These 5 short-term debt funds can give you high returns in 2017
Short-term funds are best for low-risk appetite investors who seek quick gains and steady flow of income without bothering about the daily movements in the bond markets.
Investing in short-term debt funds allows investors to steer clear from rising inflation and are highly liquid offering investors easy access to cash.
Further, with an increased yield in the bond market post the Monetary Policy Review on February 8, experts say it's best to avoid the long-term funds due to volatility and instead opt for short-term funds.
Here are some of the short-term debt funds schemes that can promise good returns:
1. Franklin India Low Duration Fund
Launched in February 2000, Franklin India is a open-ended income saving scheme with an asset size of Rs 1,697.30 as on December 31, 2016. The minimum investment required for this fund is Rs 10,000.
This scheme is ranked 2 under the Credit Opportunities Funds category by Crisil for the quarter ended December 31, 2016.
2. HDFC Short Term Fund
Managed by Anil Bamboli, HDFC short term fund has an asset size of Rs 3,310.53 crore as on December 31, 2016 with a minimum investment of Rs 5,000.
Launched in 2002, it has been ranked number 3 under Credit Opportunities Funds category by Crisil for quarter ended December 2016.
3. Indiabulls Short Term Fund - Regular Plan
Ranked number 5 under the Debt Short Term category by Crisil, Indiabulls Short Term Fund has a relatively small asset size of Rs 216.88 crore as on December 31, 2016 with a minimum investment of Rs 5,000.
The short-term debt has a growth of Rs 1,342.4641 and weekly dividend of Rs 1,008.5546 with a low risk grade and an average return rate.
4. Reliance Medium Term Fund
Launched in 2000, Reliance Medium Term Funds scheme is ranked 3 in Ultra Short Term Debt category by Crisil for quarter ended December 2016.
The fund has a asset size of Rs 11,333 crore as on January 31, 2017 and a record of 7.69 per cent return on investment since its launch.
The scheme has a growth of Rs 33.8392 and a weekly dividend of Rs 17.0722
5. Birla Sun Life Short Term Fund
Launched in 1997, this scheme has an average risk grade and a 9.55 per cent return on investment since its launch.
The fund has an asset size of Rs 16,992 crore as on January 31, 2017 with a growth of Rs 61.7255 and a weekly dividend of Rs 11.8344.
Birla Sun Life Short Term Fund is ranked 2 in Debt Short Term category by Crisil for quarter ended December 2016.
Here are how the above stocks performed last year: