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Short-term funds and ultra short-term funds are both types of mutual funds that invest in debt securities with a maturity period of less than one year. However, the key difference between the two is the duration of the underlying securities.

Short-term funds typically invest in debt securities with a maturity of up to 3 years, while ultra short-term funds invest in debt securities with a maturity of up to 1 year. This means that ultra short-term funds have a lower interest rate risk as compared to short-term funds, but they also offer slightly lower returns.

Both short-term and ultra short-term funds are ideal for investors who want to park their money for a short period of time and earn a steady return on their investment without taking on too much risk.

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Financial Advisor : Jiten Sarkar

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