Choose date options according to the investment period

The lack of investment options in the market is not an issue. Currently, options for investing in debt are emerging as safer and offering better returns. In the current interest rate scenario, income funds, monthly income plans, gilt funds, etc., within mutual funds, can provide good returns. These investment options within mutual funds also carry lower risks.
Fixed income is a category of investment that offers investors a balanced investment option and the freedom to choose multiple products simultaneously. This is why forward-thinking investors prefer to allocate a certain portion of their investments to fixed income products. Fixed income products, also known as debt investments or bond investments, serve two important functions for investors - cash management or short-term investment and stable balanced investment (in the case of long-term bond funds). On the other hand, there are hybrid products that primarily invest in fixed income (70 to 90 percent) and invest the rest in equity or gold or both. This is commonly known as MIP (Monthly Income Plan).
Options available for small investors in debt investments.

Fixed Deposit (Bank and Corporate Deposit)

This option of investment is the most popular. Whether small or large investors, this is their first preference. The reason is its relatively higher security. Looking at their assured returns, it's no wonder that this is one of the most important sources of deposits for commercial banks in India. Corporates also prefer to park their funds through fixed deposits instead of borrowing from banks. However, fixed deposits do not offer tax benefits like mutual funds.

Liquid Funds

These products of mutual funds are good for short-term investments. The investment structure of these products is such that funds can be withdrawn immediately when needed. Additionally, there is comparatively less volatility in their returns. Liquid funds are more suitable for those who want to invest for a period ranging from one day to one month.

Ultra Short Term Funds

These products are somewhat similar to liquid funds. Investors with shorter investment horizons prioritize them more. The investment structure is such that withdrawals are easy. Also, there is less volatility in their returns. Regarding taxation, they are better than liquid funds. Investors with an investment horizon of three weeks or more can invest in these funds.

Duration and Gilt Funds

These products invest in instruments with a medium to long-term maturity. Some investors invest considering the interest rate scenario, while some prefer to invest for the long term without taking risks associated with equity and other investments. It's suitable for risk-averse investors. In gilt funds, 100% of the investment is made in government securities. Considering the interest rate scenario, investments can be made in these funds for a period of one and a half to two years.

Short Term Income Funds

The investment horizon in these funds lies between ultra short term funds and duration funds. The main objective of these funds is regular income rather than excessive capital appreciation. By considering interest rate movements, returns can be earned for a period ranging from one month to one year.

MIP

These funds offer investors the option to invest in multiple asset classes simultaneously. While fund managers primarily invest in debt, a portion of the portfolio is invested in equity or gold or both. Investors should invest in MIP for a period of 1-2 years. Considering the current interest rate scenario and the state of the stock market, investing in income funds and MIP would be preferable as, on one hand, they can benefit from interest rate fluctuations, and on the other hand, they can benefit from capital appreciation with a small portion of investment in equity.