fbpx

Best Short-Term Mutual Funds – An Investment Horizon

0 27

Best Short-Term Mutual Funds

WHAT ARE BEST SHORT-TERM MUTUAL FUNDS? 

Mutual Fund schemes offering a maturity from a minimum of 15-91 days or below are called short-term mutual funds. Here, the maturity depends on the assets and it is best suited for people who are looking for asset options but with low-risk. Regarding the same, liquid funds is an amazing bet and others who are looking for the maturity period of 2-4 months can go for ultra-short-term funds.  

HOW ARE BEST SHORT-TERM MUTUAL FUNDS TAXED? 

Growth option and dividend option are two categories and the tax-treatment for a growth option is similar as that to a fixed deposit. There is an option of tax-exempt for an investor who opts for a dividend option. However, there is no tax on investment.  

WHAT IS THE RETURNS POTENTIAL? 

As compared to bank deposits the best short-term mutual funds in India can offer higher returns. The return rate is varying from 8-9%, particularly based on the assets in the (fund) portfolio. Talking about tax-benefits, the potential of returns on these investments are higher than other forms of investment(s).  

TOP SHORT TERM MUTUAL FUNDS 

Following are a few: 

  • HDFC Medium Term Opportunities Fund – Growth OptionWith an asset class of fixed interest HDFC Medium Term Opportunities comes with a minimum amount of INR. 5000 ad a top-up amount of INR. 1000. It is a good bet!  
  • Aditya Birla Sun Life Short Term Fund – Growth – Regular PlanWith a NAV of INR. 65.9793, this fund is a good investment in the money market asset class. It requires a minimum investment of INR. 1000 and the same amount for top-up as well. 
  • ICICI Prudential Banking and PSU Debt Fund – GrowthThe fund is a fixed interest asset class with a minimum investment of INR. 5000 and top-up of INR.1000. The NAV defines here is of INR. 19.7976. 
  • ICICI Prudential Short Term – Growth OptionThis short-term debt fund has a high expense ratio of 1.21% and a bit higher NAV. Presently, it stands at INR. 35.946. It requires a minimum investment of INR. 1000 and the same goes with the top-up as well.  
  • ICICI Prudential Banking and PSU Debt Fund Retail Growth These come under the fixed rate of interest and has an expense ratio – 0.53%. With a NAV of INR. 18.6656 and a minimum amount of INR. 5000 and a top-up of INR. 1000.  
  • HDFC Banking and PSU Debt Fund- Regular Plan – Growth OptionThese funds offer a minimum investment option of INR. 5000 and a top-up of INR. 1000. With a compound annual growth rate of 8.69% and an expense ratio of 0.71%, this fund has given a positive outlook for investors.  

Source: cleartax.in  

Few More: 

Fund Name  3 Years  5 Years 
Aditya Birla SL Savings Fund (G)  7.96%  8.50% 
ICIC Pru Savings Fund (G)  7.78%  8.35% 
UTI Treasury Advantage Fund -INST (G)  7.70%  8.25% 
Aditya Birla SL Short Term Opp Fund (G)  7.67%  8.57% 
Reliance Prime Debt Fund  7.44%  8.09% 

Source: cleartax.in  

 

Investing in mutual funds is made hassle-free and paperless at Gulaq. Start investing!  

 

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

Rating: 4.9/5. From 11 votes.
Please wait...

Leave a Reply

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept