ICICI Prudential Short Term Fund

The ICICI Prudential Short Term Fund Direct Plan-Growth is offered by ICICI Prudential Mutual Fund. Classified as a short-term debt fund, it primarily invests in instruments that align the Macaulay duration of the portfolio between 1 and 3 years. For those unfamiliar, Macaulay duration is a measure of a bond's sensitivity to interest rate changes, making it a crucial metric for such funds. This fund comes with no lock-in period.

The core mission of the fund is to generate consistent income by channelling its resources into an array of debt and money market instruments. While doing so, it ensures an optimum equilibrium among yield, safety, and liquidity, thereby attempting to offer the best of all three facets. However, as with all investments in the financial realm, it is imperative for investors to note that there's no concrete assurance or guarantee pertaining to the realisation of the scheme's objectives.

The ICICI Prudential Short-Term Fund Direct Plan-Growth is tailor-made for investors eyeing a short to medium-term horizon, specifically in the ballpark of 1.5 to 3 years. However, its flexible nature means it can be held onto for extended durations if the investor's financial goals demand so. For those opting for shorter holding periods, it's prudent to ensure the fund doesn't possess an overwhelmingly high proportion of low-rated debt instruments. However, talk to your financial advisor and do your own research before making a decision.

You can deduct ₹1.5 lakh from your taxable income by investing in an Equity Linked Savings Scheme (ELSS) through SIP, as allowed by Section 80(C) of the Income Tax Act, 1961. With a SIP in ELSS, individuals whose income is in the highest tax bracket (30%) can save about ₹45,000 annually. Plan tax-efficient investments and estimate possible returns utilising systematic investment plan calculator.