8 Best Short Term Investment Options

Updated on January 4, 2026 , 10618 views

A short term investment is something that you would want to invest for a short duration. Well, here short term doesn’t have any fix duration, but it’s ideally a financial goal, which is less than three years. So, if you are planning to invest for a short term, here are some of the best short term investment options.

One can park this fund in short term investment options, so that it can be liquidated anytime one chooses while earning a return reward too. While Investing money for a vacation, start early to create a large corpus and focus on low risk, assured Return on Investment and high liquidity instruments.

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1. Liquid Funds

Liquid Funds invest in short-term money Market products such as treasury bills, commercial papers, term deposits, etc. Liquid funds invest in securities that have a low maturity period, usually less than 91 days. Liquid funds provide easy liquidity and are less volatile than the other types of debt instruments. Also, these are a better option than traditional Bank Savings Account. In comparison to bank account, liquid funds provide 7-8 percent of annual interest.

Investors wanting to invest in liquid funds, can choose amongst the below-mentioned Best Liquid Funds:

Fund	NAV	Net Assets (Cr)	1 MO (%)	3 MO (%)	6 MO (%)	1 YR (%)	2024 (%)	Debt Yield (YTM)	Mod. Duration	Eff. Maturity
Indiabulls Liquid Fund Growth	₹2,601.43 ↑ 0.44	₹183	0.5	1.5	2.9	6.5	6.6	5.88%	1M 20D	1M 21D
PGIM India Insta Cash Fund Growth	₹350.16 ↑ 0.06	₹557	0.5	1.4	2.9	6.5	6.5	5.96%	1M 11D	1M 13D
JM Liquid Fund Growth	₹73.3579 ↑ 0.01	₹2,851	0.5	1.4	2.8	6.4	6.4	5.91%	1M 10D	1M 14D
Axis Liquid Fund Growth	₹2,995.35 ↑ 0.52	₹37,358	0.5	1.5	2.9	6.5	6.6	5.98%	1M 9D	1M 12D
Tata Liquid Fund Growth	₹4,236.57 ↑ 0.64	₹22,790	0.5	1.5	2.9	6.5	6.5	6.04%	1M 15D	1M 15D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 6 Jan 26

Research Highlights & Commentary of 5 Funds showcased

Commentary	Indiabulls Liquid Fund	PGIM India Insta Cash Fund	JM Liquid Fund	Axis Liquid Fund	Tata Liquid Fund
Point 1	Bottom quartile AUM (₹183 Cr).	Bottom quartile AUM (₹557 Cr).	Lower mid AUM (₹2,851 Cr).	Highest AUM (₹37,358 Cr).	Upper mid AUM (₹22,790 Cr).
Point 2	Established history (14+ yrs).	Established history (18+ yrs).	Oldest track record among peers (28 yrs).	Established history (16+ yrs).	Established history (21+ yrs).
Point 3	Top rated.	Rating: 5★ (upper mid).	Rating: 5★ (lower mid).	Rating: 4★ (bottom quartile).	Rating: 4★ (bottom quartile).
Point 4	Risk profile: Low.	Risk profile: Low.	Risk profile: Low.	Risk profile: Low.	Risk profile: Low.
Point 5	1Y return: 6.52% (upper mid).	1Y return: 6.49% (bottom quartile).	1Y return: 6.38% (bottom quartile).	1Y return: 6.52% (top quartile).	1Y return: 6.49% (lower mid).
Point 6	1M return: 0.50% (top quartile).	1M return: 0.49% (bottom quartile).	1M return: 0.48% (bottom quartile).	1M return: 0.50% (upper mid).	1M return: 0.50% (lower mid).
Point 7	Sharpe: 3.30 (upper mid).	Sharpe: 3.19 (lower mid).	Sharpe: 2.52 (bottom quartile).	Sharpe: 3.40 (top quartile).	Sharpe: 3.10 (bottom quartile).
Point 8	Information ratio: -0.88 (bottom quartile).	Information ratio: -0.18 (lower mid).	Information ratio: -1.88 (bottom quartile).	Information ratio: 0.00 (top quartile).	Information ratio: 0.00 (upper mid).
Point 9	Yield to maturity (debt): 5.88% (bottom quartile).	Yield to maturity (debt): 5.96% (lower mid).	Yield to maturity (debt): 5.91% (bottom quartile).	Yield to maturity (debt): 5.98% (upper mid).	Yield to maturity (debt): 6.04% (top quartile).
Point 10	Modified duration: 0.14 yrs (bottom quartile).	Modified duration: 0.11 yrs (lower mid).	Modified duration: 0.11 yrs (upper mid).	Modified duration: 0.11 yrs (top quartile).	Modified duration: 0.13 yrs (bottom quartile).

