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Thursday, January 31, 2019

So can I invest now, for my vacation 8 months later?

So can I invest now, for my vacation 8 months later?

Articles about Mutual Funds are usually written for planning to achieve certain long term specific goals, and investors assume that other goals, especially short term cannot be achieved.

Let us break this myth with an example.

Ramesh, a travel junkie got to satisfy his wanderlust, when the company he worked for achieved success and rewarded its employees with bonuses.

With his bonus Ramesh decided to go on a Europe trip, but his work on a big and prestigious project was incomplete and approaching its deadline. The project would end in the next eight months.

The exact date of Ramesh’s trip is yet to be finalized. Looking at his expenses- some money needs to be spent before and some during the trip. Uncertainty regarding the exact dates on which how much money is to be paid is there.

Certain Mutual Fund schemes are ideal for such cases.

Ideally Ramesh should park these savings into a liquid fund to take them out on any working day. Money will be in his account the day after he submits a request for withdrawal. Ramesh can even request for withdrawal through an SMS or App.

Planning for even short term goals becomes convenient with this.

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