Investment Objective and Approach

Low Duration Funds maintain a portfolio of high-rated debt and money market instruments. Since the portfolio has a Macaulay duration of around 6 to12 months, these funds try to achieve a balance of safety, liquidity and yield. Investors may find these funds suitable to earn regular income on short term surplus money.

The fund primarily invests in debt and money market securities with a Macaulay duration between 6 to 12 months. This strategic approach helps maintain a balance between capital preservation, liquidity provision, and yield generation. The fund's investment strategy focuses on high-quality debt instruments, making it suitable for conservative investors seeking stable returns on their short-term surplus funds.

Key investment features include:

- Focus on high-rated debt securities and money market instruments

- Portfolio duration management within 6-12 months range

- Emphasis on safety, liquidity, and consistent yield

- Suitable for parking surplus funds for short to medium-term periods

Fund Managers

The fund managers are Vivek Sharma, Kinjal Desai. The fund benefits from experienced management with expertise in fixed income securities and duration management strategies. The fund managers bring substantial experience in debt fund management and have a proven track record in navigating interest rate cycles effectively.

About the Fund House (AMC)

Nippon India Mutual Funds (formerly Reliance Mutual Fund) is one of the leading asset management companies in India. It manages assets across managed accounts, mutual funds, pension funds, alternative investments, and offshore funds. Nippon India Mutual Fund's (NIMF) asset manager is Nippon Life India Asset Management Limited (NAM India).

Set up in June 1995 as Reliance Mutual Fund, it was a joint venture between India's Reliance Capital and Japan's Nippon Life Insurance company. In October 2019, Reliance's stake was bought by Nippon, and the fund house was renamed as Nippon India Mutual Fund.

Key highlights of the AMC:

- Nippon Mutual Funds manage assets worth Rs. 431308 crores.

- Currently, the range of Nippon mutual funds schemes includes 52 equity, 266 debt, and 40 balanced funds.

- The company is led by its CEO Sundeep Sikka.

- Strong parentage with Nippon Life Insurance Company as the sponsor

- Established presence in the Indian mutual fund industry for over 25 years

The AMC has built a reputation for professional fund management across various asset classes and has consistently focused on delivering value to investors through diversified investment solutions.

Should I Invest in Nippon India Low Duration Fund?

This fund may be suitable for you if:

Ideal for:

- Conservative investors seeking stable returns with low volatility

- Those looking to park surplus funds for 6 months to 2 years

- Investors wanting regular income with minimal interest rate risk

- Corporate treasuries and institutions managing short-term liquidity

- First-time debt fund investors due to relatively lower risk profile

Investment considerations:

- The AUM (i.e. assets under management) of Nippon India Low Duration Fund is ₹7275.82 Cr as of 21st March 2025.

- The expense ratio of Nippon India Low Duration Fund Plan is 0.38 as of 21st March 2025.

- Over the past five years, Nippon India Low Duration Fund has delivered an annualised return of 5.93% as of 02-Aug-2025.

- The minimum investment required to start investing in Nippon India Low Duration Fund is ₹500 for the lump sum option and ₹100 for the SIP (Systematic Investment Plan) option.

Risk factors to consider:

- Interest rate sensitivity, though lower than longer duration funds

- Credit risk from underlying securities

- Liquidity risk during market stress

- Lower returns compared to equity or higher duration debt funds

The fund is best suited for investors with a 6 months to 2 years investment horizon who prioritize capital preservation over aggressive growth.

FAQs

What is today's NAV of Nippon India Low Duration Fund?

The latest declared NAV of Nippon India Low Duration Fund, is ₹3,773.6433 as of 02-Aug-2025. NAV fluctuates daily based on market movements.

What is the AUM of Nippon India Low Duration Fund?

The AUM (i.e. assets under management) of Nippon India Low Duration Fund is ₹7275.82 Cr as of 21st March 2025.

What is the expense ratio of Nippon India Low Duration Fund?

The expense ratio of Nippon India Low Duration Fund Plan is 0.38 as of 21st March 2025. This is the annual fee charged for fund management.

What are the returns of Nippon India Low Duration Fund since inception?

Nippon India Low Duration Fund Direct-Growth scheme return performance in last 1 year is 8.20%, in last 3 years is 22.89% and 148.19% since scheme launch.

What is the minimum SIP amount to invest in Nippon India Low Duration Fund?

The min. SIP amount to invest in this scheme is ₹100.

How do I invest in Nippon India Low Duration Fund?

You can invest through Allvest platform by completing your KYC, selecting the fund, and choosing between SIP or lump sum investment options.

How to start a SIP in Nippon India Low Duration Fund?

Register with Allvest, complete your KYC verification, select the fund, choose SIP option, set your monthly investment amount (minimum ₹100), and authorize bank mandate.

How do I automate an SIP in Nippon India Low Duration Fund?

Set up a bank mandate through Allvest platform which automatically deducts your SIP amount on the selected date each month for seamless investing.

How can I withdraw/redeem my investment in Nippon India Low Duration Fund?

You can redeem your investment through Allvest platform by submitting a redemption request. The amount is typically credited to your bank account within 1-3 business days.