Indiabulls Liquid Fund

Bottom quartile AUM (₹183 Cr).
Established history (14+ yrs).
Top rated.
Risk profile: Low.
1Y return: 6.52% (upper mid).
1M return: 0.50% (top quartile).
Sharpe: 3.30 (upper mid).
Information ratio: -0.88 (bottom quartile).
Yield to maturity (debt): 5.88% (bottom quartile).
Modified duration: 0.14 yrs (bottom quartile).

PGIM India Insta Cash Fund

Bottom quartile AUM (₹557 Cr).
Established history (18+ yrs).
Rating: 5★ (upper mid).
Risk profile: Low.
1Y return: 6.49% (bottom quartile).
1M return: 0.49% (bottom quartile).
Sharpe: 3.19 (lower mid).
Information ratio: -0.18 (lower mid).
Yield to maturity (debt): 5.96% (lower mid).
Modified duration: 0.11 yrs (lower mid).

JM Liquid Fund

Lower mid AUM (₹2,851 Cr).
Oldest track record among peers (28 yrs).
Rating: 5★ (lower mid).
Risk profile: Low.
1Y return: 6.38% (bottom quartile).
1M return: 0.48% (bottom quartile).
Sharpe: 2.52 (bottom quartile).
Information ratio: -1.88 (bottom quartile).
Yield to maturity (debt): 5.91% (bottom quartile).
Modified duration: 0.11 yrs (upper mid).

Axis Liquid Fund

Highest AUM (₹37,358 Cr).
Established history (16+ yrs).
Rating: 4★ (bottom quartile).
Risk profile: Low.
1Y return: 6.52% (top quartile).
1M return: 0.50% (upper mid).
Sharpe: 3.40 (top quartile).
Information ratio: 0.00 (top quartile).
Yield to maturity (debt): 5.98% (upper mid).
Modified duration: 0.11 yrs (top quartile).

Tata Liquid Fund

Upper mid AUM (₹22,790 Cr).
Established history (21+ yrs).
Rating: 4★ (bottom quartile).
Risk profile: Low.
1Y return: 6.49% (lower mid).
1M return: 0.50% (lower mid).
Sharpe: 3.10 (bottom quartile).
Information ratio: 0.00 (upper mid).
Yield to maturity (debt): 6.04% (top quartile).
Modified duration: 0.13 yrs (bottom quartile).

2. Ultra Short Term Funds

Ultra short duration funds invest in fixed Income instruments which have a Macaulay duration between three to six months. Ultra short-term funds help investors avoid interest rate risks and also offer better returns compared to liquid Debt fund. Macaulay duration measures how long it will take the scheme to recoup the investment

Here are some of the best performing ultra short term funds to invest:

Fund	NAV	Net Assets (Cr)	1 MO (%)	3 MO (%)	6 MO (%)	1 YR (%)	2024 (%)	Debt Yield (YTM)	Mod. Duration	Eff. Maturity
Aditya Birla Sun Life Savings Fund Growth	₹566.614 ↑ 0.06	₹24,129	0.4	1.4	3.1	7.3	7.4	6.66%	5M 23D	6M 18D
UTI Ultra Short Term Fund Growth	₹4,365.99 ↑ 0.52	₹4,788	0.4	1.3	2.8	6.6	6.6	6.53%	5M 9D	6M 2D
BOI AXA Ultra Short Duration Fund Growth	₹3,252.75 ↑ 0.46	₹166	0.4	1.3	2.6	6.4	6.5	6.24%	4M 6D	4M 13D
Indiabulls Ultra Short Term Fund Growth	₹2,021.64 ↑ 0.84	₹18	0.2	0.8	1.5	4.2		3.23%	1D	1D
ICICI Prudential Ultra Short Term Fund Growth	₹28.5926 ↑ 0.00	₹19,738	0.4	1.4	3	7	7.1	6.55%	4M 13D	5M 26D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 6 Jan 26

