- Park short term money
- Bucket to hold money for staggered investment
- Use in Systematic Transfer Plans
The most popular long term category of debt funds popularly known as Income or Bond funds have much longer tenure than liquid funds and therefore have potentially more downside as also higher returns. Those are funds we recommend you look at with at least 18 months plus investment horizon or even longer.
Income funds primarily invest in different, albeit longer-tenured instruments like corporate bonds and government securities.
Then, there is one more category of long tenure but very safe funds and that's the gilt funds; these invest primarily only in government securities.