Parking your short-term surpluses.

(From Indian Express)

Here is an actively managed cash fund, which has consistently outperformed its peers. With below-average expenses, this fund is a suitable candidate for parking short-term surpluses. This actively managed short-term fund has managed decent numbers in its over four-year track record. For investors looking for avenues to park short-term surpluses, Prudential-ICICI Liquid Plan offers direct credit facility through selective banks, and it honours redemption within one business day. The fund's annual returns in the first two years since launch (May 1999) saw it figure among the top 10 in its category. Till 2000, everything went fine. However, in 2001, when interest rates fell on three occasions, the market shifted interest to long-tenure bonds. As a result, the short-term bond category went out of fashion and so did this fund. Nevertheless, it still managed to beat its peers. The reason: the fund manager actively manages the portfolio-short-term corporate bonds (largely AAA), commercial paper and call money. In ...