LIC MF Ultra Short-Short Term Fund: Your Debt Investment Guide
By Market Desk
Discover the LIC MF Ultra Short to Short Term Fund. Learn about its NAV, AUM, portfolio, and suitability for income generation from quality debt securities.
Thinking about where to put your first savings? The LIC MF Ultra Short to Short Term Fund Direct-IDCW Weekly aims to generate income by investing in high-quality short-term debt securities. It’s an option if you’re looking for stability in your portfolio.
Key Fund Details You Should Know
As of August 31, 2026, the fund’s Net Asset Value (NAV) stood at 16.0855.
It manages assets worth ₹1,747.89 Cr.
The expense ratio is 0.24%, which is the annual fee you pay.
The fund’s Yield to Maturity (YTM) is 7.1%.
This fund falls under the ‘Debt : Ultra Short to Short Term’ category, using the CRISIL Low Duration Debt B-I Index as its benchmark. Rahul Singh has been a manager since September 2015, with Pratik Harish Shroff joining in October 2025.
What’s Inside the Portfolio?
When you invest, your money goes mostly into debt instruments, making up 96.30% of the assets. There’s no equity, and 3.70% is in other assets.
The portfolio maintains an average maturity of 0.84 years and a duration of 0.79 years. This indicates its focus on shorter-term holdings.
The credit quality is high, with significant portions in top-rated instruments.
51.14% is in A1+ rated debt.
27.75% is in AAA rated debt.
8.94% is invested in SOV (Sovereign) instruments.
3.70% is held in Cash & Call Money.
Top holdings include debt from Punjab National Bank, REC Ltd., the Reserve Bank of India, and Time Technoplast Ltd.
How to Start Investing
The fund offers different plans to suit your needs, including IDCW Weekly, IDCW Monthly, IDCW Daily, and Growth options. You can choose the plan that aligns with your income goals.
The minimum initial investment is ₹5000.
You can start a Systematic Investment Plan (SIP) with a minimum of just ₹200.
Looking at past performance, the fund reported quarterly returns of 1.17% for Q1 2026 and 2.06% for Q2 2026. This gives you an idea of its recent performance trend.
Understanding funds like the LIC MF Ultra Short to Short Term Fund helps you make informed decisions about your first investments. It’s all about finding options that fit your financial comfort zone and goals.