What are the best investment options for 3-6 months with maximum returns?
For a short period, you can either park your money in liquid mutual funds or ultra short term debt mutual funds
What are the best investment options for 3-6 months with maximum returns?
Jay Sharma, Kanpur
For a short period of 3 to 6 months, you can either park your money in liquid mutual funds or ultra short term debt mutual funds. Liquid mutual funds usually invest in government securities and certificate of deposits of up to 3 months duration. You can easily enter and exit at any point of time, usually without an exit load. Please note that sometimes the redemption may take around 2 days. These funds have posted around 4-7 per cent post tax. Ultra-short term funds invest in slightly longer term debt instruments with maturity of more than 91 days and less than 1.5 years. They may also levy an exit load for investors who redeem units within a specified period.