List Of Best Mutual Funds For Short Term For 3 Months English

List Of Best Mutual Funds For Short Term For 3 Months

The below table shows a list Of the Best Mutual Funds For the Short Term For 3 Months based on AUM, NAV, and minimum SIP.

NameAUM (Cr)NAVMinimum SIP (Rs)
ICICI pru nifty next 50 index fund4443.5558.39500
DSP India T.I.G.E.R Fund3363.58307.82100
Invesco India PSU Equity Fund842.3767.65500
DSP World Gold FoF729.2519.33100
Aditya birla sl gold fund293.0621.871000

Content:

Short Term Mutual Funds Meaning

Short-term mutual funds are investment vehicles that focus on securities with short maturity periods, typically less than three years. They aim to provide investors with higher liquidity and lower risk, making them suitable for meeting near-term financial goals or as a temporary place to park cash.

These funds typically invest in government bonds, treasury bills, and commercial paper. By focusing on short-duration securities, they offer stability and quick access to funds, minimizing the impact of market volatility on the investment.

Short-term mutual funds are particularly appealing to conservative investors or those needing funds for imminent expenses. They offer a balance between earning returns and maintaining easy access to invested capital, all while keeping risk at a manageable level.

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Best Mutual Fund For Short Term For 3 Months In India

The table below shows the best Mutual funds for the Short Term For 3 Months In India based on the lowest to highest expense ratio.

NameExpense Ratio (%)Minimum SIP (Rs)
Aditya birla sl gold fund0.151000
ICICI pru nifty next 50 index fund0.3500
Invesco India PSU Equity Fund0.93500
DSP India T.I.G.E.R Fund1.12100
DSP World Gold FoF1.74100

Mutual Fund For Short Term For 3 Months

The table below shows Mutual Fund For Short Term For 3 Months based on the Highest 3Y CAGR. 

NameCAGR 3Y (Cr)Minimum SIP (Rs)
Invesco India PSU Equity Fund41.79500
DSP India T.I.G.E.R Fund39.76100
ICICI pru nifty next 50 index fund23.15500
Aditya birla sl gold fund13.181000
DSP World Gold FoF-1.75100

Best Mutual Fund For Short Term For 3 Months

The table below shows Best Mutual Fund For Short Term For 3 Months based on exit load, i.e., the fee that the AMC charges investors when they exit or redeem their fund units.

NameAMCExit Load (%)
ICICI pru nifty next 50 index fundICICI Prudential Asset Management Company Limited0
DSP World Gold FoFDSP Investment Managers Private Limited0
Invesco India PSU Equity FundInvesco Asset Management Company Pvt Ltd.1
DSP India T.I.G.E.R FundDSP Investment Managers Private Limited1
Aditya birla sl gold fundAditya Birla Sun Life AMC Limited1

Mutual Funds For Short Term For 3 Months

The table below shows Mutual Funds For Short Term For 3 Months based on Absolute 1-Year Return and AMC.

NameAMCAbsolute Returns – 1Y (%)
Invesco India PSU Equity FundInvesco Asset Management Company Pvt Ltd.89.02
DSP India T.I.G.E.R FundDSP Investment Managers Private Limited76.39
ICICI pru nifty next 50 index fundICICI Prudential Asset Management Company Limited64.45
Aditya birla sl gold fundAditya Birla Sun Life AMC Limited17.19
DSP World Gold FoFDSP Investment Managers Private Limited-1.03

Who Should Invest In  Best Mutual Funds For 3 Months in the Short Term?

Individuals seeking a very short-term investment option for surplus cash should consider the best mutual funds for a 3-month period. These funds are ideal for investors looking to earn returns slightly better than traditional savings accounts while maintaining high liquidity and low risk.

Investors who have an upcoming financial obligation, such as a down payment or a large purchase, can benefit from these funds. They provide a safe place to grow funds on a very short timeline without the volatility associated with longer-term investments.

Additionally, these funds are suitable for conservative investors who prefer not to expose their capital to significant market fluctuations. They serve as a temporary parking area for funds, offering better accessibility and flexibility compared to fixed deposits or other more rigid short-term investment vehicles.

How To Invest in the  Mutual Funds For Short Term For 3 Months?

To invest in mutual funds for a short term of three months, start by identifying funds with a focus on short-duration securities. Evaluate their performance, risk level, and management fees. Utilize an online brokerage platform or a financial institution to make the investment easily and securely.

Next, complete any necessary KYC (Know Your Customer) procedures required by the brokerage or financial platform. Ensure you understand the terms, especially regarding redemption policies and any associated fees, as these can impact your returns over such a short period.

