The most important point to keep in mind with respect to your short-term investment portfolio is to not take risks with your money. Remember, investing in high-risk assets like equities for short time frames doesn’t amount to investing, but to speculation. Restrict your short term investment portfolio to low risk assets like arbitrage funds, liquid funds or ultra short duration funds. If you have a slightly longer time horizon of 2 years or so, you could consider equity savings funds and conservative hybrid funds as well, but that should mark the end of the risk-taking spectrum for your short term investments.