I am seeking your inputs on how to manage cash positions. I am hoping to find a better way of managing cash than through FDs. I was managing cash through debt schemes of NPS Tier 2. But, the recent correction in bond markets suggest this is not exactly a risk-free instrument. My expectations from an ideal cash management instrument are:
Better post tax returns than FDs
Less liquid than FDs. With proliferation of internet banking FDs can be liquidated within mins. Any instrument that provides better returns than FD should have some trade off and I expect my ideal cash management instrument .to be less liquid than FD (perhaps 3-4 days required to liquidate it).
Associated risk at par or slightly less than FDs.
Google search throws few solutions. But, I am sure solutions of valuepickr members will be much better than those generic answers. I hope my post adds value to this esteemed forum and initiates a healthy discussion on cash management aspect of capital allocation.