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HSBC Ultra Short Duration Fund - NAV, Returns, Performance & Investment Guide 2025

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Comprehensive guide to HSBC Ultra Short Duration Fund covering NAV, returns, portfolio, investment strategy, fund managers, and key features. Check latest performance and investment options.

Investment Objective and Approach

HSBC Ultra Short Duration Fund is an open ended ultra-short term debt scheme investing in instruments such that the Macaulay Duration of the portfolio is between 3 months to 6 months. The scheme seeks to provide liquidity and generate reasonable returns with low volatility through investment in a portfolio comprising of debt & money market instruments.

The fund follows a systematic investment approach:

- Portfolio Strategy: HUSDF invests up to 100% in debt and money market instruments with overall portfolio Macaulay duration in the range of 3 to 6 months

- Credit Quality Focus: The Fund would largely maintain high credit quality portfolio of securities with investment predominantly in securities that have high short term credit quality rating

- Security Selection: The security selection would be driven by investment team's view on credit spreads, liquidity and the risk reward assessment of each security

- Risk Management: We deploy a balanced approach to credit and risk management and The scheme would largely maintain high credit quality portfolio basis in-depth credit evaluation which includes financial position of the issuer, external credit ratings opinions, operational metrics, past track record as well as future prospects of the issuer

Fund Managers

Kapil Punjabi is the Current Fund Manager of HSBC Ultra Short Duration Fund Direct Growth fund. The fund management team brings extensive experience in fixed income markets and follows a disciplined approach to credit evaluation and portfolio construction.

About the Fund House (AMC)

HSBC Asset Management India is part of the global HSBC Group. HSBC is among the largest banking and financial services companies in the world. The company serves over 40 million customers worldwide through its global business. The company says they exist to utilise their unique expertise and capabilities to bring new opportunities to their customers.

HSBC Asset Management leverages the global reach and expertise of HSBC Group to provide comprehensive investment solutions. The AMC focuses on delivering consistent performance through rigorous research and disciplined investment processes across various asset classes.

Key Fund Details (as of August 2025):

- Launch Date: This scheme was made available to investors on 27 May 2002

- AUM: ₹1,35,012 Cr (as of August 25, 2025)

- Latest NAV: ₹1,387.15 (as of August 25, 2025)

- Risk Rating: Low to Moderate risk

- Minimum SIP: ₹1,000

- Minimum Lumpsum: ₹5,000

Should I Invest in HSBC Ultra Short Duration Fund?

This fund may be suitable for investors seeking:

Ideal For:

- Short-term parking: They are suitable to park the amount you have set aside to meet any emergency needs or any surplus money that you don't need for the next six months up to 1-1.5 years

- Regular income: These funds may be suitable to earn regular income with high liquidity

- Better returns than liquid funds: They aim to earn slightly better returns over liquid funds but with a marginally higher degree of volatility

Key Benefits:

- Among the duration funds, these funds are relatively less affected by the movement of overall interest rates

- High liquidity with Exit load of HSBC Ultra Short Duration Fund Direct Growth is 0%

- Professional management with systematic credit evaluation

Considerations:

- those, who want slightly better returns and can withstand a little more volatility, can consider ultra-short duration funds

- Suitable for conservative investors with short-term investment horizons

- Better alternative to savings accounts for surplus funds

The fund is designed for investors who prioritize capital preservation with moderate return enhancement over traditional savings options while maintaining high liquidity.

FAQs

What is today's NAV of HSBC Ultra Short Duration Fund?

The latest NAV is ₹1,387.15 as of 25 Aug 2025 for the direct growth option. NAV is updated daily and varies between regular and direct plans.

What is the AUM of HSBC Ultra Short Duration Fund?

The fund currently has an Asset Under Management(AUM) of ₹1,35,012 Cr as of August 25, 2025, making it a sizeable fund in the ultra-short duration category.

What is the expense ratio of HSBC Ultra Short Duration Fund?

The fund has an expense ratio 0.2 for the direct plan, which is competitive compared to similar funds in the category.

What are the returns of HSBC Ultra Short Duration Fund since inception?

HSBC Ultra Short Duration Fund Direct Growth has given a CAGR return of 6.00% since inception. Over the last 1, 3 and 5 years the fund has given a CAGR return of 7.88%, 7.27% and 5.96% respectively.

What is the minimum SIP amount to invest in HSBC Ultra Short Duration Fund?

Minimum SIP Investment is set to ₹1,000 making it accessible for regular investors looking to start systematic investments.

How do I invest in HSBC Ultra Short Duration Fund?

You can invest through Allvest platform, directly through HSBC AMC website, or through authorized distributors. Online investment is convenient and offers direct plan options with lower expense ratios.

How to start a SIP in HSBC Ultra Short Duration Fund?

Register with Allvest, complete KYC, select the fund, choose SIP frequency (monthly/quarterly), set investment amount (minimum ₹1,000), and authorize bank mandate for automatic deductions.

How do I automate an SIP in HSBC Ultra Short Duration Fund?

After setting up SIP through Allvest, provide bank mandate authorization for auto-debit. Ensure sufficient balance on SIP dates and monitor through the platform for seamless automated investments.

How can I withdraw/redeem my investment in HSBC Ultra Short Duration Fund?

Log into your Allvest account, select the fund, choose redemption amount or units, submit request before cut-off time. Exit load of HSBC Ultra Short Duration Fund Direct Growth is 0% and funds typically credit within 1-2 business days.