Time horizons are periods where investments are held until they are needed. Time horizons vary according to the investment goal, short or long. Time horizons also vary according to the time by which you begin investing.

Question 17 Why do many experts recommend longer time horizons’ If you are doing high risk investments? OB A longer period of time gives you the opportunity to learn more about investing A longer time horizon means you have more time to recover any investment Ос. losses.

The time horizon problem in worker cooperatives creates a tendency to under invest in situations where there is an ageing demographic approaching retirement or members for other reasons expect to leave the coop shortly.

A longer-term investment horizon helps investors make sensible well thought-out investment decisions by focusing their attention on the bigger picture and discounting market noise. This disjoint between short-term market emotion and long-term fundamental value creates opportunities.

Overview: Best low-risk investments in 2021

1. High-yield savings accounts. While not technically an investment, savings accounts offer a modest return on your money.
2. Savings bonds.
3. Certificates of deposit.
4. Money market funds.
5. Treasury bills, notes, bonds and TIPS.
6. Corporate bonds.
7. Dividend-paying stocks.
8. Preferred stocks.

How does your time horizon affect future values? If you have your money invested for longer periods of time it will grow more, same thing with having debt for larger periods of time. You will accrue interest on the loan and will end up having to pay more, increasing your debt.

Three disadvantages of savings accounts are minimum balance requirements, lower interest rates than other accounts/investments, and federal limits on saving withdrawal. If you’re fortunate enough to have extra money for long-term goals, first, pat yourself on the back!

The longer a time horizon, the riskier a portfolio will tend to be. In this context, risk usually refers to exposure to the stock market through individual stocks or equity mutual funds. If the stock market takes a dip, a longer time horizon allows more time for the portfolio to recover.

On one end, place your age as of today; on the opposite end, identify your target age when you hope to achieve your most distant investing goal: for many people, this is retirement. The intervening years between these two ages is the time horizon you have for that future target.

1a : the line where the earth seems to meet the sky : the apparent junction of earth and sky sailing toward the horizon. b : the great circle on the celestial sphere formed by the intersection of the celestial sphere with a plane tangent to the earth’s surface at an observer’s position — see azimuth illustration.

Diversification is a risk management strategy that mixes a wide variety of investments within a portfolio. The rationale behind this technique is that a portfolio constructed of different kinds of assets will, on average, yield higher long-term returns and lower the risk of any individual holding or security.

There are four main investment types, or asset classes, that you can choose from, each with distinct characteristics, risks and benefits.

• Growth investments.
• Shares.
• Property.
• Defensive investments.
• Cash.
• Fixed interest.

Equity Funds are generally considered high risk. Large Cap funds are comparatively less risky and give more stable returns. Medium sized firms or those with small capitalization have opportunities to grow and its stock price can rise up giving high returns to the investors who invested in these shares early.

Mutual fund	5 Yr. Returns	3 Yr. Returns
ICICI Prudential Technology Fund	25.59%	32.84%
PGIM India Global Equity Opportunities Fund – Direct Plan – Growth	23.93%	32.82%
Quant Small Cap Fund – Direct Plan-Growth	20.89%	32.6%
Aditya Birla Sun Life Digital India Fund Growth	25.46%	32.31%

• Buy Apollo Tyres, target price Rs 232: ICICI Direct.
• Buy Coal India, target price Rs 185: Edelweiss.
• Buy Eris Lifesciences, target price Rs 880: ICICI Direct.
• Hold NCL Industries, target price Rs 240: ICICI Direct.
• Buy ISGEC Heavy Engineering, target price Rs 914: ICICI Securities.

Top Companies in India by Investments – BSE

Sr	Company	Investments
1	SBI Add to Watchlist Add to Portfolio	1,351,705.21
2	HDFC Bank Add to Watchlist Add to Portfolio	443,728.29
3	Reliance Add to Watchlist Add to Portfolio	347,285.00
4	Bank of Baroda Add to Watchlist Add to Portfolio	261,220.27

Blue chip funds are equity mutual funds that invest in stocks of companies with large market capitalisation. These are well-established companies with a track record of performance over some time. Blue Chip is commonly used as a synonym for large cap funds.

Best SIP Plans for 5 Years in Equity Funds

• Axis Bluechip Fund Monthly SIP Plan. This is an open-ended equity scheme with a track record of outperformance.
• ICICI Prudential Blue chip Fund.
• SBI Blue chip Fund.
• Mirae Asset Large Cap Fund.
• SBI Multicap Fund.

The table below shows the best equity funds:

Mutual fund	5 Yr. Returns	Rating
Quant Small Cap Fund – Direct Plan-Growth	20.68%
TATA Digital India Fund DIRECT Plan Growth	26.62%	NA
PGIM India Global Equity Opportunities Fund Growth	22.4%	NA
Motilal Oswal NASDAQ 100 ETF	29.66%	NA

Best Multi Cap Mutual Funds July 2021

Best Multi Cap Funds	3Y CAGR	5Y CAGR
PGIM India Flexi Cap Fund (G) Top Ranked	21.8%	18.3%
ICICI Prudential Multicap Fund (G) Top Ranked	13.7%	12.9%
SBI Large & Midcap Fund (G) Top Ranked	17.0%	15.2%
Canara Robeco Emerging Equities fund (G) Top Ranked	16.7%	17.7%

Investing in more stocks makes multi-cap funds win over large & midcap funds in terms of diversification. However, large & midcap funds can have more quality stocks than their multi-cap counterparts, resulting in greater returns for those investing in the former.

Axis Multicap is indeed an inviting prospect. A good fund manager with an impressive dossier, a low expense ratio for the direct plan (although possibly temporary) and good performance in its short history. The main problem is the possibility of rapid AUM growth thanks to banking channels.

Once you make the required investment for tax saving, you can invest in some other multi-cap funds. ELSS funds on the other hand provide tax benefit to the investor under Section 80C but your investment gets locked for three years. These funds are also multicap in nature so they offer diversification to the clients.

ELSS or Equity Linked Savings Schemes are Mutual fund investment schemes that help you save income tax. That’s why they are also known as tax-saving funds. The Income Tax Act, under section 80c, allows taxpayers to invest up to INR 1.5 lakh in specific securities and claim it as a deduction from their taxable income.

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• Icici Prudential Equity & Debt Fund Growth.
• Mirae Asset Hybrid Equity Fund Regular Growth.
• Hdfc Small CAP Fund Regular Growth.
• Kotak Standard Multicap Fund Regular Growth.
• Icici Prudential Bluechip Fund Growth.
• Axis Bluechip Fund Growth.
• Top 10 Mutual Funds.
• HDFC Mid-cap Opportunities Fund.

Top 5 Biggest Mutual Funds

• Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX)
• Fidelity 500 Index Fund (FXAIX)
• Vanguard Institutional Index Mutual Fund (VINIX)
• Fidelity Government Cash Reserves (FDRXX)
• Vanguard Federal Money Market Fund (VMFXX)

Scheme name	Percentage (%)
Axis Bluechip Fund- G	20
ICICI Prudential Equity and Debt Fund – G	15
Mirae Asset Emerging Bluechip Fund- Regular Plan -G	35
ICICI Prudential Bluechip Fund – G	35

Best SIP Plans for 1 Year Investment in FY 21 – 22

• Nippon India Ultra Short Duration Fund. (Erstwhile Reliance Liquid Fund – Cash Plan)
• ICICI Prudential Ultra Short Term Fund. (Erstwhile ICICI Prudential Regular Income Fund)
• Aditya Birla Sun Life Savings Fund.