Suggest two ultra short-term schemes to create a contingency fund

I am 31 years old. I am planning to create a contingency fund of Rs 6 lakh by investing Rs 50,000 per month for a year. Can you please suggest one or two good ultra short-term funds for a lumpsum and an SIP?
--Kapil Kumar Lalwani

A contingency fund should ideally cover your living expenses for at least six months. If you are in a profession where there is a job threat or you have young children or aged parents, you may have a higher corpus to take care of a job loss or a hospitalisation, etc. Contingency fund is typically kept in bank deposits or liquid funds which are almost risk-free. Money in them can be liquidated immediately. Bank deposits can be liquidated instantly and some liquid funds (example: from DSPBR, Reliance, ICICI Prudential, SBI, Birla Sun Life, etc) also offer instant redemption facility up to a certain limit. Even otherwise, you will get your money in a day from liquid funds.

Ultra short-term schemes are considered slightly riskier than liquid schemes, but they can offer higher returns. If you are okay with it, you may invest in ultra short-term schemes like Franklin India Ultra Short Bond Fund, Kotak Low Duration Fund, etc.