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.
|Bank of India Liquid Fund – Direct Plan
|Union Liquid Fund
|Axis Liquid Fund
|Kotak Liquid Fund
|Aditya Birla Sun Life Liquid Fund
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.
|3 Month Returns
|SBI Savings Fund
|Aditya Birla SUn Life Money Manager Fund
|Kotak Money Market Fund
|ICICI Prudential Money Market Fund
|Union Money Market Fund
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.
|HSBC Low Duration Fund
|Aditya Birla Sun Life Low Duration Fund
|Nippon India Low Duration Fund
|Axis Treasury Advantage Fund
|SBI Magnum Low Duration Fund
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.
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