Any mutual fund with good returns?

ST, what happens if rather than a quick 15-20% crash to sub-5K level, it drifts slowly towards there and the upmove is sharper, lot many ifs - but still a possibility.

As an equity MF investor for more than 11 years, I would recommend putting your money into a liquid fund if you have lumpsum cash and you can as well start a SIP now. 5 years down the line you should be doing good. A SIP spanning over 2-3 years from here would be a great idea.

The biggest caveat is if you need any money before 3 years, don't invest that into equity MFs.

Which Liquid Funds would you recommend? What is your opinion regarding short term debts funds instead?

Liquid funds tend to give you the inflation returns. There is no lock-in period and no fee. you put 1 lac today and tomorrow your fund will have a value of 1000,24.10 for a fund which gives you 8.8% simple interest return. There is not much difference between liquid funds from any houses.

Good liquid funds:
Birla Sun Life Floating Rate ST - 8.79% p.a
ICICI Prudential Money Market Reg - 8.87% p.a.

Short-Term debt funds returns are subject to rate changes. They also will charge you a 0.5% exit fee if you take out your money before 3 months. Also, a little riskier ones give you more returns (9.5-10.5%) than the safe ones giving (8.5-9 %). By riskier, i mean in worst cases those funds might give you (7.5-8%) today.
Debt-funds are slightly complex instruments and won't be easy to explain here.

Good short term debt funds:
My favourite is HDFC Short Term Opportunities-G

whole list is at:
http://www.moneycontrol.com/mutual-funds/performance-tracker/returns/debt-short-term.html