Which Scheme Is Better For Short-term Investment Goals?

Which Scheme Is Better For Short-term Investment Goals?

Best Short-Term Investment Schemes

In most cases, investors asked only where should they invest their money to get high returns. Now, investors are looking for short term investment options. Savings accounts, liquid funds, RDs, NSCs, arbitrage, and FMPs are the short term investment options. These types of plans can preserve wealth not to create wealth.  Investment experts said that Equity savings funds are the better option for short-term investment goals.

It helps to avoid long term capital gain tax (LTCGT). As of the report, equity savings funds should generate high returns compared to debt mutual funds and bank deposits such as fixed deposits and recurring deposits. Investment experts suggest equity savings funds to investors who want to achieve their goals in the short-term, not more than 2 years. These funds are also suitable for retired persons because such investments have a limit exposure.

Equity savings schemes are a type of hybrid schemes. Hybrid funds are a mix of debt and equity investments. Moreover, mutual funds can invest up to 35 percent in the hybrid funds.  These funds invest in equity, debt, and arbitrage. It reduces for equity taxation, though exact exposure in the equity is low. Equity exposure holds around 25 percent in equity savings funds. The equity scheme is suitable for investors who are looking to make investments for around 1 to 2 years. 

Disclaimer: The views and investment tips are given in this section are the expert’s own and not that of the website or its management. 

0 Reviews

Write a Review

Read Previous

Mutual Funds Added 3.45 Lakh New Folios in September

Read Next

Top ‘Buy’ or ‘Sell’ ideas from experts for Friday 25 October 2019

One Comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Translate »