Want To Invest in Equity-Oriented Mutual Funds For Short Term?
As mutual fund (MF) investments – especially in equity-oriented funds – are subject to market risks.
It is advised never to invest the money that you may need at a short notice in MF schemes.
And invest only that part of money that you may spare for the long term, so that you may stay invested during the low-market cycles
Why long term?
And get a higher return by redeeming your investment during a high-market cycle.
Why long term?
As ups and downs are the innate nature of equity markets, to determine at which upcycle you should redeem.
Why long term?
It’s better to enter markets after doing a proper financial planning, so that you can redeem during an up cycle close to a financial goal.
Why long term?
To invest in a mutual fund for a short term, you should go for a suitable debt-oriented fund.
Where to invest for short term
At least 65 per cent of investments of such funds are made in debt and debt-related instruments.
Where to invest for short term
As the holding period for availing long-term tax benefits for equity funds is 1 year, you have to invest in an equity-oriented fund for the benefit.
How to avail tax benefits by investing for a shorter period