Looking for a safe and high-liquidity investment for the short term? Ultra Short Duration Funds could be your ideal choice. These are debt mutual funds that invest in high-quality debt and money market instruments with maturities of just 3 to 6 months, providing a perfect balance of low risk and better returns than a savings account.

Low Risk: Less sensitive to interest rate fluctuations compared to long-term debt funds.

Quick Liquidity: Easily accessible funds for short-term financial goals.

Professional Management: Your money is handled by experts investing in diverse, safe instruments.

Better Returns: Typically outperform traditional savings and liquid funds.

1. Short-term investment horizon (3-6 months)
2. Low to moderate risk
3. Investments in treasury bills, corporate bonds, commercial papers
4. Slight NAV fluctuation due to interest rate changes

1. Secure and stable returns
2. Highly liquid and flexible
3. Diversified investment reduces default risk
4. Ideal for emergency funds or short-term goals

1. Returns are moderate compared to long-term debt or equity funds
2. Inflation can reduce real gains
3. Minimal credit and interest rate risk still exists

STCG:Gains held <3 years taxed as per income slab

LTCG:Gains held >3 years taxed at 20% with indexation

Dividends:Taxed in the investor's hands

Ultra Short Duration Funds are perfect for investors seeking short-term, low-risk investments with better returns than savings accounts. Whether it’s parking emergency funds or meeting near-term financial goals, they provide a smart, flexible, and professionally managed investment solution.