Where should I invest a lumpsum of Rs 20,000 for a year?

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 invest in equity mutual funds. My suggestion would be debt funds. You haven’t mentioned your risk profile. I am assuming a conservative risk profile, since the time period is very short. If you can continue with your schemes for one complete year, I would suggest you should invest in short duration funds. Make sure to look at the portfolio of the scheme you are picking.


My recommendations for you:
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 Asset Short Term Fund – 100% AAA holding
Security Holdings –
GOI- 16.99%
NCD Bonds-61.48%
TREPS-21.58%