Published : 28 Feb 2023
Vacation is an essential goal such as retirement or child’s education, etc for many people. Mutual Funds investing can help vacationers fund their desired vacations just like investing for any other financial goal.
Let’s see how can mutual funds help:
Before investing, the investor must be very clear of his vacation goals which would include destination, when they want to go, for how long and the budget, etc.
If the trip is some time away, maybe the time horizon is more than 5 years, then one may use funds from the equity category.
Large-cap funds, multi-cap funds, and Flexi-cap funds, etc may be all well suited to help you create the required corpus. A long-time horizon allows you the ability to handle a short-term downturn in equity markets.
If the plan for the trip is in 3 to 4 years, one may use balanced advantage funds or funds from the moderate to aggressive hybrid funds category.
Meanwhile, funds from the conservative hybrid fund category and short-term mutual funds may be useful if the trip is within three years.