ICICI Prudential Short Term Fund recorded a 5.6% one-year return, outperforming its benchmark by 3.6 percentage points. As of July 2026, the fund manages a large corpus of over ₹19,100 crore, making it a prominent player in the short-duration debt category.
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ICICI Prudential Short Term Fund has outperformed several peers in the short-duration debt mutual fund category over the past year. According to data as of July 22, 2026, the fund delivered a one-year compound annual growth rate of 5.6%. This performance is notably higher than its designated benchmark, which recorded a return of 1.9% during the same period, marking an outperformance of 3.6 percentage points.
The fund currently maintains a substantial asset base of ₹19,174.7 crore. This scale is significant as it places the fund among the largest in its segment, specifically when considering funds with assets under management of at least ₹1,500 crore. In comparison, other major funds in the category, such as Axis Short Duration Fund and HDFC Short Term Debt Fund, reported one-year returns of approximately 5.3%.
Investors often look at performance across different timeframes, as market conditions impact debt funds differently. While the ICICI Prudential fund performed well over the one-year period, rankings change when looking at shorter or longer durations. For instance, Aditya Birla SL Short Term Fund was a notable performer over a one-month timeframe with a 0.7% return, while Bandhan Short Duration Fund led over the three-month period with a 1.9% return. Over a longer three-year horizon, HDFC Short Term Debt Fund showed a stronger performance among its peers with a 7.3% return.
Short-duration debt funds invest in fixed-income securities that typically mature within one to three years. These funds are often chosen by investors seeking lower interest rate risk compared to long-term debt funds. However, performance in this category is heavily influenced by changes in interest rates, credit quality of the underlying bonds, and the fund manager's strategy in selecting securities.
When evaluating these funds, it is important for investors to look beyond single-year returns. Consistency across three-year and five-year periods provides a clearer picture of how a fund manager navigates different economic cycles. Monitoring the credit rating of the bonds held by the fund is also essential, as higher-yielding debt often carries higher credit risk. Future updates for investors will involve tracking quarterly portfolio disclosures to see if the fund maintains its current strategy or adjusts its holdings in response to changes in the broader interest rate environment.