Which is the best tool to invest for short-term 1-2 years or park your emergency fund?

[Varuns]

Which is the best tool to invest for short-term 1-2 years or park your emergency fund?

Fixed Deposits (Short-Term FDs)
Liquid Mutual Funds
Treasury Bills (T-Bills)
Post Office Term Deposits
Short-Term Debt Mutual Funds
Sweep-In Fixed Deposits
Arbitrage Funds

 

[TaxWiser]

Which is the best tool to invest for short-term 1-2 years or park your emergency fund?

Fixed Deposits (Short-Term FDs)
Liquid Mutual Funds
Treasury Bills (T-Bills)
Post Office Term Deposits
Short-Term Debt Mutual Funds
Sweep-In Fixed Deposits
Arbitrage Funds

I personally prefer to park my Emergency funds as follows:

• 50% - FD in my Primary Bank(HDFC)
• 20% - FD in Small Finance Bank
• 30% - Savings A/C

Short-Term Investment(1- 1.5 years):

• 40% - AWI + E&G Smallcase
• 30% - Mutual funds & ETFs
• 30% - FDs in Small Finance Bank

Note: This is not an Investment Advice. Always Take your Financial Decisions based on your own Risk Appetite & DYOR