Purpose: Invest in Better than FD Portfolio if you want a superior alternative to Fixed Deposits. This portfolio is better compared to FD because of better returns, better liquidity and better tax implications at the cost of certain risk.
Who should invest: Risk averse investors
Ideal investment duration: 1 year to 3 years
Rationale: Since this investment is for short-term (1-3 years), it is all debt portfolio. Diversified across Ultra Short Term and Short Term. Selected Franklin India Low Duration Fund as it has high interest rate. Selected L&T Short Term Income Fund as it generates very good returns with high rated bonds.