New Delhi, Feb. 3 -- If you have short-term financial goals and aspire to invest in a low risk mutual fund, then there are specific categories of the same designed to ensure capital conservation and liquidity during tough times.

These funds generally invest in low risk instruments for example: treasury bills, money market securities among other similar instruments. Thus making them suitable for both capital conservation along with parking additional capital for low risk investors.

While these funds cater to different risk-return profiles, investors must align choices with their objectives. Always assess tax implications, as gains from debt funds are taxed as per your income slab, while equity-oriented funds like Arbitrage Funds have dis...