Where do fund managers invest if the mutual funds taken for the short-term?
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If an investee wants to make an investment or savings objective with a time horizon of three years or less, appropriate investment types include money market funds, certificates of deposit (CD), bond funds that invest in short-term bonds or bonds with maturities of three years or less.
However, in the case of mutual funds, these managers generally invest in debt mutual funds and analyze the market for risks in debt mutual funds. Since debt mutual funds in the long-term market are more risk-sensitive. But these managers only recommend investments that generally are beneficial for the investor and suit investor’s financial needs and goals.
These managers lookup for the debt funds that give stable returns and modest risks, make a portfolio out of these debt funds with different companies and channelize that money for short-term.
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