How-to vacation fund short term

How to build a vacation fund using mutual funds

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Vacation fund is a near-term goal best served by debt funds (liquid / UST). Equity is risky for sub-2-year horizons; capital preservation trumps growth.

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Market-risk disclaimer. Mutual fund investments are subject to market risks. Past performance is not indicative of future returns. For sub-1-year goals, returns may not beat savings account post-tax.

Step-by-step procedure

See the procedure infobox above for the six steps.

See also

External references

References

  1. SEBI (Mutual Funds) Regulations, 1996.
  2. Income Tax Act, 1961, Sections 50AA, 112A.
  3. Finance Act, 2024.
  4. SEBI Categorisation of Mutual Fund Schemes Circular, October 2017.

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