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HomeCURRENT AFFAIRSBUSINESSMutual Fund: Navigating Short-Term Finances: A Simple Guide to Strategic Investments

Mutual Fund: Navigating Short-Term Finances: A Simple Guide to Strategic Investments

Strategic Short-Term Investments: Navigating Debt Funds for Safety, Returns, and Liquidity

Achieving short-term financial goals requires a thoughtful strategy. Short-term debt funds provide a diverse range of options tailored for different investment timelines. These funds offer a solid choice for investors seeking safety, returns, and liquidity, depending on their specific investment horizons.

Short-Term Investments (1-2 months)

For brief timeframes, Liquid funds shine as the ideal choice, ensuring both liquidity and stability. Investing in debt or money market instruments maturing within 91 days, these funds allow investors to park surplus funds for a few weeks to a few months.

Take a glance at the one-month performance of select liquid funds.

Name1 Month
Bank of India Liquid Fund – Direct Plan 0.60%
Union Liquid Fund 0.60%
Axis Liquid Fund0.59%
Kotak Liquid Fund0.61%
Aditya Birla Sun Life Liquid Fund0.59%

Mid-Term Investments (three months)

Ultra Money Market Funds present a balanced option, offering security and promising returns for those with a slightly longer investment horizon. These funds lend to companies for up to one year, providing higher returns while managing risk through lending duration adjustments.

Take a glance at the Three-month performance of select liquid funds.

Name3 Month Returns
SBI Savings Fund1.75%
Aditya Birla SUn Life Money Manager Fund1.78%
Kotak Money Market Fund1.75%
ICICI Prudential Money Market Fund1.75%
Union Money Market Fund1.69%

Medium-Term Investments (5-6 months)

Highlighting treasuries, especially low-duration funds, as stable options for potential gains. These funds lend to companies for 6-12 months, making them somewhat more volatile than short-term options but relatively safer without stock market exposure.

Take a glance at the Six-month performance of select liquid funds.

Name6 Month
HSBC Low Duration Fund3.70%
Aditya Birla Sun Life Low Duration Fund3.62%
Nippon India Low Duration Fund3.47%
Axis Treasury Advantage Fund3.43%
SBI Magnum Low Duration Fund3.52%

Longer-Term Investments (one year+)

Corporate Bond Funds emerge as a suggestion for consistent growth and reduced risk over an extended period. With at least 80% of their investments directed towards companies with the highest credit rating, these funds provide a platform for steady and secure growth.

Disclaimer: This information is provided solely for informational purposes. It is important to note that investing in the market or a business idea involves market risks. Before investing money as an investor/ owner/ partner, always consult an expert. DNP News Network Private Limited never advises to invest money on stocks or any specific business idea. We will not be liable for any financial losses

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