Research Highlights & Commentary of 5 Funds showcased

Commentary	Aditya Birla Sun Life Savings Fund	UTI Ultra Short Term Fund	BOI AXA Ultra Short Duration Fund	Indiabulls Ultra Short Term Fund	ICICI Prudential Ultra Short Term Fund
Point 1	Highest AUM (₹24,129 Cr).	Lower mid AUM (₹4,788 Cr).	Bottom quartile AUM (₹166 Cr).	Bottom quartile AUM (₹18 Cr).	Upper mid AUM (₹19,738 Cr).
Point 2	Oldest track record among peers (22 yrs).	Established history (22+ yrs).	Established history (17+ yrs).	Established history (14+ yrs).	Established history (14+ yrs).
Point 3	Top rated.	Rating: 4★ (upper mid).	Rating: 4★ (lower mid).	Rating: 4★ (bottom quartile).	Rating: 3★ (bottom quartile).
Point 4	Risk profile: Moderately Low.	Risk profile: Moderately Low.	Risk profile: Moderately Low.	Risk profile: Moderately Low.	Risk profile: Moderate.
Point 5	1Y return: 7.32% (top quartile).	1Y return: 6.62% (lower mid).	1Y return: 6.40% (bottom quartile).	1Y return: 4.17% (bottom quartile).	1Y return: 7.04% (upper mid).
Point 6	1M return: 0.40% (bottom quartile).	1M return: 0.43% (top quartile).	1M return: 0.41% (lower mid).	1M return: 0.24% (bottom quartile).	1M return: 0.43% (upper mid).
Point 7	Sharpe: 3.69 (top quartile).	Sharpe: 1.99 (lower mid).	Sharpe: 1.20 (bottom quartile).	Sharpe: 0.98 (bottom quartile).	Sharpe: 3.17 (upper mid).
Point 8	Information ratio: 0.00 (top quartile).	Information ratio: 0.00 (upper mid).	Information ratio: 0.00 (lower mid).	Information ratio: 0.00 (bottom quartile).	Information ratio: 0.00 (bottom quartile).
Point 9	Yield to maturity (debt): 6.66% (top quartile).	Yield to maturity (debt): 6.53% (lower mid).	Yield to maturity (debt): 6.24% (bottom quartile).	Yield to maturity (debt): 3.23% (bottom quartile).	Yield to maturity (debt): 6.55% (upper mid).
Point 10	Modified duration: 0.48 yrs (bottom quartile).	Modified duration: 0.44 yrs (bottom quartile).	Modified duration: 0.35 yrs (upper mid).	Modified duration: 0.00 yrs (top quartile).	Modified duration: 0.37 yrs (lower mid).

Aditya Birla Sun Life Savings Fund

Highest AUM (₹24,129 Cr).
Oldest track record among peers (22 yrs).
Top rated.
Risk profile: Moderately Low.
1Y return: 7.32% (top quartile).
1M return: 0.40% (bottom quartile).
Sharpe: 3.69 (top quartile).
Information ratio: 0.00 (top quartile).
Yield to maturity (debt): 6.66% (top quartile).
Modified duration: 0.48 yrs (bottom quartile).

UTI Ultra Short Term Fund

Lower mid AUM (₹4,788 Cr).
Established history (22+ yrs).
Rating: 4★ (upper mid).
Risk profile: Moderately Low.
1Y return: 6.62% (lower mid).
1M return: 0.43% (top quartile).
Sharpe: 1.99 (lower mid).
Information ratio: 0.00 (upper mid).
Yield to maturity (debt): 6.53% (lower mid).
Modified duration: 0.44 yrs (bottom quartile).

BOI AXA Ultra Short Duration Fund

Bottom quartile AUM (₹166 Cr).
Established history (17+ yrs).
Rating: 4★ (lower mid).
Risk profile: Moderately Low.
1Y return: 6.40% (bottom quartile).
1M return: 0.41% (lower mid).
Sharpe: 1.20 (bottom quartile).
Information ratio: 0.00 (lower mid).
Yield to maturity (debt): 6.24% (bottom quartile).
Modified duration: 0.35 yrs (upper mid).

Indiabulls Ultra Short Term Fund

Bottom quartile AUM (₹18 Cr).
Established history (14+ yrs).
Rating: 4★ (bottom quartile).
Risk profile: Moderately Low.
1Y return: 4.17% (bottom quartile).
1M return: 0.24% (bottom quartile).
Sharpe: 0.98 (bottom quartile).
Information ratio: 0.00 (bottom quartile).
Yield to maturity (debt): 3.23% (bottom quartile).
Modified duration: 0.00 yrs (top quartile).

