Mutual funds are the most trusted tool for generating wealth in the financial market. However, there are still many myths that surround mutual funds. Money9 Helpline hosted Viral Bhatt of Money Mantra to help debunk such myths and explain the facts. Edited excerpts.
Anuj Pawar: I want to invest in mutual funds but I want to book the returns in 2-3 years only. Should mutual funds be considered only for long-term investing?
Bhatt: You can consider mutual funds for short-term goals. But don’t opt for equities then. Choose debt instruments. Check volatility and interest rate movements for selecting debt funds. You can choose a combination of ultra-short-term funds, liquid funds, etc. If your tenure is 2-3 years, there is a conservative debt category that you can consider.
Viral Joshi: If I have lower NAVs, then will there be higher chances of return or higher NAVs will yield lesser chances of returns
Bhatt: This is a myth that if the units in NAVs are higher then there will be lower returns. It does not work like that. You should continue investing in NAVs based on your time, objective, and risks.
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