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If you're looking for the best investment plans for one year, you have a short-term investment horizon. A short-term mutual fund has an investment duration of less than three years. They are also known as liquid funds and are ideal for short-term investments. When it comes to investments with short-term horizons, capital protection is essential as there isn't much time to recover if the market changes.
By investing in them, users are able to park their money in a ready-to-use form rather than putting their money in other instruments that may lock their money up for a longer time period. A low-risk investor can invest in these funds without having to deal with equity. Comparatively, these schemes offer good returns despite being relatively lower than long-term funds. Read this article to discover the best investment plan or best mutual funds to invest in India if short-term funds sound appealing to you.
The returns from mutual funds held for longer than a specified period are known as long-term capital gains on mutual funds. Mutual funds pool money from several investors to invest in bonds, stocks, or company shares. To maximise profits for investors, professional fund managers oversee these investments. While Investors get regular dividends, they also profit from capital gains.
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