Investment Objective and Approach

The scheme aims to generate regular income through investments in Debt and Money Market Instruments. An open ended short term debt scheme investing in instruments such that the Macaulay Duration of the portfolio is between 1 year and 3 years. It shall endeavour to develop a well-diversified portfolio of debt (including Securitised debt) and other instruments.

The fund follows a conservative approach by investing in:

- Debt securities with moderate credit risk

- Money market instruments

- Government securities

- Corporate bonds with varying maturities

- A relatively high interest rate risk and moderate credit risk.

The investment pattern in the fund is geared to achieve the objectives as the asset allocation is up to 100% low to moderate risk profile debt, including securitized debt and money market instruments. Only about 10% asset allocation may be made in moderate to high-risk profile units issued by REITI and InvITs.

The fund is particularly suitable for investors seeking:

- Regular income generation over short-term horizons

- Investment horizons of one to three years, or for the fixed-income allocation in your longer-term portfolio. You can expect to earn higher returns than what a bank fixed deposit can fetch.

- The HDFC Short Term Debt Fund provides moderate profile risk investors with the scope to earn a regular income alternative to bank deposits.

Key investment details:

- The minimum investment required to start investing in HDFC Short Term Debt Fund is ₹100 for the lump sum option and ₹100 for the SIP (Systematic Investment Plan) option.

- The fund has an expense ratio 0.4. The expense ratio is 0.40%.

- Exit Load NIL

Fund Managers

The HDFC Short Term Debt Fund is managed by experienced professionals:

Mr. Anil Bamboli - Fund Manager of HDFC Short Term Debt Fund Direct Growth, since 25 June 2010

- Mr. Bamboli has studied a Bachelor of Commerce (Honours) and MMS in Finance. He manages HDFC Dynamic Debt Fund, HDFC Short term debt fund, HDFC Ultra short term fund, HDFC Gilt fund, money market fund and also HDFC overnight fund.

- Anil Bamboli is managing 14 funds of HDFC AMC. Total asset under management (AUM) managed by Anil Bamboli is ₹226382.9Cr.

- Mr. Anil Bamboli has 16 years of experience in fund management and research, Fixed Income dealing. He is with HDFC AMC from July 2003 till date.

Mr. Dhruv Muchhal - The fund managers are Anil Bamboli, Dhruv Muchhal. Fund Manager of HDFC Short Term Debt Fund Direct Growth, since 22 June 2023

- Equity Analyst and Fund Manager for Overseas Investments

About the Fund House (AMC)

HDFC Asset Management Company Ltd., or HDFC Mutual Fund, is currently the largest mutual fund and actively managed equity mutual fund in India. It is one of the most profitable asset management companies (AMC) in the country. The company manages assets worth Rs. 6.1L Cr crores as of Mar 31, 2024.

Key highlights of HDFC AMC:

- HDFC Mutual Fund started as a joint venture between Housing Development Finance Corporation Limited and Standard Life Investments Limited on December 10, 1999. It has Housing Development Finance Corporation Limited and Standard Life Investments Limited as the sponsors.

- The company serviced more than 75000 empanelled distribution partners through 210 branches spread across more than 200 cities in India.

- HDFC Asset Management Company Ltd. received approval to act as an AMC from SEBI back on 30 June 2000 under the registration number MF/044/00/6.

- Established in 1999 as a joint venture, HDFC AMC is one of the leading AMCs in the country. It has a network of 210 branches and 70,000 emplaned distribution networks. The fund house offers over 50 funds catering to different investor needs and have more than 9.4 million active customer accounts.

Performance Track Record:

- In the first quarter ending June 2023, HDFC Asset Management Company (AMC) achieved an Average Assets Under Management (AAUM) of ₹4.86 lakh crore, commanding an 11.3% market share. HDFC AMC reported a 52% Year-over-Year (YoY) surge in profit for Q1 FY 2024, amounting to ₹477.5 crore, accompanied by a YoY revenue growth of 10.1%.

Should I Invest in HDFC Short Term Debt Fund?

This fund may be suitable for you if:

Investment Profile Match:

- You seek steady income with moderate risk

- Your investment horizon is 1-3 years

- You want an alternative to bank fixed deposits with potentially higher returns

- Investors who are not risk-averse, and at the same time, wary of market volatility have a clear interest in investing in the fund.

Key Advantages:

- A combination of the brand and the investment objective in the HDFC Short Term Debt Fund ensures that the investor receives a consistent return. A diversified portfolio with the support of debt and money market instruments ensures regular fixed income through interest accruals.

- The HDFC Short Term Debt Fund is an open-ended scheme that essentially means that the investor can purchase fund units, switch-in, redeem, and switch-out on every business day based on NAV prices.

- Investment in the fund is backed by one of the most profitable Fund Houses with an impressive track record of delivering consistent returns in the short-term horizons.

Recent Performance Metrics (as of August 2025):

- HDFC Short Term Debt Fund Direct Growth has ₹18143 Cr worth of assets under management (AUM) as on Aug 2025 and is more than category average. The AUM of the fund is ₹18143 Cr.

- HDFC Short Term Debt Fund Direct Growth has given a CAGR return of 8.12% since inception. HDFC Short Term Debt Fund fund has generated a return of 8.82% in 1 year, 8.04% in 3 years, 6.77% in 5 years.

Risk Considerations:

- The risk of incurring a loss in these funds is low, but they do not guarantee returns or safety of capital like a bank deposit. There have been instances when short duration funds have incurred losses.

- Remember, their returns may not be substantially higher than inflation. They are meant to deliver steady, but low to moderate returns and are not suitable to build wealth in the long run.

FAQs

What is today's NAV of HDFC Short Term Debt Fund?

The NAV of the fund today is ₹33.39. NAV or Net Asset Value is the per unit price of a mutual fund. Please check the latest NAV on Allvest platform as it changes daily.

What is the AUM of HDFC Short Term Debt Fund?

HDFC Short Term Debt Fund Direct Growth has ₹18143 Cr worth of assets under management (AUM) as on Aug 2025, indicating strong investor confidence in the fund.

What is the expense ratio of HDFC Short Term Debt Fund?

The fund has an expense ratio 0.4. The expense ratio is 0.40%. This is the annual fee charged for managing your investment.

What are the returns of HDFC Short Term Debt Fund since inception?

HDFC Short Term Debt Fund Direct Growth has given a CAGR return of 8.12% since inception. This reflects the fund's long-term performance track record.

What is the minimum SIP amount to invest in HDFC Short Term Debt Fund?

The minimum investment required to start investing in HDFC Short Term Debt Fund is ₹100 for the lump sum option and ₹100 for the SIP (Systematic Investment Plan) option.

How do I invest in HDFC Short Term Debt Fund?

You can invest through Allvest platform by creating an account, completing your KYC, selecting the fund, choosing between SIP or lump sum, and setting up automated payments through bank mandate or UPI.

How to start a SIP in HDFC Short Term Debt Fund?

Log into your Allvest account, search for HDFC Short Term Debt Fund, select SIP option, choose your investment amount and frequency, then set up auto-payment through bank mandate.

How do I automate an SIP in HDFC Short Term Debt Fund?

Once you set up the SIP on Allvest, you can automate payments by enabling bank mandate or UPI autopay, ensuring seamless monthly investments without manual intervention.

How can I withdraw/redeem my investment in HDFC Short Term Debt Fund?

You can redeem your units through Allvest platform or the AMC website. The redemption amount is typically credited to your registered bank account within 2-4 working days.