Investment for the smaller period with low amount of investment value for investors has promising option of Short term mutual funds, The investment period usually starts from 15 to 91 days with no hassle to look for up and down market trends, these funds give around 8% returns. In current trends, investors are choosing the short terms option over long terms due to lower risk factors and ease in reach. The recent regulatory authority updates and notices on long-term funds made them more challenging and this option have open the doors as other favorable investment option which is becoming popular not among smaller investor only but with sound and experienced investor too.
This is also an opportunity for the debutantes in financial market so they can invest some percentage of their income and get faster results in few days or month and gradually develop themselves to be ready for more bigger risk involving options which fancy profit opportunities beyond and over.
Initiating from the shorter investment funds creates the investment profile with a portfolio to have presence and returns adds this as income opportunity from smaller amount which is working for you, when you are working in your daily routine of job or business. The funds have two option to choose from Dividend options and growth option. Since these funds are very much regulated and observed and runs under authorities which controls it, One can choose the plan accordingly to get maximum benefits. In the dividend option the income tax is exempted from profit earned however in the growth plan the profits does count as income and applicable income tax is payable on it.
So with shorter maturity in assets and decent returns considering the size of investments required the segment is a prominent choice as the market is designed to cater almost all!!
Opportunities knock the doors and ask investments size may be 5000 rupees which is possible for even part-time workers and opens doors to the financial market. The big players have seen good possibilities and have designed both Dividend and growth plans very handsomely and the performance stats are overwhelming
Here is the list of best short-term mutual funds
Aditya Birla sun life short-term mutual fund – Growth
The investment can be done from 1000 rupees with a feature of the fund is net asset value of INR 65.9793 it is proving to be a prominent fund in the class of asset in money market
Aditya Birla Sun Life Treasury Optimizer Plan –– Growth
Another good choice for the investor with again Birla is giving investment starting option from 1000 INR and top of options from 1000 INR itself ration of expense is 0.59% and NAV of INR 219.08006 and the annual rate of growth is 8.31% the plan has made its way in the top lists
Aditya Birla Sun Life Short Term Opportunities Fund – Growth
Another good investment option with investment starting from INR 1000 with an expense ratio of 1.3% with a net asset value of 28.6495 proven to be a fantastic option
ICICI Prudential Banking and PSU Debt Fund Retail Growth
The plan has a minimum investment size of INR 5000 and tops up option at 20% on 1000 INR minimum it falls in fix interest rate asset class in money market the NAV is INR 18.6656 and expense ratio is 0.53% investors finds its way to go and brand is also good in backing
ICICI Prudential Short Term – Growth
The investment plan starts from INR 1000 and the matching toping up value option the net asset value is 35.946 and 1.21% as expense ratio this is also a good choice for investors
DHFL Pramerica Short Maturity Fund – Growth
The fund investment opportunities start at INR 5000 and top up at INR 1000 the yearly rate of growth is 7.89% and NAV at 31.6004 DHFL has designed it for short terms option seekers and the fund is in top performer in the segment
These are some of the best short-term mutual funds the small investors should pay attention before making the final choice. Company Vakil doesn’t endorse any of the above-said plans neither it should be seen as recommendations as one must apply a calm approach based on personal assessments and facts associated.
In an online arena research and facts checks are simpler. So you must do some online practice the online tools have made things easier to complete the process of investment in mutual funds. A good internet savvy person always understands the hassle-free online approach and makes most out of cutting-edge tools and mobile apps. The online platforms does help in giving knowledge of what minimum documents required to complete the KYC process which seems to be mandatory in any of the financial transactions. And if you feel skeptical you must not hesitate to play around with these financial tools as it will give more comprehensive knowledge. There is almost all type of financial online calculators available on good online platforms which helps you to get the stats and figures you would get in a certain period based on the size of your investment in mutual funds so your goals get clear. Generally, up to 3 years of investments are seen as short terms investments and 5 and above are seen as long terms investments. Short terms mutual funds are still a better option than having your money stuck in a savings account and generating interest from 3 to 4 % for you.
Finally in the Indian market where buying stocks or mutual funds was the perception for high class financially strong people who doesn’t get affected with challenging trends of stocks and in times of low sentiments of the market but this short terms investment which can be taken at one thousand rupees has proven to be a game changer and is a good learning step at the starting level in money market. Which suggest that it’s opening up gates for investors and this trend will only grow.
