Invesco India Ultra Short Term Fund: Returns & Details

Invesco India’s Ultra Short Term Fund Direct-IDCW Monthly is an open-ended scheme that targets income from short-term debt and money market instruments, which are short-term debt tools. Launched on January 1, 2013, this fund operates under a ‘Moderate’ risk profile.

The fund’s objective is to generate accrual income, meaning income from interest, by investing in a range of short-term money market and debt instruments, which are loans to entities. It uses the NIFTY Ultra Short Duration Debt Index B-I as its benchmark.

Key Fund Numbers

• Net Asset Value (NAV) as of August 31, 2026: Rs 1,351.69
• Expense Ratio as of August 26, 2026: 0.27% (above category average of 0.26%)
• Assets Under Management (AUM) as of July 31, 2026: Rs 1,073.02 crore
• Modified Duration: 0.42 years (interest rate sensitivity)
• Average Maturity: 0.44 years (average time to repayment)

The fund has consistently delivered strong trailing returns across various periods, generally outperforming the category average. These returns highlight its performance since its inception.

Performance Overview

• 1-year return: 6.71%
• 3-year return: 7.34%
• 5-year return: 6.57%
• Return since launch: 7.34%

Fund managers Neelesh Dhamnaskar, Krishna Venkat Cheemalapati, and Vikas Garg oversee the portfolio. The fund requires a minimum initial investment of Rs 1,000.

Investment and Portfolio Specifics

• Minimum initial investment: Rs 1,000
• Minimum additional investment: Rs 1,000
• Minimum SIP investment: Rs 1,000
• Exit load: None

Its portfolio mainly includes low-risk government-backed securities, Certificates of Deposit (CD) which are bank deposit receipts, Treasury Bills (T-Bills) or short-term government debt, Commercial Papers (CP) or short-term corporate debt, and NCD & Bonds, which are long-term debt securities.

Understanding Tax Implications

For investments made after April 1, 2023, capital gains are added to your income and taxed at your applicable slab rate. This means they are taxed at your income tax bracket.

For investments made before April 1, 2023, the rules differ. Gains redeemed within three years are taxed at your slab rate. However, gains redeemed after three years benefit from a 20% tax rate with indexation benefits, which is an inflation adjustment for tax.

Any dividend income received is also added to your total income and taxed at your slab rate. A 10% TDS, or tax deducted at source, applies if this income goes over Rs 5,000 in a financial year.