No. Mutual Funds are not short term securities.
A Mutual Fund is nothing but a common pool of money collected from a lot of people which is used by an experienced fund manager who invests the money in the Share market. Not many of us are experienced in investing directly in the Equity market. Mutual funds are a boon to the investor who doesnt have enough knowledge to invest directly in the market but wants to take a risk and gain higher returns from the market.
Government Invested Long Term Securities
The benefits of mutual funds is that they help you to diversify your investments and reduce investment risk as they invest in a wide range of securities. You can either generate regular income or create wealth in the long term.
The following two types of Mutual Funds can be considered the SafestGILT FundsThese are Mutual Funds that invest exclusively in Government Securities like Government of India Bonds, RBI Bonds etc.Example:a. Birla Sun Life GILT Plus - Regular Planb. ICICI Prudential Gilt - Investment - PF Optionc. etcDebt FundsThese are Mutual Funds that invest in Fixed Income (Debt) Instruments and aim at preserving the capital invested in them. Depending on whether they are Long-Term or Short-Term the fund manager would invest in debt securities that are either long or short term. Usually the returns in Long Term funds are marginally higher than Short Term funds.Example:a. Long Termi. Birla Sun Life Income Fundii. BNP Paribas Bond Fundiii. ICICI Prudential Long Term Fundiv. etcb. Short Termi. UTI Short Term Incomeii. BNP Paribas Short Term Incomeiii. TATA Short Term Bond Fundiv. etc
There are many different low-risk short term investments, a few of these include short term bond funds, online savings accounts, government bonds and money market mutual funds.
A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors to buy stocks, bonds, short-term money market instruments, or other securities. Some of the top rated mutual funds right now are Vanguard, Rydex, and Fidelity.
Stock, bond, and hybrid funds invest in long-term securities, and as such are known as long-term funds. Hybrid funds invest in a combination of stocks, bonds, and other securities
Government Invested Long Term Securities
These are Mutual Funds that invest in Fixed Income (Debt) Instruments and aim at preserving the capital invested in them. Depending on whether they are Long-Term or Short-Term the fund manager would invest in debt securities that are either long or short term. Usually the returns in Long Term funds are marginally higher than Short Term funds.Example:a. Long Termi. Birla Sun Life Income Fundii. BNP Paribas Bond Fundiii. ICICI Prudential Long Term Fundiv. etcb. Short Termi. UTI Short Term Incomeii. BNP Paribas Short Term Incomeiii. TATA Short Term Bond Fundiv. etc
The benefits of mutual funds is that they help you to diversify your investments and reduce investment risk as they invest in a wide range of securities. You can either generate regular income or create wealth in the long term.
Mutual funds.
The following two types of Mutual Funds can be considered the SafestGILT FundsThese are Mutual Funds that invest exclusively in Government Securities like Government of India Bonds, RBI Bonds etc.Example:a. Birla Sun Life GILT Plus - Regular Planb. ICICI Prudential Gilt - Investment - PF Optionc. etcDebt FundsThese are Mutual Funds that invest in Fixed Income (Debt) Instruments and aim at preserving the capital invested in them. Depending on whether they are Long-Term or Short-Term the fund manager would invest in debt securities that are either long or short term. Usually the returns in Long Term funds are marginally higher than Short Term funds.Example:a. Long Termi. Birla Sun Life Income Fundii. BNP Paribas Bond Fundiii. ICICI Prudential Long Term Fundiv. etcb. Short Termi. UTI Short Term Incomeii. BNP Paribas Short Term Incomeiii. TATA Short Term Bond Fundiv. etc
Money Market fund is a mutual fund that one invests in short-term debt securities. Monet market funds are almost as safe as bank deposits but they will make more money.
There are many different low-risk short term investments, a few of these include short term bond funds, online savings accounts, government bonds and money market mutual funds.
A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors to buy stocks, bonds, short-term money market instruments, or other securities. Some of the top rated mutual funds right now are Vanguard, Rydex, and Fidelity.
The mutual funds that have the best ratings include High Yield Bond, Short Term Bond, Long Term Bond, Small Growth, Financial, World Bond, Retirement, Large Growth, and Large Value.
A money market fund is an open-ended mutual fund that invests in short-term debt securities and commercial paper. Money market funds are widely regarded as being as safe as bank deposits yet providing higher yield. One can learn more about money market funds at a website called "Investopedia".
Asset allocation mutual funds are funds in which a portion of the funds are dedicated to specific stocks or bonds. With that in mind, the controller of the mutual fund ensures that funds are proportioned correctly.