I want to make a lumpsum investment of Rs 20,000 in mutual funds for one year. What type of mutual funds should I choose? Tell me some names also.
--Sourav Singha

Puneet Oberoi, Founder, Excellent Investment Advisors, responds:

As you have a very short-term goal, you should not consider equity mutual funds. You should stick to debt funds for your short-term goals. You can consider investing in short duration funds. It is not a great idea to keep money in liquid funds as they will not give you much returns. So, my suggestion would be short duration funds. I would recommend two short duration schemes L&T Short Term Debt Fund and Mirae Short Term Fund for you. These schemes have investments in AAA-rated instruments. See below for details:

L&T Short Term Debt Fund: 100% AAA holding
Security Holdings: CD - 39.2%; Treasury bills - 2.29%; NCD & Bonds - 27.58%; CP - 22.69%; PTC - 2.05%; TREPS - 6.19%

Mirae Short Term Fund: 100% AAA holding
Security Holdings: GOI - 16.99%; NCD Bonds - 61.48%; TREPS - 21.58%