These are the 5 best mutual funds to invest in a 3 year financial goal

In investing, the time horizon plays a crucial role in deciding where to put your money based on your financial goal. For example, for a long-term goal like retirement, investments should be more focused on growth. In the meantime, a 3-year goal, “is short term and urgent, therefore the first thing to consider is capital protection,” says Arijit Sen, registered investment advisor at Sebi, co-founder of merrymind.com

“The interest rate is an important element, but the first condition is that the capital remains intact,” he adds.

“For such goals, one must opt ​​for debt funds, if he wants to invest in mutual funds. The main reason for this is the volatility of the market. ”

Here are the funds you invest in for a 3-year objective:

Bond Funds and Dynamic Bond Funds: For such investments, investors can actually opt for funds with a higher maturity, it can be a bond fund, it can be a dynamic bond fund.

Credit calls should always be avoided in these cases, Sens warned, reiterating the Franklin Templeton fiasco. “In the event of default, due to a separate portfolio, the investor will not be able to withdraw this money.”

These funds provided returns of between 6% and 8%.

Funds to invest in:

  • In the category of low duration funds, you can stick to the Kotak low duration fund.
  • Under ultra short term you can go with ultra short term HDFC
  • “And for people who are willing to take a little risk when it comes to the concept of risk return. Then he can switch to ICICI all-season bond funds, ”he suggested.

Arbitration funds: The investor can also turn to arbitration funds. Although it is 65% in equity, the mechanism is very different from hybrid funds. They buy in one market to sell in another. There is a gap between these two prices, which is basically a payoff.

Approximately, the investor will earn around 5-6% in an arbitrage

Funds to invest in:

  • Kotak Arbitration Fund
  • IDFC Arbitration Fund

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