Finally, monitor the performance of your investment closely during the three-month period. Short-term investments can be sensitive to sudden market changes, so staying informed will allow you to react swiftly if the economic landscape shifts or if your financial goals change.

Performance Metrics Of Mutual Funds For Short Term For 3 Months

Performance metrics for mutual funds targeting a short term of three months include yield, return rate, and expense ratio. Additionally, liquidity and the fund’s ability to manage volatility are crucial for assessing its suitability for such a brief investment period.

Yield is a key indicator, showing the immediate income potential of the fund. High yields are attractive for short-term investments, but it’s important to balance yield with risk. Investors should compare the yield against similar funds to evaluate competitiveness and potential financial gains.

The expense ratio also plays a significant role; lower ratios are preferable since high fees can significantly diminish returns over a short duration. Additionally, liquidity is vital, ensuring that investors can access their funds without substantial penalties or delays, which is crucial for short-term needs.

Benefits of Investing in Best Mutual Funds For Short Term For 3 Months

The main benefits of investing in the best mutual funds for a short term of three months include high liquidity, lower risk, and potential for modest returns. These funds provide a safe option for temporarily parking surplus cash with better yields than traditional savings accounts.

  • Rapid Returns Ready: Short-term mutual funds are designed to provide returns over a brief period, making them perfect for investors looking for quick financial gains. These funds can outperform traditional savings accounts, offering a more profitable option for cash that isn’t needed immediately.
  • Liquidity Lux: These funds offer high liquidity, which means you can access your invested money quickly and easily. This feature is crucial for those who may need to pull out funds at short notice without facing hefty penalties or lengthy processes.
  • Safety Shield: Investing in short-term mutual funds carries lower risk compared to stocks or long-term bond investments. This makes them an attractive option for conservative investors or those new to the market who are looking for stable, secure investment avenues.
  • Fee Favorability: Typically, short-term mutual funds have lower expense ratios than more specialized or longer-term funds. Lower fees mean more of your investment goes towards earning returns, rather than covering administrative costs.
  • Flexibility Feature: These funds often allow investors to start with minimal investment amounts and offer options to add or withdraw funds periodically. This flexibility is beneficial for managing cash flow effectively while still participating in the investment market.

Challenges Of Investing In Mutual Funds For Short Term For 3 Months

The main challenges of investing in mutual funds for a short term of three months include relatively lower returns due to conservative investment strategies and the impact of fees, which can significantly eat into profits, especially given the short investment horizon.

  • Quick Turnaround Quirks: Investing for only three months means any entry or exit fees, along with regular management fees, disproportionately impact overall returns. Even a small percentage fee can take a significant chunk out of the earnings from such a brief investment period.
  • Earnings Efficiency Issue: Due to their conservative nature, short-term mutual funds generally yield lower returns compared to more aggressive, longer-term investments. This limitation can be frustrating for investors looking to maximize their earnings in a short window.
  • Interest Rate Sensitivity: Short-term funds are particularly sensitive to interest rate fluctuations. A sudden increase can depreciate bond values within the funds, affecting the net asset value and potentially leading to losses.
  • Market Timing Mistakes: The short duration increases the risk associated with market timing. Incorrect timing when entering or exiting these investments can lead to suboptimal performance, which is more impactful over shorter investment periods.
  • Limited Growth Opportunities: With only a three-month window, there’s a narrow scope for capital appreciation. Investors might miss out on the higher growth potentials typically associated with longer-term investment horizons.

Introduction to List Of Best Mutual Funds For Short Term For 3 Months

ICICI pru nifty next 50 index fund

ICICI Prudential Nifty Next 50 Index Direct-Growth, a Large Cap Index mutual fund scheme, is offered by ICICI Prudential Mutual Fund. This fund has been operational for 11 years and 4 months, since its inception on January 1, 2013.

The ICICI Pru Nifty Next 50 Index Fund, an Index Fund category, has Assets Under Management (AUM) of Rs. 4443.55 Cr. It boasts a 5-year Compound Annual Growth Rate (CAGR) of 64.45%. The fund has an exit load of 64.45% and an expense ratio of 0.3. It is classified under the Very High-risk category by SEBI. The fund primarily invests in equity, constituting 99.83% of its portfolio, with a minor allocation of 0.17% in cash and equivalents.

DSP India T.I.G.E.R Fund

DSP India T.I.G.E.R Fund is an Equity Linked Savings Scheme (ELSS) from DSP Mutual Fund. The fund has been operational for 11 years and 4 months, since its inception on January 1, 2013.

