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Good Short-term Debt Funds

Short-term debt funds might not perform the way they have last year, but they remain stable offerings…

I’ve received Rs 25 lakh as my final EPF settlement. I want to park this money in short-term debt funds for about 1 year. Please suggest 3 funds to invest in. I would like to invest Rs 10 lakh in 2 funds and Rs 5 lakh in 1 fund?
-M Chandrashekhar

We would like to first caution you that the kind of returns that short-term debt funds have earned in the past year may not be available in the coming year. The past year was unusual in the sense that interest rates remained high all through the year, which is why short-term debt funds were able to deliver their best performance of the past decade. However, the same might not get repeated. But these funds are still fairly stable funds. You can invest in Templeton India Short Term Income Fund, UTI Short Term Income and IDFC SSI Short Term fund.

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