A short term investment depends on the tenure that you wish to invest for. Ideally, short term falls under 0-3 years of time bracket. If you want to invest for up to 3 months, then Liquid Funds are the best. They are considered to be a better investment option compared to any other bank savings account. They provide higher returns i.e., up to 7%, also you can redeem your invested amount instantly, i.e., whenever required. If you want to invest for a year then Ultra Short Term Funds are a good option. They offer good returns than liquid funds. If you want to invest for about 3 years then Short Term Funds can be an idle option to invest.