ICICI Prudential Ultra Short Term Fund

Upper mid AUM (₹19,738 Cr).
Established history (14+ yrs).
Rating: 3★ (bottom quartile).
Risk profile: Moderate.
1Y return: 7.04% (upper mid).
1M return: 0.43% (upper mid).
Sharpe: 3.17 (upper mid).
Information ratio: 0.00 (bottom quartile).
Yield to maturity (debt): 6.55% (upper mid).
Modified duration: 0.37 yrs (lower mid).

3. Low Duration Funds

The scheme will invest in debt and money market securities with a Macaulay duration between six to 12 months. Low duration funds have a higher maturity duration than liquid and Ultra Short Term fund. Risk-averse investors can invest in this scheme for a short period and earn better returns than that bank savings account. These funds generally offer steady and stable returns.

Here are some of the best low duration funds to invest:

Fund	NAV	Net Assets (Cr)	3 MO (%)	6 MO (%)	1 YR (%)	3 YR (%)	2024 (%)	Debt Yield (YTM)	Mod. Duration	Eff. Maturity
PGIM India Low Duration Fund Growth	₹26.0337 ↑ 0.01	₹104	1.5	3.3	6.3	4.5		7.34%	6M 11D	7M 17D
Baroda Pioneer Treasury Advantage Fund Growth	₹1,600.39 ↑ 0.30	₹28	0.7	1.2	3.7	-9.5		4.07%	7M 17D	8M 1D
ICICI Prudential Savings Fund Growth	₹562.733 ↑ 0.10	₹31,023	1.5	3.1	7.7	7.7	7.7	6.69%	8M 12D	1Y 4M 17D
UTI Treasury Advantage Fund Growth	₹3,667.24 ↑ 0.50	₹3,184	1.4	3	7.5	7.4	7.5	6.68%	9M 29D	1Y 22D
Bandhan Low Duration Fund Growth	₹39.7739 ↑ 0.00	₹7,046	1.3	2.7	7.1	7.1	7.2	6.37%	10M 12D	11M 19D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 29 Sep 23

Research Highlights & Commentary of 5 Funds showcased

Commentary	PGIM India Low Duration Fund	Baroda Pioneer Treasury Advantage Fund	ICICI Prudential Savings Fund	UTI Treasury Advantage Fund	Bandhan Low Duration Fund
Point 1	Bottom quartile AUM (₹104 Cr).	Bottom quartile AUM (₹28 Cr).	Highest AUM (₹31,023 Cr).	Lower mid AUM (₹3,184 Cr).	Upper mid AUM (₹7,046 Cr).
Point 2	Established history (18+ yrs).	Established history (16+ yrs).	Oldest track record among peers (23 yrs).	Established history (18+ yrs).	Established history (19+ yrs).
Point 3	Top rated.	Rating: 5★ (upper mid).	Rating: 4★ (lower mid).	Rating: 4★ (bottom quartile).	Rating: 4★ (bottom quartile).
Point 4	Risk profile: Moderate.	Risk profile: Moderately Low.	Risk profile: Moderately Low.	Risk profile: Moderately Low.	Risk profile: Moderately Low.
Point 5	1Y return: 6.30% (bottom quartile).	1Y return: 3.74% (bottom quartile).	1Y return: 7.66% (top quartile).	1Y return: 7.49% (upper mid).	1Y return: 7.11% (lower mid).
Point 6	1M return: 0.47% (top quartile).	1M return: 0.21% (bottom quartile).	1M return: 0.39% (upper mid).	1M return: 0.38% (lower mid).	1M return: 0.32% (bottom quartile).
Point 7	Sharpe: -1.66 (bottom quartile).	Sharpe: 0.37 (bottom quartile).	Sharpe: 3.04 (top quartile).	Sharpe: 2.81 (upper mid).	Sharpe: 2.22 (lower mid).
Point 8	Information ratio: 0.00 (top quartile).	Information ratio: 0.00 (upper mid).	Information ratio: 0.00 (lower mid).	Information ratio: 0.00 (bottom quartile).	Information ratio: 0.00 (bottom quartile).
Point 9	Yield to maturity (debt): 7.34% (top quartile).	Yield to maturity (debt): 4.07% (bottom quartile).	Yield to maturity (debt): 6.69% (upper mid).	Yield to maturity (debt): 6.68% (lower mid).	Yield to maturity (debt): 6.37% (bottom quartile).
Point 10	Modified duration: 0.53 yrs (top quartile).	Modified duration: 0.63 yrs (upper mid).	Modified duration: 0.70 yrs (lower mid).	Modified duration: 0.83 yrs (bottom quartile).	Modified duration: 0.87 yrs (bottom quartile).

