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You must know about the liquid fund investments. People generally invest in them for meeting any uncertainty or maintaining liquidity in their investments. They help to tackle any uncertain situation where you face financial instability and require emergency funding. If you know this, then you will easily understand the concept of short-term debt funds. They are not purely liquid, nor do they have features same as liquid funds. But, if someone defines them in a simple concept, then they are considered as the funds which have slightly extended tenure not more than long-term debts and provide a regular income option. Here are some of the top short term debt funds which promise good returns:
Kotak Flexi Debt - Plan A: It is a fund from Kotak Mahindra Mutual Fund which was launched on May 26, 2008. It has managed to provide good returns to its investors in the short term. It’s an open-ended fund with the total assets under management amounting to Rs. 1,623 crore as on October 31, 2017. One can choose this fund to achieve the objective of maximum returns in the short term period as it highly invests in the cash and money market instruments. It has recorded the return since launch at 8.67%, which shows its potential of providing higher returns.
ICICI Prudential Banking & PSU Debt Fund: One more star in the category of short term debt funds is this scheme of ICICI Prudential Mutual Fund. Launched in the year 2010, it has recorded returns since launch at 8.91% which is an excellent result in the short term debt fund. You can start investing in this fund with a minimum amount of Rs. 5,000. It invests almost 49.35% of the total assets into the SOV instruments which are known for their safety, i.e., no risk.
Aditya Birla Sun Life Treasury Optimizer Fund - Regular Plan: In the space of short term debt income fund, this scheme has also showcased its excellent capability to provide healthy returns to its investors. Its trailing three and five-years returns have been recorded at 9.29% & 9.88% as on November 14, 2017. The prime motive of this fund is to generate higher returns with maintaining stability by investing in the debt and money market instruments with relatively low levels of interest rate risks. The scheme has the total assets under management amounting to Rs. 8,324 crore as on October 31, 2017.
On a final note, you can choose any one of the best short term debt funds mentioned above to attain your objectives of generating high returns in the short-term. You can compare these funds to know about the most suitable one as per your investment plans. ‘Compare and Invest’ feature is also available online on various portals like MySIPonline where you can easily compare any scheme to choose the best one for you.