Top Short-Term Mutual Funds for Investment in December 2024
Short-term mutual funds, also known as low-duration funds, are investments that invest in debt securities for a short maturity periods. Short-term mutual funds also invest in corporate bonds and government securities.
As per the SEBI norms, short-term funds have a maturity period of one and three years, which means these schemes are aimed at short-term investments lasting more than three years. The scheme is suggested for those investors who have a low-risk tolerance because the fund invests in fixed-income assets. These schemes invest in short-term bonds and very short-term ones. Short-term mutual funds. To protect their liquidity needs, invest in Treasury bills, commercial papers, certificates of deposit, and more.
If you compare this fund with liquid funds, you will experience that the returns from short-term funds are higher than liquid funds.
Investors can invest in this fund at any time, which will help them to pursue short-term financial goals.
Short-term mutual funds provide higher returns as compared to other funds that invest in securities with short maturity periods.
Top short-term funds to invest in December 2024
- HDFC Short-Term Debt Fund
- ICICI Prudential Short-Term Fund
- Axis Short-Term Fund
HDFC Short-Term Debt Fund: The fund invests in short-term debt instruments for a period of one to three years. It is a great option for those investors who are looking for better returns and less risk as compared to equity funds.
ICICI Prudential Short-Term Fund: This fund also invests in bonds with a time duration of three years.
Axis Short-Term Fund: The fund is a short-term debt scheme that invests in debt and money instruments and gives stable returns with low risk.
