this short term duration mutual fund can be a better rewarding alternative to fixed deposits yield inflation beating returns
Other than bank fixed deposits, investors can consider parking corpus in low duration funds for better and inflation-beating returns.
As against the usual norm, wherein short-duration funds also known as low-duration funds can only beat inflation by a small margin, this fund from the house of Bank of India Mutual Fund has offered an annualised SIP return of over 11 per cent over the last years.
Here are the finer points for an investor points to note
What are short-duration funds?
For investors with a shorter investor horizon of up to 3 years and lower risk-appetite, short duration funds can offer a better return in contrast to traditional avenues like bank savings account. These funds invest in securities including certificates of deposit (CDs), short-term government as well as corporate bonds.
