Any money that you need in the next 3 years including emergency funds, travel, medical emergency or may be just as an alternative to bank deposits, need to be preserved in value.
Ideally, no exposure to equity should be used for this time horizon.
The portfolio consists of just 2 debt funds. The portfolio is appropriate for a CONSERVATIVE risk profile for whom protection of capital is paramount.
- SBI Magnum Ultra Short Term Fund – (Weightage: 50%) – (Category: Debt – Ultra Short) – It invests in highest credit rating instruments and has a relatively low cost. It has been in existence for quite some time and is a low cost debt fund option.
- Quantum Liquid Fund – (Weightage: 50%) – (Category: Debt – Liquid) – This is the safest of the liquid fund options, takes no exposure to corporate bonds and invests only in Government Treasury Bonds. The safety of money is its first priority.
- This portfolio is a tax efficient option for those investors who are in the highest tax brackets.
- There is no guarantee of returns in any scheme and it could be volatile too.
- You may choose an alternative fund from the fund shortlist. You may also choose to increase/decrease the number of funds.
- Please read the factsheets and scheme information document carefully before investing in the funds.