Best Short-term Mutual fund to Invest…!!

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best short term mutual funds in india

Investor always look for the short-term opportunity to invest and make profit. They always look for the safest and best option to invest. Mutual funds are one of the best options to invest. People have always puzzled about mutual fund who provides better returns at short term. 

 What is the best short-term Mutual Fund?

Mutual fund scheme which has a maturity period between 15 to 91 days are called as Short-term Mutual Fund. Those who are seeking a period of investment more than a period of 2 to 4 months are called as ultra-short-term mutual fund. It’s mainly for the investor who are seeking investment options with lower risk. 

What are the expected returns on the short-term Mutual fund?

Short Term Mutual Fund offers high returns for investment held for a short duration compared to the bank deposit, saving accounts and fixed deposit. The percentage of returns range from 8% to 9%, depending upon the asset available in your short-term mutual fund portfolio.  

How are best short-term mutual fund taxed?

Mutual Fund is taxed under two categories i.e. Dividend options and Growth Options in best short-term mutual fund. The tax treatment of the growth mutual fund is that of a bank fixed deposit. An investor should add the income from this fund to overall income and then compute the taxes. 

What are the average returns of Short-Term Mutual Funds?

The average returns of the short-term mutual funds are between 7 to 9% depending upon the asset allocation. The return on these investments tend to be higher than the post-tax return from other form on investment. 

List out the top short-term Mutual Funds?

Here is the list of top 10 short term Mutual Fund     

  • Axis Blue Chip Fund 
  • Canara Robeco Blue chip equity 
  • Mirae Asset India equity fund 
  • Sundaram Mid cap and large mutual fund. 
  • Invesco India Growth opportunities fund. 

How to Invest in short Term Mutual Funds? 

Here is the process to invest in Short Term Mutual Funds:  

  • Sign in at Gulaq account. 
  • Enter all your credentials regarding the amount of investment and period of investment. 
  •  Make your e-kyc done in less than 5 minutes. 
  • Further select and invest in your short-term mutual fund from the list of funds. 

What are things to be taken into consideration before investing in Short term Mutual funds?

Things to consider before investing in the short-term mutual fund.  

  •  Investment Horizon: 

Before investing in the short-term mutual fund, one must look upon the investment horizon. Larger the Investment horizon, better will be the results.   

  • Interest rate movement: 

Interest rate movement produces a big impact on short term mutual funds. A small change in the interest rate produces a big impact on the short-term mutual fund.  

  • Returns: 

Returns is one of the most important factors to take into consideration before investing in the short-term mutual fund. A short-term mutual funds have low returns if the condition is not favourable such as a hike in interest rate or the market is in bear. 


*Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.

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