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How can I get capital protection & better returns than FD on a short-term investment?

Dhirendra Kumar says what is the best investment option in such a scenario

I want to invest Rs 1 lakh for a period of 1 year in such a way that I earn more than fixed deposits and also get capital protection. How should I do it?
- Nisha, Delhi

Transcript: You can choose short-term debt funds to invest. This will give you better return compared to fixed deposits and without any lock-in period. Although, FDs don't have lock-in too, in the sense that you can withdraw from your FD even before the maturity date. It is expected that short-term debt funds will give better returns as compared to FD. Investing in any equity fund for this short a period might turn out to be disappointing.

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