PGIM India Low Duration Fund

Bottom quartile AUM (₹104 Cr).
Established history (18+ yrs).
Top rated.
Risk profile: Moderate.
1Y return: 6.30% (bottom quartile).
1M return: 0.47% (top quartile).
Sharpe: -1.66 (bottom quartile).
Information ratio: 0.00 (top quartile).
Yield to maturity (debt): 7.34% (top quartile).
Modified duration: 0.53 yrs (top quartile).

Baroda Pioneer Treasury Advantage Fund

Bottom quartile AUM (₹28 Cr).
Established history (16+ yrs).
Rating: 5★ (upper mid).
Risk profile: Moderately Low.
1Y return: 3.74% (bottom quartile).
1M return: 0.21% (bottom quartile).
Sharpe: 0.37 (bottom quartile).
Information ratio: 0.00 (upper mid).
Yield to maturity (debt): 4.07% (bottom quartile).
Modified duration: 0.63 yrs (upper mid).

ICICI Prudential Savings Fund

Highest AUM (₹31,023 Cr).
Oldest track record among peers (23 yrs).
Rating: 4★ (lower mid).
Risk profile: Moderately Low.
1Y return: 7.66% (top quartile).
1M return: 0.39% (upper mid).
Sharpe: 3.04 (top quartile).
Information ratio: 0.00 (lower mid).
Yield to maturity (debt): 6.69% (upper mid).
Modified duration: 0.70 yrs (lower mid).

UTI Treasury Advantage Fund

Lower mid AUM (₹3,184 Cr).
Established history (18+ yrs).
Rating: 4★ (bottom quartile).
Risk profile: Moderately Low.
1Y return: 7.49% (upper mid).
1M return: 0.38% (lower mid).
Sharpe: 2.81 (upper mid).
Information ratio: 0.00 (bottom quartile).
Yield to maturity (debt): 6.68% (lower mid).
Modified duration: 0.83 yrs (bottom quartile).

Bandhan Low Duration Fund

Upper mid AUM (₹7,046 Cr).
Established history (19+ yrs).
Rating: 4★ (bottom quartile).
Risk profile: Moderately Low.
1Y return: 7.11% (lower mid).
1M return: 0.32% (bottom quartile).
Sharpe: 2.22 (lower mid).
Information ratio: 0.00 (bottom quartile).
Yield to maturity (debt): 6.37% (bottom quartile).
Modified duration: 0.87 yrs (bottom quartile).

4. Money Market Fund

The money market fund invests in many markets such as commercial/treasury bills, commercial papers, Certificate of Deposit and other instruments specified by the Reserve Bank of India (RBI). These investments are a good option for risk-averse investors who want to earn good returns in short duration. This debt scheme will invest in money market instruments having a maturity up to one year.

Here are some of the best Money market funds to invest:

Fund	NAV	Net Assets (Cr)	3 MO (%)	6 MO (%)	1 YR (%)	3 YR (%)	2024 (%)	Debt Yield (YTM)	Mod. Duration	Eff. Maturity
Aditya Birla Sun Life Money Manager Fund Growth	₹382.365 ↑ 0.05	₹32,599	1.4	2.9	7.3	7.5	7.4	6.32%	5M 23D	5M 26D
UTI Money Market Fund Growth	₹3,188.58 ↑ 0.47	₹22,198	1.5	3	7.4	7.5	7.5	6.19%	4M 12D	4M 12D
ICICI Prudential Money Market Fund Growth	₹392.294 ↑ 0.07	₹35,579	1.4	2.9	7.4	7.5	7.4	6.15%	3M 17D	3M 25D
Kotak Money Market Scheme Growth	₹4,640.56 ↑ 0.70	₹37,667	1.4	2.9	7.3	7.4	7.4	6.2%	4M 24D	4M 24D
Franklin India Savings Fund Growth	₹51.8528 ↑ 0.01	₹4,422	1.4	2.9	7.4	7.4	7.4	6.17%	3M 14D	3M 22D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 6 Jan 26

