Apr 25, 2017 4 min read

Top 5 Best Short Term Mutual Funds in 2017

Find the most trending short-term funds to invest in the year 2017.
Investing for a short-term for financial stability is not at all a bad idea. But, where to invest is the biggest query you might have! While everyone thinks of planning for a longer tenure, there may come circumstances where you may have surplus money for short-term investments. In that case, you must have some best plans that can give you considerable profits. Here you will find the same.

Before we proceed towards providing you with the list of top short-term funds, we need to know do you have any short-term investment goal? If yes, then it will be very easy for you to make the right choice. But in case you don’t have any short-term goal, and you simply want to make a good income, then you can begin planning for it within an instant with the best recommendations of the short-term mutual funds in 2017 here. Our experts have listed these funds considering the major objective of creating huge finances in the short-term being two to three years.

1. L&T Infrastructure Fund

  • Best performer in the Thematic - Infrastructure sector and ranked first as per CRISIL rating for the quarter which ended in December 2016.
  • The absolute returns of the scheme have been appreciable with 63.7% being the highest in the year 2014. The annualised returns of the scheme for three and five-year returns are 27.5 and 19.6 percent respectively.
  • The allocation of the majority of the funds is in the construction, engineering, metals, and energy sectors.

2. Kotak Infrastructure and Economic Reform Fund - Standard Plan

  • It is one of the most promising Thematic - Infrastructure Funds holding the Second rank in its category for the quarter which ended in December 2016.
  • The absolute returns of the scheme in the year 2014 were 80.2%, and the annualised return for three- and five-year investments are 27.5 and 18.90 percent respectively.
  • With the majority of the fund allocation in the equity securities, the fund has allocated its funds in the engineering, construction, energy, chemicals, and service industries.

3. DSP BlackRock India T.I.G.E.R. Fund - Regular Plan

  • The scheme is ranked Third in the Thematic - Infrastructure category as per CRISIL rating and has been a notable performer for along time.
  • It has offered up to 60.4% absolute returns in the year 2014, and the annualised returns are 22.80 and 16.40 percent respectively.
  • The sector allocation of the scheme is made in the financial, construction, diversified, energy and metal industries.

4. HDFC Capital Builder Fund

  • This is a diversified fund falling in the equity category and ranked Third as per CRISIL rating for the quarter which ended in December 2016.
  • The absolute annual returns of the scheme in the past five years have been appreciable and have reached up to 51.9% in the year 2014. The annualised returns of the scheme for three- and five-year investments are 20.40 and 19 percent respectively.
  • The sector allocation graph of the scheme depicts that the majority of the investments are made in the financial, services, technology and energy sectors which are the best-performing ones.

5. Birla Sun Life Small & Midcap Fund

  • Being a small & mid cap funds from a renowned fund house, the scheme has a tremendous record in the past for a long time with an objective to offer high growth and appreciation to capital invested.
  • The absolute annual returns of the scheme have reached up to 65.7% in the past, and the annualised returns for three- and five-year investments are 33.90 and 25.30 percent respectively.
  • The portfolio of the scheme is highly effluent with major investments in financial, services, healthcare, metals, chemical, and construction industries.

Reasons for Investing

These plans are among the most guaranteed ones for short-term investing because of the following reasons:

  1. With higher expenditure in the infrastructure sector by the government, it is expected that the infra funds are going to get a boost in the upcoming time span.
  2. Engineering and capital goods sectors are further being recommended by our experts as they are among the most growing sectors in the economy for higher earnings.
  3. With the implementation of GST regime in the industry, the demand of organised sector will improvise which will further enhance the growth of economy and returns on investments in the funds.
  4. With the upcoming 7th pay commission, the consumer durable goods and automobile and ancillary products would build up the industries’ growth and will lead to generating heavy returns.


The investors who have a short-term investment horizon of around 2-3 years and want to gain considerable appreciation on their capital, must invest their money in these funds. As per their performances and records, it has been proved that they will offer remarkable profits over a short span of time.

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