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Ultra short term funds Smart Savings Account

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Sushil Finance
Ultra short term funds Smart Savings Account

It helps investors avoid interest rate risks, yet they are riskier but also offer better returns than most money market instruments.

This investing strategy tends to offer higher yields than money market instruments, with less price fluctuations than a typical short-term fund.

If investment made in lump sum amount in an equity fund, it is better instead of putting everything in the equity fund at one time, money can be invested in an ultra short-term fund (of the same fund house or other fund house through SWP) and then give instructions to switch a regular sum every month to your equity fund also for systematic transfer plans (STPs).

Investment in debt and money- market securities

Wide range of instruments - Predominantly AAA /AA+, while taking selective exposure to non AAA bonds with a rating floor of AA-.

Portfolio contains Certificates of deposits, treasury bills, commercial papers, and corporate bonds etc.

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