However, liquid fund returns too can decline with lower interest rates. The remaining Rs.3,000 can be invested in a short-term debt fund such as Franklin India Short-term fund. I would recommend that you use about 20% of your earnings—Rs.15,000—for your retirement portfolio on a monthly basis. You can check Mint’s curated list of 50 mutual fund schemes and choose liquid funds to invest in (http://bit.ly/1TGY5e4 ). If you want a substitute for an RD with a two-year perspective, you can consider short-term debt funds such as UTI Short Term fund.

Source: Mint June 12, 2016 18:45 UTC