NPS Tier II vs debt funds: The better option for short-term investing?

If you think that debt mutual funds and FDs (fixed deposits) are the only short-term investment options, think again. There's another option that you might not be aware of - NPS Tier II. NPS (National Pension Scheme) Tier II allows you to allocate 100 per cent of your money to debt securities (if you choose the 'Active' choice). What's more, they don't have a lock-in period. This means that you, the investor, can withdraw your funds at any time. So, should you pick NPS Tier II over shorter-duration debt funds, which is what we usually recommend over FDs for short-term investing? Let's find out which one reigns supreme. #1 Ease of investment It's pretty easy to invest in a debt fund. You can invest directly through the fund house's website or various intermediaries (mutual fund distributors or brokerage platforms). All you have to do is provide the necessary documents and pick the suitable fund(s). On the other