Canara Robeco Savings Fund: One of the most consistent low duration debt funds

Current debt market scenario

The debt market is under pressure due sliding Rupee, geo-political uncertainties and huge supply of State Government papers. Despite 125 bps of rate cuts by Reserve Bank of India in CY 2025, the 10 year Government Bond yields have been hardening over last several months and is now at 11 month high (see the chart below). In current debt market scenario, shorter duration accrual based debt funds may be more suitable for short to medium term investments. In this article, we will review Canara Robeco Savings Fund, a low duration fund, which invests in debt and money market securities such that the Macaulay Duration of the portfolio is 6 to 12 months.

Source: Investing.com, as on 27^th January 2026

Why invest in low duration funds now?

Duration of a fund is directly related to interest rate risk. According to RBI, State Governments are expected to borrow Rs 5 lakh crores in Q4, FY 2025-26. This will put upward pressure on bond yields. FPIs have been selling G-Secs in December and January (source: NSDL). This trend may continue with weakening Rupee. In current market situation, low duration accrual based funds may provide stability in returns. Low duration funds have considerably less interest rate risk compared to long duration funds. The 364 Day T-Bill yield after remaining range-bound in narrow range of 5.4 - 5.6%, have crept up to 5.8% in the last two months (see the chart below). Investors can take advantage of current yields by investing in an accrual based fund. If the geo-political dynamics changes or if fiscal deficit narrows, then bond prices may rally, yields may come down and low duration funds may also get the benefit of price appreciation.

Source: Investing.com, as on 27^th January 2026

Canara Robeco Savings fund outperformed the category average

You can see that Canara Robeco Savings Fund outperformed the category average both in the short term and over longer periods (see the chart below)

Source: Investing.com, as on 27^th January 2026

Consistently in the top two quartiles

Canara Robeco Savings Fund has been in top 2 quartiles, 7 times in the last 11 years including 4 consecutive years in the top 2 quartiles. This shows impressive performance consistency.

Source: Investing.com, as on 27^th January 2026

Yield to Maturity

Portfolio's primary focus is on accrual income while having a possibility to generate capital appreciation if interest rates soften. An active view of interest rates is taken by keeping a close watch on various domestic & global macroeconomic factors. The current YTM of the fund portfolio is 6.58% (source: Canara Robeco MF, Fund Factsheet, as of 31^st December 2025).

High credit quality

Source: Canara Robeco MF, Fund Factsheet, as on 31^st December 2025. Others include Tri-party repo/REPO/Reverse Repo & Net Current Assets and Unit Funds, **Others include Includes Equity & Equity Related Instruments, Cblo/Repo/Reverse Repo & Net Current Assets, Unit Funds, Mutual Funds and other non - rated instruments. *

Why invest in Canara Robeco Savings Fund?

• High Liquidity: Money invested can be redeemed daily (all business day) without any load


• Fund primarily focuses on generating accrual income


• Fund also has a potential to generate returns higher than traditional savings avenues since it takes active view of the interest rate movement by monitoring various macroeconomic factors


• High Credit quality:-Fund majorly invests in the highest credit quality (AAA & equivalent, AA+ & equivalent and A1+ & equivalent) papers

Who can find Canara Robeco Savings Fund suitable?

• Investors looking for reasonable returns with investment in high credit quality papers


• Investors looking for short to medium term investment


• Investors seeking lower interest rate risk


• Suitable investment option for investors looking for a low risk fund for STP to a Canara Robeco MF equity fund


• Investors with an investment horizon of up to 1 year

Investors should consult with financial advisors or mutual fund distributors if Canara Robeco Savings Fund is suitable for their investment needs.