I have heard about Ultra Short Term Funds to be used as a good source of one’s contingency. Are they best?
If yes then pls suggest me few.
Ultra short-term funds usually invest in debt papers which will mature within a year. They may provide an edge over liquid funds in case of returns. But they too volatile in nature (slightly more than liquid funds).
Hence, I will suggest to divide your emergency fund like 1/3 in liquid funds, 1/3 in savings account and 1/3 in eFDs of Bank. This will create more balanced and liquid approach.