Mutual funds, short-term savings

5 Sep

On several occasions, questions have been generated about what can be done when we have a capital, the answer was always to consider a fixed-term deposit when there is a window of time greater than one year, but the question that remains in the air is : What happens if the time with which this money is going to be counted is less? Then we would have to consider a short-term investment.

For these cases we could see two main options

money cash

The aforementioned term deposits and mutual funds.  The first is an interesting alternative but we must consider that being in a short term (between 30 to 360 days) the interest rates are low compared to if it was being placed in a longer term. In addition, if we have the need to dispose of it, we will have to wait for the term in which we have deposited it to end.
On the other hand we can see a mutual fund in the short term, this financial instrument unlike the previous ones is managed by a Mutual Funds Management Company (SAF), but what benefits can we find attractive to choose this option?
To answer the previous question, we can find the following:

Low risk, due to the type of investments made by SAF for short-term funds. Low initial minimum investment that allows you to enter a fund in order to have a good return.

Minimum term of low stay

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This can usually be between 3 to 7 days allowing us to rescue our investment and have it available to cover any need that may appear. An important one is that while we are in the investment period, in addition if we have an additional balance, we can include it without our initial capital being punished.

These advantages are those that can allow that when choosing, we see mutual funds as an option, we must think about it when we are saving for an initial fee, to pay a car in cash or when raising money for a vacation.