  • Sign Up/Sign In to Paisabazaar.com and go to ‘Direct Mutual Funds’
  • Click on the section of Nippon India AMC
  • Type and search directly by the name of Nippon India USD Fund. Once it opens up, look at the details. You can also compare similar funds as well as use Returns Calculator
  • Click on ‘Invest Now’, select either Lump sum or SIP

Why choose Paisabazaar?

  • Trusted website, no commission charges and no paperwork
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  • Important scheme details such as latest Net Asset Value (NAV), Expense Ratio, Assets Under Management (AUM), etc are also available on the portal, making it easier for consumers to pick a suitable fund

Frequently Asked Questions (FAQs)

Q. Should you invest in Nippon India US Duration Fund?

Ans. If you are looking for a short term, low risk and highly liquid investment plan then you can invest in this fund. If you are looking for high returns and can take some higher risks then you may go for Equity Funds.

Q. Is it beneficial to invest via open-ended (lumpsum) or SIP?

Ans. SIP (Systematic Investment Plan) is considered an efficient and convenient mode of investment that is beneficial in the long term investment. It also reduces financial burden as one needs to invest periodically and provides the benefit of rupee averaging cost. However, it has limited benefits in Debt Funds and very negligible in case of Ultra Short Term Funds. So, investment in a Lump Sum in Franklin India Ultra Short Bond Fund is preferable.

Q. What is the entry load for this fund?

Ans. There is no applicable entry load on the aforementioned fund.

Q. What is the Exit Load for this scheme?

Ans. There is no Exit Load on this fund.

Q. Is there any lock-in period for investment in this scheme?

Ans. No. Investors can redeem their investment as per their wish and needs.

Q. What is the fund manager’s style of investment?

Ans. Vivek Sharma has been managing the fund since 2013. He looks after a number of Debt Fund categories other than this and hence chalks out smart investment strategies to make the maximum profit out of Debt securities.