The DSP India T.I.G.E.R Fund falls under the Sectoral Fund – Infrastructure category, with an Assets Under Management (AUM) of Rs. 3363.58 cr. It features a 5-year Compound Annual Growth Rate (CAGR) of 76.39%. The fund has an exit load of 76.39 and an expense ratio of 1.12. According to SEBI, it is classified in the Very High-risk category. The actual rights portfolio comprises 0.09% cash and equivalents, and 93.78% equity, with a total of 6.13% in other assets.

Invesco India PSU equity fund

The Invesco India PSU Equity Fund Direct-Growth, a Thematic-PSU mutual fund offering from Invesco Mutual Fund, has been operational for 11 years and 4 months since its inception on January 1, 2013.

The Invesco India PSU Equity Fund, categorized as a Thematic Fund, manages Assets Under Management (AUM) of Rs. 842.37 cr. It has achieved a 5-year Compound Annual Growth Rate (CAGR) of 89.02%. The fund imposes an exit load of 89.02 and maintains an expense ratio of 0.93. It is rated as Very High risk by SEBI. The asset composition includes Cash & Equivalents at 3.05% and Equity at 96.95% of the total portfolio.

DSP World Gold FoF

The DSP World Gold FoF Direct Plan-Growth is an international mutual fund scheme offered by DSP Mutual Fund. This fund has been active for 11 years and 4 months, with its inception date on January 1, 2013.

The DSP World Gold FoF, part of the FoFs – Gold category, holds an Assets Under Management (AUM) of Rs. 729.25 cr. It reports a 5-year Compound Annual Growth Rate (CAGR) of -1.03%. The fund has an exit load of -1.03 and an expense ratio of 1.74. SEBI classifies it as a Very High-risk fund. The actual allocation includes 1.02% in Cash & Equivalents and 98.98% in Mutual Funds.

Aditya Birla Sun Life Gold Fund

The Aditya Birla Sun Life Gold Fund Direct-Growth is a mutual fund focused on gold and precious metals, offered by Aditya Birla Sun Life Mutual Fund. This fund has been operational for 11 years and 4 months, since its inception on January 1, 2013.

The Aditya Birla SL Gold Fund, which is in the FoFs – Gold category, has an Assets Under Management (AUM) of Rs. 293.06 cr. It has a 5-year Compound Annual Growth Rate (CAGR) of 17.19%. The fund’s exit load is set at 17.19 and it has an expense ratio of 0.15. It is classified in the High-risk category by SEBI. The portfolio consists of 1.44% in cash and equivalents, and 98.56% is allocated to mutual funds.

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Best Mutual Funds For Short Term For 3 Months – FAQ

1. Which are the Best Mutual Funds For Short Term For 3 Months?

Best Mutual Funds For Short Term For 3 Months #1: ICICI pru nifty next 50 index fund
Best Mutual Funds For Short Term For 3 Months #2: DSP India T.I.G.E.R Fund
Best Mutual Funds For Short Term For 3 Months #3: Invesco India PSU equity fund
Best Mutual Funds For Short Term For 3 Months #4: DSP World Gold FoF
Best Mutual Funds For Short Term For 3 Months #5: Aditya Birla Sl Gold fund

These funds are listed based on the Highest AUM.

2. What are the Top Mutual Funds For Short Term For 3 Months?

For short-term investments over 3 months, consider ICICI Pru Nifty Next 50 Index Fund, DSP India T.I.G.E.R Fund, Invesco India PSU Equity Fund, DSP World Gold FoF, and Aditya Birla SL Gold Fund. These funds offer diversification across different sectors and assets, catering to varied risk appetites and investment objectives.

3. Can I Invest In Mutual Funds For A Short Term For 3 Months?

Yes, you can invest in mutual funds for a short term of three months. These funds are designed for investors seeking quick liquidity and minimal risk exposure. They’re ideal for parking surplus cash with an aim to earn modest returns over a very short investment period.

4. Is It Good To Invest In Mutual Funds For Short Term For 3 Months?

Investing in mutual funds for a short term of three months can be beneficial if you seek quick liquidity and minimal risk. However, the returns are typically modest and fees can impact profits significantly. It’s best suited for temporary cash placement rather than long-term growth objectives.

5. How To Invest in the Mutual Funds For Short Term For 3 Months?

To invest in short-term mutual funds for three months using Alice Blue, first set up an account and complete the KYC process. Research and select mutual funds with strong short-term performance. Invest through Alice Blue’s platform, and ensure you understand the terms and fees associated with your investment.

Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.

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