Mutual funds are commonly viewed as tools to build long term wealth, but there are types of mutual funds which are suited for short term goals also. Mutual funds for short-term goals are investment instruments designed to cater to financial objectives with a relatively brief time horizon.
Characterised by their flexibility and liquidity, mutual funds for short-term goals aim to provide capital appreciation while minimising risk within the limited time available. These funds are structured to offer a balance between potential returns and underlying risk, aligning with the specific requirements of short-term financial objectives.
These funds are well-suited for purposes like creating an emergency fund for unanticipated expenses, saving for a planned vacation or holiday, accumulating funds for a down payment on a home, financing a vehicle purchase, setting aside money
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