If you are looking for investing money for a short time without risk, a short term debt fund should be your choice. They are suitable for a period of 1-3 years of investment. Such funds invest in short term corporate debt papers, CDs, money market and G-Secs etc.

Birla Sun Life Treasury Optimizer Fund is one of the best short term debt fund that has consistently performed better than other funds in the same category. Launched in 2002, the fund has given 1-3% higher than Fixed Deposits (FD) on YoY basis.

How we arrived at this fund?

  • Renowned Fund House – Birla Sun Life is amount Top 5 fund house – check
  • Long history record – Fund is operation since last 14 years – check
  • Size of the fund – Fund is neither too small nor too big, 5k+ Crores – check
  • Consistent performance – Highest historical returns for the similar volatility among the category

Other checklist

  • Ranking: Rated 5 star by VRO, ranked 2 by CRISIL in short-term debt category
  • Fund Manager: Kaustubh Gupta managing Fund since 2009
  • Quality of the portfolio [49% Sovereign and 36% AAA]
  • Exit load – Nil

What are the risk?

  • Similar to equities, debt funds are subject to market condition. Unlike equities, debt fund risks are linked to market interest rate and credit rating of the borrower. In the interest rate risk, the volatility varies with term. Therefore, short term debt can be considered low to moderate risk investment option.

Who should buy Birla Sun Life Treasury Optimizer Fund?

  • Looking to park your money for couple of quarters without high risk
  • Want higher than FD returns and ok with not having assured returns