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Short-term Investment

For a short duration investment, consider short-term debt funds. They are safer & liquid…`

I am accumulating some amount for the purchase of my house, which I intend to buy 6 months or 1 year down the line. I want you to suggest an instrument that will be comparatively safer for such a short duration of time.
-Navin

For such a short duration when you might need your money in a couple of months, don’t even think of investing in equities or long-term bonds. Consider a short-term debt fund, which will give you superior returns than your bank savings account and will be just as liquid.



This article was originally published on July 26, 2012.

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