In the fast-paced world of investments, short-term mutual funds have gained popularity as a go-to option for those seeking to park their money for a brief period, ranging from 15 days to three months. These funds offer an attractive alternative to traditional savings accounts and fixed deposits, providing better yields while maintaining a relatively low level of risk. Forbes Advisor India has meticulously analyzed the landscape of short-term mutual funds and presents its top picks for 2023. Join us on this financial journey as we explore the best short-term mutual funds for investors in India.
Short-term mutual funds, as the name suggests, allocate capital to assets with maturities ranging from a fortnight to three months (91 days, to be exact). On average, these funds are capable of delivering returns of around 8%, making them an appealing choice for investors with a short-term horizon. One of the key advantages of short-term mutual funds is their flexibility, allowing investors to withdraw their funds without any obligatory lock-in periods.
Expense Ratio: 0.37% 3-Year Return: 6.91% 5-Year Performance: 6%
Expense Ratio: 0.39% 3-Year Return: 5.66% 5-Year Performance: 6.83%
Expense Ratio: 0.45% 3-Year Return: 5.87% 5-Year Performance: 5.81%
Expense Ratio: 0.25% 3-Year Return: 5.07% 5-Year Performance: 5.93%
Short-term mutual funds are ideal for investors with a short investment horizon. These funds offer a balance between risk and returns, making them suitable for first-time investors. Forbes Advisor India's top picks for 2023 provide a range of options to consider for your short-term investment needs.