Research Highlights & Commentary of 5 Funds showcased

Commentary	Aditya Birla Sun Life Money Manager Fund	UTI Money Market Fund	ICICI Prudential Money Market Fund	Kotak Money Market Scheme	Franklin India Savings Fund
Point 1	Lower mid AUM (₹32,599 Cr).	Bottom quartile AUM (₹22,198 Cr).	Upper mid AUM (₹35,579 Cr).	Highest AUM (₹37,667 Cr).	Bottom quartile AUM (₹4,422 Cr).
Point 2	Established history (20+ yrs).	Established history (16+ yrs).	Established history (19+ yrs).	Established history (22+ yrs).	Oldest track record among peers (23 yrs).
Point 3	Top rated.	Rating: 4★ (upper mid).	Rating: 4★ (lower mid).	Rating: 4★ (bottom quartile).	Rating: 3★ (bottom quartile).
Point 4	Risk profile: Low.	Risk profile: Low.	Risk profile: Low.	Risk profile: Low.	Risk profile: Moderately Low.
Point 5	1Y return: 7.32% (bottom quartile).	1Y return: 7.43% (top quartile).	1Y return: 7.40% (lower mid).	1Y return: 7.33% (bottom quartile).	1Y return: 7.40% (upper mid).
Point 6	1M return: 0.44% (bottom quartile).	1M return: 0.48% (lower mid).	1M return: 0.49% (upper mid).	1M return: 0.46% (bottom quartile).	1M return: 0.49% (top quartile).
Point 7	Sharpe: 3.16 (top quartile).	Sharpe: 3.06 (upper mid).	Sharpe: 2.82 (bottom quartile).	Sharpe: 2.87 (lower mid).	Sharpe: 2.80 (bottom quartile).
Point 8	Information ratio: 0.00 (top quartile).	Information ratio: 0.00 (upper mid).	Information ratio: 0.00 (lower mid).	Information ratio: 0.00 (bottom quartile).	Information ratio: 0.00 (bottom quartile).
Point 9	Yield to maturity (debt): 6.32% (top quartile).	Yield to maturity (debt): 6.19% (lower mid).	Yield to maturity (debt): 6.15% (bottom quartile).	Yield to maturity (debt): 6.20% (upper mid).	Yield to maturity (debt): 6.17% (bottom quartile).
Point 10	Modified duration: 0.48 yrs (bottom quartile).	Modified duration: 0.37 yrs (lower mid).	Modified duration: 0.30 yrs (upper mid).	Modified duration: 0.40 yrs (bottom quartile).	Modified duration: 0.29 yrs (top quartile).

Aditya Birla Sun Life Money Manager Fund

Lower mid AUM (₹32,599 Cr).
Established history (20+ yrs).
Top rated.
Risk profile: Low.
1Y return: 7.32% (bottom quartile).
1M return: 0.44% (bottom quartile).
Sharpe: 3.16 (top quartile).
Information ratio: 0.00 (top quartile).
Yield to maturity (debt): 6.32% (top quartile).
Modified duration: 0.48 yrs (bottom quartile).

UTI Money Market Fund

Bottom quartile AUM (₹22,198 Cr).
Established history (16+ yrs).
Rating: 4★ (upper mid).
Risk profile: Low.
1Y return: 7.43% (top quartile).
1M return: 0.48% (lower mid).
Sharpe: 3.06 (upper mid).
Information ratio: 0.00 (upper mid).
Yield to maturity (debt): 6.19% (lower mid).
Modified duration: 0.37 yrs (lower mid).

ICICI Prudential Money Market Fund

Upper mid AUM (₹35,579 Cr).
Established history (19+ yrs).
Rating: 4★ (lower mid).
Risk profile: Low.
1Y return: 7.40% (lower mid).
1M return: 0.49% (upper mid).
Sharpe: 2.82 (bottom quartile).
Information ratio: 0.00 (lower mid).
Yield to maturity (debt): 6.15% (bottom quartile).
Modified duration: 0.30 yrs (upper mid).

Kotak Money Market Scheme

Highest AUM (₹37,667 Cr).
Established history (22+ yrs).
Rating: 4★ (bottom quartile).
Risk profile: Low.
1Y return: 7.33% (bottom quartile).
1M return: 0.46% (bottom quartile).
Sharpe: 2.87 (lower mid).
Information ratio: 0.00 (bottom quartile).
Yield to maturity (debt): 6.20% (upper mid).
Modified duration: 0.40 yrs (bottom quartile).

