Is investing in UTI Floating Rate Short Term Fund good for building an emergency corpus

Yes, It is okay to invest in UTI FLOATING RATE SHORT TERM FUND GROWTH to build your emergency corpus fund. But, UTI LIQUID CASH FUND would be a better option. Liquid funds invests in securities with residual maturity of upto 91 days and therefore, these are less risky compared to Short Term Funds due to lower maturity period. Ideally investment in Short Term Funds should be for a period of minimum 6 – 12 months. Since you want to build a emergency corpus and you may need it anytime, Liquid Funds would be a better option. Moreover, UTI LIQUID CASH FUND is a better managed fund with 4 Star rating compared to UTI Floating Rate Short Term Fund which has a 2 Star Rating by Valueresearch.