Are mutual funds for the long term? Not always!

Mutual funds are only for long term.

Many investors treat this myth as gospel truth.

The fact is depending on your time horizon and risk appetite you can plan even your short-term goals with mutual funds.

Take the example of Tanu. She’s been investing in equity mutual funds through Systematic Investment Plans (SIPs) for last 4-5 years for fulfilling her long-term financial goals.

But she didn’t know about liquid funds until she met a financial advisor recently.

Tanu loved surprises.

A surprise birthday party, unplanned vacation, on-the-spot plans were her favourites.

Tanu desperately wanted to throw a surprise birthday party for her son. Rohan was turning “5” in six months. However, from her monthly savings sparing Rs. 30,000 for his birthday was a big task for her.

She neither wanted to take one more personal loan nor did she wish to keep the money in a savings bank account.

If she parked money in a savings bank account, she knew she might spend it someday for meeting other family commitments.

The financial advisor suggested her to invest in liquid funds to fulfil her short-term investment objectives.

Liquid funds can generate around 6%-7% returns annually. And redeeming them would be a little more difficult than swiping a debit card or using it at an ATM, he explained.

This advice delighted Tanu. She is now going to start an SIP of Rs 5,000 in a liquid fund for next six months.

Life is about the smaller dreams, the smaller joys; chase them, live them! Kyu ki life toh sirf ek hi hai

If you too want to live your life to the fullest and fulfil your dreams- big or small, all you need is some planning and guidance from your financial advisor.

Be it a trip to Europe, gifting your spouse an electronic gadget, getting your child a play station, or any wish list you may have; simply let us know and we will help you plan it. Your happiness is just a call away. Reach us at +91 22 67547042.

“People forget years and remember Moments”- Ann Beattie

Disclaimer: Ventura Securities Ltd has taken due care and caution in compilation of data for its web blog. Information has been obtained from different sources which it considers reliable. However, Ventura Securities Ltd does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. Ventura Securities Ltd especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its web blog. The information provided herein is just for the knowledge purpose and shouldn’t be construed as investment advice under any circumstances.