Want to build an emergency corpus? These debt funds come with a good track record
Low risk short term debt fund categories that can help your emergency corpus to grow and generate return over and above the banks’ savings and fixed deposits
Building an emergency corpus is an essential part of financial planning. It comes in handy when you have sudden and unexpected expenses in life. Experts suggest to keep aside at least six months of your monthly income. Aside from savings accounts and bank fixed deposits, debt funds are also a good parking vehicle for an emergency corpus. There are low risk short term debt fund categories that can help your corpus to grow and generate return over and above the banks’ savings and fixed deposits. These include liquid funds, ultra short term funds, low duration funds, money market funds and short duration funds.
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You can easily liquidate the units of debt mutual funds and get the money in your account in one-day. Interestingly, two debt funds categories (liquid and overnight funds) provide instant redemption facility wherein you get the money in your accounts in minutes. Typically, you can redeem up to Rs 50,000 or 90% of your portfolio in liquid funds per day. Only few MFs offer this facility, though, currently. Here we compiled top performing schemes from the short term debt funds include liquid funds, ultra short term funds, low duration funds, money market funds and short duration funds. Schemes were shortlisted based on the rolling returns and Sortino ratio. Keep in mind that these debt schemes do not guarantee returns. Though, they are the least volatile of all MF schemes. Source: ACEMF.
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Nippon India Liquid Fund Category: Liquid Fund Corpus: Rs 24,687 crore Fund managers: Anju Chhajer, Siddharth Deb and Kinjal Desai
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DSP Liquidity Fund Category: Liquid Fund Corpus: Rs 12,654 crore Fund managers: Kedar Karnik and Karan Mundra
Aditya Birla SL Savings Fund Category: Ultra Short Duration Fund Corpus: Rs 15,041 crore Fund managers: Kaustubh Gupta, Sunaina da Cunha and Monika Gandhi
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SBI Magnum Ultra Short Duration Fund Category: Ultra Short Duration Fund Corpus: Rs 13,324 crore Fund managers: Ultra Short Duration and R. Arun