Franklin India Savings Fund

Bottom quartile AUM (₹4,422 Cr).
Oldest track record among peers (23 yrs).
Rating: 3★ (bottom quartile).
Risk profile: Moderately Low.
1Y return: 7.40% (upper mid).
1M return: 0.49% (top quartile).
Sharpe: 2.80 (bottom quartile).
Information ratio: 0.00 (bottom quartile).
Yield to maturity (debt): 6.17% (bottom quartile).
Modified duration: 0.29 yrs (top quartile).

5. Short Term Funds/Short Duration Funds

Short duration funds mainly invest in Commercial Papers, Certificate of Deposits, Money Market Instruments, etc, with a Macaulay duration of one to three years. They may provide a higher level of return than ultra-short-term and liquid funds but will be exposed to higher risks.

Here are some of the best money market funds to invest:

Fund	NAV	Net Assets (Cr)	3 MO (%)	6 MO (%)	1 YR (%)	3 YR (%)	2024 (%)	Debt Yield (YTM)	Mod. Duration	Eff. Maturity
PGIM India Short Maturity Fund Growth	₹39.3202 ↓ 0.00	₹28	1.2	3.1	6.1	4.2		7.18%	1Y 7M 28D	1Y 11M 1D
ICICI Prudential Short Term Fund Growth	₹62.1225 ↓ -0.01	₹23,473	1.3	2.7	7.8	7.7	8	7.06%	2Y 3M 22D	4Y 3M 11D
Nippon India Short Term Fund Growth	₹54.3886 ↓ -0.01	₹9,809	1.1	2.4	7.7	7.5	7.9	7.02%	2Y 7M 24D	3Y 3M 4D
Aditya Birla Sun Life Short Term Opportunities Fund Growth	₹49.05 ↑ 0.01	₹10,812	1.3	2.6	7.6	7.5	7.7	7.02%	2Y 9M 11D	3Y 6M 7D
UTI Short Term Income Fund Growth	₹32.617 ↑ 0.01	₹3,374	1	2.3	7.3	7.4	7.3	6.84%	2Y 9M 18D	3Y 6M 18D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 29 Sep 23

Research Highlights & Commentary of 5 Funds showcased

Commentary	PGIM India Short Maturity Fund	ICICI Prudential Short Term Fund	Nippon India Short Term Fund	Aditya Birla Sun Life Short Term Opportunities Fund	UTI Short Term Income Fund
Point 1	Bottom quartile AUM (₹28 Cr).	Highest AUM (₹23,473 Cr).	Lower mid AUM (₹9,809 Cr).	Upper mid AUM (₹10,812 Cr).	Bottom quartile AUM (₹3,374 Cr).
Point 2	Established history (22+ yrs).	Oldest track record among peers (24 yrs).	Established history (23+ yrs).	Established history (22+ yrs).	Established history (18+ yrs).
Point 3	Top rated.	Rating: 4★ (upper mid).	Rating: 4★ (lower mid).	Rating: 4★ (bottom quartile).	Rating: 4★ (bottom quartile).
Point 4	Risk profile: Moderate.	Risk profile: Moderate.	Risk profile: Moderately Low.	Risk profile: Moderate.	Risk profile: Moderate.
Point 5	1Y return: 6.08% (bottom quartile).	1Y return: 7.84% (top quartile).	1Y return: 7.68% (upper mid).	1Y return: 7.61% (lower mid).	1Y return: 7.26% (bottom quartile).
Point 6	1M return: 0.43% (top quartile).	1M return: 0.18% (upper mid).	1M return: -0.06% (bottom quartile).	1M return: 0.03% (bottom quartile).	1M return: 0.06% (lower mid).
Point 7	Sharpe: -0.98 (bottom quartile).	Sharpe: 1.72 (top quartile).	Sharpe: 1.53 (upper mid).	Sharpe: 1.49 (lower mid).	Sharpe: 1.25 (bottom quartile).
Point 8	Information ratio: 0.00 (top quartile).	Information ratio: 0.00 (upper mid).	Information ratio: 0.00 (lower mid).	Information ratio: 0.00 (bottom quartile).	Information ratio: 0.00 (bottom quartile).
Point 9	Yield to maturity (debt): 7.18% (top quartile).	Yield to maturity (debt): 7.06% (upper mid).	Yield to maturity (debt): 7.02% (lower mid).	Yield to maturity (debt): 7.02% (bottom quartile).	Yield to maturity (debt): 6.84% (bottom quartile).
Point 10	Modified duration: 1.66 yrs (top quartile).	Modified duration: 2.31 yrs (upper mid).	Modified duration: 2.65 yrs (lower mid).	Modified duration: 2.78 yrs (bottom quartile).	Modified duration: 2.80 yrs (bottom quartile).

