You know that you have to invest in debt schemes to achieve your short-term goals that are below five years. These funds invest mostly in very short-term debt securities and a small portion in longer-term debt securities. These funds invest across all classes of debt and money market instruments with varying maturities. They are ideal for investors who want to leave the job of taking a call on interest rates to the fund manager. Therefore, if you want to maximise returns, invest in debt schemes with a minimum investment horizon of three years.

Source: Economic Times October 27, 2016 07:40 UTC