A short-term mutual fund is considered a better and less-risky investment option to put your extra money and get consistent higher returns.

Invest in these short duration mutual funds in 2022 to tide over the uncertainties on interest rate hikes

What are short-duration mutual funds? 

Short-term mutual funds are one of the best investment options for investors created to give them the flexibility to invest in the stock market without doing hours of research, analysis, and stock picking. The funds are selected by experienced fund managers and experts. The average duration of these types of investments is one year or less than a year.

Why should you invest in these?

Short-term mutual funds are considered among the ideal investment option for investors who have a shorter investment goal of a year or less. To invest your extra money, you might choose these funds rather than traditional bank savings to get substantially higher returns.

What are the best short-term mutual funds to invest in India 2022:

One of the most popular short-term investment options in India is liquid funds. Government bonds, corporate bonds, and commercial papers are among the debt securities that liquid funds invest in. In comparison to other short-term investing options, they provide great liquidity, minimal risk, and comparatively high profits.

And on the other hand, Ultra short-term funds are also a good short-term investment option that invests in comparable asset classes, but its maximum holding period is only 90 days.

Related: What are the different types of mutual funds?

Best liquid funds to invest in 2022

Best liquid funds to invest in 2022

Ultra short-term funds to invest in 2022

Ultra short-term funds to invest in 2022


Short-term mutual funds are considered among the best investment option for those who are seeking consistent income, first-time mutual funds investors, and those with a minimal capacity for interest rates and volatility. Short-term investments provide consistent earnings at a low level of risk. These funds can be chosen as an alternative to other short-term securities. In this article, we have mentioned some of the most popular mutual funds that you might consider.

Also, you can check the List of mutual funds with a consistent performance in this volatile market situation.

Disclaimer: This article is for general information and should not be construed as insurance, investment, tax, or legal advice. You should separately obtain independent advice when making decisions in these areas.