PGIM India Short Maturity Fund

Bottom quartile AUM (₹28 Cr).
Established history (22+ yrs).
Top rated.
Risk profile: Moderate.
1Y return: 6.08% (bottom quartile).
1M return: 0.43% (top quartile).
Sharpe: -0.98 (bottom quartile).
Information ratio: 0.00 (top quartile).
Yield to maturity (debt): 7.18% (top quartile).
Modified duration: 1.66 yrs (top quartile).

ICICI Prudential Short Term Fund

Highest AUM (₹23,473 Cr).
Oldest track record among peers (24 yrs).
Rating: 4★ (upper mid).
Risk profile: Moderate.
1Y return: 7.84% (top quartile).
1M return: 0.18% (upper mid).
Sharpe: 1.72 (top quartile).
Information ratio: 0.00 (upper mid).
Yield to maturity (debt): 7.06% (upper mid).
Modified duration: 2.31 yrs (upper mid).

Nippon India Short Term Fund

Lower mid AUM (₹9,809 Cr).
Established history (23+ yrs).
Rating: 4★ (lower mid).
Risk profile: Moderately Low.
1Y return: 7.68% (upper mid).
1M return: -0.06% (bottom quartile).
Sharpe: 1.53 (upper mid).
Information ratio: 0.00 (lower mid).
Yield to maturity (debt): 7.02% (lower mid).
Modified duration: 2.65 yrs (lower mid).

Aditya Birla Sun Life Short Term Opportunities Fund

Upper mid AUM (₹10,812 Cr).
Established history (22+ yrs).
Rating: 4★ (bottom quartile).
Risk profile: Moderate.
1Y return: 7.61% (lower mid).
1M return: 0.03% (bottom quartile).
Sharpe: 1.49 (lower mid).
Information ratio: 0.00 (bottom quartile).
Yield to maturity (debt): 7.02% (bottom quartile).
Modified duration: 2.78 yrs (bottom quartile).

UTI Short Term Income Fund

Bottom quartile AUM (₹3,374 Cr).
Established history (18+ yrs).
Rating: 4★ (bottom quartile).
Risk profile: Moderate.
1Y return: 7.26% (bottom quartile).
1M return: 0.06% (lower mid).
Sharpe: 1.25 (bottom quartile).
Information ratio: 0.00 (bottom quartile).
Yield to maturity (debt): 6.84% (bottom quartile).
Modified duration: 2.80 yrs (bottom quartile).

6. Bank Fixed Deposits

Bank fixed deposits can be one of the best short term investment options, as these are secure investments. Also, many banks provide better interest rates on FDs, which typically Range from 3% to 9.25% per annum. Investors can park their money for a minimum period of 7 days to a maximum of 10 years.

A similar option to Bank FD is Recurring deposit, which is equally effective for short term investment. If you have a habit of saving monthly, then Bank Recurring Deposits are a good option to go. They have a minimum of six months to a maximum of a decade’s tenure. Their interest rates are around 8% per annum.

7. Savings Account

A savings account is the most popular short term investment option in India. Also, it’s the safest and easiest way to access your money. If you invest your money in savings account, you can get around 4% to 7% of the return. However, interest rates may vary bank to bank. One can deposit and withdraw their money as per their convenience and requirements.

8. Fixed Maturity Plans

Fixed Maturity Plan (FMP) is offered by Mutual Funds, which invest in money market and debt instruments. These funds come up with lock-in period varying from a month up to three years. Unlike FDs, you cannot withdraw your money in FMPs before the maturity period. However, FMPs are more tax efficient than FDs, and you can also expect better returns.

Conclusion

Every investor has their own choice of instruments with regards to their goals. In order to invest in the short term Investment plan, one should calculate the amount, risks, tenure, interest rates and liquidity that comes along with each instrument. Since you are planning a short term investment, you should make a smart choice with instruments that have a low risk. Invest Now and make your short term goals successful!

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Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.