Managing that Extra Amount


Staff member
Hello Friends,

I am looking at investing for short to medium term. Basically this is extra cash & dont want to invest in equity market.

Can you suggest couple of MFs (debt, arbitrage) where the capital is safe & post tax returns better than FD?

I have short listed following

HDFC HI Short Term

Templeton India ST Income Ret-G

There is always an element of luck involved while choosing mutual funds.

A fund that performed well last year may not perform well this year and vice versa.

If you are sure that short-term debt funds are the type of funds you need, you can select any of the top performers and invest.

UTI SPrEAD looks very interesting.

It has given good returns for the last few quarters and that too with minimal risk.

It has been the best performer in arbitrage funds category.

It should be a good investment for medium-term.

UTI SPrEAD has an exit load of 0.5% if an investor withdraws before 180 days.

A very short-term investment in UTI SPrEAD may not make much sense.
Thanks Alchemist for quick reply.

Honestly speaking i don't know much about debt funds.

I chose the above after reading through some articles for short term investment cum capital protection & looking at the performance in the past.

I too think UTI Spread is good bet but it depends on arbitrage opportunities in the market.

Do you have any suggestions for any other options?


Staff member
Honestly speaking i don't know much about debt funds.
same here.

I have never invested in debt funds and so don't have any first-hand experience.

my opinions are only based on what I read on the internet and hear on CNBC TV18...:D.

maybe you can look at floating rate funds:

I am not really sure if these can outperform fixed deposits, but if rates start to go up, floating rate funds may give you a small additional return.

(I don't see a rate hike in immediate future and rates may stay low for another 4-6 months).
it is really difficult to find this out without making an investment.

i asked my bank & they started running after me for SIP's or invest in ULIP's!!! Same band aid for all kind of problems. :motz: